Lenin's economy

Question 1

What did he believe?

Answer 1

That an economic revolution was essential to building socialism.

Question 2

What were his economic objectives?

Answer 2

• Modernisation: socialism required the construction of a highly advanced economy.
• Consolidation: he needed economic stability to help retain his hold on power.
• Military victory: he needed the economy to supply the Red Army during the Civil War.
• Destroy capitalism: wanted to create an economy that was more efficient than capitalism and ended inequality.

Question 3

The nationalisation of industry

Answer 3

From March 1918 Lenin began the nationalisation of industry.
Nationalisation was the heart of Lenin’s economic policy from 1918-1924.

Question 4

State capitalism

Answer 4

Introduced in March 1918 - Lenin argued that it was the economic phase between capitalism and socialism.
Nationalisation ended capitalism by passing the ownership of industry from capitalists to the new state.

Question 5

Control of nationalised industries

Answer 5

Control of 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 new society.

Question 6

War Communism

Answer 6

The start of the Civil War in 1918 led to the introduction of a series of emergency economic measures.
These became known as War Communism - their goal was to ensure victory in the Civil War.

Question 7

The measures of War Communism

Answer 7

• The nationalisation of all industry.
• Food dictatorship: the free market in food was abolished. Grain was forcibly requisitioned from the peasants and food was rationed - workers and soldiers got the most and the bourgeoisie got the least.
• Labour discipline: introduced an 11-hour working day and compulsory work for all able-bodied men aged 16-50.
• The abolition of the market: money became worthless due to hyperinflation, then was abolished. Private trade was made illegal.

Question 8

The consequences of War Communism

Answer 8

Led to military victory, but also economic ruin.
Destroyed incentives to work as peasants and workers were not rewarded for work.
Economic catastrophe:
- By 1920 there was famine in the countryside - the 1921 harvest was only 46% of the 1913 harvest - led to the deaths of 6 million.
- Workers fled to the cities in search of food - the industrial workforce declined from 2.6 million workers in 1917 to 1.2 million in early 1921.

Question 9

What did the economic crisis lead to?

Answer 9

The major economic reform: the New Economic policy.