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Russia 1917-1991 > Economy > Flashcards

Economy Flashcards

1
Q

What was State Communism

A

To place the economy in hand of the proletariat but also using capitalism and experts to ensure economic growth

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2
Q

What was the key element of State Capitalism

A

Nationalising the economy

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3
Q

What Decrees/decisions did Lenin make in 1917

A

Land Decree: abolished private ownership, giving peasants control of their farms
Decree on Workers Control: placed control of factories in the hands of workers
Peoples Bank of the Russian Republic: all banks nationalised and merged into one

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4
Q

What were the positives of state capitalism

A

Gave considerable power to people, making Bolsheviks popular
Everyone considered as equal (in terms of class)
Gave oppressed workers a say
Could control the economy by nationalising the bank

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5
Q

What were the negatives of State Capitalism

A

Caused a crisis in the economy, workers gave themselves high pay rises
Violently dismissed their managers
No real tax, meaning no income
No expertise as they dismissed their managers making illiterate people in charge and not making any profit
Experts were purged

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6
Q

Why was War Communism introduced

A
  • Economic collapse
  • Bolshevik mistakes
  • Ideological basis
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7
Q

What were the key features of War Communism

A 
Hierarchical structures
Nationalisation 
Rationing
Vesenkha
Military discipline
Grain requisition
Private trading banned
Bartering
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8
Q

What was nationalisation

A

All industry without compensation

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9
Q

Rationing

A

Soldiers and factories received preferential treatment

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10
Q

Vesenkha

A

State control of the economy

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11
Q

Military discipline

A

Death penalty for workers who went on strike

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12
Q

Bartering

A

All goods traded for other goods, received wages in goods

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13
Q

Private trading banned

A

Trade controlled trade, black markets increased due to demand

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14
Q

Grain requisition

A

150,000 volunteers sent to countryside to seize peasants grain, starvation became common

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15
Q

What key features of War Communism was actually part of the communist ideology

A

Bartering
Vesenkha
Private trading banned

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16
Q

What key features were made simply for winning the Civil War

A 
Grain requisition
Military discipline 
Rationing
Nationalisation
Hierarchical structures
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17
Q

What was the economic impact on War Communism

A

All types of heavy industry was shown to decrease entirely.
Coal decreasing from 29m tonnes in 1913 to 9m tonnes in 1921
Steel decreased from 4.3m tonnes to 0.2m tonnes in 1921

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18
Q

Why was War Communism considered a success to a certain extent

A

Contributed to Boslheviks victory in Civil War as it allows control over all aspects of the economy

War Communism wasn’t designed to boost growth, it was made to win the war, not grow the economy

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19
Q

When did War Communism come to end

A

Lenin announced at the 10th Party Congress of 1921 the end of War Communism

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20
Q

Why did Lenin end War Communism

A

The Bolsheviks had won the war and there was no need to continue the policy, however other factors can come into consideration

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21
Q

What factors made Lenin’s end of War Communism

A

Economic Collapse: heavy food industry fell by 20%, food production also fell by 40%, 20m deaths due to famine and diseases during 1920s

Unpopularity: rationing was detested as it was linked to social class, returns to managers caused resentment and workers resented loss of control over industry

Tambov Rising: grain requisition caused conflict in countryside, uprising in key grain production in Central Russia, and took army of 50,000 to crush uprising

Kronstadt Mutiny: serious military challenge to the Bolsheviks, previously most loyal supporters to the CP, and a key factor in Lenins decision to end War Communism

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22
Q

What were the key features of NEP

A

Legalised private trading: return of privately owned businesses such as shops and markets

End to requisition: replaced with a system of taxation

No collectivisation: confirmed peasant control of land

Bonuses for workers: state-owned factory owners rewarded with incentives

Privatisation of small-scale industry, state retained control of Commanding Heights of the Economy which was heavy industry, transport, banks

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23
Q

What did Lenin describe the NEP as

A

‘One step backwards, two steps forwards’, this meant it was a retreat back to capitalism, evidence of this was the emergence of NEPMEN (businessmen who profited from the new policies)

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24
Q

Who detested the idea of retreating back to capitalism

A

Trotsky and the left-wing

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25
Was the NEP a success
Yes, steel increased from 0.2m tonnes in 1921 to 3.1m tonnes in 1926 Grain also increased from 37.6m tonnes in 1921 to 76.8m tonnes in 1926 Electricity tripled from 1921 to 1926
26
Why did the economy grow so quickly during 1926
Factories became more efficient with managers returning Growth driven from NEPMEN setting small businesses End of requisition allowed peasants to sell and grow more for profit
27
What were the negatives for rapid economic growth during 1926
Belief that capitalism would lead to corruption, crime and prostitution Most serious was the 'scissor crisis' where the flood of cheap food, want agricultural prices dropped while prices for industrial product rose rapidly
28
Why was food production the key to economic growth
Because it could support the industrial workers and to export and raise money for further industrial investment
29
Why did Trotsky and the left-wing want rapid industrialisation
So they could call for an end to the NEPMEN, this was due to them undermining communism and weakening the proletariat
30
Why did Stalin abandon the NEP in 1928
In order to defeat Bukharin in the Struggle for Power, but also because he believed the economy needed to industrialise rapidly
31
What is collectivisation
Policy of creating larger agricultural units where peasants would merge their farms and share their crops, rather than farming individually owned private plots where produce is sold for profit
32
What are the reasons for CP to collectivise agriculture
Collective action at the heart of communist ideology More efficient &I therefore an increased food production Better control over peasants if they're grouped together
33
What was grain procurement
The state's tax on peasants
34
What was the 'grain procurement' crisis in 1928
When Stalin temporarily brought back grain requisitioning due to peasants hoarding food, the main target were the kulaks
35
When did collectivisation start
1928
36
What was used for kulaks to sign up for collectives
Propaganda
37
Who were Communist 'experts'
They were sent to collectives to train peasants in modern farming which included techniques and skills
38
Who did Stalin call 'class enemies'
Anyone who wouldn't join collective farms and began deporting them to labour camps in Siberia
39
Rather than join collectives what did the kulaks do
Set fire to their farms and killed their livestock
40
Who were the 'Twenty-five thousanders'
Volunteers from the city's who formed 'dekulakisation squads' which killed kulaks or sent them to prison camps
41
What % were farms collective from 1932 to 1937
1932: 62% 1937: 93%
42
What factors contributed to the decline of agricultural production by 1933
Dekulakisation got rid of experienced farmers who had expertise and were wealthy enough hire out modern machinery Destruction of farms and livestock due to conflict with kulaks Supply of machinery by the state was very slow Grain procurement and grain exports by state left collectives with little surplus food
43
How many people died during the famine of 1932-3
Approx 7m
44
How many death did dekulakisation lead to
3-5m
45
What advantage did the deaths of kulaks bring to Stalin
Destruction of opposition
46
What successes did collectivisation create
``` Provided food for Stalins industrial workforce Established CPs control over countryside Got rid of political opposition Indoctrination of youth Spread socialism ```
47
What were the failures of collectivisation
10m in labour camps, where 3-5m died Loss of expertise due to dekulakisation Livestock decimated almost by half
48
From what year did Stalin FYPs last to
1928-41
49
What was GOSPLAN and what did they do
State planning authority | They set production targets, allocate resources
50
When was the first FYP
1928-32
51
What did the FFYP concentrate on
Heavy industry such as electricity, coal, steel
52
During the FFYP how much did the economy grow per year
14%
53
What were the failures of the FFYP
Only 17% of workers skilled, production mostly poor quality Use of slave labour: White Sea Canal 180,000 prisoners in 1932 in which 10,000 died GOSPLAN set unrealistic targets, led to fabricated statistics and bribery of GOSPLAN officials Experts purged White Sea Canal was only 12 feet deep, should be 22
54
When was the SFYP
1933-37
55
What did the SFYP focus on
Heavy industry
56
What did the SFYP nelgect
Consumer goods such as clothing and housing
57
What did the neglect of consumer goods lead to
Severe decline of living conditions
58
How much did steel increase by in 1933-37
During the SFYP steel tripled whereas clothing rose barely 10%
59
When was the third FYP
1938-41
60
Hat was the aim of the TFYP
Rearmaments due to threats of Nazi Germany, meaning they had to focus on heavy industry again
61
How much did rearmaments increase by
Airplanes: 800 (1928) 8,800 (1940) Tanks: 740 (1936) 2,600 (1940) By 1940 30% of government finances diverted to military industry
62
What was grain procurement
The state's tax on peasants
63
What was the 'grain procurement' crisis in 1928
When Stalin temporarily brought back grain requisitioning due to peasants hoarding food, the main target were the kulaks
64
What was used for kulaks to sign up for collectives
Propaganda
65
Who were Communist 'experts'
They were sent to collectives to train peasants in modern farming which included techniques and skills
66
Who did Stalin call 'class enemies'
Anyone who wouldn't join collective farms and began deporting them to labour camps in Siberia
67
Rather than join collectives what did the kulaks do
Set fire to their farms and killed their livestock
68
Who were the 'Twenty-five thousanders'
Volunteers from the city's who formed 'dekulakisation squads' which killed kulaks or sent them to prison camps
69
What % were farms collective from 1932 to 1937
1932: 62% 1937: 93%
70
What did the neglect of consumer goods lead to
Severe decline of living conditions
71
How much did steel increase by in 1933-37
During the SFYP steel tripled whereas clothing rose barely 10%
72
When was the third FYP
1938-41
73
Hat was the aim of the TFYP
Rearmaments due to threats of Nazi Germany, meaning they had to focus on heavy industry again
74
How much did rearmaments increase by
Airplanes: 800 (1928) 8,800 (1940) Tanks: 740 (1936) 2,600 (1940) By 1940 30% of government finances diverted to military industry
75
What was grain procurement
The state's tax on peasants
76
What was the 'grain procurement' crisis in 1928
When Stalin temporarily brought back grain requisitioning due to peasants hoarding food, the main target were the kulaks
77
When did collectivisation start
1928
78
What was used for kulaks to sign up for collectives
Propaganda
79
Who were Communist 'experts'
They were sent to collectives to train peasants in modern farming which included techniques and skills
80
Who did Stalin call 'class enemies'
Anyone who wouldn't join collective farms and began deporting them to labour camps in Siberia
81
Rather than join collectives what did the kulaks do
Set fire to their farms and killed their livestock
82
Who were the 'Twenty-five thousanders'
Volunteers from the city's who formed 'dekulakisation squads' which killed kulaks or sent them to prison camps
83
What % were farms collective from 1932 to 1937
1932: 62% 1937: 93%
84
What factors contributed to the decline of agricultural production by 1933
Dekulakisation got rid of experienced farmers who had expertise and were wealthy enough hire out modern machinery Destruction of farms and livestock due to conflict with kulaks Supply of machinery by the state was very slow Grain procurement and grain exports by state left collectives with little surplus food
85
What advantage did the deaths of kulaks bring to Stalin
Destruction of opposition
86
What successes did collectivisation create
``` Provided food for Stalins industrial workforce Established CPs control over countryside Got rid of political opposition Indoctrination of youth Spread socialism ```
87
What were the failures of collectivisation
10m in labour camps, where 3-5m died Loss of expertise due to dekulakisation Livestock decimated almost by half
88
What did the neglect of consumer goods lead to
Severe decline of living conditions
89
How much did steel increase by in 1933-37
During the SFYP steel tripled whereas clothing rose barely 10%
90
When was the third FYP
1938-41
91
Hat was the aim of the TFYP
Rearmaments due to threats of Nazi Germany, meaning they had to focus on heavy industry again
92
How much did rearmaments increase by
Airplanes: 800 (1928) 8,800 (1940) Tanks: 740 (1936) 2,600 (1940) By 1940 30% of government finances diverted to military industry
93
What % of cities survived from 1926 to 1939
1926: 18% 1938: 35%
94
What was the average % of economic growth during 1928-41
17% per year
95
What problems did the five year plans introduce
- changing from an inefficient agrarian agriculture to inefficient industrialised economy - millions died in slave labour - declining living conditions - widespread of corruption, bribery and poor quality due to pressure from GOSPLAN
96
When did the Nazi invasion occur
1941
97
What were the negative impacts of the nazi invasion
- industrial production dropped 40% - grain production fell by 50% - 25m homeless, 1,700 town and 70,000 villages destroyed - 20m in total killed
98
What was Command Economy
The economy had to become fully centralised and able to respond quickly
99
What % of Russian spending was dedicated just for the war during 1941-42
50%
100
When did the 4th five year plan occur
1946-50
101
What did the 4th five year plan focus on
Reconstruction: returning and exceeding pre war level of economic growth Soviet Bloc: exploitation of natural resources Use of slave labour: 2m slaves from gulags Focus on heavy industry
102
When did the 5th five year plan occur
1951-1955
103
What was the main focus of the 5th five year plan
Cold War: focus on armaments and advance weaponry Military budget: growth in defence expenditure Prestige projects: display Stalins power (Volga-Don Canal)
104
What challenges did the Cold War have on agriculture
- destruction of farmland - loss of machinery - conscription into army - villages population of just women and children - livestock 1/2 during war - drought in 1946 followed by famine 1947 - by 1952 production not even returned to Tsarist levels
105
What did Khrushchev focus during 1953
De-Stalinisation and improving living conditions, this meant we would have to abandon Stalins focus on heavy industry
106
What was the Liberman Plan
Decentralisation from Moscow to the regions to develop economy (1962)
107
Why did the Liberman Plan not a significant impact on the economy
The conservative politburo members ensured the plans more radical reforms were too watered down to have an impact
108
When did the seven year plan occur
1959-62
109
What were the successes of the seven year plan
Consumer goods such as shoes (increased by over 100m pairs) and gas (increased by over 200m kWhs) improved from 1958 to 1965
110
What were the failures of the seven year plan
Housing: 71m square meters in 1958 to 79m square meters in 1965, compared to their actual target to meet 650m square meters
111
How much did the economy increase by in 1960
7% compared 3% in USA
112
What was an example of Khrushchev prioritising agriculture over industry
The Virgin Land Scheme 1954
113
What was the Virgin Land Scheme
To convert 6m acres of unused land for farming
114
What were the successes of Khrushchevs agricultural policies
Farmer incomes X2 and food production increased 51% during 1953-58
115
What failures occurred to Khrushchevs Virgin Land Scheme
The scheme was a failure -little irrigation and no infrastructure, crops died as result -harvest failed in 1963 -millions of livestock slaughtered to prevents famine The ultimate failure was importing food from their enemy USA
116
What kind of economy did Brezhnev create
A period of economic decline
117
What were Brezhnevs priorities
Reverse Khrushchevs radical reforms Put economic power bank in CPs hands Deal with economic decline through limited reform
118
What was the Kysogin Reform
Reward creative and innovative managers and provide incentives for those who focused on efficiency and quality. Project created by Alexei Kosygin (prime minister)
119
Why was the Kysogin Reform sabotaged
With support from Brezhnev, conservative politburo raised bonuses for innovation and bonuses for productivity even higher. This meant managers focused on producing more and not efficiency.
120
What did Kosygins demotion of foreign minister represent
It was evidence of a return to out-dated Command Economy under Brezhnev
121
What factors contributed to decline of economy under Brezhnev
Brezhnevs role: conservative, wanted to keep CP happy so sabotaged reforms Legacy of Stalin: focused on heavy industry than efficiency Command Economy: didn't encourage growth or innovation Outdated technology: focus on heavy industry and not on microchips Dominance of the Military: 18% of investment and 30m employees

Russia 1917-1991 (4 decks)

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