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USSR_1_-11.pptx

Soviet Economic Planning

Notable 19th century Tsars in Russia

Alexander I (1801 – 1825)

Stopped Napoleon’s invasion of Russia

Annexed parts of Poland and Finland to Russia

Nicholas I (1825 -1855)

Violently suppressed Polish and Hungarian revolutions

Alexander II (1855 – 81)

Emancipated serfs in Russia

Attempted to modernize Russia – Encourage Intellectual Elites

Built railroad network

Nicholas II (1894 – 1917) – last of Russian tsars

Most important goal was maintaining autocracy in tact for his son, Alexis

From Ivan the Great in 1465 to Nicholas II in 1917

Notion of freedom completely incompatible with autocracy

No form of opposition tolerated

In West

Rise and expansion of democracy made possible by existence of deeply rooted, enterprising, and dynamic bourgeois class

Class struggle between bourgeois (merchant manufacturers) and nobility establishment of Parliaments, democratic procedures, free enterprise

Bourgeois class brought about accumulation of capital and transformation of society

In Russia

No significant class of bourgeoisie – whose wealth derived from other sources than nobility (land)

Merchant and artisan class relatively small – economically unimportant

Why?

Why?

Industrialization was very late in Russia

No growth of urban-rural separation where urban class could develop its own autonomy from landlord nobility

Cities with high population centers were created by tsars for administrative & military concentrations, rather than for commercial purposes

Russian “middle class” largely state officials and professionals who owed existence to state function.

What factories that existed were owned by landlords who got their land from tsar. When feudalism abolished in 1860’s, glad to replace feudal relations with wage labor

Conclusion:

Russian industry did not repeat development of West but inserted itself into feudal model, where lords became factory owners and peasants wage earners

NO epoch of craft-guilds and independent merchants existed

Without this class, no challenge to hegemony of feudal (noble) privilege

When Industrialization did begin in Russia

Enormous factories were set up: comparison 1914

US: only 15% of firms hired > 1000 workers

Russia: 45% of firms hired > 1000 workers

This meant that capitalist class did not form gradually, from small shop owners to manufacturers, where accumulation of capital gradual process and INSTEAD – industrialization was abrupt in Russia

extreme concentration of industry meant no hierarchy of transitional layers in system: only landlord/industrialists tied to tsar OR 1st generation proletarians with strong ties to staring peasant parents and brothers

No layer in Russian society which corresponds to intellectuals like Adam Smith and Thomas Hobbes or to a merchant class earning money independently of feudal privilege who would press for democracy

Peasantry – when “emancipated” in 1861

Had to pay for land if wanted to stay farming (impossible for most)

Millions carted off to work in landlords’ factories or in coal or gold mines where conditions were barbarian

Millions drafted into army

Working class: Concentration of labor in big factors chief factor in heightening class consciousness Relative youthfulness of workers – nothing to lose Deplorable working conditions labor strikes 1880’s – 1900’s

World War I

Austro-Hungarian Empire ruled by Emperor Franz Joseph

His nephew, Archduke Franz Ferdinand (next in line) was shot in 1914 by Gavrilo Princip, Serb, who protested Austro-Hungarian influence in Balkans

Emperor Franz Joseph declared war on Serbia. Germany joins them

Russians defend Serbia. France and England join Russians

Russia totally unprepared to fight the war:

Drafted millions of peasants

Started marching them into Germany with no arms or equipment

Russian soldiers slaughtered

March 1917 – troops in St. Petersburg mutinied

Nicholas II abdicates

Russian Duma took over – decided to increase troop size by forced conscription of more peasants

Vladimir Ilyich Lenin promised to withdraw Russia from WWI and initiate land reform and better working conditions in factories

Dec. 3, 1917 – Brest-Litovsk Treaty signed with Germany

War Communism – 1917 – 1921

Cheka marched into peasant villages and at gunpoint demanded grain, livestock

Nationalized industry – many capitalist/landlords had left Russia, so Bolsheviks took over factors and forced workers t remain

Trotsky as head of Red Army drafted civilians and forced them on work brigades to build railroad lines, dig coal, etc.

Consumer goods and food rationed

Results of War Communism

Bolsheviks able to destroy coalition of White Russian resistance to the revolution and establish its political dominance

Industrial and agricultural production drastically reduced

By early 1921 public discontent with the state of the economy had spread from the countryside to the cities, resulting in numerous strikes and protests that culminated in March of that year in the Kronshtadt Rebellion.

In response, the Bolsheviks had to adopt the New Econonic Policy and thus temporarily abandon their attempts to achieve a socialist state by government decree.

New Economic Policy (NEP) 1921 - 1928

“War Communism was thrust upon us by war and ruin. It was not, nor could it be, a policy that corresponded to the economic tasks of the proletariat. It was a temporary measure”

Policies of NEP

Tax replaced forced requisition of agricultural goods – paid in rubles

Farmers’ markets and small enterprises encouraged

State enterprises controlled the “commanding heights”

Foreign trade syndicates established to open export markets

Problems:

NEP-men

”Scissors Crisis” -

The problem was that industry was slower to recover from the Civil War than the peasant farms, whose bumper harvests of 1922 and 1923 deflated food prices. As the price of manufactures rose, the peasantry reduced its grain sales to the state depots.

Scissors Crisis - widening gap between industrial and agricultural prices which led to urban fears of a 'grain strike’. In Oct 1921, industrial prices were 290 % of their 1913 levels, whereas agricultural prices in the state sector were at only 89 %.

Transition to Command Economy and Central Planning

Vladimir Ilyich Lenin dies 1924

Joseph Stalin outmaneuvers his rivals for control of the Communist Party

Once in power, he collectivized farming and had potential enemies executed or sent to forced labor camps

Forced industrialization of the Soviet Union through the creation of administrative command economy : 1928 – 1940

Collectivization and famine in Ukraine

1922 – USSR annexes Ukraine

1929 - Massive waves of deadly deportations of Ukraine's most successful farmers (kurkuls, or kulaks, in Russian) as well as the deportations and executions of Ukraine's religious, intellectual and cultural leaders, culminating in the devastating forced famine

1932 and 1933, a catastrophic famine swept across the Soviet Union. It began in the chaos of collectivization, when millions of peasants were forced off their land and made to join state farms.

Exacerbated when the Soviet Politburo demanded not just grain, but all available food.

5. Collectivization and appropriation of agricultural goods to feed urban working class and be traded internationally for foreign exchange

Collectivization - 3 minute Youtube

At the height of the crisis, organized teams of policemen and local Party activists, motivated by hunger, fear, and a decade of hateful propaganda, entered peasant households and took everything edible: potatoes, beets, squash, beans, peas, and farm animals. At the same time, a cordon was drawn around the Ukrainian republic to prevent escape.

The result was a catastrophe: At least 5 million people perished of hunger all across the Soviet Union. Among them were nearly 4 million Ukrainians who died not because of neglect or crop failure, but because they had been deliberately deprived of food

Primitive accumulation in USSR

Primitive accumulation – original meaning

Marx's account of the historical processes of change in rural life of the fifteenth through eighteenth century in Britain and Ireland, through which peasants were forced off their land and the commons were enclosed. Marx believes that this separation of the peasantry from the land was a necessary condition for the development of capitalism, in that it created the conditions in which there was a pliable and abundant proletariat. This "free" proletariat was needed for the creation of the factory system and the development of manufacturing cities.

The process of primitive accumulation created the changes in social relations, property relations, and the accumulation of wealth that permitted the creation of the capital-labor relation and factory-based capitalism.

Stalin’s Implementation (Rationalization) of “socialist primitive accumulation”

State monopoly supplier of capital goods

Establishment of huge state-run “commanding heights” industries

Control of credit, prices, taxation, foreign trade for purpose of directing all resources to industrialization

Administered central planning

Collectivization of agriculture and establishment of Soviet farming in place of independent peasant farms