Chapter 2 – Ideology and Instructions for Collective Farms
The purpose of this chapter is to describe the relations between Marx’s political
economy, the ‘laws’ set up by the Party theoreticians, and the statutes and rules of the
collective farm.
1. ‘Objective laws’ and the establishing of a model for society
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Laws established by the Party and government for economic institutions in
the Soviet Union derived from the political economy of Marx and Lenin.
From the point of view of the workers, statutes created by government
form a set of obligatory rules that have pre-determined meanings officially
explained in terms of ‘Marxist laws’.
2 main kinds of productive enterprise in agriculture:
1. the state farm – ‘higher’ form than the collective farm; is state property and is
therefore a stage closer to communism
2. the collective farm – owned collectively by its members who voluntarily
associate for the purpose of the common conducting of large-scale socialist
agricultural production
2. Theoretical basis for the internal economy of the collective farm
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Labour theory of value is the foundation of the argument. According to
Marx an article has value only because human labour in the abstract is
embodied in it.
The capitalist term ‘surplus value’ was replaced in the socialist context
with ‘surplus product’.
‘Compensation’ of the basic production funds takes place by means of a
specially created amortization fund.
Actual behavior of collective farms is influenced strongly by the
‘indicators’ of success, and the level at which wages and bonuses are paid
is closely tied to them.
Aggregate production is the main success indicator.
Labor productivity and aggregate value divided by the value of the basic
productive funds are also used.
These indicators give an enterprise prestige and reputation.
‘Surplus product’ does not necessarily constitute profit as in addition to
bonus wages being paid out, social security and social insurance were until
recently provided for and administered by the collective farm. Since 1965
social security has been administered by the government.
3. The collective farm and the state in Soviet theory
The State
 The policy of the state towards collective farms is carried out by the law,
plans, prices, taxes, and loans.
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The main economic ‘law’ to be understood and acted upon by the state in
the economy is that in socialism the form taken by the organization of
production should correspond with the level of development of the
productive forces.
State Delivery Plans
 The state appropriates the products of the collective farm by means of
obligatory delivery plans.
Prices
 System of obligatory deliveries to the state at fixed prices is expressly seen
as a way of counteracting the non-socialised nature of collective farm
property.
 Result of pricing system is that individual collective farms still operate at
widely different rates of profit or loss irrespective of their efficiency.
Taxes and loans
 Policy of leveling-out is more effectively realized by taxation than by
pricing.
 The state takes an annual tax from collective farms proportional to ‘clear
profit’ and the total amount paid in wages, including bonuses.
 Only successful farms, which can demonstrate that they can repay, receive
loans easily.
4. Principles of government and social control in collective farms
The structure of government
 A hierarchy of productive units: production sectors, sections, brigades, and
other smaller units. Hierarchy within the units.
 This is the result of practical implementation of Leninist political
ideology, where precedence is given to a ‘single leader’.
 There is an Auditing Commission to check on malpractices among
officials.
 There is also another body, the People’s Control, who perform the same
job. The People’s Control exists to combat dishonesty, inefficiency, and
laziness among all levels of workers, including officials.
Conclusion
 The collective farm is established by law as a hierarchical, highly formalized
framework in which rights, duties and procedures are in theory clearly defined.
 Political power is not differentiated from economic management or legal authority
within the farm.
 The system distinguishes policy-making from executive powers, termed ‘structure
of government’.
 Structure for social control is overseen by the People’s Control, itself directed by
the Party.
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