THEME 2: HOW DID THE GOVERNMENT EXERCISE CONTROL OVER THE ECONOMY BETWEEN 1917 and 1928? Flashcards

1
Q

What does Lenin’s declaration on 5th November 1917 suggest?

A

He calls out to the workers to take control of administering the state, to unite and rise up and to ‘institute rigorous supervision over production’.

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2
Q

Why were these words seen as hollow (even by Lenin)?

A

The equal distribution of goods could only be achieved if there were goods to distribute. Thus, the excitement of giving power to the workers and peasants to fit easily with circumstances. The economy was devestated by the First World War and the chaos unleashed by the Revolution. State control over the conomy might limit worker’s independance, but it was one way in which the economy could be rejuvenated.

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3
Q

What were the key problems of establishing communism?

A

Ideologically, the Bolsheviks wished to see the means of production in the hands of the proletariat but, in reality, the bourgeoisie had expertise in management and technical skills that were desperately needed. Lenin talked of working with these groups, at least initially, until Bolshevik experts could take their place. This transitional phase was termed ‘state capitalism’. There was also the issue that, once given power, the workers and peasants might be reluctant to give it up, even to a party that claimed to be working in their own interests (Bolsheviks).

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4
Q

What were the initial economic policies of Lenin?

A

The Land Decree of October 1917 abolished private ownership of land, which was now to be in the hands of ‘the people’. It was a vague statement, but enough to please the peasantry, who viewed the decree as giving them control over the land they farmed and worked.
The Decree on Workers’ Control of November 1917 placed control of the factories in the hands of the industrial workers.
On 27 December, all private banks were nationalised, and, along with the State Bank, amalgamated into the People’s Bank of the Russian Republic.

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5
Q

What impact did these policies have?

A

These measures gave considerable power to the workers and peasants, but it had a detrimental effect on the economy. Workers’ councils voted to give themselves huge pay rises, which did little to improve production and resulted in inflation. Managers were often dismissed, sometimes violently, and those with industrial and technical expertise were removed by workers seeking revenge for the way they had been treated previously.

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6
Q

What was the ideological basis of War Communism?

A

The measures of War Communism went along with the long-term aim of the Bolsheviks to abolish private enterprise and could be seen as the applicatin of communist ideology, albeit rather earlier than the Bolsheviks had expected. To some Bolshevik, the old world had been destroyed by the First World War and this provided an opportunity to build anew on Marxist lines.

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7
Q

Why was War Communism introduced based on economic issues?

A

The Bolsheviks had inherited an economy that was in a state of near collapse and drastic measures were needed if they were to fight and win the civil war. State direction of the economy had been a key feature of many European countries during the First World War and it had little to do with ideology.

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8
Q

Why might War Communism have been introduced to curb Bolshevik excesses?

A

Some of the Bolshevik policies for giving control to the workers proved to be idealistic and unworkable, especially during the emergency context of the civil war. The abolition of army ranks was reversed and factory managers had to be used to create some order in industry.

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9
Q

What were the key features of War Communism?

A

Nationalisation (state ownership) of all industry without compensation. Only workplaces with fewer than ten workers were exempt.
All industry was placed under the control of the state through the Supreme Council of National Economy (Vesenkha), set up in 1917.
The reintroduction of hierarchichal structures in industry. In factories, the Workers’ Councils were replaced by management in order to instil discipline into the workers.
Harsh military-style discipline was introduced into the factories. The death penalty introduced for all workers who went on strike. The unempoyed were forced to join ‘Labour Armies’ and set to work on projects such as road building and woodland clearance. All workers were expected to work on ‘Communist Saturdays’, days designated for serving the Party.
All private trading was banned. Trade was to be controlled by the state, but because it could not satisfy demand a large black market in goods developed.
Transactions using money became limited due to massive inflation. Money was replaced by bartering using goods, and many workers recieved their wages in goods rather than money.
The forcible requisitioning of food from the peasants in order to feed the army and the towns. Around 150,000 Bolshevik volunteers used to seize grain. The government attempted to use Committees of the Village Poor to spy on peasants who might be hoarding food. Tensions rose in the countryside and malnutrition, violence and starvation were commonplace.
The introduction of rationing to ensure that, despite food shortages, the workers in cities were fed. They recieved preferential treatment as their work was crucial for the war effort.

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10
Q

What were the outcomes of War Communism?

A

War Communism ensured that the Red Army got the resources it needed to fight and win the civil war, but it left the economy in a state of collapse. By 1921, industrial production was only one-fifth of the figure for 1913.Disease and starvation were common and a wave of serious unrest swept across the countryside.

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11
Q

Why, based on economic consideration, was NEP introduced in 1921?

A

Industry was at a virtual standstill by the end of the civil war. Production of heavy industry had fallen to 20% of its 1913 level and, in some sectors, production had stopped altogether. Food production had also fallen, to only 48% of the 1913 figure, and the breakdown in the transport and distribution systems had resulted in widespread famine. Weakened by a lack of food, many Russians succumbed to diseases suh as typhus and smallpox and over 20 million died from famine and disease in the 1920s. In addition to this, army soldiers had to be resettled into civilian life. War Communism was not delivering the goods, nor would it be able to cope with the post-war situation.

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12
Q

Why, based on the unpopularity of War Communism, was NEP introduced in 1921?

A

The system of rationing was disliked, as the sie of the rations was dependant on the social classification a person was given. Members of the Red Army and industrial proletariat recieved the most; members of the bourgeoisie received very little and, in some cases, none at all. The use of managers and the return of hierarchical systems within the factories caused resentment among the industrial workers, leading to violence on occasions. Many workers felt that their opportunity for self-regulation was being undermined by the dictates of the state.

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13
Q

What happened during the Tambov Rising?

A

Peasant resentment against the government came to a head in a series of uprisings in 1920-21. There were risings in the important grain areas of the Volga basin, North Causasus and Western Siberia. The most serious was the Tambov Rising in Central Russia, where peasants reacted violently to requisitioning teams arriving in the area to seize grain. The revolt was only put down after 50,000 Red Army troops were sent into the area. The seriousness of these risings put pressure on the government to change its policy.

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14
Q

What happened during the Kronstadt Mutiny?

A

A revolt by sailors at the naval base outside Petrograd which increased pressure on the government. The mutiny alarmed the Bolsheviks because it was by a group that had previously been a mainstay of the Revolution and they could not be easily dismissed as ‘counter-revolutionaries’. The mutiny was over the increase in power of the Party and its officials at the expense of the workers. Its slogan was ‘Soviets without Bolsheviks’. It was suppressed by Red Army troops, but the revolt was a shock to Bolshevik leadershipand was a key factor in Lenin’s decision to change his economic policy. To Lenin, the Kronstadt Mutiny had ‘lit up reality like a flash of lightning’.

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15
Q

Why might these have encouraged the introduction of NEP?

A

They showed most in the Bolshevik leadership that the situation that had developed under War Communism could not be sustained now that the war was over. That people had turned their attention away from the war and towards the problems with the government.

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16
Q

What were the key features of the NEP in agriculture?

A

An end to requisitioning was announced and it was to be replaced by a system of taxation, which allowed the peasants to sell an remaining food at market for a profit.
The Bolsheviks also announced that there would be no forced programme of collectivisation. Without collective farms, the mir would stay as the means of peasants self-regulating their farming activities.

17
Q

What were the key features of NEP in industry?

A

The NEP returned small-scale indutry to private hands, although the state kept control of heavy industry, transport and the banks. This allowed Lenin to claim that the Party still held the ‘commanding heights of the economy’.
In state-owned factories, piecework and bonuses were used to try to raise production. To some Bolsheviks these were the techniques of the capitalist.
The reintroduction of a currency for paying wages in 1921 was also viewed with decision by many communists as the re-emergence of capitalism.
The legalisation of private trading seemed the the logical way of stopping the growing black market, a factor that had already led to some local authorities allowing private trade.
With the growth of small-scale businesses and private traders, the Soviet Union saw the the development of the so-called ‘Nepmen’, people who gained under the NEP.

18
Q

What were the initial reactions to NEP?

A

The left-wing Bolsheviks were particularly hostile to this watering-down of policy but, to Lenin, they were in desperate economic circumstances and, without making compromises, the Revolution would not be secure.

19
Q

What were the successes of the NEP? (USE STATISTICS FROM SOURCE 4)

A

Industrial output rose rapidly during the first three years of the NEP, mostly due to the repairing of roads and bridges damaged during the civil war and putting existing factories back into production. It was also helped by better harvests in 1922 and 1923 (grain increased from 37.6 million tons in 1921 to 76.8 million tons in 1926). Yet, much of the growth was also due to enterprising Nepmen, those who saw opportunities under the return of private trade to set up small bussinesses and make some money. Pig iron increaed from 0.1 million tons (1921) to 2.4 million tons (1926).

20
Q

What were the failures of the NEP?

A

Corruption through a black market flourished, prostitution was widespread, and gangs of children roamed the cities trying their luck stealing and then selling goods. One major problem was the imbalance between agricultural and industrial goods: as food prices fell, the price of industrial goods rose. These low prices of grain discouraged the peasants from growing food for the market, a problem that Trotsky decribed as the ‘scissors crisis’.State intervention was used to resolve this issue and the government stepped in to regulate prices in December 1923.

21
Q

Why did Stalin change his mind regarding NEP after 1926 due to foreign issues?

A

In 1927, a series of events occured that raised the spectre of a foreign invasion of the USSR. A raid by the British government on the offices of the Soviet trade mission in London and the attacks on the Chinese communists in Shanghai seemed to confirm Sooviet fears of an imminent attack on the USSR itself. The Soviet Union would have to be placed on a war footing. Many peasants responded to the fear of invasion by hoarding food and this seemed to confirm to Stalin that the peasantry were a key force in holding back further economic growth.

22
Q

Why did Stalin change his mind regarding NEP after 1926 due to Soviet production?

A

Soviet production figures were still far below the modern industrial economies of Western Europe. State control under the proposed Five-Year Plan would enable the government to direct the economy and ensure the adequate production and distribution of essential materials, including the food needed to support industrial and urban growth. With government direction and control, the economic resources of the Soviet Union could be maximised. Since the Communist takeover in 1917, trade with the rest of the world had been severly reduced. The Soviet Union would have to rely on its own resources . State control would ensure these resources were used to their full potential to bring about rapid industrialisation.

23
Q

Why did Stalin change his mind regarding NEP after 1926 due to political issues?

A

There was a political dimension to the decision to extendstate control over the conomy. Greater state control would remove the Nepmen and kulaks, who had become richer through the compromises of the NEP. The Five-Year Plan, with its large-scale nationalisation and state control, would get rid of these groups detested by many Communist Party members. Moving away from the NEP also gave Stalin an opportunity to consolidate his hold over the Party leadership. Having removed the Left in 1926, he could now act against the Right. The Right supported the NEP, arguing that forced collectivisation would lead to a decline in food production. By 1928, Stalin argued against the NEP because, as a result of a compromise with the peasantry over their desire to farm as they wished, it was holding back the industrialisation of the Soviet Union. The launching of the Five-Year Plan saw the removal of the Right leaders in early 1929, as well as the extension of the state, through party-controlled planning agencies.

24
Q

Why did Stalin change his mind regarding NEP after 1926 due to a change in perception about the role of workers?

A

By 1928, it was clear to all that Lenin’s declaration of 1917 that the workers were all in charge of their own factories and workplaces had been a naive and idealistic notion. Workers’ control over the economy had proved to be incompatible with industrial efficiency and productivity. It was also a threat to Bolshevik control over the very people they were supposed to represent.

25
Q

Did the policies of War Communism and NEP serve their purpose?

A

The Bolsheviks introduced War Communism as a method of extending state cpntrol over an increasingly chaotic economy and NEP as a method of kick-starting an economy on the verge of collapse. Both of these policies had succeeded in their aims, but at the expense of either popular support or of the Communist ideals of the Revolution. By 1928, the decision had been made to extend state control and implement a command economy as the best way of bringing around raipid industrialisation, while consolidating the power of the Communist Party.