Russia 1.2 Flashcards
(134 cards)
What was the state of the economy when the Bolsheviks came to power?
unsophisticated and backward economy - not industrialised - and shattered by WW1
What did Lenin believe about a Socialist economy?
A socialist economy would be highly efficient with highly disciplined workers who found fulfilment in their work and so needed no time for leisure - reflected in his economic policies.
What key measures did the Bolsheviks introduce when coming to power?
The Land Decree 1917 - land reform which abolished private ownership of land - church and aristocratic land broken up and peasants could own the land which they worked - popular with peasants.
Decree on Workers’ Control Nov 1917 - placed control of factories into the hands of the workers.
27 Dec - all private banks nationalised, along with the State Bank being amalgamated into the People’s Bank of the Russian Republic.
Why was giving power to the workers and peasants detrimental to the economy?
Workers’ councils gave themselves pay rises - little improvement in production + led to inflation. Managers and those with technical expertise were dismissed (sometimes violently) by workers (revenge).
Why was Vesenkha introduced?
The Bolsheviks realised further state control was needed. Vesenkha would ensure factories were properly managed (controlled by well-paid specialists) and would coordinate economic production.
Why was State Capitalism unpopular?
In many ways there was little difference between state capitalism and life before revolution.
Why was War Communism introduced?
To ensure the Red Army was supplied with enough food and resources to emerge victorious.
It also enabled some aspects of communist ideology - abolishment of private enterprise and capitalism.
What were components of War Communism?
Nationalisation of industry without compensation.
Reintroduction of hierarchical structures in industry.
Labour Discipline : working day extended to eleven hours (1918), work made compulsory for all able-bodied aged between 16 and 50 - the unemployed were forced to join ‘Labour armies’ set up to work on projects (e.g. road building and woodland clearance). Death penalty introduced for workers who went on strike and all workers expected to volunteer (unpaid) on ‘Communist Saturdays’ - days designated for service to the Party.
All Private trading and money was banned.
Forced requisitioning.
Rationing.
How many Bolshevik volunteers were used to seize grain?
150,000
(Consequences of War Communism)
Economic collapse - Stats?
grain requisitioning led to lower rates of agricultural production as unpaid peasants had no incentive to work. Industrial production declined significantly - few incentives to work hard and hungry workers left cities to work on farms - higher chance of being fed. 3 million workers (1917) to 1.2 million (1922). Agricultural production at 60% of 1913 level in 1920 and Industrial production at 21% of the 1913 level in 1920.
(Consequences of War Communism)
Growth of the Black market - Stats?
60% of food consumed came through black markets
(Consequences of War Communism)
Mass Poverty and famine - Stats?
By 1921 there were shortages of all kinds of commodities and by late 1920 workshops in cities were closing because of a lack of fuel - fuel in such short supply that the government ordered wooden buildings in Petrograd to be destroyed and used for fuel. Unemployment rose and harvests declined further - 1921 only 46% of 1913 harvest - rural areas a famine began - 6 million deaths + army soldiers had to resettle to civilian life. Lack of food - in the 1920s over 20 million died from famine and disease.
Was War Communism successful?
Overall war communism led to a military and ideological victory but economic ruin - Lenin believed War Communism was the foundation for a new society. Bukharin even welcomed the economic crisis - argued the destruction of capitalism needed to be complete before building socialism - senior Communists didn’t see a reason to stop the policy but the political tensions (rebellions) forced Lenin to accept an economic crisis.
Why was the NEP introduced?
War Communism was abandoned because the economic and social situation led to a deteriorating Bolshevik political position after the civil war because of the failures (above) of War Communism.
Lenin needed the NEP to retain political power.
What measures were taken in Agriculture?
Requisitioning replaced by a system of taxation (10% on profits) - peasants could sell food at a profit.
What measures were taken in industry?
NEP returned small-scale industry (fewer than 20 people) to private industry but the state retained control of heavy industry, transport and banks.
In state-owned factories, bonuses (incentives) were used to try to raise production.
What measures were taken in money and trading?
Reintroduction of a currency in 1921, for paying wages - Lenin emphasised the need for a stable currency and all factories and workshops to make a profit.
Legalisation of private trading to stop the black market and with the growth of private trading - rise in the ‘nepmen’, people who grew rich under the NEP - nepmen accounted for 75% of trade in 1922.
Why were Left-wing Bolsheviks hostile to the NEP?
They saw the NEP as a retreat to capitalism but Lenin saw it as securing the revolution.
What coincided with the introduction of the NEP?
The arrests of Mensheviks and all political parties (except Bolsheviks) were outlawed. Economic compromise clearly did not extend to political relaxation.
(Consequences of the NEP)
By how much did food production increase and why?
End of grain requisitioning encouraged peasants to grow more food - famine ended as food production more than doubled between 1921 (37.6 mil tons) and 1926 (76 mil tons).
(Consequences of the NEP)
Industrial growth - Statistics?
market stimulated production and government invested money gained from taxing peasants. Lenin authorised a major electrification campaign (GOELRO - aim to reach 8.8bn KwH of electricity up from 1.9bn (1913) achieved in 1931) which revived an industry destroyed by the civil war. End of 1921 - Lenin claimed the NEP was the best way to industrialise the Soviet Union and was a form of state capitalism. By 1926, industrial production largely recovered to 1913 levels.
(Consequences of the NEP)
What was the Scissors Crisis?
Agriculture recovered quickly, supply increased and so prices fell. Industry recovered much more slowly. A gap opened up between prices. By 1923 it reached a crisis point where farmers were disincentived from producing food (low prices) and could not afford insdustrial goods. In December 1923 the government had to subsidised the price of industrial products - less money available to improve the economy.
(Consequences of the NEP)
Inequality and Corruption
Nepmen spotted gaps in the market and would travel the country transporting highly desirable goods from factories + farms to markets. The Communist Government saw nepmen as parasites as they produced nothing. Nepmen sometimes arrested by the Cheka for profiteering. Corruption grew - Gambling, prostitution and drug dealing all took place under NEP.
What percentage of firms were in private hands by 1923?
85%