The
Rise of Soviet Russia
Lenin’s
Economic policies,
1921- 1924
| GRADE LEVEL | THEME | TOPIC | DURATION |
| 12 | WORLD HISTORY | POLITICAL AND ECONOMIC DEVELOPMENTS IN RUSSIA, 1917 - 1939 | 7 x LESSONS |
The
Rise of Soviet Russia |
War Communism
Civil war broke out immediately after Lenin took over government. The White Army and the Red Guards, which was renamed the Red Army under the commandership or leadership of Leon Trotsky, clashed. The White Army was opposed to the rule of the Tsar and to communism, and wanted a democracy, but the Red Army was victorious. Members were carefully placed to control large industries and cities such as Moscow and Petrograd. The White Army suffered from a lack of discipline and corruption in the ranks. By 1921 the communist party had secured power and crushed resistance. However, the Russian economy was in tatters. Lenin survived the civil war because his party placed political representatives of the communist party in each army unit to avoid mutiny. This led to the introduction of ‘ War Communism’, as a measure to achieve economic stability.
Picture A: Retreating before the Red Army. The civil war exacerbated shortages of food, fuel, raw materials for manufacturing and labour. Workers also left the cities to grow their food on farms in the countryside, shrinking the labour force. Faced with an economic crisis the communist government in the Union of Soviet Socialist Republic (USSR) introduced War Communism in an effort to take charge of the economy, and to establish a structured socialist economy. The Red Army and industrial workers were fed with food confiscated from capitalists. Major industries, businesses employing more than 10 people, and all banks and communication companies were nationalised to provide employment for the Red Army. All private trade was banned, strikes were declared illegal and workers were strictly controlled. War communism did not help to solve the Russian economic crisis. Instead trade came to a halt. Industrial production fell by 40% and food shortages led to the migration of people away from the cities. The government was blamed for the worsening situation and opposition to its economic policies grew. The New Economic Policy (NEP)
Picture B: A poster showing the ambitions of Lenin’s New Economic
Policy . War communism was especially unpopular among peasant farmers and overwhelming opposition to Lenin’s economic policy forced him to change it. Lenin wanted to regain the trust of the peasants and established the New Economic Policy. Farmers were now allowed to sell their additional products on the open market, but land still remained the property of the state. All the products were taxed and the state determined all prices. Agricultural production increased and to mirror this growth in industry, workplace incentives and bonuses were introduced. Heavy industries were still under the government’s control, but foreign trade and investment were encouraged. A state bank, which was established in 1921, lent money to emerging developers and merchants and, in the same year Lenin established the state planning commission, the Gosplan, in order to direct the financial activities of the country. The main task of the Gosplan was to devise a single economic plan for the USSR, and to develop the methods and order for implementing it. It also had to coordinate the production programmes and planning proposals for various economic institutions, devise state measures for developing the knowledge, and organise the necessary research for implementing a state economy. Another task was to deploy and train the necessary personnel to achieve its goals. Russia prospered economically until it reached the same economic level as Britain, France, Japan and the United Sates of America (USA). Gosplan’s initiatives also ensured that Russia could successfully compete in the Second World War and emerge as one of the strongest superpowers in the whole world, along with the USA. The introduction of this economic policy saved the Russian economy. Peasants were encouraged to increase food production for the reward of becoming Kulaks. The New Economic Policy had many faults, despite its success in bringing economic relief in Russia. It aimed to address the social imbalances within the economic framework of Russia, but failed to do so. A new class of business people called Nepmen owed their success to the NEP. They emerged due to the flaws within NEP, which was meant to be an economic policy derived from socialistic ideology. The Nepmen controlled the forms of production and owned farms, factories and industries. But they proved that, even if strict economic policies and true socialism was implemented as advocated by Karl Marx, Russia had a potential of being wealthy. These capitalists enjoyed their moments of glory in Russia between 1921 and 1929.Joseph Stalin put to end to their dominance in Russia by taxing them heavily and expelling those who resisted paying taxes to Siberia.
Picture
C: Karl Marx, the father of socialism. Lenin’s death in 1924 brought the NEP to an end. Stalin criticised it for not being a true socialist supreme, for creating many capitalist groups in Russia and reviving class divisions. The NEP remained official policy until 1928. Learning Outcomes: Demonstrate the ability to work independently, formulating enquiry questions and gathering, analysing, interpreting and evaluating relevant evidence to answer questions. Synthesise information about the past to develop, sustain and defend an independent line of historical argument, and communicate and present information reliably and accurately in writing and verbally.
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Activity
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