Lenin: industry and agriculture Flashcards
What problems did Lenin face establishing a communist government, in terms of the economy?
- Marx was clear about the weaknesses of capitalism, but not clear about what future communism would entail, he was clear that a communist economy would be incredibly advanced, therefore many beleived communism would reach Britain or the US first as they had the most advanced economies
- Industrialisation in Russia had only started in 1890, it was far behind other countries
- WW1 had shattered the Russian economy mainly because so many peasants had died leaving no one to tend to the farms
- Many communists beleived the revolutions would end in capitalism before communism
What were Lenin’s early ideas in regards to the economy?
- He believed unlike most communists that Russia could skip the stage of capitalism, he argued that as the revolution spread other countries would send them aid
- Until then Lenin needed to rebuild the economy to provide the people with food and ensure supplies could be produced to defend the revolution
- Lenin argued that the October revolution had ended capitalism, but the economy was not ready to be socialist yet. Lenin called the stage the government was entering “state capitalism”
What was lenin’s early vision of a socialist economy?
- Very efficient, it required, modern technology, expert management and well disciplined and educated workers
- Workers would be free in the sense that they didn’t work for capitalists, therefore they’d be treated better
- Lenin strongly beleived there’d be very little leisure time as people would enjoy their work
- Lenin saw leisure as laziness
State capitalism
- Based on the nationalisation of industry
- Nationalised industry was owned by the soviets or Vesenkha
- The vesenkha had 2 uses:
1. Ensured expert management of industry by hiring well paid supervisors
2. Co-ordinated production with the needs of the new society - Smaller industry was either owned by the workers or handed back to capitalists
- State capitalism was very unpopular as it was so similar to life before, however it stayed the policy from March 1918- June 1918
Land reform
- Following lenin’s decree on land, land owned by the church and aristocracy was broken up and given to the peasants, this was very popular among the peasants
War communism: food dictatorship
- Grain requisitioning; Cheka were authorised to forcibly take grain from the peasants without payment, to feed the army
- Rationing; supply commisariat organised rationing of seized crops, most was given to soldiers and workers, least were given to the bourgeoise
War communism: labour discipline
- 1918: work day extended to 11 hours
- 1919: mandatory for all able bodied between 16-50 to work
- Being late or slacking received harsh punishment
War communism: abolition of market
- Abolition of money; printed so much that it became worthless, most public services were offered free, workers paid through their ration cards,
- Abolition of trade; private trade was banned, introduced a bartering economy
- Nationalisation: All large industries nationalised
- Conscription: as workers or to fight in the red army
consequences of war communism: economic collapse
- Agricultural production declined, no incentive to work, their grain was getting requisitioned, they were banned from making any money off what they had left
- Industrial production declined, little incentive to work
- Many workers fled the cities out of hunger to work on farms, 3 million city workers in 1917 to 1.2 million in 1922
Consequences of war communism: growth of the black market
- 60% of food came from the black market
- Workers stole raw materials from government resources, to produce goods they could barter for food, for example steel workers stole steel to produce cigarrette lighters in exchange for food
Consequences of war communism: mass poverty
- Lack of commodities such as fuel, caused workshops in major cities to close down
- Unemployment rose
- 1921 harvest was only 46% of what it was in 1913
- Famine began in rural leading to the death of 6 million
Consequences of war communism: political crisis
- 1920-21 Peasant uprising in Tambov
- 1921 sailors mutiny in Krondstadt
- Both suppressed by military action
War communism overall
- Succeeded in supplying the red army but at the expense of economic collapse, it also failed to abolish the market
The NEP overall
Three reasons
- retain political power
- Revive the economy
- Build socialism
- Building socialism with capitalist hands
- Consolidated Bolshevik power by replacing an unpopular policy and stabilising the economy
- However led to slow industrial growth, inequality and increase in crime
- Left side of the party did not support the NEP
The NEP measures
- Agricultural production was left to the free market, peasants could buy, sell and produce grain freely
- Grain requisitioning replaced with a tax
- Small factories were denationalised and allowed to trade freely, most were returned to their previous owners
- Money was reintroduced
- Large factories stayed nationalised
The NEP consequences: political and economic stability
- End of grain requisitioning and free trade gave peasants incentives to work and stopped a widespread revolution
- Managers of factories also had more incentives to work
The NEP consequences: industrial growth
- Tax money was used to rebuild industry that had been destroyed during the civil war
- Electrification campaign- major step in industrialisation
- By 1926 industrial output had returned to its 1913 levels
The NEP consequences: scissor crisis
- The gap between farmers wages and industrial equipment was so high that the government had to offer subsidies to farmers to buy the equipment
The NEP consequences: inequality and corruption
- NEPmen grew rich by trading luxury goods, the Cheka would arrest them for profiteering
- Gambling, prostitution and drug dealing grew
Opinions on Lenin’s economic policies - the left
- Trotsky and his followers wanted to follow a more radical socialist policy, such as nationalisation of all industry
- Trotsky argued, allowed the state to take all money generated from agriculture and use that towards improving the economy
- He believed this would end inequality, by ending the capitalist economy and private ownership. He recognised that his view would be very unpopular among the peasants
- He saw war communism as a heroic period of true socialism
Opinions on Lenin’s economic policies - the right
- Bukharin and his followers wanted to continue with the NEP to maintain social peace
- He beleived that the NEP would lead to industrialisation if the people were patient, and wouldn’t cause widespread anger among the peasants, therefore ensuring peace across the Soviet Union
- Bukharin saw war communism as evidence that complete government control caused chaos and rebellion
Opinions on Lenin’s economic policies - the centre
- Stalin and his supporters were prepared to back whichever policy worked, they were pragmatic
- Until 1927 Stalin supported the NEP as it was clearly working, however he shifted to the Left when it started to decline
The “Great Industrial Debate”
- Central part to the leadership struggle
- Contenders presented their rival economic policies
- During the 1920s the right won the debates therefore held onto the most power
- Most party members were centrists and supported the NEP for pragmatic reasons