2.1 towards a command economy 1917-1928

Question 1

nationalisation of industry

Answer 1

• state capitalism- term to describe the transitional phase between old and new economy.

Question 2

nationalisation of industry- what were Lenins initial economic policies

Answer 2

land decree- October 1917 abolished all private ownership of land

decree on workers control- November 1917 placed control of the factories into the hands of the industrial workers.

Question 3

what did nationalisation of industry entail

Answer 3

more control to the people

detrimental effect on economy
- did little to improve production
- resulted in inflation

Question 4

war communism- why was it introduced?

Answer 4

ideological basis
- went along with long term aim of Bolsheviks to abolish private enterprise
- went along with comm ideology
- liberalisation from capitalism

the response to the reality of economic collapse
- practical reasons
- economy nearly in collapse so measures were needed to win the civil war

reaction to early Bolshevik successes

Question 5

what were the key features of war communism

Answer 5

nationalisation- state ownership of all industry without compensation

industry placed under control of the state through supreme council of national economy

reintroduction of hierarchal structures in society- management put in the disipline workers.

military style disicpline- death penalty for strikes

private trade was banned

money replaced by batering

forcible requisitioning of food from peasants

introduction of rationing.

Question 6

why was the New Economic Policy introduced

Answer 6

• because civil war had ended
• economic considerations- production of heavy industry had fallen to 20% of its 1913 value and some production had stopped all together. also widespread famine which over 20 million died from
• unpopularity of war communism- rationing disliked, resentment to managers
• Tambov rising- from countryside- wanting to get rid of the mir
• Kronstadt mutiny- revolt from the sailors

Question 7

what were the key features if the NEP
1921

Answer 7

IN AGRICULTURE
- end to requisitioning- replaced by system of taxation
- no forced collectivisation

IN INDUSTRY
- returned small scale businesses to private hands but kept control of heavy industry, transport and banks
bonuses introduced in state owned factories to raise production
reintroduction of a currency for paying wages
- legalisation of private trading - to stop growing black market
- development of nepmen who had been successful under the NEP

retreat back to capitalism

Question 8

state control of industry and agriculture
how successful was the NEP

Answer 8

• resulted in a mixed economy
  POSITIVES
• indust output rose rapidly
• more restaurants

NEGATIVES
- corruption under black market
- gangs
- scissor crisis, as food prices fell, the price of industrial goods rose

Question 9

decision to move to a command economy

Answer 9

• fear of invasion led to hoarding of food
• indust production still well under modern equivalents
• 1928 extend state control . NEP decreased support for communism
• command economy was hoped to bring about rapid industrialisation while consolidating the power of the communist party