Lenin - Economy

Question 1

State capitalism

Answer 1

-decree on land oct 1917 abolished private ownership
-some state control, private markets remained important
-dec 1917, veshenka established to supervise economy

Question 2

Problems with state capitalism

Answer 2

-workers failed to organise factories efficiently
-high inflation making peasants hoard produce
-rations of 50 grams of bread a day in petrograd feb 1918

Question 3

War communism in the countryside

Answer 3

-grain crisis spring 1918, policy of food requisitioning
-encouraged collective or cooperative farming
-food supplies policy set up in may 1918, ensured grain delivered to state, peasants paid a fixed rate
-poor regarded as allies, kulaks had stocks seized

Question 4

War communism in industry

Answer 4

-railways, banks, merchant fleet, power companies and putilov iron works all nationalised
-sugar industry nationalised may 1918, oil june 1918
-nov 1920 nearly all factories and businesses nationalised
-private trade and manufacture forbidden

Question 5

Problems caused by war communism in the countryside

Answer 5

-grain supplies very low, food shortage by 1920
-a third of land abandoned, cattle/horses slaughtered
-harvest of 1921 only 48% of 1913
-millions died from malnourishment and disease
-russians population fallen by 40 million 1913-21

Question 6

Problems caused by war communism in industry

Answer 6

-industrial output 20% of pre war levels
-typus killed over 3 million in 1920
-reduction by 1/3 in bread rations
-petrograd population decreased 57.5% 1917-20
-moscow population decreased 44.5% 1917-20

Question 7

Demands for economic change

Answer 7

-tambov peasants revolt, 100,000 soldiers sent
-strikes and riots in protest of factory discipline, lack of union representation

Question 8

NEP in industry

Answer 8

-announced at 10th party congress aug 1921
-allowed private trade + ownership of small businesses
-rationing ended, workers must be paid from profits
-by 1926, 1913 production levels reached again

Question 9

NEP in countryside

Answer 9

-end of grain requisitioning
-peasants responded quickly causing scissors crisis
-huge increase in grain but lack of industrial goods limited trade causing peasants to hold their supplies
-government replaced quotas with money taxes from 1923 forcing them to sell, ending the crisis