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Economy of Lenin + Stalin - Coggle Diagram
Economy of Lenin + Stalin
State Capitalism
Vesenkha set up to manage the economy - set economic targets
Bourgeoise needed for their expertise to run industry + trade for the short-term
War Communism
Civil War began June 1918, lasted until March 1921
Priority was winning the war
Grain was requisitioned by the Cheka
Rationing carried out
Those with the most important jobs for the war got the most food
Many peasants burned their crops to prevent Cheka from taking it
Widespread peasant resistance -> Tambov province + Krondstat
Money was banned -> people were given value in goods instead
New Economic Policy
Began in March 1921 -> economy was unstable -> Lenin viewed introducing capitalist elements as a necessary evil to build the path to socialism
Money reintroduced
Market elements permitted
Peasants allowed to sell their own grain but taxed
NEPmen did very well
Some intellectuals like Trotsky claimed the NEP betrayed Communist ideals
Legislation of small business
Shortcomings
Nepmen + Kulaks went against ideals of Oct. Revolution
NEP encouraged corruption + vice due to new-found wealth
Prostitution + crime flourished
Price of agricultural goods fell, whilst the price of industrial prices grew -> scissors crisis
The Five Year Plans
Incentives for the FYPs
Scissors crisis -> reduced grain production -> Stalin frustrated as less grain to export for machinery
The 1927 war scare
'Catching up with the West'
NEPmen exploiting profiteering
Autarky
- self sufficiency
Gosplan -> central economic planning agency -> set production targets
The First Five year plan Oct 1928 - Dec 1932
Focus on heavy industry - catching up with the west
Electricity - production
trebled
Coal + iron
doubled
Steel production increased by
1/3
Huge new industrial coplexes built
Weaknesses
Very little growth -> even decline -> consumer industries
Chemical targets not fulfilled
Lack of skilled workers created major problems