the transformstion of the economy 1917-1941 Flashcards
what happened in 1928?
the scissors crisis, it damaged the economy
what things were neglected when the industry developed?
consumer goods like food
what did agriculture/ the economy struggle to recover from?
collectivisation
how had WW1 impacted the economy?
it had devastated it and caused shortages of many resources, rationing was required
when was war communism?
1918-1921
what were the main 3 things war communism introduced?
•centralisation and nationalisation of most industries
•grain requisitioning from peasants
•attempting to abolish private enterprise
what impact did nationalisation of industries have on the economy?
•factories were taken over by the state and the lack of experienced managers/ workers meant that industrial output plummeted
•many factories were repurposed for military production meaning the production of consumer goods sharply declined
•transportation systems were ineffective
what impact did grain requisitioning have on the peasants?
•the government demanded large amounts of grain, often exceeding the peasants’ ability to produce it
•this led to widespread resentment amongst the peasants and they began hoarding/ burning grain and slaughtering livestock
•food shortages became widespread (Ukraine famine 32-33, 3 million died)
what did war communism/ civil war also lead to in terms of the economy?
inflation as they financed the war effort through printing money
•the value of the rouble collapsed
after the civil war what had industrial production declined by?
two thirds
when was the NEP introduced and what was it?
•introduced in 1921 by Lenin
•it was a response to the economic collapse caused by War communism and the civil war
what were the 4 key features of the NEP?
- agricultural reforms (abolished grain requisitioning)
- reintroduction of private enterprise
- state controlled industry
- foreign trade
limitations of the NEP
•slow industrial recovery and was not enough to fully restore the economy
•growth of NEP men was a symbol of capitalism
•led to more economic inequality
•did not help the proletariat
how did collectivisation hinder the economy?
it caused a sharp decline in agricultural output, slowing economic recovery
what did the purges result in?
the loss of many trained experts