State Capitalism 1917-1921 Flashcards
How was State Capitalism enforced?
Lenin initially advocated state capitalism as a transitional phase between feudalism and socialism. It included nationalisation of banks (Dec 1917), state control of foreign trade (April 1918) and worker supervision (not full ownership) of factories.
What was the rationale behind it?
Preventing economic collapse after revolution and controlling the “commanding heights” of the economy while avoiding full socialism.
How did it differ to War Communism?
State Capitalism mixed economy with limited private trade, whereas war communism was full state control, grain requisitioning, and abolition of money.
Lenin abandoned state capitalism during the Civil War for more extreme measures (War Communism).
What did Lenin state in 1918?
“State capitalism would be a step forward compared to the present state of affairs in our Soviet Republic.” This shows Lenin’s pragmatism—he adapted Marxist theory to real-world crises.
