bvik economic policy

Question 1

how was the NEP founded

Answer 1

GOSPLAN (planning committee) is set up by sovnarkom in February 1921.

Question 2

what were the policies of the NEP

Answer 2

allows private ownership of small businesses
permits private trade
industries have to pay workers from own profits

Question 3

what were benefits of the NEP

Answer 3

efficient resource use from industries due to profit policy
grain requisitioning ends
rationing ends
economy benefits
new class - NEPmen. entrepreneurs.

Question 4

what were limitations of the NEP

Answer 4

grain taxes replace requistioning
unpopular with b’vik party as seen as non-ideological
the scissors crisis

Question 5

what was the scissors crisis

Answer 5

-peasants produce greater harvests (incentive to work as they may sell their grain)
-workers have enough food but were responding slower than the peasants.
-food prices drop and industry prices raise
-peasants hold back their goods as there is no industry goods to exchange for

Question 6

how was the scissors crisis solved

Answer 6

-gov puts a cap on industry prices
-peasants are given money taxes instead of grain quotes to encourage selling
-short lived

Question 7

what was the result of the NEP

Answer 7

benefitted the economy. by 1926, production levels are the same as 1913.
-better living standards
-trade agreements with european countries.

Question 8

what were the five year plans

Answer 8

Stalin’s goal to improve economic programme through industry.
unrealistic goals for rapid improvement

Question 9

what were the goals of the first one 1928-1932

Answer 9

increase production by 300%
increase electricity production by 600%
develop heavy industry

Question 10

what was a success of the 1st ffp

Answer 10

electricity production trebled

Question 11

what was a limitation of the first ffp

Answer 11

many quota reachings were forged in order to avoid punishment, or the quality was ignored in order to achieve goal
chemical industy & consumer goods neglected

Question 12

what were the goals of the second one 1933-1937

Answer 12

develop neglected areas of 1st one (food, houses & chemical)
develop communication linka between cities
goal shifted to rearmament 1936

Question 13

what were successes of the second ffp

Answer 13

metros and dams built
rearmament rose from 4% of GDP in 33 to 17% in 37

Question 14

what were limitations of the second ffp

Answer 14

consumer goods still neglected
oil production failed to meet targets
quantity over quality

Question 15

what were the goals of the third ffp 1938-42

Answer 15

-focus on developing heavy industry to aid war
-urgent rearmament
-complete the transition to communism

Question 16

what were the successes of the third

Answer 16

heavy industry
machinery
engineering benefitted

Question 17

what were the limitations of the third

Answer 17

consumer goods, steel and oil failed to meet targets
staff and management shortage after stalin’s purges
cut short bc ww2

Question 18

what were the goals of collectivisation 1929-1941

Answer 18

develop agriculture so industry workers have food
collective farms hoped to be more efficient and make collection easier

Question 19

what were the goals of the first stage 1929-30

Answer 19

-annihilate the kulak class
-the goal was to collectivise 25% of grain farming areas
-voluntary, hoped many would join

Question 20

what were successes of the first stage

Answer 20

by march 1930 58% of households were collectivised

Question 21

what were limitations of the first stage

Answer 21

-annihilating kulaks caused a lot of peasants to sabotage their farms in order to not be counted, led to great losses
-peasants were reluctant to join and so it had to become mandatory. many were forced into it with violence
-when it became voluntary again after the harvest, only 20% remained collectivised
-private trade meant many didnt want to join as it took away their benefits

Question 22

what were the goals of the second stage 1930-41

Answer 22

-increase farming machinery to make more efficient
-continue to kill kulaks
-peasants should recieve profits
-increase appeal

Question 23

what were successes of the second stage

Answer 23

-workforce is fed
-grain exports increase

Question 24

what are limitations of the second stage

Answer 24

-1932 law makes stealing from collectives punishable by 10 years arrest
-peasant profits did not exist
-referred to as a second serfdom
-poor organisation
-1931 drought causes a famine in ukraine - 3-5 million die of starvation as peasants recieved no profits and grain continued to be taken for the workers.