chapter 15: Economic developments

What did Lenin's decree on land in October 1917 abolish?

Private ownership of land, declaring that all land belonged to the 'entire people'.

state capitalism

System in which companies are privately run, but work closely with the government in forming laws and regulations

what was established in December 1917?

Veshenka - council of the national economy, to supervise and control economic development.

What were the consequences of peasants and workers control?

Workers failed to organise their factories efficiently, with output shrinking, with unsustainable pay rises, mainly lacking the skills for successful management.

What were the rations of Petrograd citizens?

50 grams of bread per day by February 1918.

What crisis rose in spring 1918?

Another 'grain crisis' - sparked War communism

When was war communism implemented?

1918-1921 (All private trade and manufacture were forbidden)

Food requisitioning

This involved taking grain and other foodstuffs from the peasants at a fixed rate in order to supply the urban workers and soldiers; the rate took no account of harvests or local conditions.

What was set up in May 1918?

A food-supplies policy organised detachments of soldiers and workers from large towns into countryside to ensure grain was delivered.

What categories were the peasants divided into?

Poor and moderately poor regarded as allies of proletariat, Kulaks with personal wealth from farming were regarded as 'enemies of the people' with entire stock seized.

What was increasingly used to force policy?

The Cheka

What companies were nationalised?

Railways, banks, merchant fleet, power companied and Putilov Iron works. By Nov 1920, nationalisation was extended to nearly all factories and businesses.

Measures introduced via nationalisation?

-Professional managers employed by the state to reimpose discipline and increase output

-working hours extended, ration-card workbooks were issued (replacing wages)

-internal passports to prevent migration to the countryside.

Barter economy

Economic system in which one set of goods or services is exchanged for another, replacing currency.

Why was War Communism introduced?

Response to the failure of State Capitalism and an attempt to aid Red Victory in the Civil War, supplying food and munitions.

Industrial output by 1921

Fell to 20% of pre war levels..

What caused the death of over 3 million in 1920?

Outbreak of cholera, dysentry and typhus epidemic

Population of petrograd

By end of 1920, 57.5% lower than that of 1917.

Tambov revolt

Led by Alexander Antonov, 70,000 man peasant army against 100,000 red army troops, in response to requisitioning squads arriving in Tambov in August 1920 until June 1921.

What was declared in January 1921?

Marial law in order to control strikes and riots.

Kronstadt Rebellion

Mutiny of 30,000 sailors at Kronstadt naval base, who were previously supporters of October revolution. Sent a manifesto in March 1921 demanding an end to one party rule to Lenin.

What were those who revolted at Kronstadt labelled as?

'White traitors', with 15,000 rebels taken prisoner and leaders were shot, largely shook Lenin due to previous loyalty.

Effects of the Kronstadt rebellion?

Bolshevik party divisions, 'Workers Opposition group' set up by Aleksandr Shiyapknikov arguing for greater worker control, opposing those who favoured War communism.

What was Gosplan?

State general planning commission from February (1921-91), helped coordinate economic development and draft economic plans

What was formally announced at the 10th party congress?

The New Economic policy in august 1921, supported by Bukharin, Zinoviev and most of the leadership.

What did the NEP allow for?

Private ownership of smaller businesses and permitted private trade. Allowing industries to pay their workers from profits instead of rations.

What continued under the NEP?

State control of transport, banking and heavy industry.

What was the scissors crisis?

1923, Peasants produced so much grain that prices fell and industrial production expanded at a slower pace. As a consequence, peasants could not afford to buy industrial goods and therefore stopped selling grain.

What were Nepmen?

private traders, hated by many Bolsheviks as they represented capitalism, often bought up produce from peasants to sell in towns and other items to sell back to the peasants, profiting from both.

What did the 14th party congress call for?

'the transformation of our country from an agrarian to an industrial one' in 1925.

What was maintained in 1926 (under Stalin)

The NEP, but concerns were raised for further investment in industry.

What was announced at the 15th party congress?

December 1937, the end of the NEP replaced by the first five year plan for rapid industrialisation known as the great turn.

What was Stalins 'Great turn' driven by?

The NEP was failing to produce substantial growth, with increase in interest in the USSR's military strength and develop self sufficiency.

what was the great turn?

Move away from the NEP to age five year plans and collectivisation of agriculture, making the government responsible for economic coordination.

What were the launching of 5 year plans accompanied by?

Intense propaganda and very ambitious targets, with failure to do so deemed a criminal offence.

What were the aims of the first five year plan?

- increase production by 300%

- develop heavy industry

- boost electricity production by 600%

- double output of the light industry

Outcomes of first 5 year plan

None of the major targets were met in reality, electricity output trebled, coal and iron output doubled, steel production increased by a third.

What was Magnitogorsk?

New industrial centre in the Urals intended to showcase socialism in action, with a gigantic steel plant and town population of 150,000, with workers living in communal barracks.

What industries were neglected under Stalins first five year plan?

Consumer industries such as, house-building and food-processing, as not enough skilled workers.

What were the aims of the Second Five year plan?

-continue development of heavy industry

-put new emphasis on the light industries

-develop communications to provide links between cities

-boost engineering and tool making

What was opened in 1935?

Moscow Metro

Effects of the second five year plan

Dnieprostroi hydroelectric Dam was extended with four more generators.

New metals such as copper, zinc and tin were mined for the first time.

By 1937, the Soviet Union was virtually self sufficient in metal goods and machine tools.

Why did the second five year plan fail?

Focus on quantity over quality, oil production failed to meet targets, no further demand in consumer goods.

What were the aims of the third 5 year plan?

-Focus on development of heavy industry

-Promote rapid Rearmament

-complete transition to communism

What was focus mainly on during the third five year plan?

Rearmament, with spending doubling from 1938 to 1940, neglecting consumer goods, and steel production stagnated.

Why did the third five year plan fail?

The purges/death of good managers, specialists, and technicians, along with the German invasion of 1941.

Crisis of 1927

Grain procurement, state collections are low with food crises expanding in industrial towns.

15th Party congress

Stalin argued in favour of strengthening cooperative farms, increasing mechanisation and supporting voluntary collectivisation.

What did Stalin announce in December 1929?

'Annihilate the kulaks asa a class'. as he blamed the kulaks for the grain procurement crisis.

How many pheasant households were destroyed from 1929-30?

15%, with 150,000 richer peasants were forced to migrate north and east to poorer land.

Kolkhoz collectives

A collective operated by a number of peasant families on state-owned land, where peasants had to meet state procurement quotas.

How many peasant households had been collectivised by march 1930?

58% through force and propaganda.

What were established in 1931?

2500 machine tractor stations to provide seed and maintain and hire machinery to kolkhozes.

Growth in collectivised households

1931-50%, 1934- 70%, 1935- 83%, 1936- 90%, 1941 - 100%

Effects of dekulakisation

Removed 10 million of the most successful farmers.R

What was destroyed by peasants from 1929-33?

25-30% of cattle, pigs and sheep

Why were peasants forced to hand over grain?

Unrealistic procurement quotas

What led to drop in food procession in 1931?

October, drought in agricultural areas and immense kulak deportations.

Decrees that forced collectivisation

-Anyone who stole from a collective could be jailed for ten years.

-Any attempt to sell meat or grain before quotas were filled met with 10 year sentence

-Internal passports in collectives.

What was the collectivisation referred as?

Peasants names it a 'second sefdom'.