Lenin's Economic polocies

Question 1

State capitalism

Answer 1

• major companies and industries would remain in private hands but under state control. Bourgeois managers and experts would retain their roles in industries, factories and manufacturing.
• Lenin argued that capitalist development was necessary to restore production and build a solid economic foundation for the construction of a socialist economy.

Question 2

War communism

Answer 2

• Extreme and restrictive economic measures.
  banned private trade
  all businesses were nationalised (owned by the state) by a decree - placed political commissars in factories
  Labour force was militarised - harsh discipline
  elimination of money as by 1920 the rouble had dropped to 1% of its 1917 value
  rationing of food
  requisitioning of grain by the state - cheka were sent to collect by force.
• Caused Famine 1920 - 1921
• 5 million peasants died an they had to have foreign aid
• Lenin blames the famine on - kulaks (class warfare) and the Whites.
  The famine allowed Lenin to attack the Russian Orthodox Church - proved that there was no God and justified the confiscation of the Churches land and property

Question 3

NEP

Answer 3

• In 1921 a decree was passed
  It was a return to a mixed economy - socialism with capitalist elements
  Small industries were denationalised - private ownership - consumer goods eg clothing
  Large industries remained controlled by the state.
  Removing restrictions on private sales of goods and services
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