Lenin Economy

Question 1

Lenin’s Aims

Answer 1

Modernise economy.
Stabilise economy.
Implement socialist ideology.

Question 2

Initial Problems

Answer 2

Vagueness of Marxism.
Nature of Economy (70% population agriculture).
Impact of WW1.
Weakest Link Theory.

Question 3

Bolshevik Economic Policies, 1917-1918

Answer 3

Land Decree, 10/1917.
Decree of Workers Control, 11/1917.
Treaty of Brest-Litovsk, 03/1918.
State Capitalism, 06/1918.

Question 4

Land Decree, 10/1917

Answer 4

Private ownership abolished.
Land given to the people.

Question 5

Decree of Workers Control, 11/1917

Answer 5

Workers replaced Bourgeoisie.
Raised wages, reduced investment, increased inflation.
Fall in production & efficiency.

Question 6

State Capitalism, 06/1918

Answer 6

Re-introduced bourgeoisie in control of factories.
Nationalisation.
Increase productivity + Efficiency.
Mixed economy (Capitalism/Socialism) to build economic foundations.

Question 7

Treaty of Brest-Litovsk, 03/1918

Answer 7

Peace with Germany.
Ceded 2m km^2, 80% coal mines, 30% population.

Question 8

When was War Communism

Answer 8

1918-1921

Question 9

War Communism Methods

Answer 9

Large-scale nationalization brought industry under Supreme Council of National Economy.
Labour + Red Army.
Prodrazverstka/Grain Requisitioning.
Print paper roubles (stabilize currency).

Question 10

War Communism Success

Answer 10

No unemployment.
Labour Army built roads & cleared woodlands.
Red Army fought Whites (SR + Mensheviks).
Prodrazverstka fed/supplies Red Army.
Bolsheviks remained in power.

Question 11

War Communism Failure

Answer 11

Rushed communism, ad-hoc policies, poor planning.
End 1918, Petrograd left with 60% population, 1.8m left due to lack of food.
Industrial workforce fell 3m to 1.3m due to Trotsky’s harsh authoritarian management.
16-50yr old compulsory 11hr work days.
1920, 3/4 factories strike to relax prodrazverstka.
1921, food production was 48% what it was in 1913, famine killed 6m.
Industrial production 13% what it was in 1913.
1913 = 29m tonnes coal –> 1921 = 8.7m tonnes.
Bartering > money.
20m died overall (famine, civil war, disease).

Question 12

Nove’s & Richard Pipe’s thoughts on War Communism

Answer 12

Nove - “Leap into Extremism”.
Pipes - “Premature & Ambitious”.

Question 13

When was NEP

Answer 13

1921-1928

Question 14

NEP Aims

Answer 14

Recovery & Modernisation.
1921, Lenin admitted NEP was a pragmatic policy to help industrialization and building a foundation for socialism.

Question 15

NEP Methods

Answer 15

Anti-inflationary strategies to stabilize currency.
Increase taxes + reduce gov spending to balance budget deficit.
Peace with peasantry (food source).

Question 16

NEP Success

Answer 16

1921-26, monthly wage (roubles) rose from: 10.1 to 28.6.
1921-26, factories produced: 2b roubles to 11b roubles, 8.7m tonnes coal to 27.6m tonnes, 180k tonnes steel to 3.2m tonnes.
Little unrest + no famine.
Nepmen.

Question 17

What were Nepmen

Answer 17

Private traders who fulfilled vital economic & social functions.
1925, 1/4 villages lacked shops which Nepmen provided.

Question 18

NEP Failure

Answer 18

1923-24, new taxes + cut in gov spending saw enterprises cut costs to maintain profit levels = 30k unemployed in manufacturing sector.
Peasant power (Scissor Crisis).
Unemployment: 1922 = 160k –> 1929 = 1.75m.
Economic recovery, but industry comparable to Tsarist period.

Question 19

Scissor Crisis, 1923

Answer 19

Manufactured products rose sharply relative to agricultural products. peasants sold x3 more grain to buy same saucepan/shirt. Withheld surplus grain, jeopardizing urban food supply and exports. Gov decreed reduction in industrial prices.