economy and society under lenin
state capitalism
Lenin promised to build a socialist economy, but knew that the government would have to function with the normal system with changes to workers rights until conditions were manageable
Many old bolsheviks disapproved of state capitalism, as they wanted radical changes such as nationalisation of businesses and the abolition of money
In order to establish control over the economy, the bolsheviks introduced the nationalisation of banks
conditions during the war
Industrial production fell rapidly due to disrupted communications,
causing inflation
The blockade of trade reduced supplies of grain to the cities, creating rationing of bread
Many workers left the city to join the army where rations were higher
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Between 1917 and 1919 the proletariat population fell from 3.6 million to 1.4 million
5 million died from starvation and diseases such as typhus which caused 3 million deaths in 1920
war communism
Existed to ensure the army was provided with weapons and food
The bolsheviks treated the army as a single “enterprise” to make the best use of russia’s productivity
The main emphasis was on heavy industry
Peasants grain was requisition and given to the city to feed workers
Officially, peasants were paid, but the cheka seized more than necessary leaving the peasants with almost nothing
Private trade was banned and there was military style control of railways
Strict discipline for workers: fines for lateness and absenteeism, bonuses for hard work
Production declined, by 1920 production levels had fallen to 20% of pre war levels
Disease was rife and workers striked
By the end of 1920, the population of petrograd fell by 57.5% and moscow fell by 44.5% from the level of 1917
Millions died from widespread famine
new economic policy
Gosplan was the state general planning commission which coordinated economic development
The NEP was a series of measures which relaxed some of the harsh controls under war communism
Requisitioning of grain was ended and the ban on private trade was ended
Agricultural production recovered, but in 1923 an imbalance appeared where large quantities of food were entering cities causing prices to drop
Private traders responsible for 75% of trade but were hated by bolsheviks as a representation of capitalism
Many bolshevik members regarded the NEP as a step back to capitalism
Lenin introduced a ban on factions, disallowing people from discussing decisions made