The Economy under Lenin

Question 1

Problems facing Russia:

Answer 1

• Economy backwards and unsophisticated
• Economy still far behind the more developed nations

Question 2

Karl Marx economy quote

Answer 2

“The increase in value of the world of things is directly proportional to the decrease in value of the human world”

Question 3

Lenin’s state capitalist economy was based on…

Answer 3

nationalisation of industry which ended capitalism by taking industry away from middle-class owners

Question 4

War communism designed to ensure:

Answer 4

• High levels of industrial output of war goods
• Efficient allocation of resources
• Food production to feed soldiers, workers and civilian population

Question 5

Lenin’s food dictatorship’ consisted of:

Answer 5

Grain requisitioning:
Cheka seized grain from peasants without payment

Rationing:
Supply Commissariat rationed the seized foods. Largest rations went to workers and soldiers, smallest rations given to members of the bourgeoisie

Question 6

War communism brought out labour discipline:

Answer 6

In 1918, working day extended to 11 hours

In 1918, work was made compulsory to all people who were able

Harsh punishments given to people who were late or caught slacking

Question 7

Following measures introduced to try to abolish the market:

Answer 7

Abolition of money:
More money printed which led to hyperinflation

Abolition of trade:
Private trade made illegal

Complete nationalisation:
All businesses taken over by state

Conscription:
Workers assigned to either work or fight in the army

Question 8

What were the consequences of war communism?

Answer 8

Kept Red Army supplied and won civil war
Led to economic collapse
Failed to abolish market

Question 9

Grain requisitioning led to…

Answer 9

lower rates of agricultural production

Question 10

Why did grain requisitioning lead to lower rates of agricultural production?

Answer 10

Peasants not paid for their grain or labour:
- Therefore the peasants had no incentive to work

Secondly, industrial production declined:
- Too few incentives to work.
- Hunger led to workers leaving the cities and seek work on farms where there was a greater chance being fed

Question 11

Total workforce declined from ___ million workers in 1917 to ___ million in 1922

Answer 11

3
1.2

Question 12

Growth of a black market during the Russian Civil War

Answer 12

Lenin’s economic controls failed to abolish the market

Historians estimate that only 40% of the food consumed in Russia’s cities came from rationing of food during the Civil War

Question 13

Mass starvation deepened…

Answer 13

the economic crisis, leading to a political crisis

Question 14

Why did Lenin introduce the NEP?

Answer 14

To retain political power

Question 15

Lenin described the NEP as…

Answer 15

an economic retreat

Question 16

Lenin NEP quote

Answer 16

“one step backward in order to take two steps forward”

Question 17

Lenin argued that the NEP, over War Communism was…

Answer 17

the correct economic foundation on which to build socialism

Argued that the Communist Party must learn to trade and use capitalism to build Communism

Also emphasised that the NEP would create peace with the peasants

Question 18

NEP was a major economic…

Answer 18

compromise

Question 19

Consequences of the NEP

Answer 19

NEP led to political and economic stability

Did not lead to rapid industrial growth, nor popular within the Party

Question 20

Political and economic stability

Answer 20

Ending grain requisitioning was very popular amongst the peasants

Free trade encouraged peasants to grow more food.
Therefore famine ended

Food became more widely available

Led to a growth in grain production

Question 21

Market Reforms

Answer 21

Under the NEP, market mechanisms were reintroduced, including the establishment of agricultural markets. This allowed for greater flexibility in pricing and encouraged farmers to produce more grain to meet market demand. The increased competition and potential for profit motivated farmers to invest more effort into grain production

Question 22

Positive Growth Rates

Answer 22

Historical data indicates that grain production experienced notable growth during the NEP period. For example, between 1921 and 1926, grain production in Soviet Russia increased from 37.6 million metric tons to 56.2 million metric tons, a significant rise

Question 23

Agricultural Investments

Answer 23

The NEP facilitated increased investments in the agricultural sector. Private individuals and cooperatives had the opportunity to invest in machinery, fertilizers, and modern farming techniques, leading to improved productivity and higher grain yields

Question 24

Industrial growth under the NEP

Answer 24

By the end of 1921, Lenin argued that the NEP was not merely the right policy for creating economic growth. But the best way to industrialise the USSR and lay the foundations for socialism

Question 25

Scissors Crisis

Answer 25

Agriculture recovered quickly, more supply of food led to a fall in prices of agriculture. Industry recovered much slowly.
Therefore prices rose.
A gap opened up between farmers’ incomes and industrial prices.

The rise in industrial prices meant that farmers could not afford to buy industrial goods and therefore there was no incentive for farmers to produce large quantities of grain

Question 26

The scissors crisis was a strong indicator that the NEP was…

Answer 26

failing to industrialise the economy

Question 27

NEP led to the re-emergence of …

Answer 27

inequality and corruption

Question 28

NEP led to emergence of…

Answer 28

“Nepmen” traders who made money by finding gaps in the market.

Question 29

Communist government regarded the Nep as parasites - why?

Answer 29

Produced nothing and made money from selling luxurys.
Sometimes, Nepmen would be arrested by the Cheka for profiteering.
Continued to operate all the way till the end of the NEP

Question 30

Nepmen grew rich whilst…

Answer 30

ordinary peasants stayed poor despite hard work

Question 31

Right-wingers like Bukharin argued that the NEP would be…

Answer 31

The best way to industrialise
Building socialism with capitalist hands