agriculture and industry under Lenin

state capitalism (4)

- Lenin thought the october revolution had destroyed capitalism but the economy wasn't strong enough to start building communism

- in essence, was based on the nationalisation of industry

- nationalisation ended capitalism by taking industry away from middle class owners

- state capitalism was extremely unpopular - not really a difference from before the revolution but it was the official policy until the civil war broke out

Lenin's early decrees (3)

1. the decree of land

abolished private land ownership and it was now in the hands of the people - very popular with the peasants

2. the decree of worker's control

placed factories in the hands of the industrial workers

3. banks

all private banks nationalised

were Lenin's early decrees successful (2)

- they gave considerable power to the workers/peasants but detrimental to the economy - production didn't increase and it led to inflation

- the bolsheviks realised the government needed to exert greater control over the economy - set up the Vesenkha

why was war communism (simply) set up (2)

- introduced as a series of emergency economic measures to ensure communist victory in civil war - supplying the red army with food etc

- embodied some aspects of communist ideology -so some radicals believed war communism was a step towards a truly communist society

why was war communism introduced (3)

1. ideological basis

the measures went along with the long term aim to abolish private enterprise

collapse of russian currency made bolsheviks optimistic - led to them implementing large scale nationalisation before it had orginally intended to

2. response to the reality of economic collapse

bolsheviks inherited an economy that was a state of near collapse - needed drastic measures to win civil war

3. a reaction to early bolshevik successes

some of the early decrees that gave control to the workerss proved to be unworkable, especially during the civil war

key features of war communism (6)

1. food dictatorship

2. nationalisation

3. vesenkha

4. reintroduction of hierarchy in industry

5. abolition of the market

6. labour discipline

food dicatorship in war communism (2)

- grain requisitioning - cheka seized grain/food from peasants without payment

- rationing - seized foods were rationed - largest went to soldiers/workers, smallest to bourgeiosie

abolition of the market in war communism and what did it lead to (4)

- abolition of money - transactions became limited due to inflation - bartering system

- abolition of trade - private trade made illegal (but it led to a black market)

- conscription - workers assigned to either work in factories or fight

- these measures destroyed the power of the capitalist class

why was the NEP introduced (4)

1. economic considerations

production and food production had fallen drastically

widespread famine and disease

2. unpopularity of war communism

rationing disliked

return to hierarchal system meant workers felt undermined by the dicates of the state

3. tambov uprising

4. kronstadt mutiny

consequences of war communism (1 + 4) (2, 0, 3, 1)

- ensured red army was supplied and allowed them to win but left economy in state of collapse and failed to abolish the market

1. economic collapse

grain requisitioning led to lower rates of agricultural production due to no incentive

industrial production and workforce declined a lot

2. growth of the black market

3. mass poverty

shortages of all kinds of commodities

unemployment rose and harvests declined further

famine and starvation in rural areas

4. political crisis

mass starvation and economic crisis led to tambov rebellion and kronstadt mutiny

what did Lenin argue NEP was good for

was clear he couldn't sustain war communism

argued the NEP was correct foundation to build socialism - it would create peace with the peasants and allow peasants and workers to build socialism together

key features of NEP in agriculture (2)

- end of requisitioning - replaced by a system of taxation - allowed peasants to sell any remaining food at market for profit

- no forced programme of collectivisation

key features NEP in industry (4)

- small scale industry denationalised (large scale remained nationalised)

- piece work and bonuses to try and raise production

- money reintroduced

- growth of small scale business and private traders led to the development of Nepmen

NEP conclusion (5)

- ended war communism

- created a mixed economy that had capitalist and socialist elements

- was a major compromise - acceptance of private industry/trade - a retreat back to capitalism

- but bolsheviks in desperate economic circumstances - saw it as temporary

- introduction of NEP coincided with the arrests of many Mensheviks and other political parties outlawed

positive consequences of the NEP (4)

- ending requisitioning and a free trade market was extremely popular with peasants

- famine ended and policy that the peasants hated ended (peasants made up most of Russia)

- the market stimulated production and the govt invested the money from taxing the peasants into reopening the factories closed during the civil war

- industrial output rose rapidly

negative consequences of the NEP (3)

- taxes were not enough to build new factories - so industrial economy plateaued at some points

- scissors crisis - uneven economic growth - as food prices fell, price of industrial goods rose - so low prices discouraged peasants from growing food and farmers couldn't afford industrial goods

- inequality and corruption - led to Nepmen who maked money by trading and not working and producing stuff

corruption grew, gambling and prostitution etc was widespread