AS FP2 : Economic and Social Developments : State-Capitalism Flashcards
Conceptual Awareness
Why did Lenin introduce ‘State-Capitalism’ and not a socialist economy?
- Understood that socialism could only develop in an industrialised country
- It was a pragmatic response to the problems of Russia in 1918 ; Lenin was going to continue with the existing economic structure until the conditions were ripe for communism.
Historiography
How did Rowe and Waller describe State-Captialism?
A ‘half-way house’ between unfettered capitalism, based on private wealth and free-market competition, and socialism.
Why did the Bolsheviks introduce the ‘Decree on Land’ in October 1917?
To give the peasants an incentive to produce grain again, the decree acknowledged that all private land ownership would be abolished forever but land could pass into the “hands of those who cultivated it.”
Why did the Bolsheviks introduce the Decree on the workers’ control of the factories in November 1917?
It simply acknowledged the fact that many factories had already been taken over by the workers, it added that those who were in control are ‘responsible to the state for the maintenance of the strictest order and discipline for the production of property.’
When were the Banks nationalised?
December 1917
When was external trade nationalised?
June 1918
When were the railways nationalised?
June and September 1918
Successes
What were the Vesenkha - what did they do when were they established?
December 1917 - Supreme Council of the National Economy
Took responsibility for “all existing institutions for the regulation of economic life”. Group of economic experts who ran the economy.
Succeeded State Captialism and were a long-term addition to the Government
Successes
What was GOELRO - when was it established what did it do?
1920, organised the production and distribution of electricity in Russia ; this was to become one of the Bolsheviks’s most significant achievements.
What happened to the control of nationalised industries?
It became more centralised ; only provided partial state control of the economy but state capitalism was a significant stage on the way to a more rigorous and total state-control of the economy.
Failures
What were the short-comings of the workers’ control decree?
- Workers failed to organise their factories efficiently and output shrank at the time it was most needed.
- Some workers awarded themselves unsustainable pay rises, others helped themselves to stock-equipment.
- Workers lacked the skills necessary for successful management.
Failures
What was the effect of civil war on state capitalism?
The civil war brought further disruption and a shortage of raw materials caused industrial output in Bolshevik-held areas to plummet
Successes
What was the Vesenkha used to do?
Re-establish worker discipline
Ensure factories were properly managed
Co-ordinate production to improve efficiency
Important going into the civil war
Successes
How did Vesenkha achieve its objectives?
- Offered higher pay to more productive workers
- Placing factories under the control of well-paid specialists
Smaller factories were not industrialised
Failures
What was the rouble worth in October 1917?
1/10
Failures
How much had wages decreased by October 1917?
Wages decreased by 12-15%
Failures
What was the cost of living in October 1917?
Cost of living was five times as much in 1916
