War Communism

State Capitalism

Key element of State Capitalism was nationalising the economy/
Lenin made a number of dramatic decisions in 1917:
- Land Decree: abolished private ownership giving peasants control of their farms.
- Decree of Workers' Control: placed control of factories in hands of the workers.
- People's Bank of the Russian Republic: all banks nationalised and merged into one.
This gave considerable power to the people, making the Bolsheviks very popular.
However, it caused a crisis in the economy as workers: gave themselves massive pay-rises, violently dismissed managers, and experts were purged.
In December 1917, Lenin stepped in by setting up the Vesenkha (Supreme Council of National Economy), which provided greater centralised decision making over the economy.

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Nationalisation - All industry without compensation.
Vesenkha - State control of the economy.
Hierarchical Structures - Replace Workers' Councils with managers.
Military Discipline - Death penalty for workers who went on strike.
Rationing - Soldiers & factory workers received preferential treatment.
Grain Requisitioning - 150,000 volunteers sent to countryside to seize peasant's grain; starvation became common.
Private Trading Banned - Trade controlled trade, but sheer demand led to the spread of black markets.
Bartering - All good traded for other goods; workers received wages in goods.

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At the Tenth Party Congress in 1921, Lenin announced an end to War Communism.
He suggested it was because they had now won the war so there was no further need for it.
However, it was actually because of a number of critical factors put massive pressure on Lenin to make this decision:
- Economic collapse:
  - Heavy industry fell by 20%
  - Food production also dropped to 48%
  - Led to death of 20 million through famine and disease through out the 1920s.
- Unpopularity:
  - Rationing detested as it was linked to social position.
  - The return of managers caused resentment.
  - Workers resented loss of control over industry.
- Tambov Rising:
  - Grain requisitioning caused conflict in the countryside.
  - The uprising took place in a key grain production area in Central Russia.
  - It took an army of 50,000 to crush the uprising.
- Kronstadt Mutiny:
  - Serious military challenge to the Bolsheviks.
  - They were previously the most loyal group of Communists.

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