State Capitalims Flashcards
What is state capitalism?
A compromise economy which embraced some elements of socialism by imposing a degree of state control but also retained elements of capitalism such as private markets and profit incentive
Why did many Bolsheviks disagree and what did they demand?
It wasn’t the best move towards socialism and they demanded the abolition of money and the nationalisation of businesses - trade should be determined by people’s needs rather than a desire to make profit
How did the Bolsheviks develop greater state control?
Dec 1917- nationalised banks June 1918- nationalised external trade June+Sep 1918- nationalised railways Established the Veshenka Established GOELRO
What was Veshenka?
The supreme council of national economy
What was GOELRO?
A special state commission in 1920 that organised the production and distribution of electricity around Russia
What were the problems with state capitalism?
Workers inefficiently ran factories and gave themselves unsustainable pay rises
Output shrank
It was reported that workers made items such as penknives and shoe soles to sell on the Black market
Workers lacked skills to manage
Civil War disrupted production- shortage of raw materials
Impact of decrees?
Land- did not nationalise land but passed it into hands ‘of all those that cultivate it’
Workers- acknowledged that factories had been passed into the hands of workers
