STALIN ECONOMY 1941-53 Flashcards
19 . the state of Russia in wartime: economic impact of war
Hitler had intended to seize Russian farmland and industry in the wake of his invasion and use it to German advantage - by the end of 1941, it looked as though he had achieved something of his ambition:
- The German-occupied Soviet territory contained:
63% of the country’s coal,
68% of its iron,
58% of its steel,
45% of its railways and
41% of its arable land.
19 . the state of Russia in wartime: economic impact of war
However, with the establishment of a wartime economy on 30 June 1941, the Soviets had already taken measures to ensure their economic survival:
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- A ‘scorched earth’ policy had rendered much of the farmland useless.
- Moreover, 1523 entire Soviet factories together with their workers were transplanted from western Russia and the Ukraine to areas in the east between July and November 1941.
The industrial growth that had already taken place in these areas during the Five Year Plans was also capitalised upon, with production geared to needs of the military. - New railways were built or redirected and the industrial bases rapidly linked to the front line
19 . the state of Russia in wartime: economic impact of war
Managing a wartime economy proved easier for the USSR, with its existing centralised, planned economy, than for than its Western allies leading to:
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- Peoples Commissars were established to supervise the different sections of wartime production, such as tanks, aircraft and guns, while compulsory state orders allowed for changes to take place in a very short timeframe.
- The whole population was harnessed for war and rigorous labour controls ensured maximum production National expenditure was redistributed so that, by the end of 1942, the military share of budget had risen from 29% to 57% and munitions manufacture was 76% of all production.
- Most spending was focused on the giant heavy industrial complexes in the Urals where, in total, 3500 new industrial enterprises were built during the course of the war.
- New furnaces were constructed at Magnitogorsk in just eight months.
- The Engels plant started production 20 days after it was moved.
19 . the state of Russia in wartime: economic impact of war
By mid-1943, industrial output not only exceeded that of Germany, but the quality of the weapons produced was also superior:
give an example
- The T-34 tank, Katyusha rocket launcher and Yak-1 fighter aircraft are thought to have been among the best weaponry produced during war.
19 . the state of Russia in wartime: economic impact of war
Food problems took longer to solve, particularly since the grain harvest of 1942 was only a third of that of 1940.
However, survival was ensured by
- strict rationing and demanding quotas on collective farms, although to maintain morale and incentive, peasants were allowed to keep private plots and to sell their produce.
- Farm output was maintained by women, elderly men, and children, while those in the towns and cities were strongly encouraged to cultivate any patches of soil for vegetables.
19 . the state of Russia in wartime: economic impact of war
Although the bulk of needs was met through domestic production, the Russian economy was helped by considerable foreign aid, although this was never advertised to the Soviet people, who were encouraged to believe that their efforts were ignored by the West, who:
- The UK and the USA supplied essential war materials which the USSR had limited production of, such as lorries, tyres and telephones.
- In total 17.5 million tons of military equipment, vehicles, industrial supplies, and food were shipped from the West to the USSR, 94% coming from the USA.
- Under the Lend-Lease scheme of 1941, 11 billion dollars of aid was provided by USA.
- The USA supplied the USSR with 6430 planes, 3734 tanks, 104 ships, 210,000 vehicles plus essential raw materials and 5 million tonnes of food.
By the end of the war, 427,000 of 665,000 vehicles in USSR came from overseas.
22 . Economic developments
INDUSTRIAL DEVELOPMENT UNDER STALIN, 1945-53
The USSR faced huge economic strains after the Second World War, which had destroyed
70% of its industrial capacity and severely reduced the workforce.
22 . Economic developments
Not only had the Soviet economy to be revived, the USSR faced a huge defence budget as it policed its new satellite states and met the costs of the emerging Cold War.
these were countries where
After the war, the USSR established communist governments in the occupied eastern European countries (Czechoslovakia, Poland, Hungary, Romania, Bulgaria and Eastern Germany) turning these into Soviet satellite states that were politically, economically and militarily reliant on the USSR.
22 . Economic developments
Lend-Lease ended abruptly, and, in 1947, Stalin refused to allow territories under Soviet influence to receive US Marshall Aid.
Instead, he established
Cominform (organised the propagation of communist interests and repel the expansion of anti-communism) to counter Western propaganda and Comecon (established trade control between the Soviet Union and its satellite states) to link the Eastern European countries that formed the Soviet bloc economically.
22 . Economic developments
The redistribution of industry in the war years was to provide a broad base for industrial recovery since the expanded eastern industrial areas permitted
the exploitation of new sources of raw materials and energy.
Nevertheless, the rebuilding of the devastated (and formerly occupied) western areas was also essential.
22 . Economic developments
To meet Soviet needs, Gosplan coordinated two more Five Year plans following the same target setting methods that have been used before the war:
give industrial the aims and results of the 4th 5 year plan, 1946-50
AIMS
* To ‘catch up’ with the USA.
* To rebuild heavy industry and transport.
* To revive the Ukraine (a third of all expenditure was allocated here).
DETAIL
* Use of extensive reparations from east Germany.
* Maintenance of wartime controls on labour force - long hours, low wages, high targets, female labour ‘Grand projects’ - canals and HEP plants
RESULTS
* The USSR became 2nd to the USA in industrial capacity.
* Most targets in heavy industry met.
* Production doubled and urban workforce increased from 67 to 77 million (1941-52)
* By end 1947, Dnieper Dam power station in action again.
22 . Economic developments
give the industrial aims and results of the 5th 5 year plan, 1951-5
AIMS
* Continuation of development of heavy industry and transport
* Post-1953, under Malenkov, consumer goods, housing and services received stronger investment.
DETAIL
* Continuation of Fourth Five Year Plan but resources diverted to rearmament during the Korean War)
* (1950-53)
* After Stalin’s death, Malenkov reduced expenditure of the military and heavy industry.
RESULTS
* Most growth targets met.
* National income increased 71%
* Malenkov’s changes met opposition resulting in his loss of leadership in 1955.
22 . Economic developments
DEVELOPMENTS IN AGRICULTURE UNDER STALIN, 1945-53
Soviet agriculture had been left in a desperate state by the war:
- the scorched earth’ policy had destroyed western regions and only a third of farms were left operational.
- The 1945 harvest produced less than 60 per cent of pre-war harvests and 1946 saw the worst drought experienced since 1891.
- Two thirds of the agricultural labour force had gone, many animals had been destroyed, there were few horses left, and there was little agricultural machinery.
22 . Economic developments
Consequently, the two post-war Five-Year Plans tried to promote revival of agriculture:
FOURTH FIVE YEAR PLAN, 1946-50 aims and results
AIMS
* To force the kolkhozes to deliver agricultural products.
* To revive the wheat fields of the Ukraine although more investment went to industry here)
* To ‘transform nature’ and revitalise barren land.
DETAIL
* Massive state direction: high quotas for grain and livestock/low peasant wages
* Higher taxes on produce from private plots and private land absorbed in the war returned to kolkhozes.
* Tree plantations, canals and irrigation ditches to make more land usable
* Followed ideas of scientist Lysenko.
RESULTS
* State procured 70% of 1946 harvest, leaving peasants with little.
* Output of kolkhozes increased (and food rationing ended in
* 1947) but not to 1930s levels
* Incentives remained low.
* Almost a half of output came from private plots.
* Lagged behind industry.
* Lysenko’s ideas perpetuated inaccurate theories withheld farming back
22 . Economic developments
FIFTH FIVE YEAR PLAN, 1951-55 aims and results relating to agriculture
AIMS
Continuation of the Fourth Five Year Plan’s aims plus Khrushchev’s initiative to develop ‘virgin lands’ and build ‘agrocities’ from 1953.
DETAIL
High procurement levels maintained.
Expansion of agriculture in formerly uncultivated areas
RESULTS
Agricultural production still behind industry and under the level of 1940
