Chapter 11: Economic Developments

The Great Turn, 1927–1929

• By 1924, the Soviet economy was still based on the NEP, a compromise allowing some private trade and small-scale capitalism.

• By 1927–1929, Stalin abandoned the NEP, moving towards a fully planned economy focused on rapid industrialisation and forced collectivisation.

Stalinism

This shift ended Lenin’s economic policies and marked the start of:

weaknesses of NEP, Grain Procurement Crisis of 1927–1928, desire for ‘True Socialism’, fear of war and military weakness, political struggles

Reasons for the Great Turn

industrial growth too slow, peasants not producing enough grain, unemployment still high in urban areas

What were the economic weaknesses of NEP?

Grain Procurement Crisis, 1927–1928

• Peasants were hoarding grain rather than selling it to the state.

• Grain collections fell by 25% compared to the previous year.

• Stalin responded with harsh grain requisitioning policies.

Fear of war and military weakness

• Stalin argued that the USSR needed to industrialise rapidly to defend itself

  from capitalist countries.

• Self-sufficiency in industry and food production was essential.

Stalin used shift in economic policy to defeat Bukharin and the Right Opposition, who supported the NEP.

What were the political struggles that led to the Great Turn of 1927-1929?

The First Five-Year Plan, 1928–1932

As part of the Great Turn, this aimed to rapidly industrialise the USSR but led to widespread inefficiencies.

expand heavy industry (coal, steel, oil, electricity), increase total industrial production by 300%, improve transportation(esp. railways), boost electricity output sixfold, transform USSR into industrial power.

Objectives of the First Five-Year Plan(1928-1932)?

Gosplan, propaganda to encourage workers to work harder, new industrial cities(Magnitogorsk), mass mobilisation of labour

Methods used by the First Five Year Plan(1928-1932) to achieve its objectives?

Gosplan

(State Planning Commission) set ambitious production targets.

forced labour from gulags.

What did the mass mobilisation of labour of the First Five Year Plan include?

workers and party members enthusiastic seeing it as a step towards socialist utopia, experts sceptical over targets, some feared central planning would cause inefficiency

What were the Reactions to the First Five-Year Plan?

feed a growing industrial workforce, direct control of grain production, kulaks accused of hoarding grain and resisting state demands

Why Was Collectivisation of Agriculture Introduced?

Collectivisation of Agriculture

• Peasants forced to join kolkhozes

• Sovkhozes (state farms) were created, where workers were paid wages by the state.

• The state took control of agricultural production and distribution.

kolkhozes

Peasants were forced to join these collective farms, where land and tools were pooled

Sovkhozes

During the collectivisation of agriculture these state farms were created, where workers were paid wages by the state.

1927-28 grain requisitioning intensified, 1929 Stalin announces mass collectivisation of all farms, 1929 Dekulakisation

What was the process of collectivisation(1929)?

hiding grain, killing livestock

How did peasants resist the intensified grain requisitioning in 1927-28?

Dekulakisation, 1929

• Wealthier peasants were arrested, exiled, or executed.

• Millions of kulaks were deported to Siberia.

rapid industrial growth, urbanisation increased, full state control over economy

Successes of the Great Turn

harsh working conditions, agricultural collapse, peasant resistance

Failues of the Great Turn

worker exhaustion

Harsh working conditions – forced labour and unrealistic targets led to _________ ____________.

famine, food shortages

Agricultural collapse – collectivisation caused _______ and ____ _________.

Bukharin and Right Opposition supported continuing NEP, Stalin used grain crisis to attack and accuse Bukharin of "Right Deviation", Bukharin removed from Politburo and the Right Opposition was crushed by late 1929

How did the Great Turn lead to the fall of Bukharin and the Right in 1929?

Stalinist dictatorship

By the end of 1929, Stalin had full control over the economy and the Party, marking

the beginning of:

ended the NEP, replacing it with state-driven

industrialisation and collectivisation.

What was the Great Turn of 1927-29?