Russia- Theme 2- industrial and agricultural change
Towards a command economy
Nationalisation of industry
- Lenin’s economic policy 1917-21 went through many radical changes
- Nationalisation of industry was a response to problems that Russia faced
Capitalism and communism
- Lenin was uncertain what a communist economy would entail
- Marx was vague on the nature of a future communist society
- He argued once capitalism was abolished- the economy would be organised according to ‘a
common plan’
- Marx made it clear that a communist society would have a very advanced economy
Problems facing Russia
- Many serious economic problems
- Unsophisticated and backward
- Russia’s industrialisation began in 1890-1914- economy grew significantly
- Many Marxists thought the Feb rev would lead to capitalism as the socialist revolution was far away
- The economy was shattered during the first world war
Lenin’s early ideas
- Lenin believed that socialism was possible in Russia 1917
- He said as the revolution took over Europe- advanced countries would aid Russia’s economy- no
need for capitalism
- Lenin argued that the revolution had created a society between socialism and capitalism
- Lenin called the new economy ‘State capitalism’
Lenin’s vision of a socialist economy
- He believed socialist economy was highly efficient
- Required modern technology
- Expert management
- Disciplined workers
- Lenin didn’t like laziness- thought that if the workers no longer worked for capitalists they would be
better treated and paid more and therefore more efficient
State Capitalism
- Based on the nationalisation of the economy
- Nationalisation ended capitalism- took industry away from the middle-class owners
- Run by the supreme soviet of the national economy (Vesenkha)
- Vesenkha were a group of economic experts designed to:
o Ensure factories were properly managed- under control of well-paid specialists
o Co-ordinate economic production to meet the needs of new society
- Only large industries were nationalised
- Small factories led by workers of capitalists
- Very unpopular
- Many radicals and Bukharin rejected state capitalism- in favour of workers control
- March- June 1918- state capitalism
Land reform
, - Encouraged land reform
- Lenin 1917- decree on land- peasants allowed to own the land they worked on- very popular with
peasants
War communism
- Series of emergency economic measures to ensure the communists won the civil war
- It was designed to ensure
o High levels of production of war goods
o Efficient allocation of workers
o Food production to feed soldiers, workers and civilians
‘Food dictatorship’
- Measures to ensure food was available to everyone
o Gran requisitioning- Chaka squads seized grain from peasants without payment
o Rationing- the supply commissariat rationed the seized foods
o Smallest rations given to the Bourgeoise
Labour discipline
- Intense labour discipline
- 1918- 11 hour working day
- 1919- work compulsory for all able bodied people 16-50 years old
- Harsh punishment for slacking or late workers
The abolition of the market
- Measures introduced to abolish the market
o Abolition of money
o Abolition of trade
o Complete nationalisation
o Conscription- work or fight in the army
- Lenin argued getting rid of money was a step towards a socialist economy
Consequences
- Led to economic collapse- failed to abolish the market
Economic collapse
- Grain requisitioning led to lower rates of agricultural production
- Peasants not paid for grain so there was no incentive to work
- Industrial production declined- few incentives to work hard
- Hunger led to workers leaving cities to work on farms
- Industrial workforce declined from 3million in 1917 to 1.2 million in 1922
Growth of the black market
- Failed to abolish the market
- Historians estimate that only 40% of food came from rationing and 60% from the black market
- Workers stole from factories that could be bartered to get food
Mass poverty
- 1921- economy was near collapse
- Shortages of everything
- 1920- factories closing because of a lack of fuel
- Gov ordered the destruction of wood buildings in Petrograd to use the wood for fuel
- 1921 harvest only 46% of the harvest in 1913
Towards a command economy
Nationalisation of industry
- Lenin’s economic policy 1917-21 went through many radical changes
- Nationalisation of industry was a response to problems that Russia faced
Capitalism and communism
- Lenin was uncertain what a communist economy would entail
- Marx was vague on the nature of a future communist society
- He argued once capitalism was abolished- the economy would be organised according to ‘a
common plan’
- Marx made it clear that a communist society would have a very advanced economy
Problems facing Russia
- Many serious economic problems
- Unsophisticated and backward
- Russia’s industrialisation began in 1890-1914- economy grew significantly
- Many Marxists thought the Feb rev would lead to capitalism as the socialist revolution was far away
- The economy was shattered during the first world war
Lenin’s early ideas
- Lenin believed that socialism was possible in Russia 1917
- He said as the revolution took over Europe- advanced countries would aid Russia’s economy- no
need for capitalism
- Lenin argued that the revolution had created a society between socialism and capitalism
- Lenin called the new economy ‘State capitalism’
Lenin’s vision of a socialist economy
- He believed socialist economy was highly efficient
- Required modern technology
- Expert management
- Disciplined workers
- Lenin didn’t like laziness- thought that if the workers no longer worked for capitalists they would be
better treated and paid more and therefore more efficient
State Capitalism
- Based on the nationalisation of the economy
- Nationalisation ended capitalism- took industry away from the middle-class owners
- Run by the supreme soviet of the national economy (Vesenkha)
- Vesenkha were a group of economic experts designed to:
o Ensure factories were properly managed- under control of well-paid specialists
o Co-ordinate economic production to meet the needs of new society
- Only large industries were nationalised
- Small factories led by workers of capitalists
- Very unpopular
- Many radicals and Bukharin rejected state capitalism- in favour of workers control
- March- June 1918- state capitalism
Land reform
, - Encouraged land reform
- Lenin 1917- decree on land- peasants allowed to own the land they worked on- very popular with
peasants
War communism
- Series of emergency economic measures to ensure the communists won the civil war
- It was designed to ensure
o High levels of production of war goods
o Efficient allocation of workers
o Food production to feed soldiers, workers and civilians
‘Food dictatorship’
- Measures to ensure food was available to everyone
o Gran requisitioning- Chaka squads seized grain from peasants without payment
o Rationing- the supply commissariat rationed the seized foods
o Smallest rations given to the Bourgeoise
Labour discipline
- Intense labour discipline
- 1918- 11 hour working day
- 1919- work compulsory for all able bodied people 16-50 years old
- Harsh punishment for slacking or late workers
The abolition of the market
- Measures introduced to abolish the market
o Abolition of money
o Abolition of trade
o Complete nationalisation
o Conscription- work or fight in the army
- Lenin argued getting rid of money was a step towards a socialist economy
Consequences
- Led to economic collapse- failed to abolish the market
Economic collapse
- Grain requisitioning led to lower rates of agricultural production
- Peasants not paid for grain so there was no incentive to work
- Industrial production declined- few incentives to work hard
- Hunger led to workers leaving cities to work on farms
- Industrial workforce declined from 3million in 1917 to 1.2 million in 1922
Growth of the black market
- Failed to abolish the market
- Historians estimate that only 40% of food came from rationing and 60% from the black market
- Workers stole from factories that could be bartered to get food
Mass poverty
- 1921- economy was near collapse
- Shortages of everything
- 1920- factories closing because of a lack of fuel
- Gov ordered the destruction of wood buildings in Petrograd to use the wood for fuel
- 1921 harvest only 46% of the harvest in 1913
