What was the state of the economy when Lenin came to power?
Russia was a long way behind the West and had been broken by World War One.
What were Lenin’s main objectives for the economy?
- Modernisation
- Stabilisation
- Destruction of capitalism and inequality
- Military victory
When was State Capitalism introduced?
March 1918
How did Lenin bill State Capitalism?
A midway stage between capitalism and socialism.
What were the two main features of State Capitalism?
- Nationalisation of large-scale industry
- The establishment of the Vesenkha
What was the Vesenkha?
A team of experts charged with managing the economy
What are three things that the Vesenkha did?
- Offered higher pay to productive workers
- Employed well-paid specialists to control factories
- It co-ordinated economic production
When was War Communism introduced?
At the beginning of the Civil War.
What measures did War Communism include?
- Nationalisation of all industry
- Grain requisitioning and rationing
- An 11-hour working day was introduced
- Work was made compulsory for able bodied men aged 16 to 50
- Money and private trade were abolished
Why was the requisitioning system unfair under War Communism?
Soldiers in the Red Army received the most whereas the old bourgeoisie were left to starve.
What was a positive outcome of War Communism?
The Communists won the war
What were two negative outcomes of War Communism?
- Harvest failed and famine ensued
- The urban workforce fell dramatically
What was the 1921 harvest?
Only 46% of that in 1913
How many died in the famine?
6 million
What was the urban work force during the war? Why did it change?
It fell from 2.6 million to 1.2 million as people headed for the countryside to scavenge for food
What does NEP stand for?
New Economic Policy
Why did Lenin introduce the NEP?
- He needed to retain his political power
- Grain production needed boosting to end the famine
- Wealth was required to industrialise, modernise and achieve socialism
How did the NEP compromise with capitalism?
- Farming was left to a free market with requisitioning replaced by a tax in kind
- Small businesses were denationalised and returned to their owners
- Money was reintroduced
What were three positive effects of the NEP?
- The famine ended as grain production rose
- Industry revived
- Smychka
How did the NEP revive grain production?
The free market encouraged the farmers to grow more.
How much did grain output go up by under the NEP?
It went from 37.61 million tons in 1921 to 76.8 million tons in 1926
How did Lenin revive industry?
The electrification campaign
What was Smychka?
An alliance of support for Lenin from workers and peasants.
What were four disadvantages of the NEP?
- The scissors crisis
- Small farms failed
- NEPmen
- Gambling, prostitution and drug dealing increased
