HOW DID THE GOVERNMENT EXERCISE CONTROL OVER THE ECONOMY BETWEEN 1917 AND 1928?

What did Lenin’s declaration issued on the 5th of November 1917 encourage?

His words seemed to give encouragement to those who believed that the factories, industries, businesses and farms were now in the hands of the workers and peasants. The aristocracy and bourgeoisie were now seen as spent forces who would no longer exploit the workers.

What did Lenin mean in reality?

• The equal distribution of goods according to need could only be achieved if there were goods to distribute

• Thus, the excitement of giving power to the workers and peasants did not fit easily with circumstances

• The economy was devastated by the First World War and the chaos unleashed by the Revolution

• State control over the economy might limit workers' independence, but it was one way in which the economy could be rejuvenated. Economic policy from 1917 until the launching of the First Five-Year Plan in 1928 was a series of attempts to resolve this key issue

• By 1928 Stalin had decided that a command economy was the answer

The nationalisation of industry: trial and error

Lenin admitted that there was no blueprint for getting from capitalism to socialism and to communism so it would have to be achieved through a period of trial and error.

The nationalisation of industry: the use of the bourgeoisie

the Bolsheviks wished to see the means of production in the hands of the proletariat but, in reality, the bourgeoisie had expertise in management and technical skills that were desperately needed.

Lenin talked of working with these groups, at least initially, until Bolshevik experts could take their place.