Towards a command economy, 1917–28

What was state capitalism?

Term used to describe the transition period in which Lenin realised he still required bourgeoise academics who had expertise in management etc, until Bolshevik experts could take their place

What did the Land Decree do?

Abolished private land ownership, giving it to the hands of the people

What was the Decree on Workers' Control?

Placed control of factories into hands of industrial workers

What happen to private banks on december 27th 1917?

All private banks were nationalised, algamating into the People's Bank of the Russian Republic

Why was war communism introduced?

Due to desperate circumstances during the civil war, the policy was introduced to ensure the Red Army was supplied well enough to sieze victory

What had happened to the soviet economy following the war?

The Russian currency had collapsed entirely and it had been replaced by bartering, many Bolsheviks took this as a sign of the liberation from capitalism 

What was a practical reason for the introduction of war communism?

The Bolsheviks had inherited an economy near collapse so drastic measures were needed in order to win the civil war

What were the key features of war communism?

• Nationalisation of all industry without compensation

• All industry was under the control of the Supreme Council of National Economy

• Military discipline was introduced in factories

• All private trading was banned

• Forced requisition of food followed by rationing (crucial to the war effort)

• Money was replaced with bartering goods (wages replaced with goods instead of money)

When was the NEP (new economic policy) introduced?

1921

What were the economical reasons for introducing the NEP?

• Heavy industry was 20% of 1913 level

• Food production was 48% of 1913 level (leading to 20 million dying of famine and disease in 1920s)

What were the social reasons for introduction of NEP?

Unpopularity of war communsim - Rationing system and size of rationing based on social classification was resented.
- Return to hierarchal system in workplace was resented (violence often broke out in many factories)

What events lead to introduction of the NEP?

• The Tambov Rising

• The Kronstadt Mutiny

What were the key features of the NEP in agriculture?

- End of requisitioning
- No longer enforced programme of collectivisation (Mir (a self-governing community of peasant households that elected its own officials) continued to regulate farming activities)"

What were key features of NEP in industry?

• Returned small scale industry to private hands

• Piecework and bonuses were introduced in factories to increase production

• Reintroduction of currency for paying wages

• Legalisation of private trade (to stop a growing black market)

• Nepmen emerged (people who gained wealth under NEP)

How successful was the NEP?

• Grain output increased by 39.2 million tons between 1921-1926

• Pig iron output increased by 2.3 million tons between 1921-1926

• Electricity output increased by 3 million kWhs between 1921-1926

• Steel output increased by 2.9 million tons between 1921-1926

• Cotton output increased by 2,181 million metres between 1921-1926

when was the Land Decree passed?

October 1917

When was the Decree on Workers' control passed?

November 1917

When was War Communism introduced?

June 1918