Russia's Economy 1917-1928

Question 1

What was State Capitalism?

Answer 1

A compromise economy which was part controlled by the government but also had some aspects of Capitalism, such as private markets.

Question 2

Why was State Capitalism introduced?

Answer 2

Lenin thought it would have been dangerous to move towards socialism too quickly.

Question 3

What was the Vesenkha?

Answer 3

The Council of the National Economy and it was introduced in December 1917 to supervise and control economic development.

Question 4

When was the nationalisation of the banks?

Answer 4

December 1917 and this meant the government controlled the banks.

Question 5

What was War Communism?

Answer 5

The economic system the Bolsheviks adopted in the Civil War to keep the Red Army supplied with food and weapons.

Question 6

When was War Communism introduced?

Answer 6

Summer 1918

Question 7

Why was War Communism introduced?

Answer 7

State Capitalism was failing to deal with the demands of the Civil War. Food prices soared, industrial production shrank and the value of the Rouble collapsed.

Question 8

What were the features of War Communism? (6)

Answer 8

Grain requisitioning.
Food rationing, with the largest portions going to the Red Army.
Abolition of money, workers were now paid through their rations.
Public transport was free.
Abolition of private trade.
Conscription to the Red Army or factories.

Question 9

Was War Communism successful?

Answer 9

It kept the Red Army fed and helped win the Communists the Civil War but it did lead Russia to the verge of economic collapse.

Question 10

What was the New Economic Policy?

Answer 10

It was the economic that marked a shift away from War Communism.

Question 11

Why was the NEP needed? (5)

Answer 11

There were terrible conditions in cities.
Fuel and food shortages. Industrial output had also fallen and by 1921 it had fallen to 20% of its pre-war levels.
In 1921 there was a severe famine and there was reports of cannibalism.
The government faced strikes/rebellions.

Question 12

When was the NEP?

Answer 12

1921-1928

Question 13

What were the features of the NEP? (5)

Answer 13

It made Russia have a mixed economy.
Grain requisitioning was ended and farming was put on the free market.
Large factories and major industries like banks,coal and steel remained under the government’s control.
Money was reintroduced and rationing was scrapped.
Some small factories and workshops were allowed to trade freely.

Question 14

Who were Nepmen?

Answer 14

Traders who bought up produce from peasants to sell it in the towns. They became rich off this and this was a form of capitalism not communism.

Question 15

Why were some Bolsheviks against the NEP?

Answer 15

They believed that it was a retreat back to capitalism.

Question 16

How did Lenin try to explain the NEP to the Bolsheviks?

Answer 16

He used the argument “one step backwards, two steps forward”.

Question 17

What did Lenin introduce in 1921 to try and stop a repeat of the Kronstadt Mutiny?

Answer 17

Ban on factions.

Question 18

What were the successes of the NEP?

Answer 18

Grain production had increased to 51.4 million tonnes by 1924 from 46.1 million tonnes in 1920.
The famine had ended because the peasants now had an incentive to produce more grain (sell surplus grain).

Question 19

What were the failures of the NEP?

Answer 19

Grain production still hadn’t reached the same levels that it did in 1913 (80.11 million tonnes) despite it increasing.
Industrial production was still very slow but agriculture was improving rapidly and this caused a scissor effect..

Question 20

What was the ‘Scissor crisis’?

Answer 20

Industrial production was still very slow but agriculture was improving rapidly and this led to an imbalance in the economy. Since the peasants produced more crops food prices increased but since consumer goods made in factories were still scarce so their continued to rise.