VIEWS: 0 PAGES: 28 POSTED ON: 6/24/2013
Russian Economy Money, money, money, must be funny, in a Capitalist’s world. I thank you! Aims 1. Explain industrial and agricultural changes. 2. Identify turning points. 3. Begin to assess social and economic impact. Alexander II • Fear of industrialisation, would create proletariat and revolts. • New work discipline – rules and regulations for employees in factories. • Did develop state involvement, particularly in railways, coal and iron production. • Managed, with Mikhail Reuturn as Finance Minister, to attract foreign investment (J.J. Hughes – steel in Ekaterinoslav). • New industries open up, including oil industry in Baku and Caucasus. Railways – Al II next to a train, ALRIGHT!!!! • Used foreign expertise. • Stimulated by British railways. • Reutern helped increase railway 7x from 3532km to 22,498km by 1878. • Boosted industry and cushioned from 1873-1882 depression. • Did cause some corruption, i.e. government bonds, tax exemptions and monopoly concessions. • By 1880 94% of railways in private hands. Al III • 1881 Bunge takes over as FM. • Abolished Salt Tax in 1881 and Poll Tax in 1886. • Created Peasant Land Bank 1883, started to allow railways to go into state hands. • Bunge replaced by Vyshnegradski, hardliner and balanced books, but responsible for 1891 famine. Great Spurt - Witte • Encouraged foreign investment. You looking at me? • Sacrificed agriculture, some Ain’t no one else anger. around, so you must • Raised taxes, interest rates and be looking at me… foreign loans. • Focussed on railways, iron and coal. • 1897 rouble placed on the gold standard. Results: Coal doubled and iron and steel increased 7x. 52,612 km railways by 1901. Industrial income increased from 42m Roubles 1893 to 161R 1897. WWI and Nic II • Witte dismissed 1903, • WWI killed economy. ignored agriculture and • Inflation rampant, loans railways costly and poorly called in, food and fuel built. prices rocketed. • Became PM in 1905, • Killed off Romanovs. Stolypin FM. • 1909-1913 GNP increased by 3.5%p.a. • BUT – population boomed, small scale producers still around and productivity not improved. • Starvation still a real possibility. Lenin • Russia faced WWI hangover and Civil War. • Introduced State Capitalism, reaction to situation – nationalised economy until it could “safely” be passed back. • Nov. 1918 – Land Decree, Nov.1918 Decree on Workers Control (power to run factories). • Dec. 1917 Supreme Economic Council, helped to nationalise over 30,000 entities. This was subservient to Council of Labour and Defence, chaired by Lenin. Civil War • Nullified all gains from State Capitalism. • Industrial output fell. • Inflation rocketed. • By Oct 1920 the rouble was worth 1/10th of value from 1917. • 90% of all wages were paid “in kind” due to worthless nature of money. War Communism and NEP War Communism NEP • State capitalism saw Bol. take • Denationalisation of small over economy. scale enterprise and private • 1917 Decree on Land. ownership allowed, small • 1917 Supreme Economic Council workshops flourished. (SEC) nationalised all enterprises, • State control of heavy industry 1918 Decree on Workers Control continued. = “extra powers”,. • Trade increased with less state • 1920 30,000+ enterprises, SEC restrictions, i.e. food sales. struggled to control. • Labour militarised, nationalisation • Rouble re-valued and meant workers lost control of introduced. production and distribution and • Grain requisitioning ended and grain was forcibly requisitioned. peasants able to sell surplus. • By 1921 Party and people wanted change. Impact of NEP Economic Impact Political Impact • Initial results were strong. • “Temporary deviation, a • Market goods improved. tactical retreat”. • Nepman were created, • Papered over by call for entrepreneurs who by 1920 were responsible for 60% of greater party unity, trade. instigated by 1921 • Scissors crisis kicked in, food Kronstadt uprising. increased and outstripped • Lenin’s death in 1924 demand, prices fell. exacerbated divisions. • Peasants reluctant to sell surpluses, but industrialists • Stalin remained ambivalent needed them to. between rightists and leftists, pulled NEP in 1929. Stalin and 5 Year Plans • Two aims: – Economic autarky for war footing. – Improved value of workers. • Based on strict control and centralised planning. • Plans were set on often flimsy evidence and targets were often unrealistic. • Gosplan set targets, passed on to regional commissariats then industrialists. Only guidelines on what was required, not instructions on how to do it! 5 Year Plans • First set in 1929, but did not run full course, often exaggerated. • Stalin even upgraded targets towards the end of each plan. • Statistics are impressive, but unreliable. • Khrushchev also centralised, but saw eventual slowdown in growth. Read pp.112-113 and assess statistics and success. Russian Agriculture Agriculture in Russia • Both Tsars and Commissars experienced similar problems. • Most of the population was working on the land. • Industry was always seen as more important to agriculture and peasants were always seen as second class citizens. • Land was always problematic and no leaders managed to deal with it adequately. Peasant anger was always fuelled by resentment that they could not own land outright. Emancipation (we know this, but…) Impact Unrest • Peasants freed, able to • Peasants given poorer marry whoever and own quality land and less than land. before Emancipation. • Nobles compensated, • Many couldn’t afford payments over 49 years at payments or earn enough 6% interest. from the land. • Nobles allocated land to • Mir still in charge of what peasants. was grown. • All redemption payments • Subsistence farming kept so dealt with by the mir. no motivation to farm more. Al III 1891 Famine • Blamed on peasant attitudes and out-dated techniques. • Land captains introduced to maintain control. • Consumer taxes raised to encourage more grain to be sold, grain also continued to be exported. • 500,000 died. • Appointed PM in 1906 following Stolypin’s Reforms peasant unrest that lasted 1905- 07. • Hoped to improve land distribution and create stronger peasant class as role models (wager on the strong). • Peasant land bank had unused land made available. • Consolidation of strip farms encouraged. Rich peasant class expanded, but remained angry over available land. 2m peasants left land and created labour shortages, exacerbated by WWI. Lenin War Communism NEP • Showed lack of care for • Wealthier peasants peasants. increased [kulaks]. • Grain requisitioning. • In 1925 they were defined as owning 3 cows, 1928 it • 3 types of peasant, poor, was 6. middling and the kulak. • Suffered from higher taxes, • Denounced by village poor disenfranchised and = Cheka class war. children barred from • Peasants still looked down secondary school. on by Bolsheviks. • Were able to criticise Bolsheviks = Bol. attacks. Collectivisation • Small farm units into bigger collectives. • Lenin wanted gradual approach, only 3% by 1929. • Shortages believed to be part of hoarders during NEP. • 1927-8 saw push for collectivisation – “socialism in the countryside”. • Matched by de-kulakisation. Process of Collectivisation • Meant to be voluntary. • Explained to peasants, komosols and poor peasants denounced kulaks ad created fear. • Kolkhozy (pure) or Sovkhozy (state) collectives. • 1930 58% claimed collectives, exaggerated. • Opposition saw Bransk-oblast reject Komosols, migrationin Kazakhstan saw 75% migrate. • Opposition led to “Dizzy with Success” paper and peasant allowed to leave collectives. Renewed Collectivisation • 1937 = 98% of peasants • Disrupted by 1932-34 re-collectivised. famine. • Now allowed to keep • Payments of kolkhozy small plots of land (more farmers improved. productive than • 1941 98% collectivised, collectives). still disliked. • MTS stations set up, • Hated 1930 end of the meant to distribute seed, mir, wanted to make collect grain and decide extra independence, levels of payment. realised famine not prevented by collectives. Khrushchev and Agriculture • G. Hosking “[Khrushchev] • Tried to provide more never fully got to grips with incentives by reducing the authoritarian and taxes, increasing electricity bureaucratic structure of provision to rural areas and agricultural administration”. raised prices on state • Khrushchev believed procurements. himself to be an expert. • Changes angered urban • Removed MTS stations and workers over price rises. merged smaller collective • 1962-63 saw bad weather farms, believed this would and harvests = riots, worst improve production. at Budyenni Locomotive Works, 23 protesters shot by KGB. Virgin Land Scheme VLS • Designed to increase • Failures: cereal production. – Land overused and crops • Meant to be achieved not rotated. through increase in – Soil fertility fell and soil erosion made many areas cultivated land. too arid for cultivation. • 1950 96m acres allocated – Largely cut corners due to for wheat production, speed of implementation. 1964 = 165m acres. – Productivity and • Sense adequate food was production fell. being produced. – Main reason Khrushchev fell?
Pages to are hidden for
"Russian Economy - historyatwoodlands"Please download to view full document