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Economic Impact of Stalin: Five-Year Plans, Product |1932 1937 1940, Coal…
Economic Impact of Stalin: Five-Year Plans
Target industrial and agricultural development (5 years)
rapid industrialization and collectivization to work hand in hand
transform the Soviet Union from agricultural city into a major industrial power
Surplus grain could be exported to earn foreign currency to build industrial capital equipment.
Collectivization (1928 onwards)
Modernise farming methods so that excess labour can be re-deployed to the industrial sector and support the industrialisation programme
Export surpluses to raise funds to invest in industry
Plan:
merge small individual farms into larger collective farms (Kolkhoz)
believed that larger farms can farm more efficiently
complete reversal from Lenin's New Economic Policy (NEP)
Stalin's Rule (Aim):
believe in motto: 'Peace, Land and Bread' for all ppl rather than private land ownership
aid overall main aim of rapid industrialization
promise to secure food supply for factory workers (contributing to industrialization)
export crops to other countries to raise funds for industrialization
make farming more efficient
Measures:
land owned by state
crops confiscated & distributed by state
quantity farmers needed to produce & working hours + wages decided by state
equipment (for more efficient farming) provided by state
farmers produce little/absent = punished
shock workers (ppl work in city) used to force peasants to join collective farms & remove kulaks
Results:
Kulaks killed own animals + burned own grain + hid & buried own crops to prevent from being taken away
bad harvest (1932-1933) led to great Famine = deaths of millions of peasants
grain harvest dropped drastically (1931-1934)
loss of animal pop (until aft WW11 - 1945)
state managed to collect grain needed to feed industrial towns & export to buy industrial equip
manpower found (peasants who left countryside)
Small farms were grouped into larger units, consisting of 50-100 families, run by the state
Stalin killed millions of kulaks and sent them to labour camps (gulags)
Short term impact:
Burnt down farms, man-made famine
Agricultural sector collapsed due to the loss of kulak farms; famine across southern USSR in 1932-33
Stalin made it worse by continuing the exportation of grain to increase income for building up industries
8 million died of starvation, including 5 million Ukrainians
after all food was taken from them to meet quotas
Agricultural production did not recover until 1936-37 when
peasants were allowed to own land again
Long term impact:
Increase in agricultural production
Delayed the process of collectivization in 1930
By 1932, 62% of peasant households had been collectivised and an estimate of 93% by 1937
Lenin's NEP: (aim)
improve Soviet Economy (from devastation after Russian Revolution & civil war)
Measures:
farmers allowed to possess their own land
can plant crops for personal use and sell for extra profit
Result:
new class of wealthy peasants (kulaks)
agricultural production
increase
some kulaks hid and stored away crops to sell to increase profits
some chose to eat all than sell
ppl in cities and towns food shortage
Stalin saw as form of capitalism & betrayal of communist ideals
Stalin implement collectivization
Capitalization: economic and political system in which a country's trade and industry are controlled by private owners for profit, rather than by the state
Rapid Industrialization: to become self sufficient & military strong
sought to rapidly industrialize Soviet Union
factories to produce equipment for mechanization of farming (e.g. tractors)
fewer farm workers needed
go into city to be factory workers
mechanised farms = more efficiency + more grain & crops produced
more food supply for cities & factories
heavy emphasis on heavy industries e.g coal, iron steel, electricity to achieve self-sufficiency (2nd and 3rd Five Year Plan)
hundreds of factories built
industrial force expanded
Building of roads, canals and railways was essential to link mines with factories and factories with centers of population
Goods can be transported quickly and cheaply
Transportation of food from countryside to towns would become more efficient
Poor Planning:
parts of economy faced underproduction bc factories faced shortage of materials
other factories over produced in attempts to exceed targets
resulted in wastage
to meet targets, many products were of low quality/substandard
Background of USSR (1928):
USSR was a backward agricultural country
Did not use machinery, farms were tiny and could only
sustain the farmer
Low production from heavy industry (i.e. coal and steel)
Fear of invasion: Britain, France and the USA supported the Whites during the civil war of 1918-21
3 Five-Year Plans:
1928-1932: Power, infrastructure, heavy industry ie. Coal, steel and iron
1933-1938: Machinery and manufactured goods and militarisation
1938-1941: Manufactured goods but allowed for some consumer items
2nd and 3rd experienced declining rate of growth as emphasis on taking stock of production & better planning & coordination
After 1937:
economic slowdown bc industries e.g. steel and oil stopped growing
Results from the Second and Third Five-Year Plans
Evaluation of 5 Year Plans:
perceived as success overall
helped to propel Soviet Union forward to become industrial base for powerful arms industry by 1941
little growth in consumer industries
known for poor coordination and planning
Product |1932 1937 1940
Coal (million in tonnes) | 64 128 150
Steel (million tonnes) | 6 18 18
Oil (million tonnes) | 21 26 26
Electricity (billion kWh) | 13 80 90