Russia 1917-85- economy
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- Created by: warden_squad
- Created on: 09-05-19 11:16
The nationalisation of industry
- Marx never mentioned anything about the economy so it had to be achieved through trial and error
- State capitalism- the transitional phase of working with working with the bourgeoisie who had knowledge of these matters
- Land Decree 1917- abolished private ownership of land
- Decree on worker's Control 1917- placed control of factories into the hands of industrial workers
- In December 1917 all private banks were nationalised
- These measures had a detrimental effect on the economy because workers gave themselves huge pay rises resulting in inflation and managers were dismissed
- Vesenkha set up in December 1917 to provide economic supervision
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War Communism
- to ensure that the Red Army had enough food and resources, involving greater government intervention
- went with long-term Bolshevik intention of abolishing private enterprise
- Bolsheviks had inherited an economy near collapse
- Key features of war communism:
- Nationalisation of all industry
- reintroduction of heirachal structures in industry
- military style discipline in factories
- private trading banned
- money replaced by bartering goods
- forcible requistioning of food and introduction of rationing
- ensured that Red Army got the resources they needed to win the Civil War, but left the economy near collapse
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NEP
- War Communism abandoned at near economic collapse and NEP introduced as short-term solution
- 20 million died from disease in 1920s
- Peasants reacted violently to grain requistioning in the Tambov Rising
- Sailors near Petrograd mutinied in the Kronstad mutiny
- Features of NEP
- end to requistioning
- no forced collectivisation
- small-scale industry went to private hands
- reintroduction of currency
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How successful was the NEP?
- industrial output rose in the first three years but largely due to private trading of Nepmen
- corruption through balck market flourished
- low grain prices discourage peasants from growing grain (scissors crisis)
- By 1924, industrial production was at 24% of its 1913 figure
- fear of British invasion caused peasants to hoard food
- trade with the rest of the world was severly reduced
- NEP did kickstart the economy, but at the expense of Communist ideals
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The Five-Year Plans and industrial change
- had the aim to make the USSR self-sufficient using the most advanced technology
- Industrialisation placed in the hands of Gosplan
- First Five Year Plan (1928-1932)- concentrated on heavy industry
- quality sacrificed for amount
- Second Five Year Plan (1933-37)- rise of Hitler directed focus onto heavy defence
- Third Five Year Plan (1938-42)- arms production to meet the threat of Germany
- Plans contained unrealistic targets
- Workers had to rely on revolutionary attitudes for motivation
- While they made huge economic progress, there were huge declines in some sectors
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Agricultural collectivisation and its impact
- fear of invasion added urgency to the need to industrialise
- agriculture was innefficient compared with the rest of Europe
- would help extend socialism to the countryside
- In December 1927, the Fifteenth Party Congress decided that collectivisation would be optional, but it was forced in 1928 as an emergency measure
- once peasants had signed up, the collective could seize animals, grain supplies and buildings as collective property
- people who refused to join were labelled 'kulaks'
- many kulaks set fire to their property and killed their animals to not hand it over to the state
- the 'twenty-five thousanders' were sent from the cities to forcibly organise collectives
- by 1932, 67% of households were collectivised, and it was 93% in 1937
- grain production fell and so did the amount of animals due to protest slaughterings
- the aim of producing enough food for the Red Army was achieved, but only due to taking needed supplies from the countryside
- there was widespread famine in 1932-1933 causing peasants to move to the towns until a passport system was introduced, but the government denied any existence of famine
- humans had to pull ploughs themselves in the absence of horses or tractors
- some peasants cheered the invasion of German forces in 1941
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Recovery from the war after 1945
- German invasion put huge strain on resources- in Moscow, a children's bike factory was converted to making flame-throwers
- Factories were evacuated further east, away from the Germans
- Between 1943-45, over 73,000 tanks and 94,000 aircraft were produced
- virtually non existent production of consumer goods
- effect on food production was devastating due to able bodied men being drafted into the armed forces
- By the end of the war 25 million people were homeless and 1700 towns and 70,000 villages were destroyed
- Fourth Five-Year Plan (1946-50)- focused on economic reconstruction
- machinery taken from East Germany as reperations
- industrial production recovered quickly due to slave labour
- consumer industries still neglected
- Fifth Five-Year Plan (1951-1955)- continued growth at a more realistic rate
- increased arms expenditure due to Cold War
- peasants were allowed to sell surplus food for profit
- agricultural production remained low
- By 1952 there were over 10,000 larger collectives
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Promotion of light industry
- Khrushchev wanted to move towards light industry, chemicals and consumer goods
- In 1957 he set up 105 Sovnarkhozy to supervise enterprises
- the working week was descreased from 48 hours to 41 by 1960
- Managers of industrial enterprises were given more influence in their factories
- greater emphasis on vocational education
- The Liberman Plan 1962 called for greater autonomy for local managers and for the market to replace the state as the decider of prices
- The Seven Year Plan (1959-65)- emphasis on oil and gas, the chemical industry and consumer goods and regional development
- In 1961, Yuri Gagarin was the first man in space
- quality of goods was often poor
- annual growth of the Soviet economy in the 1950s was 7.1% but it still lagged behind because of its smaller economic base
- there was still poor labour productivity, inefficiency and waste
- economic growth had slowed by 1964
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Investment in agriculture and the Virgin Lands Sch
- Khrushchev recognised that slow agricultural growth was delaying industrial growth
- In 1955, collectives were given greater power to make local level decisions
- collectives increased in size until they became agro-industrial villages
- the Virgin Lands Scheme (1954) opened up new areas to agricultural production
- six million acres of land were brought under cultivation and 120,000 tractors were provided
- the incomes of farmers doubled between 1952 and 1958 but still remained far below industrial workers
- the land used in the Virgin Lands Scheme was dry and only suitable for grazing
- the USSR had to import grain from North America and Australia
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Attempts at reform after 1964
- Kosygin reforms
- gave incentives to enterprise managers to use resources more productively
- take more notice of cost and profit
- little was actually achieved because they were so watered down that they were ineffective
- Reforms under Brezhnen
- the system of targets was further centralised in 1974
- Ninth Five-Year Plan (1971-75)- greater push for consumer goods
- By 1980, 85% of people had televisions and 70% had washing machines
- Andropov took the approach of tougher and more discipline with the removal of corruption
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Economic decline
- quality was sacrificed for quantity which also hid poor levels of productivity
- there were large numbers of waste and enviromental damage
- move towards efficiency and quality was hard under Stalin's highly centralised system
- lack of investment in agriculture
- the USSR only had access to outdated technology
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