economy

• 1922 inflation at 1 million %; workers paid in goods as money worthless
• reintroduction of free market so peasants could sell extra surplus
• state collective farms set up but many peasants refused to join
• heavy industry, transport and banking under state control
• shortages of food and consumer items. workers left cities to find food in countryside
• legalisation of small businesses
• June 1918 decree nationalised all industry
• all production concentrated on war effort
• 1919-20 requisition squads sent to countryside
• peasants had to give 10% of crops to government
• banks, shipping, railways and some large factories nationalised
• Supreme council of national economy set up; Veshanka
• all factories with more than 10 workers nationalised
• Bolsheviks adopted 'war communism' aim to supply red army and share wealth
• unemployed made to join 'Labour armies' to build roads etc
• 7 million Russians died due to famine and not having enough to eat
• 25 million living below subsistence levels
• The New economic policy NEP introduced March 1921
• NEP aims:

  • end grain requisitioning
  • legalised small business
  • peasants could sell surplus for profit
  • peasants who increased food production pay less tax
  • factories with fewer than 20 workers given back to owners
• Finland independent under Brest-Litvosk
• Estonia, Latvia and Lithuania became independent republics
• Russian help area of Poland became independent
• lost under Brest-Litvosk:

  • 62 million people lost
  • 27% farm land (some of best in Russia)
  • 26% railways
  • 74% irone ore and coal reserves
• Dec 1917 CHEKA set up to combat counter revolution
• 1.4 million workers unemployed 1920
• value of money collapsed and inflation between 1912-22 ran at 1 million %
• 1921 severe famine with 7 million killed
• grain requisitioning- units of soldiers sent into countryside to forcible take grain. Peasant resistance (war communism)
• banning of private trade (war communism)
• nationalisation of industry- brought industry under state control (war communism)
• labour discipline- fines for lateness, internal passports (war communism)
• 'bag men' travelled between cities selling their produce, movement of people created chaos in factories (due to war communism)
• 1918 initial decrees: decree on land, end to private property, banks, railways, large factories taken by state
• war communism 1918-21: all industries nationalised, all production geared towards war, party officials ran factories with military discipline, forcible requestioning of grain
• NEP 1921:

  • famine, peasant uprisings, Krondstadt mutiny
  • peasants paid tax in grain, 10% free market, peasants could sell surplus for profit
  • enabled regime but reinforced small scale peasant farming, Nepmen hated by workers, divisions between workers and peasants
• 1917-18 state capitalism:

  • Supreme council set up to run economy
  • workers seized control of more factories
  • white armies controlled rich farming areas causing extreme shortages
  • workers left cities
• Dec 1917 Cheka set up to counter revolution
• Jan 1918 the red guard closed the constituent assembly at gunpoint
• Nov 1917: Elections to all the Russian constituent assembly go ahead, Bolsheviks outvoted by SRs
• 1.4 million unemployed 1920