How successful were economic policies in promoting economic development in the USSR in years
1917-41?
Throughout the years 1917-41, the economy fluctuates from near collapse to periods of stability,
helped by the economic policies trying to resolve external circumstances such as the civil war, threat
of WW2 and ideological demands. Through the use of economic policies, including war communism,
state capitalism, the NEP, five-year plans, and collectivisation both Lenin and Stalin attempt to
promote economic development. Although there were some successes such as transforming Russia
from a backwards agricultural economy with 80% of population peasants to a nuclear superpower. It
is highly debatable to what extent these economic policies were successful in promoting economic
development.
Despite Russia’s attempts to industrialize between 1890 and 1914, the economy was
unsophisticated and backwards. So, when the economy was hindered by WW1, Lenin inherits an
economy at near collapse and about to face further damage from the civil war. Lenin’s vision was
that a socialist economy would be highly efficient requiring modern technology, and highly
disciplined workers, where workers would be freed from the claws of capitalism. This was done
through ‘state capitalism’. In the main it was based on the nationalisation of industry, taking industry
away from the middle-class. For example, the degree of the workers Control of November 1917
placed factories into the control of the workers, nationalisation of banks, and Land Degree of
October 1917 abolished private land owning of estates of the Church and aristocrats, returning it to
peasants. Significantly, through land reform Lenin established great popularity, giving power to the
workers, successfully aligning with Russia’s new ideology. However, in terms of promoting economic
development it had failed, worker’s councils voted to give themselves huge pay rises resulting in
inflation and those with industrial expertise were dismissed by workers seeking revenge causing
inefficiency, decreased output and therefore reduced profit. Moreover, this early period highlighted
stresses and lack of success of these policies in trying to promote economic growth.
Faced with the desperate circumstances of the civil war, war communism was promoted as a series
of emergency economic measures used to ensure victory, which still embodied communist
ideologies. These policies included forcible requisitioning of food, for instance around 15,000
Bolsheviks seized grain, largest rations went to soldiers with smallest or none given to the
bourgeoisie. Significantly this meant malnutrition and starvation became commonplace, highlighting
the clear failure of War Communism as agricultural production decreased. Additionally, other factors
employed by war communism were; harsh military style disciple, hierarchical structures in industry,
bartering and ban on private trading. War communism had significant impact economically and in
hand socially, in 1918 the work day increased to 11 hours and attempts to abolish the market led to
hyperinflation, making money worthless. Lenin argued it destroyed the power of the capitalism. But
in reality, it led to an economic collapse as the industrial workforce declined from 3 million workers
in 1917 to 1.2 million in 1922. Another result of War Communism was the growth of the black
market and mass poverty, for instance around 60% of all food came from the black market,
demonstrating corruption and struggle faced by new socialist system. Although war communism
enabled military and ideological victory it led to economic ruin, for example the 1921 harvest was
only 46% of 1913’s. This was of pivotal economic and social importance as decline in agriculture and
increase in disease and starvation caused the deaths of around 6 million. But only when uprisings in
the Tambov region and Kronstadt threatened the new communist regime did Lenin remove War
Communism moving towards a mixed economy.
Furthermore, Lenin had to promote the New Economic Policy to retain political power, revise the
economy and build socialism. The major policies promoted were returning small scale industry into
1917-41?
Throughout the years 1917-41, the economy fluctuates from near collapse to periods of stability,
helped by the economic policies trying to resolve external circumstances such as the civil war, threat
of WW2 and ideological demands. Through the use of economic policies, including war communism,
state capitalism, the NEP, five-year plans, and collectivisation both Lenin and Stalin attempt to
promote economic development. Although there were some successes such as transforming Russia
from a backwards agricultural economy with 80% of population peasants to a nuclear superpower. It
is highly debatable to what extent these economic policies were successful in promoting economic
development.
Despite Russia’s attempts to industrialize between 1890 and 1914, the economy was
unsophisticated and backwards. So, when the economy was hindered by WW1, Lenin inherits an
economy at near collapse and about to face further damage from the civil war. Lenin’s vision was
that a socialist economy would be highly efficient requiring modern technology, and highly
disciplined workers, where workers would be freed from the claws of capitalism. This was done
through ‘state capitalism’. In the main it was based on the nationalisation of industry, taking industry
away from the middle-class. For example, the degree of the workers Control of November 1917
placed factories into the control of the workers, nationalisation of banks, and Land Degree of
October 1917 abolished private land owning of estates of the Church and aristocrats, returning it to
peasants. Significantly, through land reform Lenin established great popularity, giving power to the
workers, successfully aligning with Russia’s new ideology. However, in terms of promoting economic
development it had failed, worker’s councils voted to give themselves huge pay rises resulting in
inflation and those with industrial expertise were dismissed by workers seeking revenge causing
inefficiency, decreased output and therefore reduced profit. Moreover, this early period highlighted
stresses and lack of success of these policies in trying to promote economic growth.
Faced with the desperate circumstances of the civil war, war communism was promoted as a series
of emergency economic measures used to ensure victory, which still embodied communist
ideologies. These policies included forcible requisitioning of food, for instance around 15,000
Bolsheviks seized grain, largest rations went to soldiers with smallest or none given to the
bourgeoisie. Significantly this meant malnutrition and starvation became commonplace, highlighting
the clear failure of War Communism as agricultural production decreased. Additionally, other factors
employed by war communism were; harsh military style disciple, hierarchical structures in industry,
bartering and ban on private trading. War communism had significant impact economically and in
hand socially, in 1918 the work day increased to 11 hours and attempts to abolish the market led to
hyperinflation, making money worthless. Lenin argued it destroyed the power of the capitalism. But
in reality, it led to an economic collapse as the industrial workforce declined from 3 million workers
in 1917 to 1.2 million in 1922. Another result of War Communism was the growth of the black
market and mass poverty, for instance around 60% of all food came from the black market,
demonstrating corruption and struggle faced by new socialist system. Although war communism
enabled military and ideological victory it led to economic ruin, for example the 1921 harvest was
only 46% of 1913’s. This was of pivotal economic and social importance as decline in agriculture and
increase in disease and starvation caused the deaths of around 6 million. But only when uprisings in
the Tambov region and Kronstadt threatened the new communist regime did Lenin remove War
Communism moving towards a mixed economy.
Furthermore, Lenin had to promote the New Economic Policy to retain political power, revise the
economy and build socialism. The major policies promoted were returning small scale industry into
