RUSSIA Industry Flashcards
What was ‘State capitalism’?
Transitional stage between old bourgeois economy and new proletarian one
What were the key measures of Lenin’s initial economic policy?
Land Decree October 1917; Decree on Workers’ Control November 1917; People’s Bank of the Russian Republic
Land Decree October 1917
Abolished private ownership of land which was now to be in the hands of ‘the people’
Decree on Workers’ Control November 1917
Placed control of factories into hands of industrial workers
People’s Bank of the Russian Republic
All private banks were nationalised and, along with the State bank, amalgamated into the People’s Bank of the Russian Republic
Why was the Vesenkha set up?
Workers’ councils voted for pay rises; managers with technical and industrial expertise were removed as revenge
Vesenkha
Supreme Council of the National Economy
When was the nationalisation of all industries with 10 or more workers?
June 1918
What were the key features of War Communism?
Nationalisation; Supreme Council of National Economy; reintroduction of hierarchical structures in industry; military-style discipline; private trading banned; bartering; forcible requisitioning of food; rationing
Which industries were exempt from nationalisation under War Communism?
Less than 10 workers
What did management replace under War Communism to instil discipline into the workers?
Workers’ Councils
What were the unemployed forced to join under War Communism?
‘Labour Armies’
Under War Communism, what was the death penalty introduced for?
All workers who went on strike
What type of work was done in the Labour Armies?
Road building; woodland clearance
Under War Communism, what developed because the state could not satisfy demand?
A large black market in goods
How did many workers receive wages under War Communism?
In goods rather than money
How many Bolshevik volunteers were used to seize grain under War Communism?
150,000
Why was rationing introduced under War Communism?
To ensure that despite food shortages, workers in the cities were fed
What did War Communism do to the economy?
Ensured that Red Army got resources it needed to fight and win civil war but left economy in state of collapse
What had happened to industry by the end of the war?
Ground to a virtual standstill- production of heavy industry had fallen to 20% of its 1913 level
What happened with food production by the end of the war?
Fallen to 48% of the 1913 figure
Which key features of war communism were especially disliked by the Russian population?
Rationing; use of managers and return to hierarchical systems within factories
Why was the system of rationing disliked?
Size of rations dependent on social classification a person was given
Which aspects of War Communism were most resented in the countryside?
Forcible requisitioning of food; plans to get rid of the Mir
Mir
Organisation made up of village elders that controlled the peasants and their agricultural work
Why did the Bolsheviks want to get rid of the Mir?
Obstacle to their own control over the countryside and their aim of introducing collective farms
When did War Communism peasant resentment against the government come to a head?
Series of uprisings in 1920-21, in the important grain areas of the Volga basin, North Caucasus and Western Siberia
Tambov Rising
Most serious of the peasant uprisings in central Russia-
peasants reacted violently to requisitioning teams arriving to seize grain
What did it take to put down the Tambov Rising?
50,000 Red Army troops
Kronstadt Mutiny
Mutiny of sailors stationed at the Kronstadt naval base against the imposition of orders on the local soviet by the Bolshevik government
What was the key cause of the Kronstadt Mutiny?
Increase in power of the Party and its officials at the expense of the workers
What were the key features of NEP in industry?
Returned small-scale industry to private hands; state-owned factories used piecework/bonuses to raise production; reintroduction of currency for paying wages; legalisation of private trading; ‘Nepmen’
What did the NEP allow the government to keep control of in industry?
Heavy industry, transport and the banks
Why did the legalisation of private trading occur?
Logical way of stopping a growing black market
Why was the NEP viewed by some as a retreat back to capitalism?
Accepted private industry and private trade
What were the three main aims of the NEP?
Retain power; revive the economy; build socialism
What was the success of the NEP?
Industrial output rose rapidly during the first 3 years
Why did industrial output rise so rapidly at the beginning of the NEP?
Repair of roads/bridges damaged during the civil war; existing factories put back into production; better harvests in 1922-23; enterprising Nepmen
What were the less desirable aspects of the NEP?
Corruption through a black market; widespread prostitution; ‘scissors crisis’; gangs of children stealing and selling goods
What was the ‘Scissors crisis’?
Imbalance between agricultural and industrial goods: as food prices fell, the price of industrial goods rose- low prices for grain discouraged the peasants from growing food for the market
How was the scissors crisis resolved?
State intervention- government stepped in to regulate prices in December 1923
What was industrial production by 1924?
45% of its 1913 figure
What had happened to the economy by 1926?
Much of the pre-war economy had been restored
What was the key to further economic growth after 1926?
Increasing food production in order to support more industrial workers and gain foreign exchange for new technology and machinery
Who called for the continuation of the NEP?
Bukharin; Stalin
What did Trotsky and those on the left of the Bolshevik Party call for?
Greater state control over the economy in order to increase the pace of growth
What had happened to world trade since the Communist takeover in 1917?
Severely reduced
What were the Five-Year plans designed to do?
Break away from the NEP with its capitalist elements; bring about rapid industrialisation to modernise the economy and move towards socialism
When was the 1FYP?
1928-1932
What was the 1FYP?
Concentrated on rapid growth in heavy industry; consumer industries were neglected
What was the original justification for the focus of the 1FYP?
The need to build up an industrial infrastructure before other sectors could flourish
How much of the workforce was skilled in Moscow in 1933?
17%
When was the 2FYP?
1933-1937
What was the 2FYP?
Initially set higher targets for production of consumer goods, but rise of Hitler redirected focus onto the needs of defence
When was the 3FYP?
1938-1941
What was the 3FYP?
Geared even more directly towards arms production to meet the threat of Germany
Who was the approach taken in the 1FYP recommended by?
‘Superindustrialisers’
What did Superindustrialisers believe?
Agricultural surpluses should be seized by state in order to invest in industry; heavy industry was the priority
When was the period of the greatest expansion of the Gulags?
1929-1953- 18 million prisoners, out of a population of 180 million, passed through the system
How much did coal production increase by under the FYPs?
From 35.4m tons in 1927 to 165.9m tons in 1945
Why was labour productivity so low in the USSR?
Low pay; long hours; lack of incentives in the system (especially in the 1FYP)
How much of government spending was allocated to rearmament by 1940?
1/3
What were the production problems with the FYPs?
Production quality was low; FYPs didn’t specify what materials should be used; little coordination between factories; FYPs themselves disorganised and undermined by Stalin’s other policies; effectiveness of FYPs undermined by unrealistic targets set by Gosplan
Why did Stalin change his mind about the NEP?
It was failing
What was the direct event that caused Stalin to end the NEP?
Kulak grain strike/grain procurement crisis
What was the state of the economy that the Bolsheviks took over in October 1917?
Chaotic
What was clear about the Soviet economy by 1985?
It was stagnating as growth came to a halt
How did the peasantry feel about the Land Decree October 1917?
Finally given control over the land they farmed and worked