2 Industrial and agricultural change, 1917–85 Flashcards
What was the state of the economy when the Bolsheviks first took power in 1917?
- The economy was in chaos.
- It had been severely damaged by the WW1.
- The Bolsheviks were unsure as to how to modernise an outdated and inefficient industrial and agricultural system.
Who did the Bolsheviks believe the economy should be in the hands of? stopped here!
The workers and the peasants themselves.
what is war communism?
War Communism was an economic policy introduced by Lenin in June 1918 to replace State Capitalism. It was characterised by the nationalisation of businesses, central government control of industry, harsh discipline and grain requisitioning. War Communism contributed to Bolshevik victory in the Russian Civil War, but resulted in decreased production levels and human suffering.
Why was War Communism introduced?
- Faced with desperate circumstances of the civil war, the Bolsheviks introduced a series of emergency measures to ensure that the Red Army was supplied with enough food and resources to ensure a communist win.
- These measures entailed far greater government intervention in the economy.d
What other factors could have contributed to the introduction of War Communism?
- The communist ideological basis
- The response to the reality of economic collapse
- A reaction to early Bolshevik excesses
WC was designed to ensure what three things?
- high levels of industrial production of war goods
- an effiencient allocation of workers
- food production to feed soldiers, workers and the civilian population
Explain the role of the factor ‘the ideological basis’ in relation to the introduction of War Communism.
- The measures of WC went along w the long-term aim of the Bolsheviks to abolish private enterprise = seen as the application of com ideology.
- To some Bs, the old world had been destroyed by the WW1 and this provided an opp to build anew on Marxist lines.
- The collapse of the Russian currency & its replacement by bartering was seen by some Bs as a sign of liberation from capitalism, when in fact it was caused by inflation.
- The result of this optimism was a radicalisation of policy, pushing the Bolshevik leadership in to implementing large-scale nationalisation before it intended to.
- The nationalisation of all industries with ten or more workers in June 1918 was followed by a series of measures that showed the Bs were mesmerised by the opp to expand government control.
Explain the role of the factor ‘the response to the reality of economic collapse’ in relation to the introduction of War Communism.
- There were also practical reasons for implementing War Communism.
- The Bolsheviks had inherited an economy that was in a state of near collapse and drastic measures were needed if they were to fight and win the civil war.
- State direction of the economy had been a key feature of many European countries during the First World War and it had nothing to do with ideology.
Explain the role of the factor ‘a reaction to early bolshevik excesses’ in relation to the introduction of War Communism.
- Some of the Bolshevik policies for giving control to the workers proved to be idealistic and unworkable, especially during the emergency context of the civil war.
- The abolition of any ranks was reversed and factory managers had to be used to create some order in industry.
What were the main features of War Communism?
Nationalisation of all industry without compensation. Only workplaces with fewer than ten workers were exempt.
- All industry was placed under the control of the state through the Supreme Council of National Economy (Vesenkha).
- The reintroduction of hierarchical structures in industry. in factories, the Workers’ Councils were replaced by management in order to instil discipline into the workers.
- Harsh military style discipline was introduced into the factories. The death penalty was introduced for all workers who went on strike. The unemployed were forced to join ‘Labour Armies’ and set to work on projects such as road building and woodland clearance.
- All workers were expected to volunteer for unpaid work on ‘Communist Sundays’.
- All private trading was banned. Trade was to be controlled by the state, but because could not meet demand a large black market developed.
- Transactions using money became limited due to massive inflation. Money was replaced by bartering using goods, and many workers received their wages in goods.
- - The forcible requisitioning of food from the peasants in order to feed the army and the towns. Around 150,000 Bolshevik volunteers were used to seize grain. The government attempted to use Committees of the Village Poor to spy on any peasants who might be hoarding food. The result was a rise in tension in the countryside and serious outbreaks of violence, often directed at the requisitioning teams. Malnutrition and starvation became commonplace.
- The introduction of rationing to ensure that the workers in the city were fed. Those industrial workers whose work was crucial to the war effort received preferential treatment.
what were the economic measures put in place by lenin for WC?
- ‘food dictatorship’
- labour discipline
‘food dictatorship’ as a measure of WC?
- grain requisitioning = cheka sqauds were authorised to seize grain and other forms of food from peasants wo payment
- rationing = the Supply Commissariat rationed the sized foods. the larget rations went to workers and soldiers, the smallest rations were given to mems of the bourgeoisie.
‘labour discipline’ as a measure of WC?
wc entailed labour discipline:
- 1918 = wortking day extended to 11 hrs
- 1919 = work made compulsory for all able bodied ppl bet 16 and 50 yrs old
- harsh punishments = given to workers who were late/ caught slacking
the abolition of the markt as a measure of WC
- chaotic conditions led to breakdown of the existing market + measure introduced to try to abolish the market:
-> abolition of money = in short term, gov printed more money = led to hyperinflation. money = became worthless, workers paid through rations and pub services = provided freely
-> aboltion of trade = privated trade made illegal
-> complete nationalisation = all busses were taken over the state
-> conscription = workers were assigned either to work in factories or fight on the army
what did lenin argue the abolition of money was a step away from? why?
away from capitalism towards a socialist econ on which econ prod + distributuon = centrally planned
- bukharin too argued the abolition of capitalist market = major revolutuonary achievement
- both agreed these measures destroyed power of the capitalist class
consequences of wc?
wc succeeded in keeping the RA spplied + allowing thme to win the civin war but it did lead to econ collapse and failed to abolish the market
- economic collapse
- growth of the black market
- mass poverty
- political crisis
economic collapse as a consequence of wc
- Grain requisitioning led to lower rates of agricultural production as peasants were not paid for any extra grain they produced, meaning they had no incentive to produce more than they needed to survive. By 1920, agricultural production was 40% lower than it had been in 1913.
- Industrial production levels dropped significantly under WC, as workers had few incentives to work hard and central gov planning was chaotic.
– By 1920, the gross output in
all industry had declined by 70% from 1913 levels.
– industrial workforce declined from 3 mil workers in 1917 to 1.2 mil in 1922 due to war and workers escaping cities.
growth of the black market as a consequence of wc
Lenin’s food rationing and the ban on private trade did nothing to abolish the black market economy, which the government could neither control, nor profit from. Historians estimate that 60% of the food consumed in cities during the Russian Civil War was acquired through the black market. Much of this was purchased using goods stolen from government run factories.
mass poverty as a consequence of wc
by 1921 = run econ was near collapse = shortages of all kinds of commondities
In February 1921, the factories in Petrograd ran out of fuel and 93 of them were closed, throwing 30,000 workers out of their jobs and ending their entitlement to food. They did not re-open for ten days.
- the harvest 1921 = only 46% of the 2013 harvest = rural area famine began + led to death of 6 mil
political crisis as a consequence of wc
The suffering caused by War Communism led to political unrest in the countryside. Between August 1920 and June 1921, peasants in the Tambov region rebelled against the government. It was led by Aleksandr Antonov and began in the small rural town of Khitrovo, following the decision by a Red Army commander to beat the town elders in front of the rest of the peasants. The revolt spread across Russia within a few months until over 70,000 peasants were involved. It took 100,000 Red Army soldiers using aircraft dropping poison gas to finally eradicate the rebels.
conclusion of wc
led to mil victory but econ ruin
- ideological victory
- abolition of money and cap market led many com including lenin to bel wc = foundation of new society would be built
- bukharin even welcomed econ crisis, arguing destruction of cap needed to be comp before socialism could start
- senior coms didnt see econ crisis as reason to stop the policy
- pol crisis = more worrying = further rebellions risked end of com gov.
- in order to save rev = lenin forced to accept compromise
impact of wc
- It ensured the Red Army got the resources it needed to win the civil war.
- Left the economy in a state of near collapse
- By 1921, industrial production was only 1/5 of the figure for 1913.
- Disease and starvation were commonplace.
- A wave of serious unrest swept across the countryside.
Define ‘bartering’
Paying for goods with other goods rather than money. This system of exchange is usually associated with underdeveloped economies or where the system of currency has broken down. During War Communism in Russia, it was seen by some as liberation from capitalism, but it was in fact a result of economic collapse.
what is the nep?
The NEP was an economic policy introduced by Lenin in March 1921 to replace War Communism. It was characterised by a relaxation of government control of agriculture and industry, as well as the partial return to an open market. The NEP was an ideological retreat, but helped to provide valuable breathing space for the struggling Russian economy.