Theme 2; Industrial and Agricultural Change 1917-85
2a: Towards a Command Economy 1917-28
Nationalisation of Industry
-Lenin’s economic policies went through a series of radically different phases.
(which reflected the problems of Russia and Lenin’s beliefs)
-nationalisation was a revolutionary response to an unprecedented set of
problems.
One key problem; Lenin facing uncertainity about what a communist economy
would entail, as Marx was vague about the nature of a future communist
society.
Also Russia had serious economic problems. The Russian economy was
unsophisticated and backwards. (reconstruction needed to promote economic
growth)
So Lenin needed to rebuild the economy to ensure it was strong enough to
defend a socialist revolution and also maybe feed the people.
He argued that the revolution HAD destroyed capitalism indeed but the
economy was just not strong enough to start building socialism.
So state capitalism.
State Capitalism
-Lenin’s state capitalist economy was based on the nationalisation of industry.
-Nationalisation ended capitalism by taking inudstry away from middle-class
owners.
-All nationalised industries run by the Veshenka (economic experts)
who: ensured factories were properly managed by placing them under
specialists
coordinated economic production to meet needs of society
Extreme Unpopularity: there was very little difference between state
capitalism and life before the revolution. Thus it was rejected in favour of the
workers’ control. (Lenin ignored)
Land Reform
In order to win support and stimulate agriculture, land reform was introduced.
Large estates belonging tot the Church and aristocrats were broken up
Peasants allowed to own the land they worked (extremely popular)
War Communism
,-created as a series of emergency economic measures to ensure communist
victory in the civil war.
-embodied aspects of communist ideology
-some believed it was a step towards a true communist economy
Was to ensure: high levels of industrial production for war goods
An efficient allocation of workers
Food production to feed workers, soldiers and civilian population
Measures of War Communism
Food Dictatorship Labour Discipline Abolition of Market
-grain requisitioning -working day 11hrs -money abolition
-rationing -work compulsory -trade abolition
between all able-bodied -complete
people of 16-50yrs nationalisation
-harsh punishments to -conscription
ones caught slacking
These measures destoryed the power of the capitalist class and was a step
cloer to socialism. (Lenin and Bukharin)
Consequences
1. Economic Collapse
Grain requisitioning-->lower rates of agri production as peasants were not
paid for their grain nor labour thus the policy provided no incentive to work.
-Industrial production-->significant decline. There were few incentives to work
hard. +Hunger led many workers flee the city and seek work on farms where
there was chance of being fed
=Industrial workforce from 3m to 1.2m
=Agri production from 100 to 60
2. Growth of Black Market
-The extensive economic controls--> failure to abolish the market.
[historians estimate only 40% of consumed food came from rationing during
civil war. The rest was from the black market]
-Workers forced to steal gov resources to make goods that could be bartered
for food.
3. Mass poverty
-russian economy was near collapse, as there were shortages of all type of
commodities.
, -unemployment rose
-harvests declined futher
-in rural areas famine began [6m dead people]
4. Political Crisis
Mass starvation+ the economic crisis= Political crisis.
-Peasants in Tambov rebelled against the communist gov
-Sailors in Kronstadt turned against the government demanding a return to
free trade and new multiparty elections to soviets.
-->Communists responded with extreme force, defending their gov with
military action.
This made Lenin realise that War Communism had to come to an end.
W.C did lead to military victory but at the expense of the economy. In that
sense it was only an ideological win.
Many communists believed that WC was the expected foundatio on which
the society would be built because it was the furthest they could get away
from capitalism.
They all agreed that capitalism needed to be destroyed for socialism to be
welcomed, so the economic crisis was not the one bothering Lenin or
Bukharin.
Lenin was forced to let the policy go due to the further concerns of the
rebellions taking down the communist government.
New Economic Policy
Reasons for introduction:
-To retain the political power.
[NEP was an economic retreat which was designed to stop political defeat]
So economic compromises needed to be made to retain political power.
-To revive the economy.
[stimulation of grain production and end to famine was needed]
-To build socialism
[By 1921 it was clear a European revolution would not happen, thus Lenin
needed an economy that would allow Russia to build socialism without
foreign aid.]
As 1921 went on, Lenin kept arguing that NEP was the actual policy, rather
than WC that had the correct foundation to build socialism.
He claimed the communist party had to learn to use capitalist methods to
2a: Towards a Command Economy 1917-28
Nationalisation of Industry
-Lenin’s economic policies went through a series of radically different phases.
(which reflected the problems of Russia and Lenin’s beliefs)
-nationalisation was a revolutionary response to an unprecedented set of
problems.
One key problem; Lenin facing uncertainity about what a communist economy
would entail, as Marx was vague about the nature of a future communist
society.
Also Russia had serious economic problems. The Russian economy was
unsophisticated and backwards. (reconstruction needed to promote economic
growth)
So Lenin needed to rebuild the economy to ensure it was strong enough to
defend a socialist revolution and also maybe feed the people.
He argued that the revolution HAD destroyed capitalism indeed but the
economy was just not strong enough to start building socialism.
So state capitalism.
State Capitalism
-Lenin’s state capitalist economy was based on the nationalisation of industry.
-Nationalisation ended capitalism by taking inudstry away from middle-class
owners.
-All nationalised industries run by the Veshenka (economic experts)
who: ensured factories were properly managed by placing them under
specialists
coordinated economic production to meet needs of society
Extreme Unpopularity: there was very little difference between state
capitalism and life before the revolution. Thus it was rejected in favour of the
workers’ control. (Lenin ignored)
Land Reform
In order to win support and stimulate agriculture, land reform was introduced.
Large estates belonging tot the Church and aristocrats were broken up
Peasants allowed to own the land they worked (extremely popular)
War Communism
,-created as a series of emergency economic measures to ensure communist
victory in the civil war.
-embodied aspects of communist ideology
-some believed it was a step towards a true communist economy
Was to ensure: high levels of industrial production for war goods
An efficient allocation of workers
Food production to feed workers, soldiers and civilian population
Measures of War Communism
Food Dictatorship Labour Discipline Abolition of Market
-grain requisitioning -working day 11hrs -money abolition
-rationing -work compulsory -trade abolition
between all able-bodied -complete
people of 16-50yrs nationalisation
-harsh punishments to -conscription
ones caught slacking
These measures destoryed the power of the capitalist class and was a step
cloer to socialism. (Lenin and Bukharin)
Consequences
1. Economic Collapse
Grain requisitioning-->lower rates of agri production as peasants were not
paid for their grain nor labour thus the policy provided no incentive to work.
-Industrial production-->significant decline. There were few incentives to work
hard. +Hunger led many workers flee the city and seek work on farms where
there was chance of being fed
=Industrial workforce from 3m to 1.2m
=Agri production from 100 to 60
2. Growth of Black Market
-The extensive economic controls--> failure to abolish the market.
[historians estimate only 40% of consumed food came from rationing during
civil war. The rest was from the black market]
-Workers forced to steal gov resources to make goods that could be bartered
for food.
3. Mass poverty
-russian economy was near collapse, as there were shortages of all type of
commodities.
, -unemployment rose
-harvests declined futher
-in rural areas famine began [6m dead people]
4. Political Crisis
Mass starvation+ the economic crisis= Political crisis.
-Peasants in Tambov rebelled against the communist gov
-Sailors in Kronstadt turned against the government demanding a return to
free trade and new multiparty elections to soviets.
-->Communists responded with extreme force, defending their gov with
military action.
This made Lenin realise that War Communism had to come to an end.
W.C did lead to military victory but at the expense of the economy. In that
sense it was only an ideological win.
Many communists believed that WC was the expected foundatio on which
the society would be built because it was the furthest they could get away
from capitalism.
They all agreed that capitalism needed to be destroyed for socialism to be
welcomed, so the economic crisis was not the one bothering Lenin or
Bukharin.
Lenin was forced to let the policy go due to the further concerns of the
rebellions taking down the communist government.
New Economic Policy
Reasons for introduction:
-To retain the political power.
[NEP was an economic retreat which was designed to stop political defeat]
So economic compromises needed to be made to retain political power.
-To revive the economy.
[stimulation of grain production and end to famine was needed]
-To build socialism
[By 1921 it was clear a European revolution would not happen, thus Lenin
needed an economy that would allow Russia to build socialism without
foreign aid.]
As 1921 went on, Lenin kept arguing that NEP was the actual policy, rather
than WC that had the correct foundation to build socialism.
He claimed the communist party had to learn to use capitalist methods to
