2B. Industry and Agriculture in the Stalin Era

Why did Stalin introduce the five year plans?

Primary objective to industrialise Russia by combining centralised planning with large-scale investment. 

Industrialisation goals were extremely ambitious. 

He claimed Sov Un was 100 years behind Britain and USA, but through planning Sov Un could catch up in 15 years. 

Sov economists hoped to eliminate inefficacies of NEP. 

Specifically, wanted to eliminate Nepmen, who made money through trade rather than production.

How many five year plans were there and when were they?

1928 - 1941, there were 3 Five-Year Plans:

First Five-Year Plan (October 1928-December 1932)

Second Five-Year Plan January 1933-December 1937)

Third Five-Year Plan January 1938-June 1941).

1st was cut short due to problems with Plan, and 3rd ended prematurely due to German invasion of Sov Un.

What were broad successes of Stalins plans?

Overall, St's 1st 3 5YPs succeeded in industrialising Sov Un. Broadly, St's economic policy was successful in terms of heavy industry, transport, labour productivity + rearmament.

How were socialists critical of capitalism?

During the 19th C, socialists and communists were largely critical of capitalism. Marx recognised capitalism created large amounts of wealth and huge tech innovations. However, was critical of inequality and exploitation capitalism created. 

What was problem with private property?

Socialists argued key problem with capitalism was private property, as property was key to growing rich. People who owned property, including factories and shops, could grow rich. People who owned little / no property by contrast would remain poor. 2nd problem socialists identified with private property was it led to competition. Companies competed with each other in market. argued this competition was inefficient, as led to duplication of production. 

What did socialists argue ending private property would do?

Consequently, socialists argued that abolishing private property was the key to equality and efficiency. 

How should private property be abolished?

Socialists disagreed over how private property could be abolished, but by early 20th C many socialists argued state should own all property + plan production for good of all.

Why was there no model for their economic policy?

Finally, although socialists spent a great deal of time in the 19th and early 20th Cs speculating about how a socialist economy might work, prior to 1917 there had been no large-scale attempt to create a socialist economy. Therefore neither L nor St had a model for their economic policy. 

How did they improvise?

Both were forced to improvise. They believed that govt-controlled production and distribution would be much more efficient than small-scale disorganised NEP-style trading. 

Why did Stalin argue the plans were necessary?

St argued that the Plans were necessary because of the failings of the NEP. The NEP had helped to revive existing Sov industry, but had not led to the development of new factories. 

How did the plans reflect military concerns?

The Plans also reflected Sov mil concerns. St, and many in the government, feared that Germany would invade the Sov Un. Defending Sov territory would require modern industry which could produce the weapons necessary to fight a modern war. 

What did Stalin want to assert?

Finally, St wanted to assert his own authority. The 5YPs were more ambitious than any of L's schemes for transforming the Sov Un. In this sense, they would demonstrate that St was initiating a new phase of building socialism.

What was gosplan?

The 5YPs were a govt initiative designed to increase production. Gosplan, Sov Un's central economic agency, formulated production targets for every factory, mine and workshop in Sov Un, and Sov workers and managers were responsible for meeting these targets.

What propaganda was used?

A lot of propaganda used to inspire workers to fulfil the objectives of the FY plans.

Focused on heroic objectives of the plans

Celebrated successes of the plans

Plans will lead to destruction of capitalism

described modern, industrial future Plans would create.

Simply list of targets, nothing to do with HOW economy would function + create strong economy, merely prop campaign used to try and achieve targets set by Stalin.

Did factories have the resources they needed?

There was no attempt to ensure factories had resources needed to reach their targets, nor were there any clear ideas about what the goods would be used for once they were produced. Therefore St's economy is better understood as a command economy rather than a planned economy.

What was the biggest success of the first 3 five year plans?

Heavy industry was the biggest success of the 1st 3 5YPs. 

Production of iron, steel, coal and electricity increased greatly.

What was the production of electricity (million tons) in 1927 and 1940?

1927 = 5.05

1940 = 48.30

What was the production of oil (million tons) in 1927 and 1940?

1927 = 11.7

1940 =31.1

What was the production of pig iron (million tons) in 1927 and 1940?

1927 = 3.30

1940 = 14.9

What was the production of steel (million tons) in 1927 and 1940?

1927 = 4.00

1940 = 18.30

What was the production of coal (million tons) in 1927 and 1940?

1927 = 35.40

1940 = 165.90

How was growth in heavy industry achieved?

Achieved by building new factories to exploit the USSR’s natural resources. Magnitogorsk, Kuznetsk, Zaporozhye, Tula and Lipetsk metallurgical works were all built 1929 - 1936, and contributed to the huge increase in the amount of iron and steel produced.

Was transport a success?

Major success of Plans, Moscow Metro’s first lines opened in 1935. Additionally, the Moscow-Volga Canal was constructed 1932 - 1937. The Metro allowed people to travel around Moscow more easily, and the Moscow-Volga Canal made the transportation of goods more efficient.

what was productivity like in the USSR?

Very low in the USSR, workers were less productive in the USSR than in Britain, the USA or Western Europe.

Little to no incentive to work hard due to low pay and long hours. (1st FYP)

how was low productivity addressed?

Low productivity was addressed through a nationwide initiative introduced in 1935. St authorised higher payments and a system of rewards for the most productive workers. Stakhanovite movement

What was the Stakhanovite movement?

Stakhanovite movement began during 2nd FYP in 1935 as new stage of socialist competition. Stakhanovite movement took name from Aleksei Grigorievich Stakhanov, who had mined 102 tons of coal in less than 6 hours. As result, workers who wanted to be like him, wanted to beat his records and hence productivity rose on UK. Additionally, Stakhanovites, workers who had proved selves to be v. productive, were able to reorganise workplaces to ensure they were efficient.

What were effects of the Stakhanovite movement?

campaign took off 1936 and in late 30s productivity rose significantly across industry as Stakhanovites educated other workers in most effective ways of working. Nonetheless, Stakhanovite movement created problems. Stakhanovite workers were often resented by colleagues or management as got higher pay.

What were estimated productivity gains in chemicals industry?

34%

What were estimated productivity gains in electricity industry?

51%

What were estimated productivity gains in coal mining industry?

26%

What were estimated productivity gains in oil production industry?

25%

What happened with rearmament?

FY plans v. successful in terms of rearmament.

Econ planners prioritised arms prod as war approached.

By 1940, 1/3 (or 1/4) of govt spending priorities, were on arms production.

Plans led to successful construction of 9 military aircraft factories 1939 - 1941.

Shortages of quality materials like steel, slowed arms production.

Who was Alexei Stakhanov, 1906-1977?

Was 1st of new movement. According to Sov media, in Aug 1935 he mined 102 tons of coal in 6 hours - 14 times the output of average miner. In Sept mined 227 tons of coal in a single shift. As result was rewarded with 1 month's wages, new apartment, telephone and holiday tickets. He was held up as example to all Sov workers of kind of superhuman effort they should aspire to. also became a celeb, even feat on cover of Time Magazine. Notably, his amazing records were achieved with help of assistants and latest technology. Even so, publicity value of his achievement was huge.

What were issues with the plans?

While St's Plans did lead to industrialisation of economy, they proved to be a very inefficient way of industrialising. In addition to problems in specific areas of economy there were also systemic problems with the St model of economic planning.

What did plans not set targets for?

Plans set targets for production, not quality.

Factory managers rewarded for producing large quantities, regardless of what was actually produced.

what did plans not specify on materials?

Plans did not specify what materials should be used for, therefore little coordination between different factories.

Materials produced were often stored at a factory and left to decay, rather than being used.

This problem was made worse due to the lack of transport in the first years of the Plan. In some industries 40% of what was produced was wasted.

How were they unorganised?

Plans were disorganised and undermined by St's other policies. In terms of disorganisation, 1st 5YP was launched in Oct 1928, and yet Plan only published in April 1929.

Stalin purged economic planners and industrial managers, ones who made economy work.

Stalin attacked/terror members of Gosplan, to extent that 3rd 5YP was never finished.

Therefore, for periods during 1st + 3rd 5YPs, Sov Un had planned economy, but no Plan. 

How were the plans undermined?

The effectiveness of Plans also undermined by unrealistic targets set by Gosplan. Industrial managers were under enormous pressure to ensure high levels of production and they would therefore lie about their production levels and falsify figures. Falsified data made economic management even harder, as effective planning relies in accurate data. 

How was the soviet economic growth self consuming?

Historian Donald Filter argues that these problems meant Sov economic growth was 'self-consuming: process of economic growth was so inefficient it consumed extremely high levels of resources that could otherwise have been used to improve quality of life of Soviet citizens.

What were there constant shortages of?

1928-41 Constant shortages of consumer goods like food shoes and clothing and furniture. The shortages were the result of the following:

Why were there shortages of consumer goods?

Stalin’s priorities: Heavy industry and defence rather than consumer production.

Poor planning, planners did not anticipate the needs of general consumers.

Poor production techniques. By mid 30’s, soviet economy was good at producing large quantities of raw materials such as iron and steel. But consumer goods required more complex techniques which the economy still didn’t have.

How was scarcity of consumer goods managed?

Scarcity of consumer goods managed by rationing. 1928 - 1941, most consumer goods were rationed. However, in early + late 30s there were often such severe shortages that government could not even supply minimum level of rations. E.g, shoe queues in Moscow in early 30s often exceeded 1000 people. Some reports suggest queues for clothes and shoes in Leningrad numbered over 6000 during 1938.

Why were there not enough houses?

Significant issue from 1928-41. The plans required a huge increase in the urban workforce. However necessary housing never built.

What was sanitation like in housing?

Most houses built during the Plans did not have running water. Moreover, bathhouses were scarce. E.g, there was not a single bathhouse available for the 650,000 people living in the Liubertsy district of Moscow. 

What was Magnitogorsk?

Industrial centre of Magnitogorsk was planned with state-of-the-art housing for workers who would build factory. A small village was built to house American specialists who were employed to supervise construction of factories. Once American specialists had returned to USA, Magnitogorsk's managers moved into these houses. However, maj of workers lived in wooden shacks, tents and mud huts.

What were living conditions like?

Living conditions 1928 - 1941 were poorer than they had been under the best years of the NEP.

A better living standard was not a priority for Stalin and was a genuine failure of the plan.

How long did food rationing last?

Food rationing continued for most of Plan, except for period known as the 'three good years' in the middle of the 1930s. 

what were working conditions like?

Working conditions were very harsh.

Workers forced to work seven days a week.

Lateness and absenteeism was criminalised. Towards end of period, internal passports were introduced to stop workers moving in search of better-paid jobs.

How did the black market grow?

Five Year Plans failed to end the free market and therefore the shortage of goods led to a growth of a black market where consumers could buy goods stolen by workers, who justified it by covering up falsifying paperwork.

Why was the black market possible?

The black market was possible due to the inefficiencies of the Plan. Workers would steal goods and material from their workplaces and sell them to the highest bidders. The thefts would be covered up by falsifying paperwork. 

What were positives of Stalins industrial policies?

\+Pre 1928, USSR was largely capitalist agricultural economy with small working class.

\+By 1941, USSR was powerful, urban, industrial economy that was able to produce resources necessary to defeat German Army.

What were negatives of Stalins industrial policies?

–Unbalanced economy

–Arms production led to the expense of consumer goods.

– Wastage of resources was a strong reason why economic growth did not lead to higher standards of living.

What was agricultural collectivisation?

1928 - 1941 Sov ag was collectivised. Collectivisation was a process by which small farms were merged into large farms of anything between 20 and 150 families. At the same time ownership of the farmland and all of the farm's resources was taken over by the state.

What were causes of collectivisation?

Collectivisation had series of causes. Comm ideology set general direction. However, specific failings of NEP + nature of leadership struggle also shaped way policy developed.

What was foundation of capitalism?

Private property was foundation of capitalism and one of causes of inequality.

How did peasants in nep grow rich?

During period of NEP, peasants with large farms were able to grow rich, and therefore the communists wanted to abolish private property and replace private farming with state run farms. Therefore ending capitalism and inequality.

What were communists suspicious of in farming?

Comms suspicious of peasant farming. Historically, Russian peasants had wanted to own the land they worked. This implied an individualistic desire to make money which was closer to capitalism than socialism. By collectivising farms, comms hoped that peasants would see the superiority of socialist methods and embrace Comm wholeheartedly.

Why are large farms more likely to be efficient?

Create an efficient economy, large farms were likely to be more efficient than small farms as expertise and equipment could be shared to increase production.

Why did agricultural production fall in nep?

By 1928 were clear signs NEP was failing. Until 1926 NEP led to rising ag prod. However, in 1927 and 1928 ag prod was lower than had been in 1926.

Agricultural production fell because was no market for additional farmed goods, was limit to how much food that consumers wanted.

How did farmers abuse the price mechanism?

Farmers abused price mechanism in 26, by increasing production to make more profit which led to fall in prices, and in 27, farmer’s decreased production to keep grain prices high. Increased prod in 26 led to fall in prices as farmers prod more than wanted. Therefore in 27 farmers decreased prod to push up grain prices. led to what right wing described grain procurement crisis: food supplies decreased, leading to shortages in cities + higher profits for farmers. Left wing comms described as “Kulak Grain Strike”

What did the left wing claim kulaks had done?

They claimed that kulaks, rich farmers, were putting their own profits ahead of the Sov Un's need to industrialise.

Was this the reemergence of class war?

In essence, radical comms viewed this as re-emergence of class war: rich, capitalist peasants deliberately holding back construction of socialism. NEP's econ problems + threat of Kulak capitalists holding govt to ransom led many comms to believe NEP had run its course + needed replacing by more radical policy that dealt with kulaks + restored econ growth.

What political reasons were there for ending nep?

Stalin had political reasons for ending NEP, Zinoviev, Kamenev and Trotsky (united opposition) had advocated a radical left- wing policy of collectivisation + rapid industrialisation. Stalin defeating them led to left wing of Party having no leader, Stalin shifted to left and hoped to retain supporters of United Opposition and therefore gained more supporters than Bukharin. As Stalin shifted to left, he gained majority of support of central Committee and was therefore leader of Communist Party.

how was collectivisation introduced?

Collectivisation was intro in series of phases. In 1928, St did not propose full-scale collectivisation of ag. However, as his new policies won support within Comm P he became bolder. In late 1929 St ordered full-scale collectivisation (see Figure 5). By 1930 he claimed 100 % success.

What emergency measures were brought in in 1928?

July 1928, Stalin ended NEP to end the Kulak grain strike. Stalin reintroduced grain requisitioning from peasants through RA and Cheka.

Grain would be used to feed the workers and used to sell overseas to raise money for industrialisation

Free trade=>Command economy

Rationing + requisitioning did not mean collectivisation but did signal an end to NEP

“Return to War Communism”

how did peasants respond to requisitioning?

Peasants responded to requisitioning with violence.

Requisitioning being one of the most hated aspects of War Communism

Peasants resisted requisitioning by hiding or even destroying grain. St claimed that this resistance was an attack on socialism by the capitalist kulaks.

What did Stalin initiate to peasants?

Stalin initiated “Liquidation of Kulaks as a class”

Meaning to take farms and equipment from richer peasants.

However, in practice it meant that many peasants were killed or deported if they resisted government policies.

1\.5 million Peasants sent to labour camps as a result of the dekulakisation campaigns.

What was collectivisation?

Farms forcibly merged

Equipment taken from richer peasants + given to poorer.

Peasants who worked in collective farms were allowed to keep a small proportion of grain to live off of.

Rest of food used to feed workers in city or sold abroad to fund industrialisation.

When was collectivisation introduced ?

Introduced in late 1929.

what were consequences of collectivisation?

Ruined soviet agriculture

However, funded industrialisation

From 1929-1930, there was a drive initiated to ensure all farms were collectivised which led to chaos and therefore Stalin halted collectivisation temporarily in 1930.

When was collectivisation reinstated?

Reinstated in 1931 

By 1941, almost all farms were collectivised.

In 1930 how many peasant households were collectivised?

\~24%

In 1931 how many peasant households were collectivised?

\~52%

In 1932 how many peasant households were collectivised?

\~60%

Why did peasants destroy their farming?

Peasants responded to requisitioning/Collectivisation by destroying their crops, animals and machinery.

Many peasants would prefer to destroy over help the government.

How much of farming was destroyed?

Stalin’s policies led to the destruction of:

17 Million horses

26 Million cattle

11 Million pigs

60 Million Sheep and goats

What was grain harvest in 1928?

73\.3 million tons

What was grain harvest in 1930?

83\.5 million tons

What was grain harvest in 1934?

67\.6 million tons

why was there a reduction in agricultural production?

Execution or deportation of kulaks who were often the most experienced farmers

Absence of incentives as farmers were no longer able to make profit.

Where was there famine?

Collectivisation led to famine in the Ukraine

Ukrainian farmers often unable to meet govt targets for farm production

Resistance to collectivisation had been at fiercest in Ukraine.

Stalin punished farmers by seizing their grain and livestock.

Used famine to end resistance in the Ukraine

Although he was offered support internationally, declined.

What was mechanisation?

Collectivisation was accompanied by mechanisation,

Government allowed farms to hire tractors from machine tractor stations, across country.

75,000 tractors they provided had little impact on soviet agriculture.

How did grain procurement rise?

Collectivisation allowed govt to procure more grain than NEP in 1928.

In 1928, govt procured 10.8 mill tons of grain from peasants.

Which rose to 22.6 million by 1933

Grain export rose to from 1 mill – 4.7 mill from 1928-1930.

What were long term issues of collectivisation in agriculture?

Collective farms a lot less productive than private farms

Led to a decrease in production.

Decline in grain production.

Private farming continued on small scale in 1941.Private farms v important for soviet agriculture.

What was agriculture like during ww2?

Consistently unable to meet needs of the soviet people and the army during WW2.

Soviet government relied on US imports to provide almost a fifth of the calories consumed by the Red Army.

Harvests decline from a pre-war high of 95.5 million tonnes to 46.8 million tonnes by 1945.

How did rations decline in ww2?

Bread rations fell by 40%

Potato rations fell by 80%

How was there recovery after the war?

Fourth Five Year Plan, 1945-1950:

Led to extremely high levels of industrial growth.

88% of investment went into heavy industry.

Industrial output increased by 80% from 1945-50

How did production of coal recover?

1940 = 165.9 million tons

1945 = 119.3 million tons

1950 = 2611.1 million tons

How did the production of electricity recover?

1940 = 48.3 million tons 

1945 = 43.2 million tons 

1950 = 91.2 million tons

How did the production of oil recover?

1940 = 30.1 million tons 

1945 = 19.4 million tons 

1950 = 37.9 million tons

How did the production of pig iron recover?

1940 = 14.9 million tons 

1945 = 8.8 million tons 

1950 = 19.2 million tons

How did the production of steel recover?

1940 = 18.3 million tons 

1945 = 12.3 million tons 

1950 = 27.30 million tons

How did the production of cement increase?

1940 = 5.7 million tons 

1945 = 1.8 million tons 

1950 = 10.21 million tons

What did soviet post war plans continue to focus on?

Soviet post-war plans continued to focus on military spending, emergence of Cold War in 1946 led to expansion of Soviet military.

What were long term issues of collectivisation (or war?) in consumer goods?

Production increased.

However FYP focused mainly on heavy industry

Only 12% of investment went into consumer goods like food production.

Although production of consumer goods doubled, they continued to be scarce.

What did reconstruction focus on?

Reconstruction focused on factories rather than homes.

Equally, reconstruction of historic cities were given priorities on historic cities over towns

What were long term issues of collectivisation (or war?) in employment?

Wages were kept low.

Made money more available for reconstruction.

Women forced to go to work as families needed income.

Stalin recognized women were vital for reconstruction of soviet industry.

Was the economy good?

Again, FYP was full of inefficiencies and issues, nonetheless the economy was the fastest growing economy in the world.

Although there was still major shortages of consumer goods and housing.

What was post war agriculture like?

Soviet agriculture recovered slowly from impact of the War..

During the War, there had been a small increase in private farming which was ending following the end of WW2.

Overall, production still grew from 1947-1953.

Grain production reached its pre-war levels.

what were Stalins top economic priorities after war?

Stalin’s top economic priorities after war was industrial reconstruction.

As result, Soviet agriculture suffered shortages of resources and workers from 1946 to 1949