Russian Economy across time Flashcards
What were the 3 different economy’s that prevailed?
War Communism
New Economic Policy
Five Year Plans
War Communism Methods
Requisitioning
Nationalisation of industry
Rationing
Requisitioning
Requisitioning
- Peasants grain below the minimum survival level was violently requisitioned.
- Built on the ‘Socialisation of Land’ decree & a Food Supplies Dictatorship was setup. Encouraged collectivisation - tiny support
- Paid a fixed amount, often more was taken and less money or inadequate vouchers given.
- Kulaks were the worst effected. Brought rural misery. Many hid food, destroyed food and killed requisition artists - Cheka HAD to be employed
Nationalisation
- Nationalised all industries under strict central management. (private - State control)
- Sugar 1918, Oil 1918, All 1920
- Private trade was BANNED. Workers lost the freedom they had from the 1917 decrees, professional mangers employed to reimpose discipline
Rationing/Labour Discipline
- Strikes were forbidden
- Working hours vastly increased
- Ration books replaced wages
- Fines for sickness, absenteeism
- Rewarded by bonus rations
- Food, Clothing and lodging controlled by the state
Rationing was CLASS BASED - Working class got the most, upper class got the least.
Effects of War Communism
- Created more problems than it solved
- Production declined when transport systems were disrupted and management failed to get factors working efficiently.
- In 1921 Production fell to 20% of its pre-war levels and rations were cut even further
- End of 1920s the population of Petrograd and Moscow fell by 50% of the 1917 level
- Massive food shortage by the 1920 - harsh requisitioning and Kulaks killed reduced food
- Harvest of 1921 produced 50% of that of 1913, mass famine
- 40 million decrease in total population
Complications of War Communism
Tambov Revolt
-1921 Famine was the worst famine - caused mass revolt, over 155 uprisings.
-Biggest was in the Tambov province - 70,000 man army rose up following requisitioning squads demanding the little grain they had
-100,000 Red Army troops deployed to deal with it.
Kronstadt revolt
-‘Flash that lit up reality’
-30,000 trained sailors rebelled because of the food rations. Took the Red Army and Cheka to destroy
-Caused divisions within the Bolshevik party
New Economic Policy Methods
Measures that addressed the harsh controls imposed during War Communism.
End of Requisitioning
Continuation of some Nationalisation
End of Rationing
New Economic Policy - End of Requisitioning
- Requisitioning of grain was ended, and so was the ban on private trade
- Peasants still required to give a quote, became a tax in 1923 following the scissor crisis. They were allowed to sell remaining grain for own profit - incentive
- Promise of no forced collectivisation of land, clear signal that peasants would be allowed to work for their own benefit - incentive
New Economic Policy - Nationalisation continued
- State kept control of the heavy industry, such as coal, steel, and oil. ‘Commanding heights of the economy’
- Small scale industries were returned to private ownership.
End of Rationing
- Rationing was ended
- Managers required to pay out of their own profits. Or a Profit Per Piece system.
Economic Impact of the NEP
- Private businesses reopened again, shops and restaurants re-emerged. Money flowed more freely.
- Agricultural production recovered fast - peasents were anxious to take advantage of the opportunity to trade surplus. Helped the problem of famine
- 1923, scissor crisis formed as food prices < industrial goods, peasants might not sell grain, money tax introduced therefore they had to sell. Evened out.
- Private trade very prominent, 75% trade was from NEPMEN. Tolerated if tax was paid.
