2.2. - Stalin’s Economic Policies
Economic & Political Objectives
• Rapid industrialisation
• Make farming more e cient
• Expand Party’s control over all aspects of the economy
The Great Turn, 1928
• 1924-28 Power Struggle: disagreements over NEP continued as Stalin needed
to agree with Bukharin for support
• 14th Party Congress - ‘Industrialisation Congress’ in 1925 called for
transformation of the agrarian system. NEP was maintained but concerns
grew in 1926
• 15th Party Congress December 1927 - end of NEP and beginning of 5
year plans: ‘Great Turn’
• Stalin promised to catch up to Europe in 10 years
• Move to central planning, making the government responsible for economic
coordination (command economy). Stalin believed this would build self-
su ciency and lead to a truly socialist state.
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, • Economic punishment: failure to meet a target was a criminal o ence (death,
arrests...)
• Targets were too ambitious so faulty reporting and corruption became
part of the system from the outset
Collectivisation of Agriculture 1928: destruction of private farms and
development of an industrial mode on the countryside
Massive Industrialisation: production increased immensely as the 5 year plans
were a vehicle for change, ending the NEPmen’s power
5 Year Plans
Aims Successes Failures
1st 5 Year Plan Rapid growth in heavy Large industrial centres Plants built did not have a
1928-32 industry built and became cities signi cant impact until
‘Superindustrialisation’ (e.g Magnitogorsk 1934
Build up industrial population increased 25 Only 17% of Moscow
infrastructure & -> 250,000 in 3 years) workers were skilled (relied
factories Output increase 250%, on revolutionary spirit)
(Neglect consumer HI output 330%, coal White Sea Canal: useless
goods) production 200% and for large boats, 10.000
electrical production gulag prisoners died
400% building it in Siberia
‘Shock brigades’ and Shoddy products, bad
reward system to living conditions for
encourage workers workers
Soviets became Increase in corruption
submissive
2nd 5 Year Plan Initially meant to Rise in coal production Shortages of consumer
1933-37 increase consumer and chemical goods meant living
goods, but due to developments conditions didn’t improve
1930s rearmament Centres built in less- ***But socialists believed
focus shifted to heavy developed areas (e.g consumer goods bene ted
industry Kazakhstan); regional individual (justi cation of
development ignorance)
Steel x 3 Fell short: aimed to
Small consumer good produce 47M tons of oil
progress (e.g food but only produced 27M
processing, footwear
production) improved
living standards
3rd 5 Year Plan Arms production due 1928-41 saw 17% Consumer industries were
1938-42 to war threat growth rate, steel x4, neglected and failed
coal x6 Slowdown on the economy
due to purge of party
experts 1937
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