Economy - Lenin

What were the initial economic challenges?

Russian Industry had only really begun to grow since c.1890

80% were still peasants within an agricultural economy

Lenin wanted to build socialism, but Russia = pre-capitalist

• Capitalism brings money for socialism

• Creates a bigger proletariat for peasant usages.

WW1 devastated an already weak economy.

What were the early land reforms?

Lenin’s slogan during 1917: ‘Peace, Bread and Land’

Decree on Land (Oct 1917) gained support from peasants - more of a political policy than economic.

Land was confiscated from the Church & aristocracy for peasant usage.

Peasants did not own the land

(Regarded them as a symptom of Russias backwardness - exploited them)

When was State Capitalism?

March - June 1918

What was State Capitalism?

Large industries nationalised and run by the state (Vesenkha)

Despite propaganda slogans, large factories run by specialists

Small factories = worker control or back to the capitalists.

The policy ended as the Civil War started.

• This could be seen as an abandonment of socialism as it ended workers’ control of industry.

• It could also be seen as an alternative route to socialism, as the profits would go to the state, and the money would be used to promote socialist causes.

• Also arguable that a some sort of cap in Russia was a necessary step towards socialism.

When was War Communism?

1918-21

War communism was mostly politcal as well as economical.

What were the aims of War Communism?

Supply the Red Army (led by Trotsky/5mil at peak) with food and equipment.

To maximise the industrial production of war-making products.

To increase state control of the economy - nationalisation

To ensure the economy conformed more closely to ideology?

How was War Communism implemented?

Food dictatorship: requisition by Cheka; rationing of food.

Labour discipline: working day extended to 11 hours (1918)

Work made compulsory (for bourgeoisie & aristocracy) for all thoses aged 16-50 (1919)

• 1918: Declaration on the Rights of Toiling and Exploited people.

Money abolished & replaced by rations; full nationalisation.

• Could be seen as a move towards a planned economy.

What were the consequences of War Communism?

Succeeded in supplying the Red Army; Civil War won by 1921

Agriculture: 1921 harvest = 46% of 1913 harvest; famine - 6m.

Industry: workfore decreased from 3m (1917) to 1.2m (1922)

• Industrial output by 1921 was 20% of what it would have been in 1913.

• Unemployment caused the growth of bl.markest - supplied 60% of food.

Political unrest: Tambov rebellion (1920-1); Kronstadt (1921)

When/What was the New Economic Policy (NEP)?

1921-8

The NEP was a form of State Capitalism as large enterprises were run by the government, with profit and taxes to fund socialist construction, i.e capiatlist methods but socialist goals.capitalist

What was the aims of the NEP?

Desire for political stability led to an economic compromise

• Shifting from winning war to popularity.

• Political pragmatic policy.

There was a need to stimulate grain production & end famine.

• Need to recover agriculture side & relationship with personality.

• Economic growth.

The aim was to build socialism in hostile conditions.

• Peasantry, Surrounding countries, Opposition in Party were hostile

Less ideological methods might encourage foreign trade. - normalising the country.

Was the NEP seen as a short term or long term policy?

It could be seen as a long term adjustment to build socialism slowly using semi-capitalist methods.

Could also bee seen as a meely a short term attempt to regain popular support before entering on another radical experiement in social constructuion.

As Lenin died in 1924, it is difficult to be sure.

How was the NEP implemented?

Grain requisition replaced by a tax in kind

Denationalisation of small workshops & factories.

• Want people to be insensitive to work harder for growth of the economu.

Large industires , banks etc. to remain under state control.

Money reintroduced and greater emphasis on profit.

What were the postive outcomes of the NEP?

The NEP was popular among the peasantry and Kulaks.

Political and economic stability were restored.

• No one rebelled even though Lenin was ill and could have been taken over.

Tax income helped to facilitate the electrification programme

• 1920 Lenin = Communism is Soviet Power plus electrification - success output increases by 4.

1926: Most aspects of production had returned to 1913 levels.

What were the negative outcomes of the NEP?

Failed to provide sufficient income to build new factories.

Scissors Crisis: Agriculture (more off, less expensive) grew faster then idustry. (less off, more expensive)

• Peasants respond to this by hoarding grain.

Peasants had little to buy with their increased income.

Corruption & inequality re-emerged; Kulaks & NEPmen on rise.

What were the benefits brought by the NEP for Lenin/Gov and the people of Russia/USSR?

Lenin/Gov:

• Maintained control of economy & in theory can take money off capitalists. Theoretically, money goes to the Proletariat.

• Economy recovers from Civil War (electrification)

• More political stability.

People of Russia/USSR:

• Peasants keep their food, pick what to grow & sell it on the market.

• Peasants get more control - famine ends.

• The proletariat doesn’t have to work as hard.

What were the problems created by the NEP for Lenin/Gov and the people of Russia/USSR?

Lenin/Gov:

• NEP is a slow process

• It’s a form of capitalism

• Creates tension in the Communist Party - Trotsky doesn’t like it.

People of Russia/USSR:

• Scissor Crisis 1923 = Agriculture prices decreases and Industrial increases, Peasants can’t buy industrial tools, so they hide their grain.

• Unemployment goes up by 5% - 8%.

• Education decreases, and the number of students halves as you have to pay to go.