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Flashcards in Russia - economy Deck (11)
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the three main policies which kick-started Lenin's original economic policy

- land decree - abolished private land
- workers' decree - placed control of factories in lands of workers
- all banks nationalised - became 'people's bank of the Russian republic'


results of Lenin's three main policies

- gave significant power to workers and peasants but damaged the economy
- workers' councils voted for pay rises - resulting in stagnating productivity and inflation


why was war communism introduced

introduced during cilvil war - needed to supply Red Army with food
- collapse of Russia currency - replaced with bartering - seen by some bolsheviks as a sign of liberation from capitalism - actually caused by raging inflation
- all companies with 10+ workers were nationalised
- industry under control of vesenkha - earlier policies allowed workers control - needed good economy in civil war
- inherited tsar's economy - state of near collapse
- hopes communist ideology could be converted into meaningful policy


key features of war communism

- harsh military style discipline in factories - punishment for striking was death
- all private trading banned
- forcible requisitioning of food - 150,000 volunteers used - malnutrition and starvation became common


results of war communism

- disaster to soviet econ
- by 1921 industrial production was only 20% of 1913 level
- food production 48% of 1913 level in 1921
- over 20 million died from famine or disease


why was NEP introduced

- economy trashed - industrial production 20% of level in 1913 in 1921
- war communism not for post war situation - many soldiers resettled
- war communism unpopular - rationing, hierarchical systems in factories
- tambov 1920 - against requisitioning of grain - took 50,000 Red Army troops to shut it down
- Kronstadt mutiny 1921


key features of NEP

- end to requisitioning grain from peasants - no collective farms
- peasants allowed to sell remains food for profit
- small scale industry to private hands - govt still controls heavy industry, banks, transport
- bonuses introduced in factories
- Nepmen occurred - those who benefitted from NEP - debate on if NEP suitable for communist state or not - step back from communism - grow econ then make revolution secure


results of NEP

- output rose rapidly in first three years of NEP
- black market flourished - unregulated prostitution - theft became common


Trotsky's 'scissors crisis'

- as agricultural goods prices rose, price of industrial goods fell
- discouraged growth from peasants - no guarantee of good price when crops were ready to harvest


reasons Stalin dropped Lenin's NEP

- command econ would remove Nepmen and kulaks - had become richer under NEP
- enable Stalin to target the right of the party


first five year plan

- to industrialise
- 'socialism in one country' - USSR would modernise and industrialise utilising the resources within the state
- industrialisation directed by Gosplan