Economic Policies Flashcards
Why State capitalism 1917-18?
Russia was in civil war, there was a lack of industry, people were starving… 50g bread ration p.d in Petrograd
Political instability, ppl were cold, hungry, sober
Lenin wanted to remove capitalism from R econ… acted as a ‘halfway house’
Whilst early decrees placed power in workers hands… carefully worded so ultimate power w/ state
Effects of state capitalism
Set up Veshenka… council of national economy to centrally control the econ
Worker management led to industry to fall apart bc of lack of org
Shortage of goods led to inflation
Some workers gave themselves unrealistic pay rises, some stole stock to sell on the black market
Shortage of raw mats bc civil war- diff to prod munitions + other supplies
Peasants wld not supply food to cities bc lack of consumer goods… Ukraine out of Bolsh control led to food shortages and rioting
Nobility + bourgeoisie not given ration cards
Small factories not nationalised
Why war communism 1918-21?
State cap = not suitable for civil war… fighting for their very existence
Needed enough food to feed army + needed to produce enough weapons
Rus econ had to be rearranged to benefit all Rus, this will be dictated in a centralised fashion by the regime and not by market forces/ needs of the consumer
Key features of war communism
-Grain requisitioning led to the Red Guard units forcibly requisitioning grain for cities… if peasants refused they wld be shot
-Banning of priv trade + manufacturing led to the black market
-nationalisation of industry, under Veshenka control, worker committees brought under bourgeois managers/ specialists. Prod planned by gov
-Labour discipline reintroduced + internal passports
-Rationing - labour forces + RA more, MC got least
-money= worthless, wages in food
Effects of war communism
-less than 1/3 of urban diet was state provided- rest black market (bag men)
-the Cheka raided trains to stop bagmen travelling but it fed the starving. Prices of food rocketed + fuel was short + sanitary conditions worsened
-MC worse effected- many turned to prostitution
-workers benefitted but didn’t like corruption of the party
-War com caused hardship. Peasants refused to cooperate in prod more food as it was taken away. Food shortages + bad weather = famine. Harvest of 1921 produced 48% of 1913’s harvest
Some est 7 mil Rus ppl died. Reports of cannibalism population in 1913= 170.9 mil, in 1921 =130.9 mil
-The Red Terror, Tambov revolt, the Kronstadt rising
The NEP features
-Stopped the practice of requisitioning food
-Peasants now had to supply amount of what they grew to gov
-Any extra they were allowed to keep, or sell for profit
-Small factories privatised
-All imp industries, such as coal and steel, nationalised
New rouble was into to end inflation
Programme of electrification cont and extended to rural areas.
Effects of the NEP
-‘ban on factions’ intro 1921. Cold be discussions about pol, once cent com had made a decision, every party member had to agree
-Mensheviks + SR’s parties banned in 1921 + thousands of Mensheviks + SRs arrested
-The Cheka given more power to root- out poss counter-revolutionaries + crackdown on NEPmen- suppress NEP moving towards full com
-censorship incr- church under more pressure. Thousands of priests arrested
-the nomenklatura system intro in 1923- only those completely loyal considered for promotion
Scissor crisis- ag dear, Ind incr
The Great Turn Aims
-come to rapid industrialisation and mass mobilisation of workers. To facilitate this need rapid agricultural revolution.
-planned to increase grain production by 50% over the course of the 5 year plan.
-Aimed to eradicate the kulaks, make farming socialist rather than capitalist.
-Replace the NEP
Process of collectivisation
1929- 5% farms collectivised, 15% all peasant households identify as kulaks. Those who weren’t shot by the OGPU were exiled to Siberia. 150,000 Kulak families deported
1930- March -St announced 50% peasant farms had been collectivised… allowed for brief return of voluntary collectivisation
Oct- numbers dropped bc of this 20% collectivised
1931- once spring crop sown- collectivisation enforced again
1941- all farms collectivised
Effects of collectivisation on peasants
-widespread + violent opposition to col. Many peasants killed livestock + destroyed machines, fearing wld be branded as kulaks if kept them
-Armed forces resp brutally… sometimes burning down villages + deporting those who resisted
-some peasants sent to remote places in Siberia to labour camps. Thousands died in harsh conditions of the camps run by the OGPU. Est 10 mil deported as kulaks under Stalin
-Peasants in collective farms treated badly, targets = high. Farms receive nothing if quotas not met, state prices = low… farms struggled to cover costs.
- by 1939 ab 19 mil peasants had migrated to towns or cities
-many regions exp a drought in 1931 especially in Ukraine. Famine spread 32-33. Gov cont to demand grain quotas despite drop in prod. 6-8 mil died. Famine bc coll
Success of collectivisation
-dekulakisation + collectivisation= farming under state control. No opp for farmers to hold back grain
-cap in countryside eradicated, except peasants priv owned blocks
-1941 100% collectivised
-Money from grain exports = funded Ind… poor conditions caused migration to cities. 1922 and 1940 urban pop 22-63 mil
USSR succeeded in its aim of exporting more grain (raised from 30,000 tonnes 1928 to 5 mil 1931). Prov invest for rap Ind
Extended regime overt country side- built soc
Failure of collectivisation
During peasant oppression, ag prod fell dramatically. 1933, harvest 9 mil tonnes less than 1927
Grain did not exceed pre-coll levels until after 1935
Livestock no fell by 25-30% did not recover until 1953
Living standards fell in urban + rural areas. In towns + cities wages also declined
Feminine killed 6-8 million people, high Soc cost. Not seen like this w/in party
First five year plan (1928-32) Aims
develop heavy industry
boost electricity production
Double light industry e.g chemicals
First 5 year plan successes
Elec prod doubled
Coal & iron output doubled
Steel prod incr ny 1/3
First 5 year plan limitations
None of the extreme ambitions met
Improvements in chem Ind lagged behind
Consumer Ind badly neglected