War Communism and
the N.E.P.
By: Fiona O'Donnell, Tulsa Scott,
Erica Strictland, BethAnn Willis
War Communism
War Communism was an economic system that existed in
Russia from 1918 to 1921. It was introduced by Lenin and the
Bolsheveiks with the goal of combating the economic
problems brought on by the Russian Civil War. The policy's
chief features were the expropriation of private businesses
and the nationalization of industry throughout Soviet Russia,
and the forced requisition of surplus grain and other food
products from the peasantry.
War Communism
1) Everything was owned by the State.
2) The State controlled the labour of every citizen.
Once the military army had served its purpose, it would
transform into a labour army.
3) Extreme centralisation was introduced.
4) The State attempted to become the soul distributor as well
as the sole producer.
5) War Communism attempted to abolish money as a means of
exchange.
Trueman, Chris. History Learning Site, "War Communism." Last modified
2000. Accessed November 28, 2011.
http://www.historylearningsite.co.uk/war_communism.htm.
Effects of War Communism
These measures negatively affected both agricultural and
industrial production. With no incentives to grow surplus
grain, the peasants’ production of it plummeted, resulting in
starvation of many city dwellers. In the cities, a bureaucracy
was hastily created to supervise the newly centralized, stateowned economy. This resulted in a drop in labour productivity
and industrial output. Uncontrolled inflation made paper
currency worthless. Therefore, the government had to resort
to the exchange and distribution of goods and services
without the use of money.
1
Encyclopædia Britannica Online, s. v. "War Communism," accessed November 28, 2011,
http://www.britannica.com/EBchecked/topic/635613/War-Communism.
Effects of War Communism
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. As a result, the
Bolsheviks had to temporarily abandon their attempts to
achieve a socialist economic system and adopt the New
Economic Policy.
War Communism
N.E.P.
Temporarily bringing back elements of capitalism, to boost the
economy and transfer to communism. This would boost the
economy by giving laborers more affordable taxes, and then the
free will to sell their own crops for profit to them, as well as
allowing foreign trade.
'“...economically and politically speaking the New
Economic Policy completely ensures to us the possibility of
building the foundation of a socialist economy.” -Lenin'1
1. Helene M. Glaza, “Lenin's New
Economic Policy: What It Was and How It Changed the Soviet Union,” Student
Pulse, November 19th, 2009: http://www.studentpulse.com/articles/59/lenins-new-economic-policy-what-it-wasand-how-it-changed-the-soviet-union
N.E.P.
The New Economic Plan was proposed as a replacement to the
failure that was War Communism. The NEP brought a sense of
economy and trade back into Russsia. Everyone was employed,
regardless to if theyr were needed or not. Industries were not
required to supply for the state. According to Lennin, "the
Communists had to learn how to trade".
Unforturnately, Russia was still weak. Between the diaster of
the first world war, and the failure of war communisum,
getting the economy back on its feet would take centuries.
Russia's only hope for a steady income was exporting goods
that were not found in other countries that only Russia
posessed.
1
1. (http://www.historylearningsite.co.uk/new_economic_policy1.htm)
N.E.P Troubles....
Russia was dependent on the export of
grain and coal to help revivie their economy.
The lack of effective transportation and effective currency
also hindered the N.E.P, requring railroads be rebuilt.
The trouble with the inflammed currency lead to yet another
crisis, known as the scissor crisis**. The scissor crisis basically
meant that industrial prices were 3x as high as agricultural
prices. The government reduced the inflammation by cutting
industry workers, therefore lowering prices, and essentially
'closing the scissors'.
**The Scissor Crisis
In layman's terms, the scissor crisis is the movement of the
agricultural and industrial prices of goods. The agricultural
disicipline of the economy had rebounded well from the
famine, while the industry was slow healing from the wounds
of war and neglect.
Work Cited
http://www.historylearningsite.co.uk/new_economic_policy1
.htm
http://www.britannica.com/EBchecked/topic/635613/WarCommunism
http://www.soviethistory.org/
http://www.core.org.cn/NR/rdonlyres/72739987-7991-498F99BD-E817FF10433D/0/b2_21895image1.jpg
http://www.sovietposters.com/posters/large_Le_060.jpg
http://www.studentpulse.com/articles/59/lenins-new-economic-policy-whatit-was-and-how-it-changed-the-soviet-union\
http://www.historylearningsite.co.uk/war_communism.htm