4. Bolshevik economic policies Flashcards
(6 cards)
What was state capitalism?
Late 1917. The policy was based on the nationalisation of industry, which ended capitalism by passing the ownership of industry from capitalists to the new state. This would be a temporary and transitional measure aimed at producing a degree of economic recovery. They needed to recover the economy due to inflation, unemployment and a lack of raw materials. When the economy was suitably revived, the Bolshevik government would begin to implement socialist policies.
What was implemented under state capitalism?
Control of the nationalised industries was centralised by the Vesenkha, which would:
. Re-establish worker discipline by offering higher pay to productive workers.
. Ensure factories were properly managed by placing them under the control of well-paid specialists.
. Co-ordinate economic production to meet the needs of the new society.
What were the consequences of state capitalism?
It ended worker’s control, so it was extremely unpopular. The gov also kept wages low as Lenin wanted to target resources at economic growth. The Vesenkha tended to employ ex factory owners to manage the factories, so the workers led a very similar life to before the revolution.
Why was War Communism implemented?
From mid-1918, Lenin introduced War Communism to ensure victory during the Civil War.
What did War Communism do?
It abolished the free market and introduced a food dictatorship which involved:
. Grain requisitioning - Cheka squads were authorised to seize food from peasants without payment.
. Rationing - This food was then rationed, with the largest going to workers and soldiers, the smallest amount given to the bourgeoisie.
WC also entailed an intense labour discipline:
. In 1918, the working days were 11 hours.
. In 1919, work was made compulsory for all able bodied between 16-50.
. Harsh punishments given to workers who were late or slacking.
The market was abolished:
. The gov printed more money which led to hyperinflation. Money became worthless and so workers were paid via their rations and public services like trams became free.
. Private trade was made illegal - this led to cigarette lighterism, where people would sell handmade or stolen goods for food. 2/3 of urban diet came from the black market, with bagmen travelling from town to town - wanted by the Cheka.
. Complete nationalisation.
What were the consequences of War Communism?
WC destroyed incentives to work. By 1920, there was a widespread famine in the countryside, leading to extremes like cannibalism. Workers fled the cities in search of food. The workforce declined from 2.6 million in 1917 to 1.2 million in 1921.
