Economic Effects of WW2

• Economic resources controlled by the Germans at the end of 1941 included the majority of coal and half of Russia's railways.
• On the 30th June 1941, the Soviets had already taken measures to ensure their economic survival.
• A ‘scorched earth’ policy rendered much of the farmland useless. The grain harvest of 1942 was only a third of that of 1940. Survival was ensured by strict rationing and demanding quotas were set on collective farms. Peasants were allowed to keep private plots and to sell their produce.
• 1523 entire Soviet factories and their workers were transplanted to the east between July and November 1941 and new railways were built to connect industry to the front line
• The planned economy made it easier than with Russia’s Western allies. People’s Commissars supervised production and compulsory state orders allowed for very rapid changes.
• Rigorous labour controls ensured maximum production. There was a 72 hour working week.
• Spending was focused on heavy industrial complexes in the Urals where 3500 new industrial enterprises were built.
• Russian people were encouraged to believe their efforts were ignored by the West yet the UK and the US provided lorries, tyres and telephones.
• Under the Lend-Lease scheme of 1941, 11 billion dollars of aid was provided by the USA
• 64% of all vehicles came from oversea
• In December 1941, a new law mobilised all undrafted workers for war work. White collar workers were sent to munitions factories, pensioners were encouraged to return to work and students had to undertake part-time work.
• Overtime became obligatory and holidays were suspended. Working day increased to 12 hours and workers slept in factories. Factories placed under martial law and discipline was tightened and unauthorised absence was punishable by death