Industrialization Under Stalin - Five Year Plans

Industrialization Under Stalin: The Five-Year Plans

Aims of Communism

One of communism's primary goals is to distribute a country's wealth equally among its citizens.
This necessitates careful economic planning, encompassing industry, agriculture, trade, and transport, to ensure equitable distribution.
The Russian Communists initiated economic planning shortly after assuming power, establishing:
- Supreme Council of National Economy (Veshenka) in December 1917.
- State Planning Commission (Gosplan) in 1921.
Veshenka and Gosplan were tasked with:
- Estimating the output and profits of factories and farms.
- Determining methods to increase productivity.

Causes of Five-Year Plans

Ideological

Stalin and many communists believed socialism could only be achieved in a highly advanced industrial country.
Stalin: 'in ten years at most we must make good the distance which separates us from the advanced capitalist countries'.
Revolution for the working class, moving away from the New Economic Policy (NEP), which was for the peasants.
Replacing 'Bourgeois specialists' with 'Red specialists'.

Political

Stalin aimed to differentiate himself from Lenin; ending the NEP marked the beginning of 'Stalin’s Russia.'

Economic

Russia required raw materials to prepare for potential war.
Response to perceived failures of the NEP.
The NEP was considered too slow in achieving industrialization.
Desire to catch up with Europe's industrial advancements.

Stalin's Reasons for Ending the NEP

The NEP did not foster the desired socialist society characterized by a proletariat, urban, socialist, and industrial focus.
The economy was too reliant on the peasantry.
Political divisions within the party: the right-wing favored maintaining the NEP, while the left-wing advocated ending it.
Urban communists sought to advance the revolution by constructing a socialist society.

Stalin’s Aims for Industrialization

The NEP was failing to create the ideal socialist individual.
The agricultural economy was dominated by the peasantry.
Achieve self-sufficiency (autarky).
Enhance military strength.
Progress toward socialism.

The Need to Industrialize (Stalin, 1931)

Stalin emphasized that falling behind would lead to being overtaken and defeated.
Old Russia's history was marked by continual beatings due to its backwardness.
Stalin: 'We are fifty or a hundred years behind the advanced countries. We must make good this distance in ten years. Either we do it, or we shall go under.'

The First Five-Year Plan

In 1927, Gosplan was tasked with creating the first 5-Year Plan.
Goal: Transform the Soviet economy fundamentally.
1928: The First Five-Year Plan was announced.
It addressed every aspect of the Soviet economy, setting targets for all industries.
The aim of the plan was to be the "transformation of our country from an agrarian into an industrial one, capable by its own means of producing the necessary equipment".
The plan was a blueprint for developing industry, agriculture, railways, canals, trade, energy, housing, education, and public services.
Workers were obliged to meet government-ordered targets, facing punishment for failing to achieve quotas.
The Soviet economy became a 'command economy'.

Stalin’s Motives for the Plan

Stalin initially disagreed with this type of development.
1927 War Scare: prompted Stalin to pursue rapid industrialization.
1928: Allegations of counter-revolutionary capitalists sabotaging the USSR.
Stalin shifted his stance on rapid industrialization, viewing it as essential for national defense.
In 1927, there was a war scare in which the government claimed that the USSR was under threat of attack by China in the east and by Britain in the west.
Britain had broken off diplomatic relations with the USSR in 1927 and Chiang Kai Shek’s government in China began raiding Communist Party offices, including Soviet Communist party delegations in China.
In 1928, Stalin claimed that “counter-revolutionary capitalists” in the Western countries were paying saboteurs to wreck the USSR’s coal mines.
The USSR was, surrounded by governments that were virulently anti-communist: Poland, Finland, Iran and Romania in particular.

First 5 Year Plan Priorities

Organized by Gosplan with $\frac{1}{2}$ million workers.
Emphasized heavy industry: iron, steel, coal, etc.
Rationale:
- Heavy industries were necessary to support emerging industries.
- To create a base for future industrial growth.
- New workers, mainly semi-skilled peasants, were suited for heavy industry roles.

First 5 Year Plan (1928 - 1932) Goals and Focus

Industrialization: Transforming the Soviet Union into an industrial powerhouse by prioritizing heavy industries (steel, coal, and machinery).
Agricultural Collectivization: Consolidating small farms into large, state-controlled collective farms to modernize agriculture and increase state revenue.
Economic Independence: Aiming for self-sufficiency by reducing reliance on foreign goods, positioning the USSR to compete globally without dependence on Western economies.

First 5 Year Plan (1928 - 1932) Implementation

Centralized Planning: Gosplan set specific production targets for each sector, region, and factory.
Labour Mobilisation: Used forced labor and propaganda/incentives to encourage workers to meet or exceed quotas.
Forced Collectivisation: Seizure of land/livestock, targeting wealthier peasants (kulaks), who faced persecution/deportation.

First 5 Year Plan (1928 - 1932) Achievements

Rapid Industrial Growth: Increased production of coal, steel, and other key resources, building a foundation for future industrial/military power.
Urbanization: Construction of new industrial cities and migration from rural to urban centres for factory jobs.
Transformed the Soviet Union into an industrial society rapidly, but at significant social and human cost.

First 5 Year Plan (1928 - 1932) Consequences

Foundation of Soviet Superpower Status: The industrial base built by the plan enabled the USSR to become a major global force, paving the way for increased military and economic influence.
Social Changes and Urbanisation: The shift from agriculture to industry led to considerable social change, with many moving to cities, impacting family structures and lifestyles.
Future Economic Planning: The successes and failures of the First Five-Year Plan became a blueprint for future Soviet economic policies, as well as for other nations seeking rapid industrialisation.

First 5 Year Plan - features - Living and Working Conditions

Deteriorated rations, queues for goods.
Stalin introduced a 7-day working week.
Harsh laws regarding lateness, leading to increased absenteeism.

First 5 Year Plan - features - Free Market

Speculators were harshly dealt with.
Show Trials were conducted.
'Gigantomania': Fitzpatrick noted a preference for size over quality.

First 5 Year Plan Successes

Stalin declared it a success, claiming completion one year ahead of schedule.
Increased production of raw materials.
Annual production increase of 14%, a significant achievement during the depression in Europe and the USA.
Promotion opportunities for 'Red specialists'.
Advancement opportunities for the proletariat.

First 5 Year Plan Failures

Nove argued that there was a lack of expertise and that these weren't well thought out 'plans'.
Unrealistic targets.
Significant inefficiencies.
Many officials were dismissed or executed.
False reporting of totals due to fear.
Overproduction led to decay.
Rushed production resulted in poor quality.

First 5 Year Plan - In Action

Workers were required to increase production output in all areas.
Heavy industries were expected to triple their output.
Light industry was to double its output.
Electrical energy was to increase sixfold.
The targets held the force of government orders.
Failure to reach goals could be punished as treason.
Stalin changed the Plan in 1929, ordering that the targets be met in 4 years rather than 5.
Complaints arose regarding the speed of the plan's execution.

Results of the Plan

Significant improvements were made despite failing to meet the set targets.

Results of the First Five-Year Plan (1928–1932)

Coal Production: Increased from 35 million tons to 64 million tons.
Steel Production: Increased from 4 million tons to 6 million tons.
Electricity Production: Increased from 5 billion kilowatt-hours (kWh) to 13 billion kWh.

Magnitogorsk Iron and Steel Works

Plan: First Five-Year Plan.
Location: Magnitogorsk, Ural Mountains.
Significance: A model of Soviet industrial power built from scratch, becoming one of the world’s largest iron and steel works.

Second 5 Year Plan Priorities

Heavy industry.
Communications.
Electricity.
New industries.
Consumer goods.
Rationale:
- Build upon advances in heavy industry.
- Improve transport to move new goods.
- Address low labour productivity and introduce a New Code of Practice.

Second Five-Year Plan (1933–1937)

Goals and Focus:
- Consolidate and build on gains from the First Five-Year Plan.
- A more balanced approach was adopted, with increased attention to consumer goods, though heavy industry and military production remained priorities.
- Focus areas included increasing the production of steel, coal, and machinery, as well as improving transport and infrastructure.
Achievements:
- Significant increases in industrial output: steel and coal production continued to grow rapidly, making the Soviet Union one of the largest industrial powers.
- Successes in sectors like electricity, chemicals, and metallurgy, though consumer goods production was limited and did not meet targets.
- Development of key infrastructure, such as the Moscow Metro and improved railway systems.
Challenges and Issues:
- Despite some focus on consumer goods, shortages persisted, and many basic needs were unmet, causing dissatisfaction among the population.
- The state continued to prioritise heavy industry, often at the expense of living standards and consumer goods.
- Labour conditions remained harsh, with high demands on workers and the use of forced labour in some industries.
Impact:
- Strengthened the Soviet Union’s industrial base, particularly in sectors critical for military and heavy industry.
- Laid the groundwork for a more militarized economy, which would become important in the lead-up to World War II.
- Helped consolidate Stalin’s control over the economy, reinforcing the centralised planning system.

Second 5 Year Plan Successes

Production targets were more realistic.
Targets were over fulfilled by 3%.
Significant achievements in transport.
Moscow underground (1935).
Moscow – Volga Canal (1937).
Bread rations ended (1934).
Wages increased.
Some peasants were allowed small plots (1934).
Stakhanovite movement.

Second 5 Year Plan Failures

Some managers would hoard goods in short supply.
Severe lack of spare parts for machines.
Fear of execution meant continuation of lying about totals.

Second 5 Year Plan - features Stakhanov

Record 102 tonnes in 6 hrs -14x normal.
Then 227 in one shift (1935).
Led to rewards.
Stakhanovite movement - propaganda.

The Stakhanov Movement

Alexei Stakhanov’s Improvement of Productivity in Coal.
Turns into a Major Publicity Campaign to Inspire Workers.
Heroes of Socialist Labor In 1935, a coal miner from the Donbas region of the USSR worked out a new way to extract coal from the coal face.
His name was Alexei Stakhanov. By doing the skilled job of coal- cutting himself and by using his unskilled comrades to cart away the coal, he found that he could cut fourteen times more coal than usual: instead of 7 tons of coal, he extracted 102 tons in a single shift.
The government gave great publicity to Stakhanov’s methods.
As a result, other miners as well as workers in other industries copied Stakhanov’s example.

Results of the Second Five-Year Plan (1933–1937)

Coal Production: Increased from 64 million tons to 128 million tons.
Steel Production: Increased from 6 million tons to 18 million tons.
Electricity Production: Increased from 13 billion kWh to 36 billion kWh.

Moscow-Volga Canal

Plan: Second Five-Year Plan.
Location: Connects Moscow with the Volga River.
Significance: allowed goods to travel directly to Moscow from the Volga, boosting the capital’s supply chain network.

Third Five-Year Plan (1938–1941)

Goals and Focus:
- Aimed to prepare the Soviet Union for potential military conflict, with a strong focus on military and defence industries.
- Production targets were set high, with emphasis on weapons, aircraft, and other military equipment.
- Continuing development of heavy industry remained a priority, but with an urgent shift toward wartime production.
Achievements:
- Increased production of armaments, including tanks, aircraft, and weapons, which proved crucial as World War II approached.
- Progress in industries essential for war preparation, such as steel and coal production, although not all targets were met.
- Infrastructure and transportation were improved to facilitate military mobility and support strategic interests.
Challenges and Issues:
- The plan was disrupted by the German invasion of the Soviet Union in 1941, which halted progress and shifted the focus entirely to war efforts.
- Persistent shortages in consumer goods as resources were increasingly diverted to military production.
- Economic strain due to the rapid militarisation and high demands on workers, along with continued use of forced labour.
Impact:
- Positioned the Soviet Union to better withstand and respond to the Nazi invasion, providing essential resources and equipment for the war effort.
- Increased centralisation and control over the economy, strengthening Stalin’s power and the Soviet state's role in every aspect of life.
- Set the stage for a wartime economy, leading to significant sacrifices in living standards but achieving a level of military readiness.

Third 5 Year Plan Successes

Agriculture production was improved - peasant limited to time they could spend on own land.
Stalin had industrialized Russia.
Stalin had turned Russia into a world power.

Third 5 Year Plan Failures

Harsh measure to ensure labour discipline.
‘Quicksand society’.
No guarantee of labour.
‘Internal passports’.
Purges created chaos- managers gone etc.
Moderate removals – stopped creativity in the Politburo.
Three good years- 34-36 Rest full of hard work and shortages.

Third 5 Year Plan - features - Worker Discipline

Harsh new rules introduced to increase production.
Lewin – ‘Quicksand society’
- The term "Quicksand society" by historian Moshe Lewin refers to the social instability and sense of insecurity in Soviet society under Stalin's rule.
- Lewin used this concept to describe how Soviet citizens lived in a state of constant fear and uncertainty, as the Stalinist regime frequently shifted policies, purged individuals, and redefined "enemies."
Many workers/managers kept moving jobs for better pay and conditions.
Meant no stability – firms couldn't guarantee workers – impacted on production.

Third 5 Year Plan - features - Internal Passports

Introduced in 1940 to prevent workers from freely moving from job to job – guaranteed factories had labour.

Results of the Third Five-Year Plan (1938–1941)

Coal Production: Targeted increase from 128 million tons to around 150 million tons (achieved around 130 million due to disruption).
Steel Production: Targeted increase to around 22 million tons (achieved approximately 18 million tons).
Electricity Production: Targeted 48 billion kWh (achieved around 43 billion kWh by 1941).

Workers and Their Work

In 1929, the government introduced what is called an “uninterrupted” week.
Factories now worked seven days a week, with a fifth of the workers having their day off on any one day.
Absenteeism was punishable by sacking and with eviction from factory housing.
This was changed in 1938 to being more than twenty minutes late for work without good reason.
The OGPU introduced internal passports in 1932.
Industrial workers had to carry work books.
People who were willing to work hard could do well.
Workers who stayed in one job and obeyed factory discipline received higher pay, better conditions and better housing.
Members of the shock brigades received special privileges such as tickets to the opera, paid holidays and access to special shops.
And the best workers of all were given medals and decorations in addition to better pay and housing and privileges.

Problems of Industrialization

Massive Migration from Countryside to Cities - Industrial Working Population Grows.
Poor Living and Working Conditions.
USSR Workers Working During the Great Depression.
Millions of them were peasants who came into the towns with little experience of time-keeping, factory discipline and safety.
As peasants flooded into the towns and cities, all the basic amenities became overcrowded.
Apartments had to be shared by several families, so that there was one family in each room, sharing kitchen bathroom and toilet.
In new industrial cities such as Magnitogorsk factories were built before the houses.
Soviet workers were better off in one respect than millions of workers in what Stalin called the "advanced countries”.