Leninist economy Flashcards
what did Lenin understand was necessary to achieve socialism in Russia?
-modernisation
-Lenin said ‘soviets plus electrification equals communism
what happened during the continuation of state capitalism, 1917-1918?
-economy was largely controlled by the government, but private markets were still important
-Veshenka (council of national economy) established to supervise and control economic development
-various decrees
what were the problems with the economy by 1918?
-shortage of grain
-workers began increasing their own pay and working less hard, and they lacked skills required for good management
-more money than goods available which led to high inflation
-food shortages in cities got worse after Jan 1918 because of the loss of Ukraine in the treaty of BL
what problems were caused by war communism?
-production declined due to disrupted transport systems and poor management
-by 1921 production had fallen to 20% of pre war levels
-typhus epidemic that killed 3 million
-widespread famine due to the forced requisitioning of grain
-between 1913 and 1921, the population fell by 40 million
why were the Bolsheviks forced to make economic changes?
-increase in peasant revolts due to famine e.g. in Tambov province where 100,000 red army troops were deployed
-strikes and riots in cities
-martial law declared - use of military to ‘enforce the law’ - however some soldiers refused to fire on protesters etc
-divisions within the party e.g. group formed of members against war communism
-Kronstadt uprising - 30,000 rebels sent a manifesto to Lenin demanding an end to the one party state, Lenin brutally crushed the rebellion but was secretly very shaken by it
describe their new economic policy (NEP):
-the Gosplan (state general planning commission) was established to advise on a new economic policy
-August 1921 = Lenin announced NEP
-the plan involved the continuation of state control of transport, banking and heavy industry, but also allowed for private ownership of smaller businesses and private trade, aka a market economy (big U turn)
-it was supported by a lot of the leadership e.g. Bukharin, however lower level party members thought it was a betrayal of ideology
what were the effects of the new economic policy?
-end to rationing
-industries had to pay their workers from their profits which ensured the efficient use of resources
-end to grain requisitioning: some peasants still had to give the state a proportion of their produce, but they could sell any surplus
-‘scissors crisis’: basically the plan worked too well too quickly. the massive increase in grain supply meant food prices reduced, but a lack of industrial goods for peasants to buy in exchange encouraged them to hold back their supplies. therefore the gov. capped industrial prices and taxed the peasants, which forced them to sell their grain.
how successful was the new economic policy?
-got the economy moving again
-by 1926 the production levels of 1913 had been reached again
BUT
-unsuccessful in modernising the economy, only recovered it - production levels should be higher than those of over 10 years ago!
-led to debates within the party
what was the state of the soviet economy by 1927?
-better living standards
-trade agreements with Britain and Germany
-return of a money economy and private wealth
-emergence of Nepmen (workers turning into managers)
-re-emergence of the kulak class
-no more revolts
-BUT this was now like a capitalist economy rather than a communist one!
arguments that Bolshevik economic policy was motivated by pragmatism/circumstance:
-the NEP allowed private trade and business, which was a complete U-turn on their initial decree against private ownership
-removed control of workers’ soviets under state capitalism
-grain requisitioning under War Communism - didn’t create an equal society
-Bolsheviks HAD to have an economic policy that would enable them to stay in power
arguments that Bolshevik economic policy was motivated by ideology:
-private ownership initially made illegal
-initial decrees on workers’ control and land
-women’s rights in industry
-under the NEP there was nationalisation of the ‘commanding heights’ of industry
-in order to create a communist society first the Bolshevik government would have to survive, therefore they had to implement some policies that didn’t completely align with their ideology
