russia- industry & agriculture

• nationalisation of industry

  • lenin= wanted socialism= required state controlled economy
  • state capitalism= economic phase between capitalism to socialism
  • nationalisation ended capitalism bc it passed ownership of industry to state rather than capitalists
  • LAND DECREE 1917= abolished private ownership of land. liked by peasantry- now had control over the land they farmed
  • DECREE ON WORKER'S CONTROL 1917= the control of factories placed in the hands of industrial workers
• lenin's ideology

  create a more stable economic system + modernise the economy
• background on war communism

  • june 1918
  • civil war= red army needed to be supplied to win
  • ideologically= WC fit into long term aim of abolishing priv enterprise, supporting communist values.
  • red army needed to obtain victory, and for this to happen, introduction of a series of emergency economic policies, together known as WC
  • when bolsheviks took over, economy near collapsing. needed smth rapid and efficient to save it
  • aided in military victory, but economic ruin
• Nationalisation

  • All industry under state control
• Requisitioning of food


  • Food taken from peasantry to feed red army
  • People hoarded food, leading to violence, tensions and conflict
  • Resulted in malnutrition and starvation
• Labour discipline


  • Fines for lateness and absenteeism
  • Internal passports stop feeling country
• Private trade banned

  • Trade now controlled by state
  • Black market developed + bartering system
• Rationing

  • Ensures workers in cities fed
  • Armed forces + industrial workers received most food
• War Communism (WC) ensured red army sufficiently & efficiently supplied to win, but it contributed to economy collapsing
• WC resulted in diseases and starvation
• introduction of NEP

  • RETAIN POLITICAL POWER= unpopularity of WC: many disliked Lenin, so economic compromising retained his power.
  • REVIVE ECONOMY= policy was needed to stimulate grain production and end the famine. industry- at a standstill
  • BUILD SOCIALISM= hoped NEP generate wealth needed to industrialise and modernise the economy
  • ppl generally disliked WC- only benefited red army + industrial workers, everyone else suffering. diseases arose due to malnutrition (smallpox) and estimated 20 mill died from famine
  • tried to fix failures of WC
• NEP introduced in March 1921
• tambov rising

  • as a result of famine and requisitioning in countryside
  • violent reactions
  • aug 1920
  • peasant army of 70k men against gov forces
  • 100k red army soldiers used to crush revolt
• key features of NEP

  • COUNTRYSIDE= grain requisitioning ended, ban on priv trade ended, surpluses could be sold
  • CITIES= rationing ended, small scale industries became priv
• positive impacts of NEP

  • famine ended, farming revived
  • industrial growth
  • ensured political staility= ending grain requisitioning was approved by peasantry, increasing support for regime
  • 1923= cereal production 23% compared to 1920
• negative impacts of NEP

  • scissor crisis= agriculture recovered quickly, industry much slower. imbalance caused a fall in prices of food, and a rise in price of industrial goods
  • inequality= large farms thrived, small ones didn't. NEPmen grew rich, overly benefitting
  • corruption= gambling, prostitution, drug dealing
  • divisions within party- right wing supported NEP, left wing dismissed it, centre approved
• evaluation of NEP

  overall, NEP was a success for the bolsheviks- increased industrial output. but an imbalance between agricultural and industrial goods
• reasons for the introduction of the 5YP's

  • industrialising russia= centralisation + large scale investment
  • claimed russia was 100 years behind UK & USA
  • wanted to eliminate inefficiencies of NEP (specifically NEPmen)
  • Staling wanted to create his own legacy- building new phase of socialism
  • abolish capitalist market, laying economic foundations for socialism
  • russia needs to industrialise in order to prepare for war w capitalist nations
  • abolishing capitlaism- win support of left wing
• 1st 5 year plan 1928-32

  • concentrated on rapid growth of heavy industry
  • approach was recommended by 'superindustrialisers'- ppl who believed focusing on heavy industry, everything else will follow
  • consumerist elements neglected
  • ambitious targets were then raised to unrealistic heights, even if they weren't achieved
  • large industrial centres (e.g. Gorki) built from scratch and became large cities
• 2nd 5 year plan 1933-37

  • focus= heavy industry, communications, electricity & consumer goods
  • new industrial centres built
  • 1927= 35.4 million tonnes of coal, 1937=152.5 million tonnes
  • actions of party led to a slowdown of the economy
• 3rd 5 year plan 1938-42

  • aimed directly at armaments, heavy industry, threat of invasion from central powers
  • succeeded= increased industrial output + strengthened soviet economy- helped to withstand German invasion
• collectivisation

  • process of merging smaller farms into larger farms (20-150 families)
  • ownership of land + farm's resources= take over by the state
• causes for collectivisation

  • COMMUNIST IDEOLOGY= communists viewed priv property as a foundation for capitalism. NEP years= created NEPmen, smaller farms also didn't benefit- inequality. replacing priv farming w state-run farming ended capitalism and inequality
  • FAILURES OF NEP= economic issues + kulaks- needed a policy to deal w both these things, and restore economic growth
  • POLITICALLY= win support from left of party- gained majority of support from CC: eliminated political opposition and strengthened power
• successes & failures of collectivisation

  • S= political success bc stalin now in control of countryside
  • S=grain-sold abroad- pay for 5YP: economic success
  • F= yields saw no significant increase
  • F= agric. technology did not improve- policy was unpopular and resulted in loss of life
  • F= food supplies to cities- poor due to chaos in countryside
  • F= grain production decreased from 73.3 mill tonnes in 1928 to 68.4 in 1933
  • F= famine in Ukraine resulting in 5 mill deaths
• recovery after WW2

  • WW2 destroyed almost all of the economic progress made during first 3 5YP.
  • 1945= 25 mill ppl homeless + industry producing only two thirds less than it had in 1940.
  • stalin created 4th 5YP that led to extremely high levels of industrial growth. around 88% of investment during 4th 5YP went into heavy industry= industrial output increased by 80% from 1945-50
• investment in agric + VLS

  in an attempt to increase productivity, Kh. introduced measures to motivate peasants.

  • INCENTIVES= farmers paid higher prices by K for their produce, effective: boosted farm incomes by 250% 1952-56
  • VIRGIN LANDS SCHEME= increased amount of land being farmed- new farms in Kazakhstan and western Siberia
  • INVESTMENT= K invested in artificial fertilisers- production up by 40%, tractors- production up 30%
  • success= agric. production up by 35.3 1954-58
  • failures= agric. still ineffective, 1959-64= agric. growth was slow