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
When was the People’s Bank of the Russian Republic created?
27 December 1917
What did the early stages of Soviet economic policy up to the summer of 1918 show?
Stresses of an economic policy that was trying to ensure economic growth; obvious tension between worker self-management and government control through central planning
Why was War Communism introduced?
To ensure that the Red Army was supplied with enough food and resources to win
What actually caused the collapse of the Russian currency and its replacement by bartering post-WW1?
Raging inflation
What was the ideological basis for War Communism?
Measures aligned with the long-term aim of the Bolsheviks to abolish private enterprise; could be seen as the application of communist ideology
What can War Communism also be seen as?
Response to problems that resulted from the rush of early Bolshevik decrees
What did the War Communism forcible requisitioning of food lead to?
Rise in tension in the countryside; serious outbreaks of violence; malnutrition and starvation
Who received preferential treatment in the forcible requisitioning of food under War Communism?
Industrial workers whose work was crucial to the war effort
What was industrial production like by 1921?
1/5 of the figure for 1913
What effect did the Kronstadt Mutiny have on the government?
Shock to Bolshevik leadership; key factor in Lenin’s decision to change his economic policy
Why was the Kronstadt Mutiny such as shock to the Bolsheviks?
It was a group that had previously been a mainstay of the Revolution
When was the NEP introduced?
1921
Why did the government compromise with the peasantry for the NEP?
Without increased food production, the economy would never be able to revive
When was a currency reintroduced for paying wages?
1921
What was the reintroduction of a currency for paying wages seen by many communists as?
Re-emergence of capitalism
Who was particularly hostile towards the NEP?
Left-wing Bolsheviks
What did Lenin and his supporters see the NEP as?
Short-term remedy
Why did Stalin argue that the NEP needed to go?
Compromise with the peasantry was holding back the industrialisation of the Soviet Union
When did Stalin make the decision to introduce a command economy?
1928
What is the period of 1928-41 referred to as?
‘Stalin’s Revolution’
What was industrialisation an important part of?
Stalin’s cry of ‘Socialism in one country’
When was the decision to abandon the NEP and push for rapid industrialisation made?
After the Fifteenth Party Congress in 1927
Who was industrialisation placed under the direction of?
Gosplan
When had there been show trials against bourgeois experts?
1928
What was industrial expansion under the 1FYP largely the result of?
Making more efficient use of existing factories and equipment
Under the 1FYP, which large industrial centres were built from scratch?
Magnitogorsk; Gorki
What was the most notorious example of the use of labour camp prisoners?
White Sea Canal project
Why was the White Sea Canal project a waste of time?
To reduce costs and speed up construction, depth was reduced, rendering the canal useless for all but small barges
Who was put under immense pressure to achieve targets as well as workers?
Factory managers
What is an example of quality being sacrificed under the 1FYP?
Stalingrad tractor factory- was supposed to be producing 500 a month in 1930 but only managed 8 in June
How long did it take most of the tractors produced in the Stalingrad tractor factory to break down in June 1930?
3 days
What did the 2FYP make more use of after lessons learned from the chaotic planning of the 1FYP?
Technical expertise
What in particular rose substantially during the 2FYP?
Coal production
How did other industries fare under the 2FYP?
Chemical industry also made progress; oil industry remained disappointing
Where was much of the new industry located under the 2YFP and 3FYP?
Remoter areas of the USSR, such as Kazakhstan
Where was new industry deliberately located under the 2YFP and 3FYP?
East of the Ural Mountains
What was there definitely rapid growth in under the first 3 FYPs?
Engineering industry; transportation
What was the overall growth rate of 1928-41?
17%
What was one of the most important examples of the successful completion of projects to provide power for the growth in industry?
Dneiper dam project
Which industry actually declined under the 1FYP?
Textile industry
Why was the shortage of consumer goods under the first 3 FYPs made worse?
Collectivisation of agriculture had destroyed a lot of cottage industry previously undertaken in rural areas
What was the problem with progress made under the first 3 FYPs?
Unbalanced- 4-fold increase in steel production and 6-fold increase in coal production
Under which plan were there some advances in consumer goods?
2FYP
Which areas of consumer goods made significant increases under the first 3 FYPs?
Footwear production; food processing
What have often been highlighted as factors that limited the achievements of Stalin’s economic policy?
Chaotic implementation and planning
What seemed to prove that Stalin’s aim of transforming the country into a modern industrial society under the first 3 FYPs had been achieved?
Soviet Union defended itself against an attack by Nazi Germany between 1941-45
When was the 4FYP?
1946-50
What was the 4FYP?
Economic reconstruction- rigid state control reinforced over the war-shattered economy; focus on heavy industry, with production of armaments receiving particular attention
What were the results of the 4FYP like?
Impressive- especially the metal industry and heavy engineering; Plan was overfulfilled
What helped industrial production to recover quickly under the 4FYP?
Use of 2 million slave labourers from the Gulag
What was an important factor in the 4FYP achieving such quick results?
Strong central planning by the government
What were some of the failures of the 4FYP?
Problems persisted; consumer industries remained neglected; economy had returned to the priorities of the 1930s
What were some features of the 4FYP?
Redirection of wartime labour for the purpose of reconstruction; retraining programmes; harsh penalties for slackers
When was the 5FYP?
1951-55
What was the 5FYP?
Set out to achieve continued growth, albeit at a slower and perhaps more realistic rate; emergence of the Cold War resulted in an increase in arms expenditure
What was one of the most iconic projects of the 5FYP?
Volga-Don Canal- carried very little traffic and was adorned with statues of Stalin
When did the living standards in the towns post-war recover?
1948
When was the 6FYP?
1956-60
What was the 6FYP?
Virgin Lands Scheme
When were the Seven-Year Plans?
1959-65
What did the Seven Year Plans focus on?
Promotion of light industry; shift of emphasis from coal to oil and gas due to the discovery of new mineral resources, especially in the Volga-Urals fields
Why did Khrushchev focus on improving social stability?
Due to the reduction of terror
Why did Khrushchev want to focus on light industry?
Broaden base of Soviet economy; start to bring real benefits to the lives of the Soviet population
What challenges did Khrushchev’s economic policy face?
Vast bureaucratic system of administrators based in Moscow and use of terror stifled initiative; system was clumsy and wasteful
What did Khrushchev set up in 1957?
105 Regional Economic Councils (Sovnarkhozy) to supervise enterprises
How did Khrushchev alter the harsh labour laws of Stalin?
Working week reduced from 48 hours to 41 by 1960
What did Khrushchev put greater emphasis on in order to support industrial developments?
Vocational education
Why was there a focus on chemical industry as part of the Seven-Year Plan?
Linked to the increased targets for consumer goods
Under the Seven-Year Plan, how much of available investment did areas east of the Urals receive?
40%
When did Yuri Gagarin make it to space?
1961
How were consumer goods affected by the 2FYP?
More choice for consumers but the quality was often poor
What was the annual growth rate of the Soviet economy in the 1950s?
7.1%
Why did the Sovnarkhozy experiment make national planning more difficult?
Requirements of local enterprises were harder to foresee
When had economic growth slowed by?
1964
When was the 9FYP?
1971-75
What was the 9FYP?
Placed a particular emphasis on consumer goods- rate of growth in the production of consumer goods was higher than that of heavy industry
How effective was the 9FYP?
Goals were not fulfilled but the growth achieved was still impressive and living standards rose
What did the Bolsheviks believe as communists about the economy?
It should be in the hands of the workers and peasants themselves
Why was the economy devastated at the time that the Bolsheviks took over?
WW1; chaos unleashed by Revolution
When did the government attempt to rejuvenate the economy early on in the regime?
1917-28
Why, politically, was state capitalism introduced?
Bolsheviks couldn’t retain control if the workers and peasants were acting on their own initiative
When was the role of government in the economy greatly increased for the first time?
Civil war
What was the collapse of Russian currency and its replacement with bartering seen as by some?
Sign of liberation from capitalism
When was Vesenkha set up?
1917
Why did the government replace War Communism with the NEP?
Reality of the social and economic situation; worrying deterioration of political position of the Bolsheviks
When did the Bolsheviks draw up plans to get rid of the Mir?
Under War Communism
What led to a widespread famine under War Communism?
Breakdown in the transport and distribution systems
How many people died from famine and disease in the 1920s?
20 million
What did the severity of the Tambov Rising do to the government?
Put pressure on it to change its policy
What did the introduction of the NEP coincide with?
Arrest of many Mensheviks; outlawing of all other political parties
What did the NEP result in?
Mixed economy whereby private ownership coexisted alongside state control
When did a series of events occur that raised the spectre of a foreign invasion of the USSR?
1927
What was the political dimension to the decision to extend state control over the economy with the FYPs?
Greater state control would remove Nepmen and kulaks; gave Stalin an opportunity to consolidate his hold over the Party leadership
When did Moscow’s first train lines open?
1935
When did a drop in food production cause Stalin to change his mind about the NEP?
1927-28
What was a success of the FYPs between 1939-41?
9 aircraft factories
What were the reasons for economic decline by the 1980s?
Legacy of Stalinist system; problems inherent in command economy; ‘social contract’; lack of investment; outdated technology; dominance of military-industrial complex
Which companies did the Soviet government sign deals with in an attempt to address their outdated technology?
Fiat and Renault
How much of Soviet resources did the military-industrial complex soak up?
18%
When were major industrial complexes joined with scientific research institutions in an attempt to ensure that the latest technology was applied to production?
1973
How many Soviet families had televisions by 1980?
85%
What was invested heavily in under the 9FYP?
Public transport
Why was it impressive that Brezhnev had ensured that resources would continue to be given to consumer industries and agriculture under the 9FYP?
Influence of the military-industrial complex
What was the focus of Andropov’s economic policy?
Removal of corruption from within the system; improving labour discipline
