Economic Reforms

Collectivisation

Collectivisation was the new policy for agriculture. In the Bolsheviks' point of view, private farming was not efficient. So how did collectivisation work?

  • Seperate pieces of land were merged together to form collective farms
  • Peasants were placed to work on the collective state farms
  • They were told what to grow based on orders from the central committee
  • Each household also had one acre of private land where they could grow what they wanted
  • Workers did not have wage, but instead recieved a percentage of the farm's total profit by the end of the year
  • However, few farms profited and when some didn't profit, the people got no pay
  • Therefore, private land was very important to make profit, and it was estimated that 70% of meat in Russia came from these plots of private land


The benefits of this were that

  • Bolsheviks could control production
  • Kulaks, those in a wealthy peasant class created by Stolypin's reforms, stopped being created
  • Peasants could work together
  • This policy backed up communism beliefs
  • This allowed the use of big machinery which would not be used in smaller farms
  • The government could ensure that large amounts of grain were produced so that it could be exported to pay for technology imports and feed the population


The failures were that

  • Many rejected this dramatic change and did not want to give up their land
  • There was no choice for the people, this change was forced by the army
  • The kulaks were blamed for the poor production in the past
  • A bad harvest and the fact that kulaks destroyed crops and killed animals caused a great famine
  • People also did not like the fact that party officials controlled the farms.


The Five Year Plans

The 5 year plans were 5 year plans with goals set for industrial production within each time frame



  • Gosplan, the central state planning commission, set goals for production of heavy industry
  • These goals were passed on to regional administrators, to the who passed them the directors of the industrial enterprises (eg. factory owners)
  • This allowed the government to control the amount of certain resources to produce


Reasons for the introduction of the Five Year Plans

  • The NEP was a retreat from communism to survive the Civil War. This objective had been achieved. Stalin now wanted to more tightly control economy to develop the economy quickly
  • Wanted a focus on heavy industry to defend against foreign threats
  • Industrialisation was aimed to be a tool to create a Marxist worker's state, which the NEP did not do. Furthermore, the NEP was unpopular as it was not communist in principle
  • Wanted to rapidly develop industry, and confront those who wanted a gradual approach and did not favour Stalin's policy of "Socialism in One Country"
  • Stalin wanted rapid industrialisation to be an opportunity for Russia to become a developing superpower


Changes of the Five Year Plans

  • First Five Year Plan
    • The production of electricity tripled
    • The production of coal and iron doubled
    • Tractor works were being built
    • There was a lack of skilled workers
    • The production of consumer goods fell
  • Second Five Year Plan
    • Chemical industries grew
    • Railways were built
    • Russia was self-dependent in making machines by 1937
    • Oil production did not reach the goal
    • Consumer goods were ignored
    • Ice cream production was severely lacking
  • Third Five Year Plan
    • Heavy industry grew
    • Focus now on weaponry and defence
    • Steel and oil production fell
    • Consumer goods ignored


Success of the economic changes

Industry

  • Between 1928 and 1940...
    • Coal output increased from 35M to 150M tons
    • Steel output increased from 3M to 18M tons
    • Oil output increased from 12M to 26M tons
  • By 1940, Russia produced 20% of world manufacturing output


Agriculture

  • 0.03 million tonnes of grain were exported for sale in 1928
  • 1.69 million tonnes were exported by 1933


General Successes

  • 1.69 million tonnes were exported by 1933
  • The plans also built industry in safer areas deep inside, which meant that German invasion would not take over key production
  • It is also believed that the harsh conditions gave the people a stronger mentality which prepared the people for the losses in the war
  • Russia had great developments (eg. education programmes in the collective farms, more urbanisation, better quality of life for some)
  • New chemicals were used for farming and new machines for industry, which showed a development in technology


Overall Failures

  • 5 million died because of famine caused by collectivisation
  • 10 million were exiled and imprisoned for not complying
  • An estimated 40 million died because of poor living conditions due to the plans
  • Quality of products was lowered as quantity was prioritised
  • Productivity was low, and labour was very tough on the workers


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