Lenin’s Economy 1917-1924

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and output shrank. TIF up reality. Lenin. S Political aim - town the avil war had to ensure army was Supplied, need factories to produce munitions + food for the Workers. GRAIN REQUISITIONING in May 1918 a food supplies diciator- Ship was set up to establish the forcible requisitoning of grain as a Standard policy. Saw it as an extension of 1918-21 Class warfare to destroy the war communism Lenin's Economy. middle classes. RATIONING A class-bosed system. The labour force was given priority along with the army smallest rations given to middle classes. NATIONALISATION OF INDUSTRY All industry was brought Under State Control and T administered by Vesenkha. "Bag Workers' Committees replaced by single managers. travelled selling their wares. "GoGrette ligniteris" bartering FOOD For stolen Goods. High". Of workers absent. wages in 1919 were 2% of their 1915 level, ³/4 of wages were Spent on food By end of 1920 rouble Fell to M. Of its worth in 1917. BANNING OF ALL PRIVATE TRADE All private trade and manufacture were banned, however, stare trading was Chaotic and a black marker developed. LABOUR DISCIPLINE Discipline was brought back into the workplace. fines for lareness + absenteeism. Internal passports were Introduced to stop people Fleeing to countryside. Piece work rates were brought back along with bonuses and ration books. The grain harvests 1920-21 produced 501.41913. Ys population was starving, 5,000,000 died. Many areas were run by MarioS OF BOIShevk OFFICIAL who lived well while Others starved. Production declined By 1921, total industrial output had fallen to around 20%. Of it's Pre-war levels and rations be cut. had to Populations in the cines fell as people Fled to the Country in the hopes of finding Some food. By the end of 1920, the population Of Petrograd Mad Fallen 57.51. and Moscow by 44.5%. Of its 1917, level. The black market thrived during the civil war. "Bag men" travelled between villages + cities selling their wares. urban workers soid/ exchanged Stalen goods For Food "Sigarette lighterision" Wages in 1919 were 27. Of their 1913 level. By the end of 1920 the rouble had fallen to 1%. Of worth (1917). Economic + Political Impact of WC Lenin's economy, 100,000 red army troops to deal with the uprising. workers protested against A lack of union rep In Foctores. When the harvest Of 1921 produced Only 48% of the 1913 banest there was widespread Fomine In 1921, the sailors of Kronstadt threatened military action against the bolsheviks unless democracy restored + WC ended. Population dropped from 170 9 milloin to 130 million by 1921 The Cheka reported iss risings in feb 1981. The most serious being in the Tambou region Degginning on Aug 1920 and lashing until June 1921 Many of its Callors were reval- Utichory heroes who had Supported the Bolsheviks early on. There was even reports of Connibalism and trade in dead bodies. 10,000 man peasant army led by Alexander Antonov rase up against government forces when the grain requisitioning squao's demanded requisitions at a time when there was almost no gran reserves left. Their first move was to form a Provisional Revolutionary Committee before issuing a series of political, economic+ social demands - "The kronstadt manifesto. *Freedom of speech+ the press/assembly. • Anli bolshevik Newspaper-Izvesto Red Army Sent Smiles acrossice to crush the revolt. 15,000 reber takes priser "The fish that lit up reality.in Lenin. "One Step backward's, two steps forwards. ~ Lenin. AL AIMS >Increase foco production by Giving peasants the incentive to grow more. BAN ON PRIVATE TRADE The ban on private trade was removed, rationing was abolished and people had to buy food+ 9000s with their own income. The money economy was back! > Get the economy going again after the civil war. An element of private ownership would provide an incentive for small businesses. > To reduce opposition to the reds and quell the unrest such as the Tambou rising + the kronstadt Mutiny. GRAIN REQUISITONING ABOLISHED. replaced by "Fox in kind!" Peasants had to give a fixed proportion of their grain. the amount they had to hand Over was much less than the amounts taken by requisite loning. They could sell Gny surpluses on the open marker. The NEP Lenin's Economy > TO relax economic policies especially! the unpopular measures associated with war communism. 11 The New Economy Policy is only a temporary deviation, a tactical retreat." SMALL BUSINESSES REOPENED Small-scale businesses under Private ownership were allowed to reopen and make a profit. This included businesses like Small workshops and factories that made q000s Such as shoes, nails and clothes. STATE CONTROL OF MEAW INDUSTRY The State kept control of large-scale heavy industry like coal, sieel and Oil. Aswell as transport + the Organised into trusts that had to banking system. Industry was buy materials + pay their workers. from their own budgets. If they failed to manage their budgets efficiently, they Could not expect the state to bail them out. 11 We are making economic Concessions to avoid political concessions." The NEP got the economy moving again Gran production in 1921 Stood at 37.6million tons, in 1924 it was at 51.4 million tons. Private businesses reopened + Small manufacturing establishments By 1923 cereal production Increased by 231, compared with in 1920. By Lenin's death in 1924 the Soviet economy had began to make a marked recovery. and service industries such Economic+Pahhcal as Shops began to thrive in Ches. Impacts of the NEP- Lenin's Economy The object of Lenin's ban on Foctionalism was to prevent criticism From 1920-23 Factory output rose of gout /cential comt dexsisus by almost 200%.. Lenin declared that all other socialist parties were now Appearance of private traders known ouriawed in Sow Russia. as "NEPmen Over 25,000 in Moscow in 1923. Trade agreements with Germany (1922) and Britain (1924). Progress was not even; by 1923 so much food was coming into the Cities that the price started to drop Whilst the price of industrial goods rose as they were in short Supply. Troisky named this me SCISSORS CRISIS This made it very difficult for doubhing members to challenge the NEP Openly come out and as mey'd be challenging the party itself. -peaked in October 1923 with -Industrial prices 2907 OF 1913. •agricultural prices at 89%. -government starts toxing peasonts - High unemployment in urban areas. The NEP with it's appeaionce of private industry and private trade represented a retreat back to Capitalism. Left-wing bolsheviks were particularly hostile to this watering down of policy, Lenin believed the reas were in desperate economic circumstances and had to make compromises to secure the revolution. The economy would have to be restored before moving to socialism.