Unit 1E - Russia, 1917-91: from Lenin to Yeltsin
Topic 1 Government Detailed NOTES (A-A*) with STATS+FIGURES (A*
STUDENTS)
ECONOMY UNDER LENIN:
Towards a command economy, 1917-28
The Nationalisation of industry
Problems facing Russia:
Serious economic problems:
Economy backwards and unsophisticated. Devasted from WW1 and
Revolution led the economy to chaos.
Russia began to industrialise.
Economy grew significantly from 1890-1914
Economy still far behind the more developed nations.
Goods can only be equally distributed if there is goods to distribute.
Lenin’s early ideas:
Believed that socialism was compatible with Russia in 1917
Lenin knew there was no set plan to get an economy from capitalism to
socialism then to communism so it could only be achieved through trial
and error.
Production in the hands of the proletariat was ideologically good but the
Bourgeoise was efficient and experts in their management and technical
fields.
Argued that as the revolution progressed, advanced countries would send
aid to developing countries and therefore Russia would grow without
capitalism.
Argued that the revolution had destroyed capitalism
But the economy was not strong enough for socialism.
Lenin’s vision of a socialist economy:
Lenin believed that a socialist economy would be very efficient.
Believed that it required modern technology, expert management and a
well-educated and highly disciplined workforce.
Workers would be free from the capitalists.
Workers would be better paid and treated better.
Therefore would no longer resent the work that they did.
Lenin’s vision of socialism dedicated no time for leisure.
No sympathy for laziness.
Assumed that following the revolution people would find their work
fulfilling and therefore leisure would be unnecessary.
Lenin’s economic policies reflected his faith in expertise, desire for
efficiency and disciple
Plus, disregard for leisure.
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,State capitalism:
Term given by Lenin to describe the transitional phase between the old
bourgeoise economy and the new proletariat one. The idea of state capitalism
highlights the tension between the economy. They wanted production to return
to the same levels as pre-WW1. Full nationalisation of industry and state-owned
enterprises.
Lenin’s state capitalist economy was based on nationalisation
of industry.
Which ended capitalism by taking industry away from middle-class
owners.
All industries nationalised, were run by Vesenkha.
A group of economic experts:
Designed to ensure factories were managed by placing them under the
control of well-paid specialists.
Co-ordinate economic production
Only large industries were nationalised.
Small factories controlled by workers or back to capitalists.
Very unpopular.
Little change from state capitalism and life before the revolution
Many workers rejected state capitalism in favour for workers’ control.
Lenin ignored opposition and state capitalism was the official policy of the
new government.
Changed when civil war broke out.
Lenin Initial policies:
Land Decree of 1917 October.
In order to win support and stimulate agriculture, Lenin pushed out land
reform.
Lenin abolishment of private owned land which was going to be
distributed to the people.
Took land from the church and aristocrat owners. And gave them to the
peasants.
Therefore the land reforms were very popular with peasants.
The Decree on Workers Council of1917 November
Placed control of the factories into the hands of the people.
Nationalisation of Banks of 27th December
All private banks were nationalised along with the state bank being
amalgamated into the Peoples Bank of the Russian Republic.
Impact:
Gave significant power to the workers and peasants but damaged the
economy. Little production as workers councils voted themselves to get huge
pay rises and holidays. Mangers were often dismissed meaning there was no
leader in the factories. The Bolsheviks quickly recognised that the government
needed greater economical control. In December 1917 , The supreme Council
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,of the National Economy (Vesenkha) was formed and set up to provide greater
supervision of the economy. Created tensions between the workers self-
management and the government. Central government was to be greatly
increased.
War Communism:
War communism designed to ensure:
High levels of industrial output of war goods.
Efficient allocation of resources.
Food production to feed soldiers, workers and civilian population.
Red army was to get majority of the food resources in order to become
victorious.
Why was it set up?
Ideological basis:
Abolish private enterprises and could been seen as the application of
communist ideology instead. Old world destroyed and new Marxist one built.
Collapse of the Russian economy was replaced by bartering which was seen as
a sign of liberation from capitalism however it caused major inflation. Bolshevik
leadership implemented large-scale nationalism.
The response to the reality of the economic collapse:
Bolshevik had inherited an economy that was in the state of the near collapse
so drastic measures were needed. State direction of the economy was
introduced.
A reaction to early Bolshevik excesses:
Bolshevik policies gave control to the workers proved to be merely idealistic
and unworkable. Abolishment of army ranks was reversed and factory
managers had more power in industry.
Key Features of War Communism:
Food dictatorship:
Lenin’s food dictatorship’ consisted of:
Grain requisitioning:
150,000 thousand Bolsheviks volunteers used to seize grain.
Government attempted to use committees of the Village Poor to spy on
any peasant who might be hoarding grain.
Cheka seized grain from peasants without payment.
Rationing: Supply Commissariat rationed the seized foods. Large
malnutrition and insufficient food(starvation) took place.
Largest rations went to workers and soldiers, smallest rations given to
members of the bourgeoisie.
Labour discipline:
War communism brought out labour discipline:
In 1918, working day extended to 11 hours.
In 1918, work was made compulsory to all people who were able.
Harsh punishments given to people who were late or caught slacking.
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, Harsh military style disciplines, unemployed were forced to join Labour
Armies
Workers forced to work unpaid labour on "Communist Saturdays" days
designated for serving the party.
Reintroduction of hierarchical system in industry (management was
introduced)
Abolition of the Market:
Following measures introduced to try to abolish the market:
Abolition of money:
More money printed which led to hyperinflation
Abolition of trade:
All private trading was made illegal. Trade was to be controlled by the
state but they could not provide enough goods causing black markets.
Complete nationalisation of all industry without compensation. All industry
was under the control of the Supreme Council of National Economy
(Vesenkha)
All businesses taken over by state
Conscription: Workers assigned to either work or fight in the army.
Lenin’s argument that abolition money was a big step away from
capitalism and a move in the direction of a full-fledged socialist economy.
Where economic production and distribution were centrally planned.
Consequences:
Kept Red Army supplied and won civil war.
Led to economic collapse.
Failed to abolish market.
Economic Collapse:
Grain requisitioning led to lower rates of agricultural production.
Peasants not paid for their grain or labour
Therefore the peasants had no incentive to work.
Secondly, industrial production declined.
Too few incentives to work.
Hunger led to workers leaving the cities and seek work on farms where
there was a greater chance being fed.
Total workforce declined from 3 million workers in 1917- to 1.2 million in
1922.
Growth of a black market:
Lenin’s economic controls failed to abolish the market.
Historians estimate that only 40% of the food consumed in Russia’s cities
came from rationing of food during the Civil War.
Workers forced to steal government resources to make goods that could
be bartered for food.
Metal workers would steal scrap metal and fuel to make lighters.
Mass poverty:
By 1921, Russian economy was collapsing.
Shortages of all kinds of commodities.
By 1920, workshops in the major cities were closing due to a lack of fuel.
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, Fuel was in short supply, therefore government officials would order the
destruction of wooden buildings in Petrograd in order to use the wood for
fuel.
Unemployment rose and harvests declined.
Famine began as a result.
Political crisis:
Mass starvation deepened the economic crisis, led to a political crisis.
Between August 1920-June 1921, peasants in the Tambov region rebelled
against the Communist Government.
In Kronstadt, soldiers who hard supported the communists without
question, had turned against the government, demanding a return to free
trade.
In March 1921, the sailors mutinied with a response from the government
of extreme force, defending itself and crushing the rebellions.
War Communism conclusion:
Led to military victory.
But economic ruin.
Ideological victory.
Abolition of money and the capitalist market led to many Communists
believing that War Communism was the new foundation for a socialist
society.
Bukharin favoured the economic crisis.
Further rebellions led to a large risk to the end of the Communist
Government.
Very unpopular – workers lost power to management. But there was a
necessary need of government intervention as they needed to make sure
Red Army is supplied.
Needed to abolish private enterprises and have a government directed
economy through nationalising industry.
Rationing meant starvation and hunger and they wanted to get rid of Mir
EVERY SINGLE POLICY NEEDS TO ENSURE YOU SAY
- WHY THEY DID IT (Cause)
- FEATURES (What they did)
- IMPACT (What did it lead to)
- EFFECT (Was it a success or not)
New Economic Policy:
Why was the NEP introduced:
Government needed to abandon War Communism and bring in the NEP to gain
popularity and improve its economy:
Economic Considerations:
Industry growth was stagnant, and production of heavy industry had
fallen to 20% of its 1913 level. In some sectors production stopped
altogether eg food had fallen altogether to only 48% of the 1913 figure.
This caused widespread famine and diseases eg Typhus and smallpox
with over 20 million dying from famine and diseases. Army soldiers had to
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, resettle into normal civilian life. War communism needed to be improved
as it did not meet the supply required. Lenin needed a policy to stimulate
grain production and end famine. Build socialism:
By 1921, it was clear that a European revolution would not happen.
Therefore Lenin needed an economic policy that would build Russia for
socialism without foreign aid.
Unpopularity of War Communism
Mainly due to the system of rationing ( with army and industrial proletariat
gaining most of the rations was disliked whereas most of the bourgeoise earnt
nothing) , use of managers and management , harsh worker rights and rules
made it overall very disliked between peasants and workers.
Uprisings and revolts
Tambov Revolt
Countryside the peasants protested again forced requisition of food and wanted
to get rid of the Mir. High peasant resentment came which was incredibly bad
in crucial farm areas such as Volga Basin, North Caucasus and Western Siberia.
Revolt was put down by 50,000 red army officers. The violent attacks put
pressure on the government to reverse the policy.
Kronstadt Mutiny
Rebellion by sailors outside the Naval base in Petrograd. They protested
against increased power in the Paty and officials at the dispense of the workers
(corruption + against grain requestioning of the peasants). "Soviets without
Bolsheviks" , mutiny was supressed by Red Army troops but was a shock to
Bolshevik leadership and made them disliked.
Other Factors:
Retain political power. Lenin described the NEP as an economic retreat.
Designed to stop a political defeat.
In that sense, Lenin made an economic compromise.
Argued that the Communist Party must learn to trade and use capitalism
to build Communism.
Also emphasised that the NEP would create peace with the peasants.
Key features of the NEP:
Agriculture
End to requisitioning and replaced by a system of taxation which allowed
peasants to sell any remaining food for a profit.
No forced programmes of collectivisation and mir would stay as self-
regulators
Left to the free market to end famine
Industry
NEP returned small scale industry to private hands.
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