RR - Unit 2 - Industrial and Agricultural Change Flashcards
What is a Command Economy?
Controlled and directed by the state in the interests of the people
Economic Problems in 1917 - 4 Points
- Capitalists treated workers poorly
- Economy was backwards and unsophisticated - Russia was far behind in industrialisation
- Lenin was unsure about what a socialist economy entailed
- People did not have food or materials
State Capitalism in the Early Years - 4 Points
- March 1918 - introduced a transitional phase between capitalism and socialism
- Lenin knew the economy was not ready for full blown socialism
- Based on nationalisation of large-scale industry - ownership was passed to the State
- Small businesses not yet nationalised
Vesenkha - 7 Points
- Set up in December 1917
- Known as the Supreme Council of the National Economy
- Controlled the nationalised industries
- Centralised control - Lenin thought this would lead to greater efficiency as specialists were employed to run the economy
- Re-establish worker discipline - offer higher pay for productive workers
- Ensure proper management of factories
- Co-ordinate economic production to meet demands of society
Lenin’s Early Economic Measures and Aims - 5 Points
- High levels of production of war goods and increase in food production to feed soldiers
- Efficient allocation of workers
- June 1918 - nationalisation of all industries with 10 or more workers
- Had long term aim to abolish all private enterprises, which led to radical policies
- Greater government intervention in the economy, which led to war communism
War Communism - 11 Points
- Conscription, created a food dictatorship, introduced rationing, abolition of trade, and improved labour disciplines
- Workers assigned to factories or to fight in the army
- Grain requisitioning had Cheka squads authorised to seize grain and other forms of food from peasants without payment, which was then used to feed the workers and soldiers
- 150,000 Bolshevik volunteers use to seize the grain
- Largest rations went to soldiers/workers and smallest went to bourgeoise
- 1918 - working day extended to 11 hours, when it was originally 8
- 1919 - work compulsory for all able-bodied people aged 16 - 50
- Harsh punishments for being late or slacking
- Private trade made illegal
- Government delivery caused hyperinflation so money became worthless
- Workers were paid in rations and public transport services were made free
Consequences of War Communism - 7 Points
- Economic collapse, growth of the black market, mass poverty, and political crises
- Industrial production declined significantly as many left to work on farms - 1917 production was at 3 million tonnes, but 1922 it was at 1.2 million
- Agricultural production as there was no incentive - food was being taken with no payment and they had little to eat
- 1921 - harvest was 46% of the 1913 harvest, with 6 million dead from famine
- 60% of food in cities was from the black market
- August 1920 - June 1921 - Tambov uprising, where peasants rebelled against the government
- March 1921 - Kronstadt mutiny, where sailors mutinied and government responded with military action
NEP - 4 Points
- New Economic Policy 1921
- Created a mixed economy with a price and public sector
- Operated on market forces
- Temporary fix to keep the Bolsheviks in power and to make a more socialist economy
Reasons for the NEP - 5 Points
- Industry had fallen to 20% of its 1913 levels
- Food production had fallen to 48% of its 1913 levels
- War communism created resentment towards the government and those that benefitted
- Civil war had ended, which meant a new situation, and a new response was needed
- Uprising demanded change - particularly Kronstadt Mutiny, as they had been involved in the revolution
Key Aspects of the NEP - 7 Points
- Food requisitioning was replaced by a system of taxation, which allowed the peasants to sell any remaining food for profit
- No forced programme of collectivisation
- Small scale industry was returned to private hands
- State kept control of heavy industry
- In state-owned factories, bonuses were used to try and raise production
- Introduction of legislation of private trading to stop the growth of black marketing
- Introduction of currency for paying wages
Reactions to the NEP - 4 Points
- Some saw it as a betrayal to the revolution, as it had capitalist aspects
- Unrest reduced and the economy improved
- Promoted a new middle class of ‘nepmen’, who benefitted greatly and were previously bourgeoise
- Wealthier peasants created called ‘kulaks’
Consequences of the NEP - 6 Points
- Industrial growth - market production increased and the government invested money from taxes in the reopening of factories
- Ending grain requisitioning provided some political stability as peasants did not like it
- Growth in grain production from 37.61 million tons in 1921 to 56.5 million tons in 1923 - still below 1913 levels
- Created inequality - nepmen arrested by the Cheka for profiteering and getting rich, while others were poor
- Corruption - gambling, drug dealing, and prostitution took place
- Scissor’s Crisis
Scissor’s Crisis - 4 Points
- NEP caused uneven economic growth
- Food production increases greatly but industrial growth occurred slowly
- By 1923, the gap between farmer’s income and industrial crisis had to be subsided by the government
- Meant less money to improve the economy
Nature of Stalin’s Five Year Plans - 4 Points
- Stalin’s radical economic policies is known as the Great Turn/Second Revolution
- Government initiative to increase production
- Gosplan
- All targets were backed by propaganda celebrating the successes of the plans
Overall Aims of the FYPs - 5 Points
- Breakaway from the NEP and make the USSR self-sufficient
- Bring about rapid industrialisation to modernise the economy
- Remove nepmen
- Use the most advanced technology
- Mass mobilise the Soviet people and resources
What Happened to the Bourgeoise Experts Who Retained Their Positions to Provide Expertise to Keep the Industry Running Smoothly? - 3 Points
- Campaign against the bourgeoise experts
- 1928 - series of show trials against them, and they were accused of ‘deliberate sabotage’
- Loss of this group hindered the process made under the five year plans
First FYP - 3 Points
- 1928 - 1932
- Focused on rapid growth in heavy industries, such as coal, iron and steel
- Neglected consumer industries and production of household goods to allow the industrial sectors to flourish
Second FYP - 3 Points
- 1933 - 1937
- Initially set higher targets to produce consumer goods
- Rise of Hitler in the 1930s redirected focus onto the needs of defence, and heavy industry received the priority
Third FYP - 2 Points
- 1938 - 1941
- Geared towards arms production
Results of the First FYP - 9 Points
- Large industrial centres, such as Magnitogorsk, were built and became large cities with a population of 250,000
- Facilities at these centres were primitive and workers were housed in tents and temporary huts
- By 1933, 17% of the workforce in Moscow as skilled
- Government relied on the use of shock-brigades made up of the best workers to set an example
- Rewards for model workers, such as new flats or bigger rations
- Government used slave labour from the gulags to complete large building projects in remote and cold regions like Siberia, which had a large human cost
- White Sea Canal project employed 180,000 prisoners, but during the winter of 1931 - 1932, 10,000 prisoners died on this project
- Factory managers were faced with unrealistic targets, so used a wide range of enterprising methods, such as ambushing resources for other factories and bribery
- Quality was often sacrificed in the rush to fulfil targets
Results of the Second and Third FYPs - 6 Points
- Coal production rose during the second plan
- Chemical industry made process, but oil industry did not
- Much of the new industry in remote areas, such as Kazakhstan, acted as a form of regional development to promote even more distribution of industrialisation throughout the USSR
- Rapid growth in engineering industry and transportation
- Consumer industries suffered as the collectivisation of agriculture had destroyed a lot of industry in rural areas
- New bakeries and meat packing factories were established in many towns, but this did not solve the problems of shortages in important consumer goods
Factors That Limited the Achievements of Stalin’s Economic Policy - 3 Points
- Poor planning and implementation
- Adoption of the command economy led to failures because planners in Moscow had little understating of local conditions in certain parts of the USSR
- Removal of managers and technical experts through the purges in 1937 slowed down economic progress
Reasons for Collectivisation in Terms of Links With Industry - 4 Points
- Fear of invasion by foreign powers
- Modern economic base was seen as essential if the Soviet Union was to defend itself against an attack by capitalist powers
- Industrialisation would lead to an increase in the population of towns and cities that would need to be fed by an increase in food surplus
- New industries need technology from abroad and this was paid for by expiration of food surpluses
Economic Reasons for Collectivisation - 4 Points
- Formation of collective farms where peasants would be grouped together on larger farms
- Resulted in larger units that made the use of machinery more viable and cost effective
- Use of machinery would enable increased food production and the reduction of labour requirements for agricultural production
- Would release workers for the growing industrial plants
Political Reasons for Collectivisation - 5 Points
- Help extend socialism in the countryside and ensure the survival of the revolution
- Control of the Party in the countryside was weak and its support had declined since the Tambov Uprising in 1921
- Land Decree in 1917 resulted in land being the personal property of individual presence, which was not what the Bolsheviks wanted
- Would provide opportunity to get rid of the kulaks, who were seen to be hoarding food for their own consumption
- Led to pressure on leadership to rid the country of these capitalist classes because they prevented progress towards socialism
Ural Siberian
Government carried out forced requisitioning of grain as a temporary measure to cope with food shortages in 1928, even though the 15th Party Congress decided on a programme of voluntary collectivistaion
How Did Stalin Limit the Exploitative Tendencies of the Kulaks? - 2 Points
- Local Party officials went into villages to announce the organisation of a collective farm, Kolkhoz, and persuaded peasants to become members
- Peasants that refused to join the collective farms were labelled as class enemies and deported to Siberia