Bolshevik Economic Policies (1917-1924) Flashcards
Introduced 3 economic policies:
State Capitalism
War Communism
NEP
Lenin couldn’t make revolutionary changes to the economy until Russia had pulled out of the war and the Bolsheviks had greater control over Russia.
However he did make some changes:
- Decree on Land, confiscated all land from existing owners and distributed it among the peasants
- The Decree on Workers’ Control allowed workers to control and run the factories without supervison
The Decree on Land worsened food shortages as:
-peasants were too poor to afford MODERN MACHINERY and fertilisers to farm efficiently
The Decree on Workers’ Control still meant workers were unable to run the factories efficiently so…
production fell even more
December 1917, Government established the Supreme Council of the National Economy, it was charged with modernising the country, in reality it..
achieved little until the end of the Civil War 1921
What replaced State Capitalism?
War Communism
War Communism was a policy of manipulating the economy in the interests of the ..
army
War communism had a major effect on:
Industry
Agriculture
War Communism had 6 effects on Industry:
1) Increased government control - Decree on Nationalisation june 1918, all industry being nationalised within 2 years
2) Private enterprise = illegal
3) Worker-controlled facotries abolished
4) Strikes=ilegal, worker-discipline=tightened
5) Civil war=economy to the RA needs = non-essential industries were unable to function efficiently and output declined
6) Worsened by a serious shortage of manpower due to Civil War
War communism had 3 effects on Agriculture:
1) Government believed peasants (Kulaks) were hoarding grain in order to force prices to rise - Lenin permitted grain requisiton
2) Grain requisition squads = resistance brutally put down
3) Forced grain requisitioning = unsuccessful, peasants saw no point in growing more food than their family needed = production fell steeply
War Communism achieved its main aim:
To provide sufficient food supplies for the RA
War Communism had a great cost:
1) 1920, Inflation = money worthless
2) Most wages for factory workers paid in goods
3) Black market in food and goods flourished
4) Transport system collapsed - harder to supply towns and cities with food
5) 1921 large famine (5-10million died and government forced to ask for aid in US)
War Communism caused disagreements among the Bolsheviks such as:
- Some wanted to continue it after the hardships
- Lenin agreed with radicals who saw the policy as part of a strategy to establish a Communist Russia
- Other Bolsheviks opposed it (Workers’ Opposition was formed [campaigned for an end to the policy])
Lenin changed his mind after two major rebellions:
1) Tambov Rising
2) Kronstadt Rising
Tambov rising =
1920-21
1000s peasant in Tambov Province rebelled in resistance to grain requisitioning - well organised and effectively led
Took 100,000 soldiers several months to suppress
Kronstadt rising =
1921
1000s workers and soldiers gathered at Kronstadt Naval base near Petrograd
Demanded an immediate end to WC and greater political freedoms
Trotsky ordered 1000s troops to attack the base and the rising was put down after savage fighting
The rebellion = symbolic blow for Bolsheviks because …
Sailors of Kronstadt had famously helped the Bolsheviks revolution 1917
Kronstadt = realised WC couldn’t continue, replaces it with…
NEP
NEP March 1921, Lenin announced to the 10th party congress that WC would end and Russia would return to…
Some capitalist methods in agriculture and industry
Main features of NEP:
- Small scale industries returned to former owners
- Heavy industry, transport and banks remained under strict state control
- Grain requisitioning ended, replaced by a small tax (grain)
- Peasants allowed to sell surplus food at newly established markets
- Rouble revalued (economic stability)
- Private trading permitted
NEP good for Russia:
No grain requisitioning: agricultural output soared
Grain harvest almost doubled (1921-25)
Industrial output recovered rapidly (raw materials and heavy industry)
Led to divisions amongst the Bolsheviks:
Supports
Opponents
Supporters of NEP =
Bukharin
Should last for many years
Russia’s economy needed to grow more rapidly
Opponents of NEP =
Trotsky
Led resistance
Feared it was a return to capitalism
Rise of Nepmen and kulaks made him uneasy