Why did the Communists believe that Industrialisation was an important priority for the USSR?
"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 be crushed." Stalin, February 1931
- By 1914, Russia had an economic base but could not compete with rivals in Europe.
- Governments of Tsarist Russia thought industry should be expanded to strengthen the country and ensure national security.
- Industrial investment was encouraged to supply the armed forces and maintain railways.
- Privately owned industry was aided by duties on foreign imports (to reduce competition).
- The majority of agricultural and industrial production was privately owned.
- Supply and demand dictated production.
- Before WWI, Industrial production was increasing more rapidly than agricultural production.
- Agriculture provided 75% of employment and 50% of the national income in Russia.
- DANGER - The economy was dependant on government support ad foreign investment
- Development was uneven (e.g. in 1913 cotton textiles employment…