State capitalism VS war communism Flashcards
Economic Problems during the Civil War
Falling industrial production:
Supplies disrupted by fighting - workers left to join the red army or to return to the country: Urban Population fell from 3.6 mil to 1.4 mil from Jan 1917- 19.
Drop in production led to inflation: The rouble lost 50% of its value every month in 1918. By the end of 1918, prices were 24 times higher than in 1913 (pre-war levels).
With no product to buy peasants stopped selling their grain. Led to the Decree on the Organisation of Food Supply May 1918.
32% of Russia’s agricultural land was lost to Germany and its allies after the Treaty Of Brest-Litvosk.
Trade Blockades from the allies meant food shortages.
In early 1918 bread ration in Petrograd was only 50g per person a day.
Unsanitary living conditions and food shortages, lack of doctors and medical supplies led to millions of death - around 5 million people died from starvation & disease.
What was State Capitalism?
State capitalism was Lenin’s pragmatic policy in response to the economic collapse in Russia 1918. It lasted from April 1918- June 1918.
It was a compromise economy which embraced some elements of of socialism by imposing a degree of state control along with some aspects of capitalism such as private markets and profit incentives.
Features of State Capitalism
Lenin’s 1917 Decree on Land was to be abolished.
November 14, 1917: Decree on Worker’s control of factories - small factories weren’t nationalised.
All nationalised industries were run by the Vesenkha as of Dec 2nd 1917.
Golero 1920 - organised the production and distribution of electricity = Aimed to increase electricity production by 10 times.
What was the Vesenkha?
All nationalised industries were run by the Vesenkha (Supreme Council of the National Economy) which was established on December 2, 1917 to oversee and regulate the Soviet economy.
What did the Vesenkha do?
Re-established worker discipline by offering higher pay to productive workers.
Ensured factories were properly managed by placing them under the control of specialists.
Co-ordinated production to the needs of society
Positive Impacts of State Capitalism?
Workers gained more rights so accepted Lenin’s decision-making abilities.
Instored soviet power.
Improved production and efficiency, helping the economy.
Negative Impacts of State Capitalism?
Workers failed to recognise rule and output shrank when most needed:
Coal production dropped from 29 million tonnes in 1913 to 16 million tonnes in 1918. Petrograd lost 60% of its workforce.
Many Bolsheviks wanted full state control. By mid-1918, over 1,000 factories had been nationalized.
Some workers awarded themselves unsuitable pay and helped themselves to inventory:
Real wages in 1918 fell to just 2% of their 1913 value
Some factory committees tripled workers’ wages, worsening inflation.
What was War Communism?
Started in June 1918: Political and economic system adopted by the Bolsheviks during the Civil War in order to keep towns and Red Army loaded with weapons.
Features of War Communism
Socialisation of Land Decree 1917 led to Food Supplies Dictatorship (May 1918): Enforced compulsory grain requisitioning at fixed prices to prioritize the Red Army and urban workers, resulting in widespread hunger, reduced agricultural output, and peasant unrest until replaced by the NEP in 1921.
Collective/co-opertive farming = By 1922, only about 5–10% of agricultural land was formally organized into collective or cooperative farms, reflecting widespread peasant resistance
Money was abolished and wages were replaced with Ration cards.
Workers soviets were abolished.
Impacts of War Communism
Less than 1/3 of urban diet came from state provided rations, the rest from the black market.
Caused hyperinflation =: by 1920 the rouble had fallen to 1% of its with in 1917.
Bourgeoise were viewed as the class enemies and were not allowed to work- made up 42% of Prostitutes.
Wages were 2% of 1913 level and 3/4 were spent on food.
Industrial output slowed and was only 20% of pre-war level.
Droughts in 1919 and 1920 worsened famine - estimated that 5 Million died.
Why were the Bolshevik in trouble in 1921?
Kulaks
Red Army desertion ( for land-grab too) - during the entire Civil War, between 2 to 4 million soldiers deserted.
Inflation
Price of Grain
Foreign Threat
Social unrest = abolishment of ranks
Internal divide within the Bolshevik Party.
What was the Tambov Revolt?
In autumn 1920 Peasants in Tambov lead by Aleksandr Antonov rebelled against grain requisitioning and Cheka brutality.
By Jan 1921, Antonov had a force of over 50,000 anti-communist fighters.
Revolt lasted until June 1921
100,000 Red Army soldiers put down the revolt brutally, destroying whole villages.
What was the Kronstadt uprising?
In 1921 further rationing restrictions led to strikes and riots in cities.
In March, Sailor at the Kronstadt naval base rebelled against the suppression of Petrograd strikes.
The sailors demanded democratic reforms - “Soviets without communists”
Trotsky sent the Red Army to put down the uprising.
15,000 rebels imprisoned and ring-leaders were shot.
Some members of the Bolshevik Party believed the Bolsheviks were becoming to authoritarian.
