The nationalisation of industry

What does the term state capitalism mean?

The transitional stage between old bourgeois economy and a new proletarian one → Ideologically the Bolsheviks wished to see the means of production in the hands of the proletariat but in reality the bourgeoise had expertise in management and technical skills that were desperately needed.

What was the Land Decree? When was it introduced?

October 1917→ It abolished private ownership of land which was now to be in the hands of ‘the people’.

What did the peasantry think of the Land Decree?

It pleased them because they viewed the decree as giving them control over the land they farmed and worked

What was the Decree on Workers’ Control? When was it introduced?

November 1917 → It placed control on the factories into the hands of the industrial workers

What happened on December 27th 1917?

All private banks were nationalised, and, along with the State Bank amalgamated into the People’s Bank of the Russian Republic

How did these measures impact the economy?

It was detrimental

• Workers councils voted to give themselves huge pay rises which did little to improve production and resulted in inflation

• Managers were often dismissed and those with industrial and technical expertise were removed by workers seeking revenge for the way they had been treated previously

How did the Bolsheviks attempt to exert greater control over the economy?

In December 1917 the Supreme Council of the National economy (Vesenka) was set up to provide greater supervision of the economy

What is the definition of a command economy?

An economy that is controlled and directed by the state.