Theme 2 - industry and agriculture
Introduction
economy in chaos 1917
key dilemma - how to restore the economy
believed that all aspects of the economy should be in the hands of the peasants and the
workers - innefective method of ensuring economic progress
slow pace of change led to stalins 5YPs
after stalins deaths - consumer goods increasingly focused on - material benefits of
communism
1985 - economy was stagnating as it ground to a halt
How did the government exercise control over the economy between 1917 and 1928?
giving power to the peasants and workers did not suit the poor economic sitiuation of
the time
state control - limited the workers independance but was the only way to rejuvinate
the economy
by 1928 - stalin decided on the command economy
The nationalisation of industry
no blueprint for getting from capitalism to socialism
period of trial and error
ideologically - means of production in the hands of the peasants
bourgeoise had the expertise and skills that were needed - lenin talked of working
with them for a short period - state capitalism
issue of how the bolshevik party could retain control when the workers and peasants
were acting on their own initiative - once given power could be unwilling to give it up
key measures of Lenins initial economic policy
the Land Decree - Oct 1917 - abolished private ownership of land - now in the hands
of the people - pleased the peasantry
Decree on Workers Control - Nov 1917 - placed control of all factories into the hands
of the workers
all private banks nationalised - 27 Dec 1917 - Peoples bank of the Russian Republic
gave considerable power to the workers and peasants
had a detrimental effect on the economy
huge pay rises - inflation
managers dismissed - technical expertise lost
gov needed to exert greater control over the economy
Dec 1917 - Suprememe Council of the National Economy set up - provide greater
supervision of the economy
tension between worker self management and gov control
role of central gov increased during civil war
War Communism and the New Economic Policy
, why was war communism introduced?
civil war - measures had to be introduced to ensure that the Red Army was provided
with enough food and resources - much greater gov intervention
application of communist principles or prompted by the economic and social chaos
poduced by WW1 and the civil war?
The ideological basis
went along with the long term aim to abolish private enterprise
application of communist ideology
bartering seen as a liberation from capitalism - actually caused by inflation
nationalisation of industry implemented before it was intended to - bolsheviks took
advantage of the opportunity to progress with communism
the response to the reality of economic collapse
economy in a near state of collapse
drastic measures needed to win the civil war
state direction of economy often used in times of war
a reaction to the early bolshevik excesses
response to the problems that resulted from the early decrees e.g. giving control to the
workers
unworkable in the emergency context of the civil war
abolition of army ranks reversed, managers used to create order in industry
Key features of war communism
nationalisation of all industry - only workplaces with fewer than ten workers exempt
all industry placed under the control of the state
reintroduction of heirarchial structures in industry - discipline
harsh miliatary style discipline introduced into factories - death penalty for strikers,
Labour armies for unemployed, all workers expected to volunteer for unpaid work on
'Communist Sundays'
all private trading banned - trade controlled by the state - could not satisfy demand -
black market developed
transactions using money limited due to inflation - bartering
forcible requistioning of food - feed the army and the towns - malnutrition and
starvation in the countryside
rationing - ensure that the workers were fed - crucial to war effort - preferential
treatment
Why was the NEP introduced in 1921?
War communism was failing - deteriation of economy and the bolsheviks political
position worrying
war communism won the civil war but at a huge cost - economy and political position
ending of the civil war - new sitiuation - different response
Introduction
economy in chaos 1917
key dilemma - how to restore the economy
believed that all aspects of the economy should be in the hands of the peasants and the
workers - innefective method of ensuring economic progress
slow pace of change led to stalins 5YPs
after stalins deaths - consumer goods increasingly focused on - material benefits of
communism
1985 - economy was stagnating as it ground to a halt
How did the government exercise control over the economy between 1917 and 1928?
giving power to the peasants and workers did not suit the poor economic sitiuation of
the time
state control - limited the workers independance but was the only way to rejuvinate
the economy
by 1928 - stalin decided on the command economy
The nationalisation of industry
no blueprint for getting from capitalism to socialism
period of trial and error
ideologically - means of production in the hands of the peasants
bourgeoise had the expertise and skills that were needed - lenin talked of working
with them for a short period - state capitalism
issue of how the bolshevik party could retain control when the workers and peasants
were acting on their own initiative - once given power could be unwilling to give it up
key measures of Lenins initial economic policy
the Land Decree - Oct 1917 - abolished private ownership of land - now in the hands
of the people - pleased the peasantry
Decree on Workers Control - Nov 1917 - placed control of all factories into the hands
of the workers
all private banks nationalised - 27 Dec 1917 - Peoples bank of the Russian Republic
gave considerable power to the workers and peasants
had a detrimental effect on the economy
huge pay rises - inflation
managers dismissed - technical expertise lost
gov needed to exert greater control over the economy
Dec 1917 - Suprememe Council of the National Economy set up - provide greater
supervision of the economy
tension between worker self management and gov control
role of central gov increased during civil war
War Communism and the New Economic Policy
, why was war communism introduced?
civil war - measures had to be introduced to ensure that the Red Army was provided
with enough food and resources - much greater gov intervention
application of communist principles or prompted by the economic and social chaos
poduced by WW1 and the civil war?
The ideological basis
went along with the long term aim to abolish private enterprise
application of communist ideology
bartering seen as a liberation from capitalism - actually caused by inflation
nationalisation of industry implemented before it was intended to - bolsheviks took
advantage of the opportunity to progress with communism
the response to the reality of economic collapse
economy in a near state of collapse
drastic measures needed to win the civil war
state direction of economy often used in times of war
a reaction to the early bolshevik excesses
response to the problems that resulted from the early decrees e.g. giving control to the
workers
unworkable in the emergency context of the civil war
abolition of army ranks reversed, managers used to create order in industry
Key features of war communism
nationalisation of all industry - only workplaces with fewer than ten workers exempt
all industry placed under the control of the state
reintroduction of heirarchial structures in industry - discipline
harsh miliatary style discipline introduced into factories - death penalty for strikers,
Labour armies for unemployed, all workers expected to volunteer for unpaid work on
'Communist Sundays'
all private trading banned - trade controlled by the state - could not satisfy demand -
black market developed
transactions using money limited due to inflation - bartering
forcible requistioning of food - feed the army and the towns - malnutrition and
starvation in the countryside
rationing - ensure that the workers were fed - crucial to war effort - preferential
treatment
Why was the NEP introduced in 1921?
War communism was failing - deteriation of economy and the bolsheviks political
position worrying
war communism won the civil war but at a huge cost - economy and political position
ending of the civil war - new sitiuation - different response
