Command Economy

Question 1

What is a command economy?

Answer 1

Economic system where the government controls the production, distribution, and pricing of goods

Question 2

How did Stalin create a command economy?

Answer 2

• Collectivisation
—> Peasants formed collective farms
(Kolkhozes); no private ownership

• Gosplan

• Nationalisation
—> all industry, agriculture and
resource under state control

Question 3

What were the effects of a command economy?

Answer 3

Increased production
• Coal 48m to 166m tonnes (1920-40)
• Electricity 5 to 48b kW (1928-40)

Question 4

Why did Stalin move to a command economy?

Answer 4

Threat of foreign invasion
• attacks on Chinese communists in Shanghai
—> Peasants responded to fear of
invasion by hoarding food

• Economy
—> indust. Prod 45% 1913 figure
—> State control over distribution

• Greater state control
—> Migrvaway from NEP
—> remove kulaks and NEPMEN