Russia 1917-91: Theme 2

How was the industry Nationalised?

State capitalism, key measures of Lenin's initial economic policy: *land decree 1917 (abolish private ownership of land, peasants control of land) *Decree on Workers' Control 1917 (control of factories in industrial workers hands) *27 dec all banks nation

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Consequence of nationalisation?

Gave considerable power to workers, BUT devestated economy. Workers’ councils gave pay rises, lowered prod = inflation. Managers dismissed, technical experts removed by those seeking revenge for treatment. Dec 1917, Supreme Council the National Economy se

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What was War Communism and what were its features?

series measures for army resources. Ideological (abolish private enterprise), Response to economic collapse (needed to stabilize inherited economy). Nationalisation of all industry, private trading banned, forced food requisitioning. management instill di

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Why was the New Economic Policy introduced 1921?
(tambov uprising, Kronstadt: resentment of WC and loss of loyal...)

Economic Considerations: heavy industry drop 20% of 1913. Food prod, to only 48% of the 1913 figure, breakdown in transport/distribution
dislike WC: rationing was disliked, size of rations dependent on social classification, red army got most, bourgeois

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What were key features of NEP?

Agriculture, end requisitioning, system of taxation. Allowed remaining food of peasants to sell. No forced programme of collectivisation. Industry: return small scale to private hands, reintro currency for paying wage, private traders. Nepemen emerged

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How successful was the NEP?

Resulted in mixed economy, private ownership, state control. Considered temp measure, industrial output rose = repairing roads/bridges. helped better harvests (37.6mil to 74.5 grain 1921-25) BUT corruption, black market flourished, prostitution.

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How did Stalin decide to move to a command economy?

1924, industrial prod 45% of its 1913 figure. 1926, much pre-war economy restored. Need increase food prod support workers,gain foreign exchange new tech/machinery. under 5 yr plan, enable gov direct economy, food prod and urban growth.

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What was the need for 5-year plans and industrial change?

industrialise country,break from NEP, rapid modernisation of economy, move towards socialism. Move to large-scale nationalisation, state control, rid Nepmen. Self-sufficient and mass mobilisation, industrialisation under Gosplan. Remove bourgeois open up

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What were the features of the 1st 5-year Plan?

Efficient use if existing factories and equip, Magnitogorsk (1932 250,000). Model worker Alexei Stakhanov (15x mine coal). slackers ridiculed. Slave lobour complete large projects. White Sea Canal 1931-32 10,000 died. Factories meet unrealistic targets, q

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What were the features of the 2nd and 3rd Plans ?

Made more use of technical expertise, coal prod rose 35.4mi to 128 1927-37. chemical industry progressed. 3rd plan focused on defense industry due to growing international tension. few met overambitious targets of 1st plan...

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features of 2nd and 3rd plan cont... (some advance in consumer goods in 2nd plan, foot wear, some increase in living standards).

There was enormous growth in industrial prod, especially in heavy industry= 1928-41 17% growth rate, but progress unbalanced, consumer goods suffered, shortage of them worse as collectivisation destroyed cottage industry.

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What was the significance of the 2nd and 3rd plan? (a better future was delayed)

1941-45, SU defend itself from Nazi Germany. Seemed prove Stalin aim of transform USSR into modern industrial society. BUT unbalanced, decline in certain sectors. Use of slave labour, human cost. health of workers and environment damaged.

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What was agricultural collectivisation and what was its impact? (economic: larger farms = large farm units, remove hedgerows and make use of machinery, increase food prod, reduce labour)

Consequences for rural pop. Reasons: link with industry: could only achieve economic base if agricultural prod increase, need for tech from abroad and need food surplus to export to obtain foreign exchange.

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What was the political case for Collectivsation and what was process of it? (siezed animals, grain, village buildings collective property. Opp (ukraine.) OGPU round kulaks.1932, 62% households collectivised. 93% in 1937.

Extend socialism to rural, survival of revolution. Rid kulaks and effects of NEP. 1927 voluntary collect, food shortage 1928, forced grain requisitioning, increase mechanisation= MTS gov supplied machinery.

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What were the results of collectivsation? (recovary: fall demand for animals = grain for human consumption, poor planning = push collect wasn't co-ordinates with machinery collectives no tools to prosper.)

Poor economic outcome, no tractors till mid30s. Most productive farmers gone (kulaks). 1928-33 no. cattle 1/2. Grain prod dec, 73.3 to 67.6mil 1928-34. fed red army but the pop starved. Slow recovery of agrig, good harvest 1933 and 37.

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What were the consequences of collectivisation (the famine)?

Cost of human lives, hard to quantify but represents human tragedy . Stalin achieved his aim ‘liquidating’ kulaks as class. This class had been estimated to be about 15 million in 1928. Historians’ estimates of the number of deaths range from 5-10mil.

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How did Khrushchev's economic policy change? (light industry, chemicals and consumer goods)

Away from heavy industry, to broaden base of soviet economy, benefit pop. He faced problems of prev rigid economy: *bureaucratic system stifled initiative (terror). *system too inflexible to respond to demand.

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What reforms did Khrushchev push to deal with this?

1957: Regional Econmic councils to supervise enterprises, *harsh labour laws of Stalin removed and working week reduced 48 to 41 hours 1960. *Managers given more influence in their factories, encourage initiative keep 40% factory profit.

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What were the features of the 7-year Plan (1959-65) and what was its impact?

push ahead with chemical industries and shift to oil and gas = cheap. Prof of synthetic fibres incre 166,00 to 666,000ton 1958-65. USSR sent the 1st dog into space, in 1961 Yuri Gagarin the first man in space. Source of pride.

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Impact of 7-year plan? (spending on consumer goods reduced and housing programme cut back)

Annual growth rate of Soviet economy 1950s 7.1%. Seemed impressive compared with US rate 2.9%, but Soviet economy lagged behind as economic base smaller. Poor labour productivity, inefficiency and waste.1964 economic growth slowed

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What was the impact of investment in agriculture and Virgin Land Scheme (VLS)? (Rapid increase in mechanisation, fertiliser, irrigation,6mil acres land were brought,Over 120,000 tractors were provided)

increase prod = win peasants over to collectivisation and stimulate initiative. *1955 individual collects make local decisions, MTS abolished (had to buy own, BAD), Collects increase size linked to food prod and greater investment in agrig.

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What was Khrushchev's impact on agricultural production? (K built his reputation on agricultural success; failure significant contributory factor to dismissal 1964)

Incomes of farmers doubled 1952-58 but below those of indust workers. 1953 and 1958 food prof increased 51%. BUT productivity low, 1959 targets not met in Kazakhstan. Successful cash crops (cotton) but no irrigation. Food shortages, poor harvest 1963.

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What was the Kosygin reforms and reforms under Brezhnev? (consumer goods and 9th 5-year plan, goals not achieved but, living standards increased. 1980 85% families TVs, 70% washing mach, investment in public transport)

Aim to unleash decision-making process, improve productivity, gave incentives to enterprise managers use resources productively, focus on innovation. 1973, industry joined with scientific institutions, ensure latest tech applied to prod.

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What was agriculture like under Brezhnev? (faliure food prod meet demand, shortage of foodstuffs in state shops, peasants sold their garden produce private markets.)

VLS dropped, politburo needed investment in agrig. 1967, 26% investment. B allowed peasants prod on private plots. Result in B's policy was asteady rise in overall prod. Workforce large and unskilled, equipment prone to breaking, food prod rot before mark

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How did Andropov attempt to reform:

Brief time as general secretary 1982-84, he recognised need for reform, needed disciplined approach, removal of corruption, prod figures falsified, give impression that targets met, large amount materials stolen from state enterprises and diverted to blac

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What was the evidence for economic decline?

1950s growth rates 7%, 1960s 5% and 1970s 3%. Fixation with output masked underlying economic performance. Quality sacrificed for quantity, poor quality goods, levels of low productivity.Waste serious problem, environmental damage, not concern if targets

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What were the reasons for economic decline? (outdated tech: 1980s, USSR struggled keep up date with tech advances in West.)

*legacy if Stalinist system: need for rapid industrial output, hard to achieve efficiency. *Problems in command economy: no encouragement of initiative and creativity in system. B preferred just to keep party happy. *‘social contract’: Contrac gov and wor

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Conclusion?

The Communist regime extended economic control in 1917-21, varying in extent. Stalin's 5-Year Plans modernized the SU economy, but created a rigid, industrialized system. Reforms from 1953-1985 were limited, demonstrating entrenched political power.

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Russia 1917-91: Theme 2

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