Mixed economy; socialist and capitalist elements; imposing state control but retainingprivate ownership
State control examples
GOELRO1920
1917 nationalisation of banks, 1918 railways
Veshenka 1917
1918 decree on land
GOELRO
organised and distributedelectricity
Veshenka 1917
managed state control over Russia's economy
3 main issues with state capitalism
Bolsheviks and Bukharin demanded radical measures - state control over everything
factories taken over by workers meant decline in production - workers lacked management skills
peasants control sale of grains meant higher prices - state-controlled needed cheap grain so workers didn't need a higher wage
war communism
June 1918; system to ensure Red Army were provided with food and weapons to win the war
war communism measures
nationalization, grain requisitioning, labour discipline and rationing - government decided what would be produced and Lenin saw these as necessary to defeat the Whites
grain requisitioning
peasants' grain distributed to feed Red Army and workers; farmers were supervised by the State; kulaks had stocks seized; opposition was repressed by Cheka
nationalization
November 1920 all factories and businesses
May 1918 sugar; June 1918 oil
banned private ownership
military-style control of railways
labour discipline
workers lost rights from "Decree on Workers' Control of Factories"; abolished workers' soviets
fined for lateness and absence
internal passports - stop migration to countryside
extended hours
rationing
based on class - upper got the least and factory workers/Red Army got the most
ration-card workbooks instead of wages
effects of war communism
food shortages by 1920 - cannibalism, reduction of grain supplies
production decline
reduction in population by 44.5% in Moscow and 57.5% in Petrograd
population decrease from 170.9 million to 130.9 million
NEP
February 1921 by Gosplan and introduced March 1921 to fix problems from war communism; Lenin knew it was an ideological retreat therefore did not allow a vote
Scissors-Crisis
Agricultural prices were low whilst industrial prices were high
Scissor-Crisis impact
Farmers couldn't used new methods nor increase productivity because there wasn't enough surplus cash to buy equipment or machinery
Nepmen were
Hated for being representatives of capitalism
Political impact of NEP
1921 ban on factions and SRs & Mensheviks were banned; Cheka given power to suppress Nepmen moving NEP towards capitalism; 1923nomenklatura system to promote Party members who showed complete loyalty to Party