PENGUIN BOOKS

AN ECONOMIC HISTORY OF THE USSR

Alec Nove was Professor of Economics at the Universit of !las"ow
from #$%& to #$'( where he is now Emerit)s Professor an* since #$'(
has +een Honorar Research Fellow, His -)+lications incl)*e The
Soviet Economy .#$%#/0 The Soviet Middle East .#$%10 with 2, A,
Newth/0 Was Stalin Really Necessary? .#$%1/0 Socialist Economics
.e*ite* with 3, M, N)ti0 Pen")in #$4(/0 Stalinism and After .#$41/0
Planning: What, Ho and Why .#$41/0 The Soviet Economic System
.#$44/0 East!West Trade: Pro"lems, Pros#ects, $ss%es .#$4'/0 Political
Economy and Soviet Socialism .#$4$/0 The Economics of &easi"le
Socialism .#$'&/0 Socialism, Economics and 'evelo#ment .#$'1/0 (lasnost
in Action .#$$5/ an* St%dies in Economics and R%ssia .#$$#/, Professor
Nove is marrie*0 with three sons,
Alec Nove
An Economic History of the USSR
1917-1991
PENGUIN BOOKS
&? s tm
3 1172 03270 5972
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witho)t a similar con*ition incl)*in" this con*ition +ein" im-ose* on the
s)+seE)ent -)rchaser
Contents
Prefaces vii
i The R)ssian Em-ire in #$#& #
2 :ar0 Revol)tion an* Revol)tionaries (#
3 :ar Comm)nism &$
<NEP 4'
4 The !reat 3e+ate ##1
5 The En* of NEP #&&
6 The Soviet !reat 9ea- Forwar*? I, CollectiviFation #1$
7 The Soviet !reat 9ea- Forwar*? II, In*)str0 9a+o)r an*
Finance #'$
8 From 9ea- Forwar* to :ar ((%
9 The !reat Patriotic :ar (4&
10 Recover an* Reaction ($<
11The 7hr)shchev Era &&#
12 6reFhnev? From Sta+ilit to Immo+ilit &4'
13 !or+achev? From Reform to 3isaster &$<
14 Concl)sion <(5
A--en*i@? A Note on !rowth Rates <&5
)i"liogra#hy <&$
References <<<
(lossary <%# $nde* of
S%"+ects <%& $nde* of
Names <4#
Preface to the First Edition
For sevent ears now the Soviet re"ime has +een esta+lishe* in
R)ssia, :hile its lea*ers have +een *ealin" with -er-le@in"
-ro+lems of man 8in*s0 o+servers in the :est have +een writin"
+oo8s an* articles, If these were lai* en* to en*0 the wo)l*
certainl stretch rather far, :h0 then0 sho)l* the a)thor0 who is
not even a historian anwa0 have the temerit to a** to their
n)m+erG DA moratori)m on +oo8s a+o)t R)ssiaHD some critics
mi"ht sa, Another +oo8 on this s)+Cect reE)ires some C)stifica>
tion,
The C)stification is this? there is no convenient an* com-act
economic histor of twentieth>cent)r R)ssia, There has0 of
co)rse0 +een some scholarl wor8 in this fiel*, E, H, CarrDs
mon)mental histor has m)ch to sa a+o)t the econom, How>
ever0 the Pelican e*ition of his vol)me on the economic events of
C)st the -erio* #$#4>(& is over fo)r h)n*re* -a"es lon", This is
not a criticism? there are no waste* -a"es, There is sco-e for a
shorter s)rve of the whole e-och, For the earl ears of Soviet
-ower the wor8 of 3o++ is most val)a+le0 an* the late Ale@an*er
6a8ov covere* the -erio* )- to the war, Partic)lars of these an*
other +oo8s will +e fo)n* in the 6i+lio"ra-h, The a)thor has
+enefite* from rea*in" an* re>rea*in" them an* also the E)ite
n)mero)s Soviet wor8s0 contem-orar an* recent0 to which
references will +e fo)n* in the notes,
Anhow0 rea*ers ma fin* that there are some a*vanta"es in
relative +revitI -erha-s it will +e -ossi+le to s8etch in some
"eneral -atterns which of necessit esca-e notice in a more
microsco-ic s)rve,
One iss)e is +o)n* to loom lar"e? the relative im-ortance of
-olitics, This is0 of co)rse0 an economic histor, Yet 9enin once
wrote? DPolitics cannot +)t have *ominance over economics, To
ar")e otherwise is to for"et the A6C of Mar@ism,D This ma
s)r-rise those who +elieve that the *ominance of economics is the
A6C of Mar@ism0 +)t it *oes ill)strate the -ro-osition that Soviet
-olitics *ominate*0 an* altere*0 economic relations, O)t of the
horseDs mo)th0 too,
It is )n*enia+le that -olitics have0 in an im-ortant sense0 +een
*ominant, None the less0 this m)st not +e ta8en too literall or
)n*erstoo* too s)-erficiall? it *oes not mean that -oliticians
co)l* *o what the li8e* with the economI it *oes not mean that
economic iss)es were )nreal, Politicians res-on*e* to economic
-ro+lems0 str)""le* with varin" s)ccess with economic -er-le@>
ities, 6ein" for most of the -erio* in comman* of the maCor -art
of economic life0 the -oliticians were0 for most of their wa8in"
ho)rs0 the +oar* of *irectors of the "reat firm USSR 9t*, In
other wor*s0 their actions as -oliticians were inter-enetrate* +
their f)nction as s)-er>mana"ers, Th)s0 9enin notwithstan*in"0
it is har*l -ossi+le to *raw a clear line +etween -olitics an*
economics,
In this +oo8 we will concentrate on economic -olicies0 *ecisions0
events0 or"aniFations0 an* con*itions witho)t for a moment wish>
in" to s)""est that other em-hases are not -erfectl le"itimate
too, In a "eneral histor the +alance wo)l* nat)rall +e *ifferent0
even if this a)thor were writin" it, Perha-s this is most o+vio)s
in the relativel +rief cha-ter on the war of #$<#>1, This "reat
*rama *eserves the closest attention from man -oints of view0
+)t the -)rel militar si*e is so overwhelmin"l im-ortant that
it seeme* ri"ht0 in an economic histor0 to "ive these ears a
somewhat c)rsor treatment,
All *ates are "iven in the #resent calen*ar0 i,e, the revol)tion
ha--ene* on 4 Novem+er0 not (1 Octo+er #$#4, J)otations from
R)ssian wor8s are translate* + the a)thor0 e@ce-t where the
E)otation is from an e*ition in En"lish,
The man)scri-t was rea* an* criticall reviewe* + 3r Ser"ei
Utechin an* Mr 2aco+ Miller0 an* I owe a "reat *eal to their
"enerosit in -ic8in" holes in ins)fficientl closel 8nit ar")ments
an* *rawin" attention to n)mero)s errors an* omissions, Profes>
Preface ix
sor R, :, 3avies was 8in* eno)"h to show me a *raft of wor8 in
-ro"ress which I *rew )-on in writin" Cha-ter <0 an* 3r Moshe
9ewin "enero)sl allowe* me to +orrow from his storeho)se of
information on the Soviet -easantr, Some cha-ters are +ase* on
seminar -a-ers *elivere* in vario)s 6ritish an* American )niversi>
ties0 an* have +enefite* from critical comments from the -artici>
-ants, Ro"er Clar8e was most hel-f)l in loo8in" )- facts an*
chec8in" ta+les, Nat)rall I ta8e f)ll res-onsi+ilit for all mista8es
of fact an* inter-retation,
Finall0 "ratef)l ac8nowle*"ement m)st +e ma*e to Mrs M,
Chane an* Miss E, H)nter for not com-lainin" .ver often/ at
the s)ccession of semi>le"i+le *rafts which *escen*e* )-on them0
an* t)rnin" these into a man)scri-t which co)l* +e sent to the
-rinters,
NOTE? in #$%# the internal val)e of the ro)+le was m)lti-lie* +
ten0 e,", #55 ol* ro)+les +ecame #5 new ro)+les, All val)e fi")res
-rior to that *ate .)nless otherwise mentione*/ are in the ol*
ro)+les0 in which the were ori"inall -)+lishe*, This seems0 on
+alance0 -refera+le to movin" all the -re>#$%# fi")res for incomes0
e@-en*it)res an* o)t-)t val)e )- a *ecimal -oint0 +)t the
rea*ers m)st alwas +ear in min* that the ro)+les have altere*,
Th)s in #$<% the avera"e wa"e was <41 .ol*/ ro)+les -er monthI
in #$'4 it a--roache* (55 .new ro)+les/0 which wo)l* +e (555
ol* ones, Nee*less to sa0 s)+stantial chan"es in relative -rices
m)st also +e allowe* for, .The wor* Dmilliar*D has +een )se*
thro)"ho)t as the eE)ivalent of the American D+illionD,/
Preface to the 'Final' Edition
This e*ition is +ein" -re-are* in the aftermath of the faile* co)-
of A)")st #$$#0 which s-ee*e* )- the -rocess of *isinte"ration
of the Soviet Union, As these lines are written0 9enin"ra* is
t)rnin" into St Peters+)r"0 man re-)+lics are *eclarin" their
in*e-en*ence0 there is now no Union0 an* the wor*s DSovietD an*
DSocialistD are +ein" eliminate* too, So the a)thor is in the
)n)s)al -osition of +ein" a+le to write a histor with a concl)*in"
x Preface
cha-ter that is in ever sense a concl)*in" one, Some wo)l* sa
it sho)l* +e calle* Dthe *ecline an* fall of the R)ssian em-ireD, Of
co)rse R)ssia will still e@ist0 an* ma once a"ain *ominate its
smaller nei"h+o)rs, 6)t it will not +e Soviet,
Fort)natel0 it is not the tas8 of an historian to forecast the
f)t)re, The stor will en* in #$$#, There is a new final cha-ter
on !or+achevDs attem-t to reform the ol* sstem an* on the
fail)re of that attem-t0 an* also on the -olitical econom of *is>
inte"ration,
The !or+achev ears also saw the remar8a+le *evelo-ment of
glasnost,, an* this incl)*e* the o-enin" to R)ssian an* forei"n
scholars of archives0 access to information -revio)sl conceale*, I
have therefore incor-orate* newl availa+le information in the
relevant cha-ters, For e@am-le0 we now 8now a "reat *eal more
a+o)t the h)man losses *)e to collectiviFation0 terror an* war,
I m)st than8 EliFa+eth H)nter for vital hel- in assem+lin" the
material for this new e*ition,
Novem+er #$$#
1 The Russian Empire in 11!
Industrial Growth
In the last ears +efore it was en")lfe* + war an* revol)tion0 the
R)ssian Em-ire ha* reache* a level of *evelo-ment which0
tho)"h leavin" it well +ehin* the maCor in*)strialiFe* :estern
-owers0 was none the less a--recia+le, It wo)l* +e E)ite mislea*>
in" to ass)me that the comm)nists too8 over a wholl )n>
*evelo-e* an* illiterate co)ntr with a sta"nant econom, So o)r
first tas8 m)st +e to ta8e a +rief loo8 at the -ro"ress of the em-ire0
an* at least + im-lication to consi*er whether she was well on
the roa* to a mo*ern econom when the -rocess was interr)-te*
in 1914.
R)ssia in #'1< face* the :estern -owers with an o+solete
social or"aniFation an* o+solete wea-ons, Societ was still *omin>
ate* + an infle@i+le caste sstem0 an* most of the -easants
were serfs owne* + the lan*e* -ro-rietors0 the State or the
Crown, In*)str ha* lan")ishe* since #'55, At this *ate R)ssian
o)t-)t of metal ha* +een eE)al to 6ritainDsI + #'1< she ha*
fallen ver far +ehin*, The onl railwa of im-ortance that ha*
+een com-lete* ran from St Peters+)r" to Moscow0 with a line to
:arsaw )n*er constr)ction, The R)ssian arm in the Crimea
ha* to +e s)--lie* + horse an* cart on *irt trac8sI this arm
consiste* of serfs servin" virt)all for life0 an* was -oorl arme*
an* eE)i--e*, The fleet ha* no steam+oats an* co)l* onl +e
s)n8 to +loc8 the entrance to Sevasto-ol, The militar fail)re in
the Crimea was a "reat shoc8 to Tsar an* societ ali8e, The
em-ire as a militar -ower ha* faile* to 8ee- -ace with the
chan"in" worl*I it ha* to +e mo*erniFe*, No *o)+t all this
hel-e* to -reci-itate the a+olition of serf*om, At first the
a The Russian Empire in 11!
"overnment remaine* stron"l infl)ence* + conservative an*
tra*itional views0 as ma +e seen from the limitations on the
mo+ilit an* enter-rise of -easants which forme* -art of the
emanci-ation -rovisions of #'%#, It was onl "ra*)all that the
conscio)s -)rs)it of in*)strialiFation +ecame a maCor motivation
of -olic, However0 the nee* for railwa +)il*in" was clearl
)n*erstoo* after the terri+le lessons of the Crimea0 an* the
+)il*in" of them vitall infl)ence* the *evelo-ment of the R)s>
sian econom in the secon* half of the nineteenth cent)r, No
one *o)+ts that in the fift>three ears which se-arate* the
a+olition of serf*om from the o)t+rea8 of the First :orl* :ar
there ha* +een ra-i* economic "rowth an* maCor social chan"e0
an* it is certainl of interest to com-are R)ssiaDs "rowth at this
-erio* with that of other co)ntries an* with the s)+seE)ent
achievements of the comm)nists, This is an e@tremel *iffic)lt
tas80 es-eciall as the statistics are often conf)sin" an* *efective,
In -re>revol)tionar times sstematic fi")res ten* to +e availa+le
onl for lar"e> an* me*i)m>scale in*)str0 whereas han*icrafts
an* small wor8sho-s were still e@tremel im-ortant, It is a tas8
+eon* the sco-e of the -resent st)* to attem-t an recalc)lation
of statistics an* "rowth rates )n*er the em-ire, So far as in*)str
is concerne*0 !ol*smithDs a*mira+l thoro)"h reconstr)ctions
.which also cite an* *evelo- in*ices calc)late* + the eminent
R)ssian economist 7on*ratiev/ "ive a n)m+er of *ifferent in*e@
series0 *e-en*in" on the wei"hts )se*, For sim-licit I will cite
here his val)e>a**e* Dim-)te*D wei"hts with #$55 -rices,
#
For the -erio* #'''>#$#& this in*e@ "ives one a "rowth rate of
Industril output !"nu#cturin$ nd "inin$%
!19&& ' 1&&%
i860 3-9 1896 72.9 '95 98.2
1870 17.1 1897 77.8 1906 111.7
1880 28.2 1898 855 1907 116.9
1890 50-7 1899 95-3 1908 "9-5
1891 534 1900 100.0 1909 122.5
1892 55-7 1901 103.1 1910 141.4
1893 633 1902 103.8 1911 149-7
1894 633 1903 106.5 1912 153-2
189s 70.4 1904 109.5 1913 163.6
"ndustrial #ro$th !
C)st a+o)t s -er cent -er ann)m, This was fairl hi"h > hi"her on
a #er ca#ita +asis than in either the Unite* States or !erman,
However0 the m)ch slower rate of increase in a"ric)lt)re0 an* the
hi"h share of a"ric)lt)re in R)ssiaDs em-loment an* national
income0 ma*e the overall -erformance a--ear m)ch more mo*est,
Ro)"h national income estimates0 ma*e + !ol*smith0 show
R)ssian "rowth rates well +elow those of the Unite* States an*
2a-an0 a little +elow that of !erman0 tho)"h a+ove 6ritain an*
France, :ith R)ssiaDs ver ra-i* increase in -o-)lation0 the #er
ca#ita fi")res were less favo)ra+le still, !ol*smith consi*ers that
R)ssiaDs real income -er hea* was relatively hi"her in i'%50 in
com-arison with the Unite* States an* 2a-an0 than in #$#&I in
other wor*s their "rowth was more ra-i* than R)ssiaDs, !rowth0
tho)"h ver ra-i* in certain ears0 was e@cee*in"l )neven, For
e@am-le0 in the *eca*e #'$#>#$55 in*)strial -ro*)ction more
than *o)+le*0 an*0 in -artic)lar0 there was a ver mar8e* a*vance
in heav in*)str, This was the conseE)ence of the -rotective
tariffs intro*)ce* in #'$#0 an* of the *eli+erate -olic followe* in
s)+seE)ent ears + Co)nt :itte0 who +ecame Minister of
Finance, The o)t-)t of -i" iron in R)ssia tre+le* *)rin" the
*eca*e0 while -ro*)ction in !erman increase* in these same
ears + onl #,%, O)t-)t of oil *)rin" this *eca*e 8e-t -ace with
that of the Unite* States0 an* in fact in #$55 R)ssiaDs oil
-ro*)ction was the hi"hest in the worl*0 +ein" sli"htl ahea* of
AmericaDs, The same *eca*e saw a "reat railwa +oom0 with the
total trac8 milea"e increasin" + 4&,1 -er cent, However0 an
economic crisis le* to a slow*own of "rowth in the ears #$55>
#$51 an* a"ain in the -erio* #$54>$, This -artic)larl affecte*
man)fact)re of iron an* steel0 an* it was not )ntil #$#5 that the
o)t-)t of -i" iron s)r-asse* the #$55 level, From then )ntil the
o)t+rea8 of war there was another shar- )-swin" in in*)strial
-ro*)ction, A Soviet te@t+oo80 which is not li8el to overstate the
achievements of Tsarism0 has -)t forwar* the followin" estimates?
*)rin" the -erio* #'%5>#$#5 the worl*Ds in*)strial -ro*)ction
increase* + si@0 !reat 6ritainDs + (,10 !ermanDs + si@ an*
R)ssiaDs + #5,1,
(
The ar")ment was a*vance* + Soviet historians that the
economic "rowth of the em-ire was none the less m)ch too slow
Russian Empire in 11!
nd tht R)ssia remaine* ver far +ehin* the more a*vance*
co)ntries, In -ercenta"e terms R)ssiaDs "rowth com-are* favo)ra+l
with her rivals0 +)t it was still ina*eE)ate in relation to her rich
nat)ral reso)rces an* to the "reat "a- which se-arate* her from
:estern E)ro-e an* the Unite* States, The followin" fi")res "iven
+ a -resent>*a Soviet so)rce0 an* relatin" to the -ost>war
+o)n*aries of the USSR0 com-are R)ssiaDs -ro*)ction fi")res with
those of the USA an* the Unite* 7in"*om?
191( )ussi US* UK
Electricit+ !"illird ,-hs% ..& ./.0 4-1
2ol !"illion tons%
.9..
/11-0
.9..&
Oil !"illion tons% 1&( (4-& 3
Pi$ iron !"illion tons% 4.. (i-S 1&.4
Steel !"illion tons% 4-( (i-0 1-0
2otton textiles !"illird "etres% 1-9 /-1 1-4
(Source: Promyshlennost' SSSR !1944%, pp. 11.-14.%
It is interestin" to note that the oil in*)str faile* to maintain its rate
of -ro"ress an* in fact fell +ac8 in the first *eca*e of the cent)r,
An ori"inal an* s8ilf)l attem-t to meas)re the relative -ro"ress of
the -owers was ma*e + P, 6airoch,
&
The res)lt stron"l s)--orts
the view that R)ssia0 *es-ite her ver consi*era+le "rowth0 was not
ma8in" m)ch hea*wa in catchin" )- with the more a*vance*
co)ntries, 6airochDs calc)lations are +ase* on a com+ination of the
followin"? cons)m-tion of raw cotton an* coal0 -ro*)ction of -i"
iron0 the railwa networ80 an* -ower "eneration, For R)ssia he )ses
mainl *ata ta8en from !ol*smithDs st)*, All fi")res are e@-resse*
#er ca#ita- !iven the statistical ina*eE)acies of the nineteenth
cent)r0 this metho* has m)ch to commen* it0 tho)"h the a)thor
wo)l* +e the last to claim its acc)rac, R)ssiaDs in*)strial -erform>
ance is shown in the ta+le on -a"e 4, This ta+le shows that0 far from
overta8in" even S-ain0 R)ssia in these fift ears fell +ehin* Ital,
The a)thor comments? ,'es la fin d% .$./// siecle, c,est la R%ssie 0%i
se #lace a% dernier rang des #ays e%ro#eens et%dies ici,
Similar concl)sions follow for the calc)lations of S, N,
Pro8o-ovich?
<
In*)strial !rowth 1
Ntionl inco"e
1094 191( Gro5th
(roubles per capita) (per cent)
United Kin$do" .1( 44(
1&
6rnce
.(( (/S
/.
Itl+ 1&4 .(&
1.1
Ger"n+ 104
.9.
/0
*ustri-7un$r+
1.1 ..1
19
)ussi !in Europe% 41
1&1 SO
The R)ssian en"ineer>economist0 Professor !rinevets80 came to
the same concl)sion, J)otin" R)ssiaDs +ac8war*ness in metal>
"oo*s in*)stries0 he wrote?
These com-arisons eloE)entl s-ea8 of the fact that R)ssia in her -re>
war economic "rowth was not merel not catchin" )- the o)n"er
co)ntries with -owerf)l ca-italist *evelo-ment0 +)t was in fact fallin"
+ehin*, This concl)sion wo)l* +e ver sa* for o)r social>-olitical
vanit0 +)t it m)st +e consi*ere* as an in*)+ita+le fact,
1
As mi"ht +e e@-ecte*0 "iven the man statistical "a-s0 there e@ist
some alternative estimates which show a somewhat +etter
-erformance for the Tsarist econom in the -erio* )- to #$#&,
Those intereste* ma +e referre* to the wor8s of Pa)l R, !re"or
an* M, E, Fal8)s,
%
Even these hi"her estimates *o not show the
R)ssian Em-ire catchin" )- s)ch co)ntries as !erman0 at least not
on a #er ca#ita +asis, None the less0 one m)st note that the *o
mo*if the "loom -ict)re -resente* + Pro8o-ovich an*
!ol*smith,
R)ssia was th)s the least *evelo-e* E)ro-ean -ower0 +)t a
E)ro-ean -ower none the less, She was ca-a+le of overwhelmin"
militaril an* com-etin" economicall with a -artl *evelo-e*
E)ro-ean state s)ch as A)stria>H)n"ar, 6)t her *evelo-ment was
e@cee*in"l )neven +oth in*)striall an* "eo"ra-hicall, Her
mo*ern in*)str was ver mo*ern in*ee*0 with a mar8e* ten*enc
to lar"e an* well>eE)i--e* factories )sin" the most )->to>*ate
:estern mo*els, These were -rinci-all in the areas of St
Peters+)r" an* Moscow0 in R)ssian Polan* an* in the U8raine, The
main metall)r"ical centre was now in the so)th0 )sin"
% The Russian Empire in 11!
3onets 6asin coal, The ol*er Urals metall)r"ical centre was
*eclinin", Most of the rest of the co)ntr ha* ver little in*)str
other than han*icrafts, A-art from the oil of 6a8)0 the so)thern
an* eastern territories were -artic)larl -rimitive,
A *is-ro-ortionate share of some in*)stries was concentrate*
in areas lost to R)ssia after the First :orl* :ar an* the civil war
.the 6altic states0 an* territories which +ecame -art of Polan*
an* Romania/, The followin" ta+le ill)strates this?
I8I.
9otl :lue o# production
In retined territor+ In lost territor+
(millions of roubles)
*ll industr+ 4,&/9 1,(04
-ool (44 .91
;ether 14 44
Pper 41 ((
<ute nd sc,s .0 14
-ood5or,in$ 14( S(
2he"icls ..( 44
2otton #=rics i,(09 (44
>etl $oods 1,1(1 ./0
(Source: ?. >ot+le:, Problemy ekonomiki, No. 1 !19.9%, p. (4.%
The relative im-ortance of small>scale .wor8sho- an* artisan/
in*)str at this -erio* ma +e ill)strate* + the followin" fi")res?
in #$#1 it em-loe* a+o)t %4 -er cent of those en"a"e* in
in*)str of 1,( million -ersons, It -ro*)ce* && -er cent of
in*)strial o)t-)t0
4
i,e, the o)t-)t -er hea* was onl a E)arter of
that of wor8ers en"a"e* in lar"e>scale in*)str, This shows the
contrast +etween the mo*ern an* the ol*0 +etween "reat in*)strial
-lant an* tin cotta"e>in*)str or wor8sho-0 which0 of co)rse0
was an* is to +e fo)n* in other *evelo-in" co)ntries,
A similar )nevenness characteriFe* the "rowth of *ifferent
sections of in*)str, Th)s while there was im-ressive "rowth
in the metall)r"ical0 te@tile0 f)el an* foo*>-rocessin" in*)stries0
en"ineerin" la""e* far +ehin*, Most in*)strial eE)i-ment con>
tin)e* to come from a+roa*, This wea8ness was to +e a -rinci-al
)elti:e industril pro$ress o# 5orld po5ers 104&-191&
)5 cotton K$ iron )il5+s@ 2ol Ste" po5er )n,in$ list
(kg. per (kg
per
(kg. per (hp per
head) head) head)
,!!! persons) i04&
i9io
=
/ 11&A1(&
i04& i-
4
191& 4.0
i04&
191&
.&&
104&
.1
1 191&
1/
i04& 191&
i04& 4
191&
Ger"n+
14 4&&
(,19& 4A/
Bel$iu" ..9 9-4 &9
./&
(B
1&. 1,(1& (,.1& .1 1/& .A(
(
Spin i-4 4-4 (
.1
4 /0
3
((&
3
4 0 0
US* /-0 1..1
./ .1& 19 1.. 4.&
4,/0o
./
1/&A10&
.A( 1
6rnce
..1 4.& ./ 1&& 10
01
(9&
1,4/& / 1( / 4
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0 4 (0
3
.1&
3
14A44 9A1& 9
<pn
3
4-9
3
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3
14
3
.(&
3
1Aio n
11
UK
1/1 19.0 1(& .1&
44 49
.,4/& 4,&4& .4 ..&A.4& 1 .
)ussi o-/
(-&
/ (C
1 .4
3
(&& 1
DAi4
9A1& 1&
S5eden i-/ (-4 41 no
(
. 14
9& 91&
3
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S5itEerlnd /-( 4-(
----
3
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3 3 3
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@ 9otl len$th relted to popultion nd re.
=
9he hi$her #i$ure includes other #or"s o# po5er.
3 Ne$li$i=le or not :il=le.
"ote: >ost #i$ures represent n :er$e o:er se:erl +ers.
& The Russian Empire in 11!
cuse o# the ctstrophic short$e o# r""ents 5hen 5r =ro,e
out, not lest =ecuse o# the do"innce o# Ger"n+ s supplier
o# eFuip"entG
a!ital" #o$estic and %orei&n
9he pro$ress o# )ussin industriliEtion su##ered #ro" relti:e
short$e o# cpitl, s 5ell s #ro" poorl+ de:eloped =n,in$
s+ste" nd $enerll+ lo5 stndrd o# co""ercil "orlit+. 9he
trditionl >usco:ite "erchnts, rich nd uneducted, 5ere #r
#ro" =ein$ the protot+pes o# "odern co""ercil cpitlis".
9he sitution chn$ed to5rds the end o# the nineteenth cen-
tur+, nd prticulrl+ durin$ the rpid industriliEtion 5hich
chrcteriEed the nineties. 9here 5s "r,ed $ro5th o# =oth
)ussin nd #orei$n cpitl, nd n eFul i"pro:e"ent in the
=n,in$ s+ste". )ussin entrepreneurs o# "odern t+pe =e$n
"ore nd "ore to e"er$e. Under co:er o# the protecti:e tri## o#
1091, nd 5ith the est=lish"ent o# st=iliEed rou=le =sed on
the $old stndrd, #orei$n cpitl recei:ed e:er+ encour$e"ent.
9his 5s prticulrl+ the 5or, o# 2ount -itte, 5ho exercised
do"innt in#luence o:er )ussin #inncil nd co""ercil polic+
t this ti"e. 7is pu=lic stte"ents nd ppers ",e it
=undntl+ cler tht he 5s pursuin$ deli=ertel+ polic+ o#
industriliEtion, nd tht the do"innt "oti:e 5s the
trditionl one tht relti:el+ =c,5rd )ussi "ust ctch up
5ith the "ore de:eloped po5ers, prticulrl+ in her potentil to
produce the "ens o# ntionl po5er, =o:e ll r""ents.
-hile nxious to o=tin #orei$n #inncil help in the #or" o#
lons nd in:est"ents, -itte 5s #rn,l+ surprised tht such
help should =e #orthco"in$. -hen n econo"ic con#lict =ro,e
out 5ith Ger"n+, nd Bis"rc, plced =n on Ger"n
credits to the )ussin E"pire, -itte sent the #ollo5in$
"e"orndu" to the 9srG
9rue enou$h, 5ht sense is there #or #orei$n sttes to $i:e us cpitlD
... -h+ crete 5ith their o5n hnds n e:en "ore terri=le ri:lD 6or
"e it is e:ident tht, in $i:in$ us cpitl, #orei$n countries co""it
Capital' (omestic and Forei)n
-olitical error0 an* m onl *esire is that their +lin*ness sho)l* contin)e
for as lon" as -ossi+le,
'
A n)m+er of R)ssian a)thors have ma*e calc)lations concernin"
the role of forei"n ca-ital in R)ssiaDs *evelo-ment, Accor*in" to
fi")res cite* + 9ashchen8o0 in #$55 a+o)t ('2 -er cent of the
ca-ital of -rivate com-anies was forei"n>owne*0 in #$#& a+o)t &&
-er cent, 3)rin" these ears forei"n ca-ital investe* in R)ssia
increase* + '1 -er cent0 while R)ssian ca-ital increase* + %5 -er
cent, :hile the "rowth of forei"n investments th)s somewhat
e@cee*e* that of native investments0 the latter were none the less
risin" + a ver s)+stantial -ercenta"e at this time, Forei"n ca-ital
was investe* in varin" *e"rees in the *ifferent in*)striesI it was
a+ove all in the oil in*)str that the forei"ners were *ominant,
However0 accor*in" to 9ashchen8o0 the also -rovi*e* a+o)t <(
-er cent of the ca-ital in the metal "oo*s in*)stries0 (' -er cent in
te@tiles0 15 -er cent in chemicals0 &4 -er cent in woo*wor8in",
R)ssian +an8s forme* close lin8s with forei"n +an8s0 an* were
effective in the carteliFation of R)ssian in*)str0 thro)"h the
creation of so>calle* Sn*icates0 which followe* the *e-ression of
#$55>#$5&,
The investment of forei"n ca-ital in railwa +)il*in" an*
in*)str0 an* also s)ccessive loans0 es-eciall from France0 to the
R)ssian "overnment0 create* a maCor -ro+lem for the Ministr of
Finance to ens)re a lar"e eno)"h s)r-l)s in visi+le tra*e to ena+le
the necessar re-aments0 -rofit remittances an* interest char"es to
+e met, One conseE)ence was the constant concern of the
"overnment to increase the e@-ort s)r-l)s of a"ric)lt)ral -ro*)ceI
this le* to an effort to restrict cons)m-tion + the -easants an* to
increase sales + levin" ta@es on the -easants, Yet R)ssian in*)str0
-artic)larl in cons)mer "oo*s0 *e-en*e* to a consi*era+le e@tent
on the -)rchasin" -ower of the -easants for its mar8et, This
*ilemma is + no means -ec)liar to R)ssia0 an* raises an iss)e of
"reat interest in the economics of *evelo-ment, R)ssian economists
+ro)"ht )- on the -rinci-les of the Manchester school )se* to assert0
in their *isc)ssions after the a+olition of serf*om in #'%#0 that the
-overt of the -easants an* the lac8 of a s)fficient -easant mar8et
hel* +ac8 the *evelo-ment
io 'he (ussian )$!ire in 1913
of R)ssian in*)str0 since it ma*e in*)strial investment )n-rofit>
a+le, Yet :itteDs -olic of *eli+eratel enco)ra"in" an* s-onsorin"
in*)strialiFation involve* a re*)ction in -easant -)rchasin" -ower
as -art of the means of com-ellin" them to sell foo*st)ffs which
the wo)l* rather themselves cons)me0 in or*er to meet the material
an* financial reE)irements of in*)strialiFation, In the wor*s of
!erschen8ron? DThe -ro+lem of -easant *eman* lost its -revio)s
si"nificance0 an* its relation to in*)strialiFation was thoro)"hl
reverse* ,,, To re*)ce -easant cons)m-tion meant increasin" the
share of national o)t-)t availa+le for investment, It meant increase*
e@-orts ,,,K There is more than a -)rel s)-erficial similarit
+etween the -olic then -)rs)e* an* that a*o-te* + Stalin over
thirt ears later,
The "overnment e@-erience* "reat *iffic)lt in raisin" s)fficient
reven)e0 -artic)larl in ears of war or of international tension,
3es-ite its ina*eE)ate eE)i-ment0 the R)ssian arm was a
-artic)larl heav *rain on financial reso)rces, It is therefore
)n*erstan*a+le that it was :itte who -ers)a*e* Tsar Nicholas II to
call the first *isarmament conference ever hel*0 at The Ha")e in
#'$$,
Statisticall s-ea8in"0 in*)strial *evelo-ment was now -rocee*>
in" at a satisfactor rate, However0 the R)ssian Em-ire at the
+e"innin" of the twentieth cent)r was +eset + man *an"ers an*
was in a state of social an* -olitical *iseE)ili+ri)m, This arose in
-art o)t of the ver fact of a ra-i* transformation of a formerl
semi>fe)*al an* a"rarian societ, M)ch of this insta+ilit arose from
-easant attit)*es0 which we m)st now +riefl e@amine,
A&riculture and the *easants
ThL a+olition of serf*om in an* after #'%# o-ene* a new era in
R)ssian social relations, Yet the settlement of that ear ca)se* a
*ee- *issatisfaction, R)ral )nrest was still serio)s an* contri+)te*
"reatl to the revol)tionar waves of the twentieth cent)r, There
were several reasons for this,
Firstl0 )n*er the settlement of #'%# the lan* was *ivi*e*
A"ric)lt)re an* the Peasants ##
+etween the lan*lor*s an* the -easants, This offen*e* the -eas>
antsD a"e>lon" sense of fairness, Serf*om ha* +een im-ose*
lar"el for state reasons0 to -rovi*e an economic +asis for the
service "entr to ena+le them to serve the Tsar in civil an*
militar ca-acities, The were in effect -ai* + the Tsar with
lan*0 an* -easants ha* an o+li"ation to maintain the "entr in the
service of the Tsar, :hen in #4%( this *)t of service was finall
a+an*one*0 this remove* the onl -ossi+le C)stification for the
-easantsD attachment to the lan*0 as the -easants )n*erstoo* it,
9et me ill)strate the ori"inal raison d,etre of serf*om with a
historical e@am-le, In #14# a Tartar invasion from the Crimea
ca)se* man tho)san*s of -easants an* their families to +e le*
awa into slaver, To -revent a rec)rrence of these events a
stan*in" arm was necessar0 an* a stron" monarch, Man
-easants )n*erstoo* this, The were in a -osition to eva*e their
o+li"ations + movin" eastwar*s an* so)thwar*s across an o-en
frontier0 an* in fact *i* so on a lar"e scale *)rin" the wars of
Ivan the Terri+le0 which re*)ce* reven)e0 n)m+ers of recr)its
an* the val)e of lan* "rants to the "entr, The -easantsD attach>
ment to the soil th)s ha* a rational -)r-ose, However0 + the late
ei"hteenth cent)r the "entr ha* the ri"ht to +ecome merel
-arasitic lan*lor*s .tho)"h in fact man of them *i* contin)e to
serve the state in vario)s ca-acities/0 while the maCorit of the
-easants were re*)ce* to a state of slaver, The +elief s)rvive*
amon" them that Dthe were the lor*Ds +)t the lan* was !o*DsD,
The *is-)te* the le"itimac of the ownershi- of the lan* + the
lor*s0 an* consi*ere* that those who c)ltivate* the lan* sho)l*
have the f)ll )se of it, The therefore saw the #'%# settlement as
*e-rivin" them of lan* to which the ha* a le"itimate ri"ht,
Secon*l > a**in" ins)lt to inC)r > the were o+li"e* to
-)rchase their share of the lan* in instalments .re*em-tion
*)es/,
Thir*l0 the -easants *i* not achieve eE)alit +efore the law0
or real -ersonal free*om, Their lan* was hel* not + them +)t +
the villa"e comm)nit, This instit)tion was often 8nown as the
mir or the o"shchina- The hea*s of families in the villa"e controlle*
lan* )tiliFation, In most -arts of E)ro-ean R)ssia the -erio*>
icall re*istri+)te* stri-s within a three>fiel* sstem familiar to
Wit ThfcR)ssian Em-ire in #$#&
st)*ents of me*ieval farmin", The -easant was not allowe* to
leave his villa"e witho)t the a)thorit of the comm)nit0 an* all
the ho)sehol*s of the villa"e were Cointl lia+le for ta@es an* for
re*em-tion *)es,
Fo)rthl0 a ra-i* increase in -o-)lation -resse* )-on the
means of s)+sistence, Towns were "rowin"0 +)t not at a rate
s)fficient to -revent a ra-i* "rowth in n)m+ers of r)ral inha+it>
ants0 as the followin" fi")res *emonstrate?
Europen )ussi
Ur=n )url
(millions)
104( 4.1 //.(
1091 1..1 0..1
This tren* contin)e* after the t)rn of the cent)rI it has +een
estimate* that there was a (5 -er cent increase in the r)ral
-o-)lation +etween #$55 an* #$#<, The siFe of -easant hol*in"s
an* the tra*itional metho*s of c)ltivation ma*e it increasin"l
*iffic)lt to fee* the lar"er n)m+ers0 an* there were ins)fficient
incentives to )se new metho*s, The sit)ation was ma*e worse +
the im-osition of ta@es which were -art of :itteDs -olic0 men>
tione* a+ove, It is tr)e that there were lan*s availa+le east of the
Urals to which some of the s)r-l)s -easants co)l* "o0 +)t
resettlement was im-e*e* + the Coint res-onsi+ilit of the villa"e
for ta@es an* re*em-tion *)es0 which nat)rall le* to fellow
villa"ers ref)sin" to allow in*ivi*)als to leave,
Nee*less to sa0 the a+ove are onl +roa* "eneraliFations0
which *i* not have )niversal a--lication, Th)s in Si+eria an* in
-arts of northern R)ssia there ha* never +een serf*om at all0 an*
a self>reliant class of -easants *evelo-e* there lon" +efore #'%#
an* contin)e* thereafter, Man s)ccee*e* in leavin" the villa"es
*es-ite le"al restrictions on their movement, Some -easants ma*e
a lot of mone, Rea*ers of Che8hov will not nee* remin*in" that
the man who +o)"ht the cherr orchar* was a no%vea% riche son
of a serf, None the less the "eneraliFations *o +roa*l hol* "oo*0
an* the lan* -ro+lem was never far from the -reocc)-ations of
A)riculture and the Peasants 1!
the TsarDs ministers, =ario)s -ro-osals were ma*e an* -ost-one*,
It nee*e* the shoc8 of the #$51 revol)tion0 with its wi*es-rea*
-easant Hots an* lan* seiF)res0 to force the "overnment to realiFe
that f)rther *ela was o)t of the E)estion,
The reform was carrie* o)t + the TsarDs last efficient an*
intelli"ent minister0 P, A, Stol-in0 an* a series of meas)res
effectin" these reforms were -rom)l"ate* in the ears #$5%>##,
O)tstan*in" re*em-tion *)es0 which ha* +een re*)ce*0 were
finall a+olishe*, Peasants were now free to leave their comm)ni>
ties0 to consoli*ate their hol*in"s as their -ro-ert0 to +) lan* or
to sell it0 to move to town or to mi"rate, Stol-inDs o+Cect was to
enco)ra"e the emer"ence of a class of -easant -ro-rietors who
wo)l* +e -ros-ero)s0 efficient an* -oliticall loal, This was the
so>calle* Dwa"er on the stron"D, Man "o>ahea* -easants too8
a*vanta"e of the new o--ort)nities, 6 #$#% a+o)t ( million
ho)sehol*s ha* left the comm)nities an* set )- -rivate farms0
o)t of (,4 million who ha* e@-resse* their *esire to *o so, This
re-resente* some (< -er cent of the ho)sehol*s in fort affecte*
-rovinces of E)ro-ean R)ssia, Some remaine* in the villa"es0
others erecte* farm ho)ses0 so>calle* 1h%tora, o)tsi*e, The -ro>
cess of chan"e was slowe* *own an* then halte* + the o)t+rea8
of war in #$#<, Stol-in himself ha* +een assassinate* in #$##,
He hel* the view that his reform0 "iven time0 wo)l* have
-rovi*e* the em-ire with a soli* social +ase, :e will never 8now
whether he wo)l* have +een -rove* ri"ht,
Commercial a"ric)lt)re0 con*)cte* +oth + the -ro"ressive
lan*lor*s an* + the more -ros-ero)s -easants0 was alrea*
*evelo-in" in some areas even +efore this reform, It nat)rall
s-ee*e* )- thereafter, It is not s)r-risin" that the "reatest
n)m+er of -easants o-te* to leave the comm)nit in the so)th>
west .i,e, -rinci-all in the U8raine/ an* in the North Ca)cas)s0
where "rain was -ro*)ce* for the mar8et, It was in these areas
that resistance to Stalinist collectiviFation was most fierce twent
ears later,
The Stol-in reform ma*e -ossi+le a maCor rearran"ement of
tra*itional -easant a"ric)lt)re0 an* wo)l* certainl have le* to
"reater efficienc an* to a s)+stantial stren"thenin" of a -ros-er>
o)s -easant class, In fact this *evelo-ment was alrea* in
t4 The Russian Empire in 11!
-ro"ress, However0 its -olitical an* social im-act was con*itione*
+ two other si"nificant factors, The first was that the reform *i*
not affect the assets of the lan*lor*s an* the ch)rch, It is tr)e
that the richer -easants were -)rchasin" some lan* from the
-oorer lan*lor*s0 +)t it was no -art of the o+Cect of this reform to
re*istri+)te the lan*lor*sD lan*, ConseE)entl the "rievances of
the -easants as a whole0 an* their lan* h)n"er0 were not ass)a"e*,
In fact half of the '$ million hectares of lan* allocate* to the
lan*lor*s in #'%# ha* -asse* into -easant han*s + #$#%I the
owne* + then '5 -er cent of the lan* an* rente* -art of the
remain*er0
#5
+)t resentment a"ainst +i" lan*lor*s remaine*
stron", Secon*l0 the -oorer -easants receive* little +enefit from
the reform0 e@ce-t -erha-s that the were now fin*in" it easier to
sell their smallhol*in"s if the wishe* to leave, The effect was to
increase the n)m+er of lan*less -easants an* mi"ration to the
towns, It also stim)late* hostilit towar*s the +etter>off
-easants0 which was to +e an im-ortant factor in the revol)tionar
-erio*,
A"ric)lt)ral -ro*)ction rose ra-i*l in the first ears of the
cent)r0 *)e -artl to favo)ra+le weather con*itions an* -artl
to the effects of the reform an* of +etter metho*s, :hile most
-easants were still )sin" o)t*ate* metho*s0 incl)*in" lar"e n)m>
+ers of woo*en -lo)"hs0 the more -ro"ressive sectors were now
+e"innin" to )se mo*ern eE)i-ment, This -rocess was "reatl
assiste* + a shar- rise in a"ric)lt)ral -rices0 *)e in -art to a rise
in worl* -rices, Accor*in" to 9ashchen8o the net income of
a"ric)lt)re increase* + '',% -er cent in the -erio* #$55>#&0
re-resentin" an increase* o)t-)t in constant -rices of &&,' -er
cent, The s-rea* of commercialism an* of ca-italist relations was
s-ee*in" )-, E@-orts of "rain rose ver shar-l, Th)s in the
ears #$##>#& the were 15 -er cent hi"her than in the ears
#$5#>10 on avera"e, E@-orts of +)tter0 e""s0 fla@ an* other
a"ric)lt)ral -ro*)cts were also increasin", A -rotective tariff
enco)ra"e* the *evelo-ment of cotton>"rowin" in Central Asia,
6)t over the lon" -erio* -ro"ress was not "reat, Accor*in" to
the inval)a+le 6airoch0 -ro*)ctivit -er hea* "rew as follows0
+ase* on a calc)lation of millions of calories -ro*)ce* -er male
a"ric)lt)ral wor8er?
A)riculture and the Peasants 1*
i04& 191&
Ger"n+
!.# ./.&
Bel$iu" 11.& 10.&
Spin
11.&
0-/
US*
../ 4..&
6rnce
14-/ 11.&
Itl+
/-&
4-/
<pn D
..4
UK
.&.&
@(-/
)ussi 1-/
11.&
S5eden
1&./ 14.&
S5itEerlnd
9.& 11.&
Th)s R)ssia move* one )- on the ran8in" list0 overta8in" S-ain0
tho)"h onl +eca)se S-ain0 so to s-ea80 marche* +ac8war*s, She
fell farther +ehin* the USA an* !erman0 +)t "rew faster than
either !reat 6ritain or France,
A similar -ict)re emer"es from the !ol*smith st)* alrea*
cite*, His in*e@ for Dall cro-sD .#'$%>#$55 M #55/ shows an
increase from an in*e@ of 1# in #'%# to an avera"e of #<5 in
#$##>#& .fift -rovinces of E)ro-ean R)ssia0 i,e, e@cl)*in" not
onl Si+eria an* Central Asia +)t also Finlan*0 Polan* an* the
Ca)cas)s/, Allowin" for mar"ins of error an* misre-ortin" of
*ata0 he o+tains Dan avera"e rate of "rowth of ver close to ( -er
centD -er ann)m for the whole -erio* .tho)"h one cannot e@cl)*e
if -er cent or 23 -er cent0 *e-en*in" on inter-retation of the
*ata/, 9ivestoc8 -ro*)ction0 on which statistics for these ears
are totall ina*eE)ate0 went )- m)ch more slowlI !ol*smithDs
estimate is onl # -er cent -er ann)m0 ma8in" an overall "rowth
rate for a"ric)lt)re of a--ro@imatel #,4 -er cent -er ann)m for
the -erio* #'%5>#$#<, 6)t s)ch a fi")re is onl a fraction a+ove
the rate of -o-)lation increase, Foo* cons)m-tion -er hea*
co)l* har*l have increase* at all0 if one ta8es into acco)nt the
relative increase in the area sown with in*)strial cro-s0 an* also
e@-orts of foo*, Total farm o)t-)t -er hea* of the whole -o-)la>
tion rose -erha-s 3 -er cent -er ann)m, !ol*smith *oes not
attem-t to calc)late o)t-)t -er hea* of -o-)lation en"a"e* in
a"ric)lt)re0 +)t it is clear that his fi")res are +roa*l consistent
with the -ict)re *erive* from 6airochDs st)*,
1% The Russian Empire in 11!
This slow -ro"ress of a"ric)lt)re0 in which so hi"h a -ro-ortion
of the -eo-le was en"a"e*0 hel-s to e@-lain the mo*est "rowth of
the national income0 alrea* referre* to, It is tr)e0 however0 that
foo* -ro*)ction was +e"innin" to increase rather more ra-i*l
towar*s the en* of the -erio*,
Pro"ress in a"ric)lt)ral e*)cation was im-ressive in the last
ears of the re"ime, Th)s there were onl sevent>five st)*ents
st)*in" a"ronom to *e"ree level in #'$10 +)t + #$#( the
n)m+er ha* risen to &0$((IK not eno)"h0 of co)rse0 +)t evi*ence
of a ver +i" "rowth rate0 which co)l* well have -ai* off in time,
Similarl0 there was a most im-ressive rise in the vario)s forms
of a"ric)lt)ral coo-eration0 showin" that0 with the +rea8>)- of
the mir, new an* +etter was of e@-an*in" -easant commercial
activities were +ein" *evise*, The mem+ershi- of r)ral cre*it
coo-eratives rose from #'#0555 in #$51 to 4 million in #$#<, The
n)m+er of r)ral cons)mer coo-eratives rose in the same -erio*
from &<' to '0'44,K Mar8etin" coo-eratives "rew ra-i*l, One
of these0 which or"aniFe* -easant +)tter -ro*)cers in Si+eria0
maintaine* an a"enc in 9on*on an* ma*e "reat -ro"ress with
e@-orts, Th)s the last *eca*e of Tsar*om ma have +een the
har+in"er of an a"ric)lt)ral lea- forwar*, Nee*less to sa0 here
too im-rovement was e@cee*in"l )neven0 affectin" some -arts of
the co)ntr m)ch more than others, Yet there was evi*ence here
to s)--ort the -leas of those who0 li8e Chaanov0 +elieve* in the
-ro*)ctive -otential of -easant a"ric)lt)re,
+ocial and *olitical Insta,ilit-
The freein" of the -easants ca)se* an ever>"rowin" flow into the
towns0 an* this was nat)rall s-ee*e* )- + the Stol-in reform0
since now -easants with little lan* co)l* sell their hol*in"s to
their +etter>off nei"h+o)rs, Most of the )r+an la+o)r force was
of e@tremel recent r)ral ori"in0 an* maintaine* close lin8s with
the villa"es0 where man of their relatives still live*, Man went
home ann)all to hel- +rin" in the harvest, The in*)strial la+o)r
force was th)s not of hi"h E)alitI s8ille* la+o)r acc)stome* to
factor wor8 was relativel ver scarce, 3r)n8enness was
Social an* Political Insta+ilit #4
common0 livin" con*itions e@cee*in"l -rimitive, This rootless
an* *isorientate* la+o)r force fo)n* itself concentrate* in the
ver lar"e )nits of which the mo*ern sector of R)ssian in*)str
was com-ose*0 an* -rovi*e* "oo* material for revol)tionar
-ro-a"an*a in the cities,
It has often +een state* that the R)ssians were almost all
illiterate +efore the revol)tion, This statement is "reatl e@a""er>
ate*, In the #'$4 cens)s0 it was fo)n* that0 in E)ro-ean R)ssia0
&1,' -er cent of the men an* #(,< -er cent of women were
literate, A "oo* meas)re of -ro"ress is the recor* of literac
amon" arm recr)its?
4#er cent5 1875
21 1890
31 1905 58
1913 73
4So%rce: )o? shay a Son
Entsi1lo#ediya,
.nd e*n0 =ol, #(0 -, 4(4.%
There was a ra-i* *evelo-ment of schools an* of )niversities an*
the stan*ar*s of science were hi"h in*ee*, Here too the sit)ation
was characteriFe* + e@treme re"ional )nevenness, S)ch me*ical
services as e@iste* were of e@cellent E)alit0 +)t there were too
few *octors, The *eath>rate in villa"es was a--allin"l hi"h,
Th)s it ma +e sai* that the R)ssian Em-ire in #$#& was in
the -rocess of ra-i* chan"e0 that in*)strialiFation was ma8in"
"oo* -ro"ress0 that a"ric)lt)re was also chan"in" an* "rowin"0
+)t -ro"ress was )neven an* "ave rise to social an* -olitical
stress0 which in t)rn ca)se* )nrest in the cities to"ether with
lan*>h)n"er an* riotin" in the villa"es, A R)ssian mi**le class
was emer"in"0 +)t it lac8e* a)thorit an* self>confi*ence, :ith
rare e@ce-tions0 the servants of the a)tocrac were men of
me*iocre a+ilit overwhelme* + ever>"rowin" -ro+lems an*
)na+le to co-e with a "rowin" an* chan"in" em-ire, The intelli>
"entsia0 "iven to en*less ar")in" an* theoriFin"0 was almost
wholl o--ose* not onl to the a)tocrac +)t also to the s-irit of
i' The R)ssian Em-ire in #$#&
ca-italist enter-rise, This was an e@-losive mi@t)re, It is not onl
with the hel- of the evi*ence of hin*si"ht that we can sa that the
societ an* the -olit were in the -rocess of +rea8in" *own, The
followin" is an e@tract from a +oo8 + an A)strian o+server0 H)"o
!anF0 -)+lishe* in #$5< an* entitle* The 'onfall of R%ssia- It is
sai* to +e a conversation +etween !anF himself an* a senior official
who as8e* to remain anonmo)s?
D:hat will +e the en*0 thenGD
DThe en* will +e *iat the terror from a+ove will awa8en the terror
from +elow0 that -easant revolts will +rea8 o)t an* assassination will
increase,D
DAn* is there no -ossi+ilit of or"aniFin" the revol)tion so that it shall
not ra"e senselesslGD
DIm-ossi+le,,,D
DThere is no one with whom I have s-o8en who wo)l* fail to -aint
the f)t)re of this co)ntr in the *ar8est colo)rs, Can there +e no chan"e
of the fatal -olic which is r)inin" the co)ntrGD
DNot +efore a "reat "eneral catastro-he, :hen we shall +e com-elle*
for the first time -artl to re-)*iate o)r *e+ts > an* that ma ha--en
sooner than we now +elieve > on that *a0 +ein" no lon"er a+le to -a
o)r ol* *e+ts with new ones > for we shall no lon"er +e a+le to conceal
o)r internal +an8r)-tc from forei"n co)ntries an* from the Em-eror
>ste-s will +e ta8en0 -erha-s ,,,D
DIs there no mista8e -ossi+le here in what o) are sain"GD
D:hoever0 li8e mself0 has 8nown the state 8itchen for the last
twent>five ears has no lon"er an *o)+ts, The a)tocrac is not eE)al
to the -ro+lems of a mo*ern "reat -ower0 an* it wo)l* +e a"ainst all
historical -rece*ent to ass)me that it wo)l* vol)ntaril iel* witho)t
e@ternal -ress)re to a constit)tional form of "overnment,D
D:e m)st wish then0 for R)ssiaDs sa8e0 that the catastro-he comes as
E)ic8l as -ossi+le,D
DI re-eat to o) that it is -erha-s nearer than we all thin8 or are
willin" to a*mit, That is the ho-eI that is o)r secret consolation ,,, :e
are near to colla-se0 li8e an athlete with "reat m)scles an* -erha-s
inc)ra+le heart wea8ness, :e still maintain o)rselves )-ri"ht + stim)>
lants0 + loans0 which li8e all stim)lants onl hel- to r)in the sstem
more E)ic8l, :ith that we are a rich co)ntr with all conceiva+le
Social and Political "nsta+ility 1
nat)ral reso)rces0 sim-l ill>"overne* an* -revente* from )nloc8in" o)r
reso)rces, 6)t is this the first time that E)ac8s have r)ine* a Herc)les
that has fallen into their han*sGD
I am far from s)""estin" that one can fin* )ltimate wis*om in the
wor*s of a relativel )n8nown A)strian writer0 or that s)ch alarm
an* -essimism were )niversal at the time, The a+ove E)otation is
merel an attem-t to *is-el the i*ea that the sense of *oom was0 so
to s-ea80 s)-erim-ose* on the -erio* + -ost>revol)tionar analsts,
Nor is it inten*e* to *en that it was the o)t+rea8 of war in #$#< an*
its conseE)ences that finall ma*e the -eacef)l evol)tion of the
em-ire totall im-ossi+le, :ho 8nows0 Nicholas II mi"ht have +een
s)ccee*e* + an am+itio)s an* *ominatin" Em-eror0 a 8in* of new
Peter the !reat0 ca-a+le of enforcin" the necessar a*C)stments, The
#$51 revol)tion was a--arentl s)rmo)nte* + the a)tocrac0 with
little loss of e@ec)tive -ower, It is tr)e that the fo)n* it necessar to
conce*e the e@istence of an elective le"islat)re0 +)t in #$54 the
franchise was so restricte* as to ens)re a loal conservative
maCorit, 6 #$#< a wave of stri8es "rew threatenin"l0 an* in the
short r)n it was the o)t+rea8 of war that relieve* the a)thorities of
man of their worries + t)rnin" the mo+s from s)+version into
-atriotic *emonstrations,
Th)s the E)estion of whether R)ssia wo)l* have +ecome a
mo*ern in*)strial state +)t for the war an* the revol)tion is in
essence a meanin"less one, One ma sa that statisticall the answer
is in the affirmative, If the "rowth rates characteristic of the -erio*
#'$5>#$#& for in*)str an* a"ric)lt)re were sim-l -roCecte* over
the s)ccee*in" fift ears0 no *o)+t citiFens wo)l* +e lea*in" a
reasona+l comforta+le e@istence an* wo)l* have +een s-are* man
*rea*f)l conv)lsions, However0 this ass)mes not onl that the
ten*encies towar*s militar conflict which e@iste* in E)ro-e ha*
+een conC)re* o)t of e@istence0 +)t also that the Im-erial a)thorities
wo)l* have s)ccessf)ll ma*e the a*C)stment necessar to "overn in
an or*erl manner a ra-i*l *evelo-in" an* chan"in" societ, There
is no nee* to ass)me that everthin" that ha--ene* was inevita+le
+eca)se it ha--ene*, 6)t there m)st s)rel +e a limit to the "ame of
what>mi"ht>have>
,- The Russian Empire in 11!
=een. One can en* this cha-ter with another E)otation from
!erschen8ron? DIn*)strialiFation0 the cost of which was lar"el
*efrae* + the -easantr0 was itself a threat to -olitical sta+ilit
an* hence to the contin)ation of the -olic of in*)strialiFation,DK
, .ar/ Re0olution and
Re0olutionaries
.ar and /rea0down
R)ssia entere* the war with a wea8 arms in*)str an* relativel
-oor comm)nications, The mo+iliFation of a vast arm a*versel
affecte* the la+o)r sit)ation, R)ssia was E)ite )n-re-are* for the
h)"e e@-en*it)re of arms an* amm)nition0 -artic)larl artiller0
which mo*ern war reE)ire*, In the first si@ months the reserves of
militar har*ware ha* +een lar"el *issi-ate* an* amm)nition was
r)nnin" *an"ero)sl short, :hen in the s-rin" of #$#1 the !ermans
attac8e* with vastl s)-erior fire -ower0 the R)ssians were force*
into -rolon"e* retreat, Soldiers fo)n* that the were force* to -ic8
)- the rifles of fallen comra*es, The retreat itself le* to the
a+an*onment of consi*era+le stores to the enem, The *isasters in
Polan* an* the "eneral atmos-here of incom-etence shoo8 the faith
of the -eo-le in the re"ime, The Tsar *eci*e* in #$#1 to ta8e
comman* of the arm himself0 there+ ta8in" an )nnecessaril
*irect res-onsi+ilit for fail)res an* losses, Ministers *i* not ta8e
effective action0 an* there was constant friction +etween them an*
vario)s vol)ntar or"aniFations0 of in*)strialists an* others0 who
claime* that the "overnment was )na+le to or"aniFe the co)ntr for
war,
It is tr)e of co)rse that other co)ntries also s)ffere* "reatl from
ina+ilit to co-e with the m)nitions -ro+lems, One has onl to refer
to 9lo* !eor"eDs :ar Memoirs to see how ac)te the *iffic)lties
were in 6ritain, However0 6ritish in*)strial ca-acit an* trans-ort
facilities were0 in relation to the tas8 in han*0 "reatl s)-erior to the
R)ssiansD, 6ritain was also a+le to im-ort arms an* eE)i-ment from
the Unite* States, R)ssia was virt)all c)t off from her allies0 save
for *iffic)lt an* ro)n*a+o)t ro)tes0
22 .ar/ Re0olution and Re0olutionaries
nd also -ai* the -enalt for the )n*er*evelo-ment of her
en"ineerin" an* machiner in*)stries, .In #$#(0 14 -er cent of
R)ssiaDs in*)strial eE)i-ment was met + im-orts,
#
/ 6 switchin"
her en"ineerin" ca-acit almost wholl to the -ro*)ction of
armaments0 she *e-rive* herself of the means of maintainin" her
e@istin" in*)strial an* trans-ort eE)i-ment intact0 let alone e@>
-an*in" it, There were "rave shorta"es of s-are -arts, The alrea*
ina*eE)ate trans-ort networ8 +ecame increasin"l straine* as more
locomotives an* rollin" stoc8 went o)t of )se, Of co)rse0 attem-ts
were ma*e to reme* these *efects0 an* m)nitions -ro*)ction
+ecame consi*era+l more satisfactor + #$#%, Earl in #$#4 a
railwa line to the ice>free -ort of M)rmans8 was com-lete*0
ma8in" -ossi+le ear>ro)n* im-ortin" of :estern m)nitions, The
armDs eE)i-ment was im-rovin", However0 the a--allin" losses of
earlier ears ha* )n*ermine* morale in the arm0 an* the -o-)lation
in rear areas was not now in the moo* to +ear the sacrifices im-ose*
)-on it + the strain of war an* the chronic *iffic)lties of trans-ort,
St Peters+)r" was -artic)larl li8el to +e affecte* + shorta"es0
since it was far from the main foo*>-ro*)cin" areas an* also ha* to
im-ort its coal vast *istances + railI it ha* +een im-ortin" 6ritish
coal0 +)t this was c)t off + the war, It was in fact shorta"e of foo*
in St Peters+)r" which finall +ro8e the +ac8 of the R)ssian Em-ire,
The troo-s ref)se* to fire on a riotin" crow*0 an* Tsar*om
colla-se*, To sa this is far from a*o-tin" a -)rel economic
e@-lanation of the R)ssian revol)tion, Other -owers too s)ffere*
from *efeats an* from foo* shorta"es, R)ssia herself was in a m)ch
worse sit)ation in #$<(0 +oth from the stan*-oint of militar losses
an* of foo* s)--lies for rear areas0 than she ha* +een in #$#4, Th)s
it is a com+ination of s)ch factors with the -olitical *emoraliFation
of re"ime an* -eo-le0 an* social +rea8*own0 that swe-t awa the
Em-ire,
The Pro0isional #o0ernment
The Provisional "overnment face* an a--allin"l *iffic)lt tas8, In
the mi*st of war an* threatenin" economic colla-se an* social
anarch0 it ha* somehow to esta+lish itself as the le"itimate
The Pro0isional #o0ernment ,!
"overnment, For man reasons0 the *isc)ssion of which is +eon*
the sco-e of this +oo80 it cons-ic)o)sl faile* to *o this, It too8 a
n)m+er of sociall -ro"ressive meas)res0 the im-lementation of
which was ren*ere* e@tremel *iffic)lt + the circ)mstances of
the time, It a*o-te* -rotective la+o)r le"islation an* a--rove* or
tolerate* the esta+lishment of factor committees0 which were to
ma8e the o-eration of in*)str so *iffic)lt in s)+seE)ent months,
It even attem-te* to form)late -lans, Alrea* in #$#%0 the TsarDs
"overnment en*eavo)re* to com-el the -easants to sell "rain to
the state at state>fi@e* -rices .an* the -easantsD rel)ctance to
s)--l was a contri+)tor factor to the shorta"es that f)elle* the
riots that +ro8e the Em-ire/, The Provisional "overnment too
-rove* inca-a+le of enforcin" *eliveries at -rices it was -re-are*
to -a, It is interestin" to note that the elimination of -rivate
tra*e in "rain0 an* the +e"innin"s of com-)lsor *eliveries0
which man ima"ine to have +een initiate* + 9enin0 were +e")n
even +efore the fall of the Tsar,
(
The in*)strial sit)ation contin)e* to *eteriorate, There were
man ca)ses for this, There were the conseE)ences of -ast
failin"s in maintenance an* re-lacement an* the shorta"e of
s-ares, There was the c)m)lative effect of a cree-in" trans-ort
crisisI the railwas were +e"innin" to +rea8 *own0 an* the non>
arrival of essential f)el s)--lies a*versel affecte* all +ranches of
in*)str as well as the o-eration of the railwas themselves,
As an ac)te contem-orar o+server -)t it? DThe f)el an* raw
materials s)--l -osition contin)e* to *eteriorate0 an* this *i*
not lea* to a shar- an* shatterin" crisis onl +eca)se0 for other
reasons0 their )se was +ein" ra-i*l c)rtaile*,D
&
The same writer
+itterl assaile* Dthe self>ass)re* i"norance an* irres-onsi+ilitD
of ministers facin" the -ro+lems of "eneral colla-se0 tho)"h he
*i* not fail to note that one ca)se for this was the fact that D)n*er
the ol* re"ime R)ssia ha* +een *e-rive* of -olitical an* social
forms which co)l* re")late the relationshi-s of la+o)r an* ca-ital
on a mo*ern +asis, ,,, The wor8in" class ha* no or"aniFational
or -olitical e@-erience of res-onsi+le an* o-en activit,D
<
The
Soviets which were set )- alon"si*e the Provisional "overnment
showe* a lac8 of realism an* fear of res-onsi+ilit, The a)thorit
of the "overnment in all matters was increasin"l )n*ermine* not
!1 .ar/ Re0olution and Re0olutionaries
onl+ =+ the e@istence of the Soviets .more or less re-resentative
+o*ies of wor8ers an* sol*iers who share* a)thorit with or"ans
of "overnment/ +)t also + the *an"ero)s "rowth of se-aratist
an* a)tonomist ten*encies0 nota+l in the U8raine an* in
Transca)casia, Finall0 the increasin" militanc of the factor
committees was ma8in" it more an* more *iffic)lt for in*)strial
mana"ement to o-erate, Stri8es were freE)ent0 wor8ersD *eman*s
more an* more e@treme0 an* the voices of e@tremist -arties ever
lo)*er, Matters were not hel-e* + ra-i* inflation, Comm)nist
historians sometimes s-o8e of sa+ota"e + the in*)strialists0 an*
in*ee* 9enin *i* at the time, However0 9enin also *eno)nce*
Dca-italist ministersD0 an* it seems )nli8el that more than a
han*f)l of +)sinessmen conscio)sl trie* to ma8e the wor8 of the
econom an* of the "overnment im-ossi+le, 6)t the certainl
*i* react a*versel to what a--eare* to them to +e )nreasona+le
-ress)re from the factor committees0 an* there were man
loc8o)ts as well as stri8es,
There was also increasin" conf)sion in the villa"es, The -eas>
ants resente* havin" to s)--l the "overnment with -ro*)ce for
which the were -ai* in ra-i*l *e-reciatin" ro)+les, 6)t more
f)n*amental was the *eman*0 even more lo)*l voice*0 for the
*istri+)tion of the lan*lor*sD lan*, In -rinci-le the mo*erate
socialist -arties which *ominate* the "overnment were in favo)r
of this t-e of lan* reform, However0 the whole E)estion was
-artic)larl e@-losive +eca)se the arm was lar"el com-ose* of
-easants0 an* to raise the iss)e of lan* rea--ortionment in the
mi*st of a war was to ris8 mass *esertionI the troo-s wo)l* "o
home to ens)re that the an* their families "ot their *)e, This
was an im-ortant reason for the fail)re of the Provisional "overn>
ment to enact an swift lan* reform meas)res0 even tho)"h the
were -erfectl well aware of the *an"er of not *oin" so, A secon*
reason for *ela was the a--allin" com-le@it of an s)ch lan*
reform meas)res, The maCorit of the "overnment wishe* them
Dto +e -ro-erl -re-are* an* carrie* o)t in an or*erl manner0
an* there was + no means an a"reement a+o)t the E)estion of
com-ensation for the lan*lor*s or the -rinci-les of rea--ortion>
ment .see +elow/, It was finall *eci*e* to -)t a *ecision off )ntil
the s)mmonin" of a constit)ent assem+l, However0 s-ontaneo)s
The "deas of the 2olshe0i3s and 4enshe0i3s ,*
lan* seiF)res were alrea* occ)rrin" on an increasin" scale in the
s)mmer of #$#40 e""e* on + the militant DleftD Socialist Revol)>
tionaries as well as the 6olshevi8s,
6oth in the towns an* in the villa"es the sit)ation was a--roach>
in" chaos even witho)t the hel- of 9enin an* the 6olshevi8s, Of
co)rse0 the trie* to ma8e matters worse0 since the were )ncon>
cerne* with an or*erl lan* settlement0 in*)strial -ro*)ction or
the militar sit)ation, The so)"ht to rea- the whirlwin*, The
contri+)te* to the +rea8*own +)t *i* not ca)se it, The a)thorit
of the "overnment ha* virt)all colla-se* for some wee8s +efore
the 6olshevi8s seiFe* the :inter Palace with a relativel insi"nifi>
cant "ro)- of ill>arme* Re* !)ar*s, !al+raith has sai* that the
man who +rea8s thro)"h a rottin" *oor acE)ires an )nC)stifie*
re-)tation for violenceI some cre*it sho)l* +e "iven to the *oor,
The fact that the 6olshevi8s too8 char"e of a *isinte"ratin"
societ +eca)se it was *isinte"ratin" is a fact of "reat im-ortance0
which m)st +e +orne in min* in analsin" their s)+seE)ent
actions,
'he Ideas o1 the /olshevi0s and 2enshevi0s
On 4 Novem+er #$#4 9enin anno)nce* that the wo)l* now set
a+o)t +)il*in" the socialist societ, 6efore en*eavo)rin" to ana>
lse the events that followe*0 which form the essential s)+Cect
matter of the +oo80 it is necessar to consi*er the economic i*eas
of the 6olshevi8s as the ha* *evelo-e* )- to the seiF)re of
-ower0 an* to contrast them with those of their -rinci-al rivals,
The +o* of i*eas which came later to +e calle* 9eninism ma
+e *escri+e* as Mar@ism a*a-te* to the -olitical an* economic
sit)ation of a relativel +ac8war* co)ntr0 with em-hasis on the
Dvol)ntaristD as-ect of Mar@Ds *octrines, Mar@0 it will +e recalle*0
wrote his wor8s in :estern E)ro-eI his i*eas were in the main
relate* to his e@-eriences in En"lan*, He was -rimaril concerne*
with how the increasin" concentration of ca-ital in the lea*in"
ca-italist states wo)l* +rin" a+o)t ever>"rowin" contrasts +etween
the small "ro)- of mono-olists who owne* the instr)ments of
-ro*)ction an* -roletarian masses into whose ran8s wo)l* +e
,% .ar/ Re0olution and Re0olutionaries
-resse* *is-ossesse* -easants an* the -ett +o)r"eoisie, This
wo)l* facilitate the ta8eover of -ower an* hol*in" it on +ehalf of
the +)l8 of the -eo-le0 while e@ercisin" coercion a"ainst the tin
"ro)- of e@-loiters an* their retainers .Dthe *ictatorshi- of the
-roletariatD/, The correctness or otherwise of the analsis of
mono-ol ca-italism is not a matter for *isc)ssion here, The
-oint is that 9enin an* other R)ssian Mar@ists at the t)rn of the
cent)r ha* the tas8 of reconcilin" this *octrine with the realit
of R)ssia, It is tr)e that Mar@ wrote also of the DAsian mo*eD of
-ro*)ction an* note* the relationshi- +etween oriental *es-ot>
isms an* control over water0 a -oint *evelo-e* more recentl +
:ittfo"el in his conce-t of a Dh*ra)lic societD, It is also tr)e
that Mar@ *i* react E)ite s-ecificall to a E)estion -)t to him +
the R)ssian revol)tionar =era ;as)lich, This arose in the co)rse
of *e+ates in R)ssia itself concernin" a -ossi+le s-ecificall
R)ssian roa* to socialism, Mi"ht there not +e a wa of avoi*in"
the ca-italist roa* + )tiliFin" the -rimitive>socialist -otentialities
of the -easant comm)nesG S)ch a E)estion m)st +e seen in the
conte@t of the Slavo-hil *octrines0 their i*ea of a -ec)liarl
R)ssian e@-erience an* worl* view0 whose -ro-onents were in
the main hostile to ca-italism an* to its merchant i*eolo", , Mar@
ha* a "oo* *eal of tro)+le in *evisin" an a*eE)ate answer to
;as)lich0 as is witnesse* + the e@istence of reCecte* variants of
this letter, Finall he re-lie* alon" the followin" lines, The
e@-ro-riation of the -easants which ha* alrea* ta8en -lace in
En"lan* wo)l* also ta8e -lace in other co)ntries of :estern
E)ro-e, 6)t the reasons that ren*ere* this inevita+le were con>
fine* to :estern E)ro-e, In the :est Done 8in* of -rivate
-ro-ert is t)rne* into another 8in* of -rivate -ro-ert, In the
case of the R)ssian -easants0 however0 it wo)l* +e necessar on
the contrar to convert their comm)nal -ro-ert into -rivate
-ro-ert,D He went on to state that his analsis *i* not "ive an
"ro)n*s or ar")ments either for or a"ainst the R)ssian comm)nal
form, However0 he came to the concl)sion that Dthis o"shchina is
the +asis of the social re+irth of R)ssia0 +)t it wo)l* onl
f)nction as s)ch if it wo)l* +e -ossi+le to remove the *isinte"rat>
in" infl)ences to which it is now s)+Cect on all si*es0 an* then to
ens)re for it the normal con*itions of free "rowthD,
1
The "deas of the 2olshe0i3s and 4enshe0i3s ,5
This re-l -rove* so em+arrassin" to R)ssian Mar@ists of all
h)es that it was not -)+lishe* )ntil #$(<, In fact the were
*istin")ishe* from the non>Mar@ist -o-)lists0 an* from the later
Socialist Revol)tionar -art0 -recisel + their +elief that ca-ital>
ist *evelo-ment in R)ssia ha* +ecome *ecisivel esta+lishe* an*
that the 8in* of short c)t via -easant socialism im-lie* + Mar@Ds
letter was im-ractica+le, 9eninDs first maCor wor80 DThe 3evelo->
ment of Ca-italism in R)ssiaD .#'$%>$/0 *evote* m)ch ener" an*
an arra of statistics to -rovin" that even amon" the -easants
commercial ca-italism was ma8in" ra-i* hea*wa, 9eninDs more
mo*erate rivals0 the Menshevi8s .as the were 8nown from #$5&/0
were C)st as convince* that ca-italism wo)l* *evelo- in R)ssia,
!iven these ass)m-tions0 there were still at least two -ossi+le
lines of Mar@ist tho)"ht, One0 es-o)se* + most of the Men>
shevi8s0 +ase* itself on the evol)tionar as-ects of Mar@ist
*octrine, If socialism was to "row o)t of a*vance* ca-italism0 then
evi*entl R)ssia was not an* wo)l* not for a lon" time +e ri-e for
socialism, The Tsarist re"ime was a -re>ca-italist an* semi>fe)*al
sstem of o--ression, The sit)ation was ri-e for a +o)r"eois>
*emocratic revol)tion *esi"ne* to overthrow Tsarism, To this
e@tent the Menshevi8s were in*ee* revol)tionaries, 6)t what
wo)l* ha--en when Tsarism was overthrownG The Menshevi8s
saw themselves as the social *emocratic o--osition in a
+o)r"eois>*emocratic re-)+lic, Martov0 their lea*er0 co)l* claim
that the were in line with what Mar@ ha* recommen*e* in
!erman in #'150 when that co)ntr too was )n*er*evelo-e*,D
Social chan"e wo)l* in *)e co)rse create the con*itions for
socialism, This -rocess wo)l* involve in*)strialiFation )n*er
ca-italist a)s-ices, The0 li8e the 6olshevi8s0 ha* little s)--ort
an* few s)--orters in the villa"es0 an* so ha* little ho-e of a
-arliamentar maCorit in a co)ntr in which0 if their o+Cective of
)niversal s)ffra"e were to +e achieve*0 the vast maCorit of the
electorate wo)l* +e -easants,
The 6olshevi8 -osition +efore the revol)tion was *istin")ishe*
from that of the Menshevi8s + to)"her lan")a"e an* an em-hasis
on ti"htl>8nit or"aniFation of -rofessional revol)tionaries, It was
also the case that 9enin saw more clearl the revol)tionar
-otential of the -easants, To *o this he ha* to some e@tent to "o
,& .ar' Re0olution and Re0olutionaries
outside die esta+lishe* Mar@ist tra*ition, Ortho*o@ at the t)rn
of the cent)r was e@em-lifie* + the ar")ment of the !erman
theoretician0 7arl 7a)ts8, Followin" Mar@0 7a)ts8 ha* envis>
a"e* a "ra*)al e@-ro-riation of the !erman -easants + Ca-ital,
He was also a firm +eliever0 as was Mar@0 in the technical
s)-eriorit of lar"e>scale a"ric)lt)ral enter-rise, Therefore +oth
on technical "ro)n*s0 an* +eca)se the -roletarianiFation of the
-easants was a ste- in the *irection of the )ltimate socialist
ta8eover0 7a)ts8 o--ose* the a*o-tion of a -ro"ramme of
s)--ort for the interests of the small -easants, If the were
*oome* + histor0 an* if this was a -ro"ressive ste- in terms of
the historical evol)tion of societ0 what +)siness ha* the social
*emocrats to *ela this inevita+le an* -ro"ressive evol)tionG .Not
ver s)r-risin"l0 the social *emocrats never won m)ch s)--ort
in r)ral areas in !erman,/ The a*o-tion of s)ch a -olic in an
overwhelmin"l -easant co)ntr s)ch as R)ssia was tantamo)nt
to -olitical s)ici*e, A sense of -olitical self>-reservation therefore
incline* all sha*es of Mar@ian o-inion to ta8e a line favo)ra+le to
-easant *eman*s0 in -artic)lar over the e@-ro-riation of the
lan*lor*s, 6)t 9enin also came to see the -ossi+ilities of a seiF)re
of -ower on the +asis of a -easant as well as a wor8in">class
revol)tion0 in a co)ntr )nri-e for socialism0 et with a wea8 an*
Dcowar*lD +o)r"eoisie, He s-o8e in #$51 of Dthe *emocratic
*ictatorshi- of the -roletariat an* the -easantrD, It was far from
clear what this wo)l* mean in terms of -ractical -olitics0 an* at
this -erio* 9enin was )n*er no com-)lsion to *emonstrate the
-ractica+ilit of his i*eas, However0 it *i* show that he was "oin"
+eon* the Menshevi8 conce-tion of a +o)r"eois>*emocratic
re-)+lic in which the ca-italists wo)l* -res)ma+l s)--l the
"overnment -arties, He was concerne* a+ove all with the -ro+lem
of -ower0 an* showe* himself willin" to a*o-t an* a*a-t -olicies
accor*in" to the nee*s of the tactical sit)ation0 so as to manoe)vre
into the -osition of +ein" a+le to seiFe -ower when o--ort)nit
-resente* itself, In a -easant co)ntr with massive *iscontent0
the attit)*e of a -art to the -easant E)estion wo)l* nat)rall
-re*etermine m)ch of its -olitical efficac, Once -ower was
seiFe*0 the -ro+lem of the -easants wo)l* loom ver lar"e .an* as
we shall see it *i* loom ver lar"e in*ee* in the economic an*
The "deas of the 2olshe0i3s and 4enshe0i3s ,
-olitical histor of the Soviet Union/, 9enin was well aware of
this, He saw that while the -easants as a whole were li8el to +e a
revol)tionar force so lon" as lan* was to +e o+taine* from the
lan*lor*s0 at least the +etter>off -easants wo)l* t)rn conservative
once this aim was achieve*, He -inne* his ho-es on the increasin"
an* *ee-enin" *ifferentiation amon" the -easants, The maCorit
of the -oorer -easants0 he hel*0 wo)l* remain in alliance with a
wor8in">class "overnment an* -erha-s colla+orate in a f)t)re
socialist transformation of societ,
There is in*ee* m)ch more that co)l* +e sai* a+o)t 9eninDs
attit)*e to the -easants0 es-eciall as this )n*erwent chan"es in
*etail as circ)mstances altere*, 6)t *es-ite tactical manoe)vrin"
he consistentl hel* to the +asic strate" of )sin" the revol)tionar
-otential of the -easant lan*>h)n"er as an inte"ral -art of the
socialist ta8eover, In a s-eech which he ma*e a few wee8s after
9eninDs *eath in #$(<0 ;inoviev0 for ears his close associate0 -)t
this first amon" 9eninDs contri+)tions to revol)tionar theor
an* -ractice, DThis was his attit)*e to the -easants, Pro+a+l this
was the "reatest *iscover of =la*imir Ilich? the )nion of the
wor8ersD revol)tion with the -easant war,D In the same s-eech he
ma*e the -oint a"ain, DThe E)estion of the role of the -easantr0
as I have alrea* sai*0 is the +asic iss)e of 6olshevism0 9enin>
ism,D
4
9enin th)s *evelo-e* the conce-t of a seiF)re of -ower + a
conscio)s socialist minorit with the hel- of non>socialist elements
in a co)ntr where ca-italism was )nevenl *evelo-e*, It was
wron" in this view to await the ri-enin" of the social an*
economic sit)ationI this chan"e wo)l* therefore have to +e
achieve* after the seiF)re of -ower, 9enin )n*erstoo* that s)ch a
transformation after a s)ccessf)l revol)tion wo)l* +e an e@cee*>
in"l *iffic)lt one, However0 he ho-e* that R)ssia wo)l* -rove
to +e the wea8 lin8 in the )nevenl *evelo-in" "ro)- of im-erialist
states0 that a revol)tion in R)ssia wo)l* +e the first sta"e of a
worl* revol)tion0 an* that the more a*vance* co)ntries of :est>
ern E)ro-e wo)l* hel- in the colossal tas8 of the +)il*in" of
socialism, Trots8 ha* evolve* .in his Res%lts and Pros#ects,
-)+lishe* in #$5%/ a theor of so>calle* D-ermanent revol)tionD0
in which a revol)tion ori"inall +o)r"eois>*emocratic is -)she*
!- .ar/ Re0olution and Re0olutionaries
irresisti+l in a socialist *irection + a wor8in" class )nwillin" to
+e satisfie* with +o)r"eois r)le, He afterwar*s ar")e* that 9enin
ha* + #$#4 come to share Trots8Ds view0 which he ha* earlier
reCecte*, .:hile Trots8 came to acce-t 9eninDs view of the
-art0 which he -revio)sl ha* criticiFe*,/ 9enin now asserte*
that it was the *)t of revol)tionar socialists to set the e@am-le
to the la""ar* -roletarians of the more a*vance* co)ntries0 an*
not to wait -assivel or merel to act as the left win" of a
+o)r"eois>*emocratic revol)tion, The ho-es for a worl* revol)>
tion nat)rall receive* a -owerf)l im-et)s *)rin" the First
:orl* :ar0 whose revol)tionar -otentialities were "reatl
stresse* + 9enin0 even while he *eno)nce* the Dsocial -atriotismD
of the +)l8 of E)ro-ean social *emocrac which0 incl)*in" a
lar"e -ortion of the Menshevi8s .an* some 6olshevi8s too/0
+ac8e* their own "overnments, 9enin *ie* +efore he was com>
-elle* to face the immense an* *a)ntin" tas8 of chan"in" +ac8>
war* R)ssia in isolation from the a*vance* :est E)ro-ean
co)ntries0 on whose s)--ort he ha* *o)+tless co)nte*, The
Menshevi8s hel* that a seiF)re of -ower on +ehalf of a -roletarian
-art with socialist o+Cectives was -remat)re )n*er R)ssian
con*itions an* that it wo)l* lea* to *e-lora+le conseE)ences,
Man of them were )neas a+o)t 9eninDs a"ric)lt)ral views,
The saw man *an"ers an* little socialism in the 8in* of
elemental -easant risin"s to which 9enin a--eare* to +e -innin"
his ho-es,
The Menshevi8s none the less also a*vocate* a -ro"ramme
*esi"ne* to win -easant s)--ort, Consi*erin" that nationaliFation
of the lan* wo)l* +e an )n-o-)lar slo"an0 the a*vocate* so>
calle* m)nici-aliFation0 i,e, control of the lan* + local electe*
a)thorities0 which in r)ral areas wo)l* +e -easant a)thorities,
The ho-e* also + this means to enco)ra"e the -easants to wor8
to"ether0 to avoi* in*ivi*)alist fra"mentation0 even while the
-easant lan*>h)n"er wo)l* +e ass)a"e*, There were *ifferences
of o-inion amon" the 6olshevi8s in the ears +efore #$#4 on the
*iffic)lt s)+Cect of C)st what to -)t into the -art -ro"ramme
concernin" the lan*, In the en* the *eci*e* to a*vocate national>
iFation0 claimin" with tr)th that the -rinci-al -easant -art also
acce-te* this,
The SRs and 6enin's Peasant Policy of 115 !1
'he +(s and 3enin4s *easant *olic- o1 1917
This -art was the Socialist Revol)tionaries0 which everone
referre* to as the SRs,
This once "reat -art0 which contin)e* the Naro*ni8 .Po-)list/
tra*ition0 has now +een almost for"otten, Its -easant -olic was
*ee-l infl)ence* + a non>Mar@ist socialist conce-tion of -easant
*emocrac0 with stron" tra*itionalist e"alitarian overtones, It
*eclare* itself for eE)al *istri+)tion of the lan* an* therefore
o--ose* the Stol-in Dwa"er on the stron"D, The SRs favo)re* the
e@-ro-riation of the lan*lor*s, The favo)re* social ownershi- of
the lan*I it was to +e at the *is-osal of those who c)ltivate* it,
Moreover0 the SR -ro"ramme of #$5% was on recor* as a*vocatin"
the -rohi+ition of the -)rchase or sale of lan*, S)ch an o)tloo8 in a
-easant -art on the morrow of the Stol-in reform0 with
commercial relations "rowin" in the villa"es0 virt)all ")arantee*
-olitical -aralsis an* s-lits within the -art, In #$#4 the ri"ht win"
of the -art lea*ershi- -artici-ate* in the Provisional "overnment
an* *isco)ra"e* ille"al -easant seiF)res of lan*, It seeme* more
than li8el that0 "iven time0 this win" of the -art wo)l* i*entif
itself with the +etter>off -easants0 an* scra- or -)t into col* stora"e
the anti>commercial an* e"alitarian -rinci-les of their own
-ro"ramme, These -rinci-les wo)l* *eman* the re*istri+)tion of the
lan* of those -easants who ha* +enefite* from the Stol-in reform,
The more -ros-ero)s an* the more efficient -easants were +o)n* to
o--ose s)ch a -olic, 6 contrast the SR left win" s)--orte* *irect
action an* for a while -artici-ate* in the 6olshevi8 "overnment,
S)ch was the stren"th of tra*itional SR i*eolo" that a -easant
con"ress hel* in A)")st #$#40 still *ominate* + the SRs0 a*o-te*
-olic resol)tions .D(<( man*atesD/ which incl)*e* s)ch -rovisions
as nationaliFation .Dlan* +elon"s to the -eo-leD/0 the -rohi+ition of
+)in" an* sellin" of lan*0 its eE)al *istri+)tion an* the o)tlawin"
of the em-loment of hire* la+o)r, The therefore stoo* for -easant
famil smallhol*in"s0 an* for -erio*ic re*istri+)tion of the lan* in
or*er that its allocation to families sho)l* conform to some
-rinci-le, It was not clear whether this -rinci-le was to +e
!, .ar/ Re0olution and Re0olutionaries
the n)m+er of mo)ths to fee* or the n)m+er of a+le>+o*ie* -ersons
ca-a+le of wor8in" the lan*, It was certain that the ri"ht win" of the
SRs wo)l* *o their )tmost to -revent a -olic of this 8in* from
+ein" im-lemente*, Eminent e@-erts > men li8e Cha>anov0
Chelintsev0 7on*ratiev > were evolvin" *octrines +ase* on -easant
-ro-rietors, Some SRs were +o)n* to +ac8 these i*eas0 which were
in*ee* +ein" e@-resse* in other -arties which e@iste* at the time?
the Tr%dovi1i, the Po-)list Socialists0 Coo-erators0 etc,
9enin in #$#4 consistentl -)rs)e* one overri*in" aim? the
seiF)re of -ower, His -ro"ramme varie* with the tactical sit)ation0
an* his -easant -ro"ramme varie* too, In his famo)s A-ril #$#4
DthesesD0 -)+lishe* soon after his ret)rn to R)ssia0 there was a -lain
reference to the s)-eriorit of lar"e>scale a"ric)lt)re0 an* to the
nee* to convert efficient -rivate estates into lar"e an* -ro*)ctive
.state/ mo*el farms, 9enin also wrote scathin"l of the D-ett
+o)r"eois ill)sionsD of the SRs0 of the Dhel-less0 )nwittin"l naive
wishf)l thin8in" of *own>tro**en -ett -ro-rietorsD0 which showe*
itself in the -ro-ose* +an on wa"e>la+o)r,
'
6)t Dit is not eno)"h to
e@-ose theoreticall the -ett +o)r"eois ill)sions of socialiFation of
the lan*0 eE)aliFe* lan* ten)re0 a +an on wa"e>la+o)r0 etcD The line
sho)l* +e? Dthe SRs have +etrae* the -easants, The re-resent a
minorit of well>to>*o farmers ,,, Onl the revol)tionar -roletariat0
onl the van")ar* that )nites it0 the 6olshevi8 Part0 can act)all
carr o)t the -ro"ramme of the -easant -oor which is -)t forwar*
+ the (<( man*atesD .the -ro"ramme a*o-te* + the -easant
conference mentione* a+ove/, At the same time 9enin also foresaw
the s-lit amon" the -easants themselves an* was lain" lon">term
-lans to )se it for his own -)r-oses, Th)s on 4 an* ' 2)l #$#4 one
sees him a*vocatin" an A"ric)lt)ral 9a+o)rers Union0 which wo)l*
+e Dthe in*e-en*ent class or"aniFation of the r)ral wor8ersD, He too8
the o--ort)nit to remin* his rea*ers of the #$5% resol)tion of the
-art at its fo)rth con"ress0 which s-o8e of Dthe irreconcila+le
antithesis +etween its interests an* the interests of the -easant
+o)r"eoisieD an* which went on Dto warn it a"ainst ill)sions a+o)t the
smallhol*in" sstem0 which can never as lon" as commo*it
-ro*)ction e@ists *o awa with the -overt of the massesD,
$
"ndustry' Finance' Trade/ Plannin) !!
However0 + the a)t)mn of #$#4 it seeme* tacticall sensi+le
to a*o-t the SR>ins-ire* -ro"ramme which ha* +een a*o-te* +
the -easant con"ress in that month, This wo)l* re-resent a most
-otent +i* for mass s)--ort amon" the -easants0 an* have the
f)rther a*vanta"e of wi*enin" the s-lit in the SR -art,
Therefore the 6olshevi8sD a"ric)lt)ral an* -easant -ro"ramme
was a masterl tactical im-rovisation0 on an ori"inal 9eninist
theme0 an* containe* from the first the see*s of the f)t)re
conflict with the -easantr,
"ndustry/ Finance/ Trade/ Plannin)
Soviet writers in*i"nantl *enie* :estern alle"ations that 9enin
ha* no i*ea what to *o after seiFin" -ower0 that he ha* to ma8e it
)- as he went alon", The evi*ence on the s)+Cect is somewhat
mi@e*, 6efore #$#4 9enin ha* ma*e some contri+)tions to
economic tho)"ht? he ha* in his earl wor8 analse* social>
economic statistics an* e@-resse* stron" views in the D3evelo->
ment of Ca-italism in R)ssiaD, However0 his writin"s were not
*istin")ishe* + an attem-ts to *efine C)st how a socialist
in*)str co)l* or sho)l* +e r)n, Nor is this s)r-risin", Neither
was Mar@ "iven to *rawin" +l)e-rints of a socialist f)t)re0 an*
-rior to the war R)ssian socialists co)l* not realisticall envisa"e
the sort of sit)ation in which the co)l* have -ower to act,
9enin0 of co)rse0 ha* views a+o)t tactics0 a+o)t the f)nction of
wor8ersD imme*iate *eman*s in relation to the revol)tionar aims
of a hi"hl *isci-line* -art or"aniFation, It was not )ntil #$#40
on his ret)rn to R)ssia thro)"h !erman in the famo)s seale*
train0 that we fin* 9eninDs i*eas on in*)str an* -lannin" ta8in"
some sort of sha-e, 6)t the sha-e was *ecisivel affecte* + the
ever*a e@i"encies of the str)""le to "ain -ower, M)ch of what
he sai* an* wrote rea*s li8e the -)rest *ema"o",
Ma8e the -rofits of the ca-italists -)+lic0 arrest fift or a h)n*re* of the
+i""est millionaires, 2)st 8ee- them in c)sto* for a few wee8s ,,, for
the sim-le -)r-ose of ma8in" them reveal the hi**en s-rin"s0 the
fra)*)lent -ractices0 *ie filth an* "ree* which even )n*er,the new
H4 -r, )e:olution nd )e:olutionries
$o:ern"ent re costin" o)r co)ntr tho)san*s an* millions ever *a,
That is the chief ca)se of o)r anarch an* r)inH
Th)s he s-o8e to the first con"ress of Soviets in 2)ne #$#4,D N In a
similar s-irit he ret)rns a"ain an* a"ain to Dwor8ersD controlD0 +)t the
R)ssian wor* 1ontroT means not a ta8eover +)t ins-ection an*
chec8in" .li8e the French controle des "illets5, an* his em-hasis was
on the -revention of sa+ota"e an* fra)* + the ca-italists, Yet now
an* a"ain 8ontroF sha*es into control0 *evelo-in" into com-lete
re")lation of -ro*)ction an* *istri+)tion + the wor8ers0 into the
Dnation>wi*e or"aniFationD of the e@chan"e of "rain for man)fact)re*
"oo*s0 etc,K 6)t how this was to ha--en was left )n*efine*, 9enin
*enie* sn*icalism? DNothin" li8e the ri*ic)lo)s transfer of the
railwas to the railwamen0 or the tanneries to the tanners,D
#(
The
c)re>all was to +e Dall -ower to the SovietsD0 tho)"h how .or
whether/ the are to o-erate railwas an* tanneries is not state*,
In the same month of 2)ne #$#4 he was writin"? DEverone a"rees
that the imme*iate intro*)ction of socialism in R)ssia is
im-ossi+le,K
&
Perha-s the most com-le@ D-ro"rammeD of the months
+efore the seiF)re of -ower ma +e fo)n* in 9eninDs DThe Im-en*in"
Catastro-he an* How to Com+at ItD0 -)+lishe* as a -am-hlet at the
en* of Octo+er #$#4 an* written a month earlier, Ifc +e"ins
*ramaticall with the wor*s DUnavoi*a+le catastro-he is threatenin"
R)ssiaD, The railwas were +rea8in" *own0 famine was threatenin"0
the ca-italists were sa+ota"in"I the followin" meas)res sho)l* +e
ta8en0 he *eclare*?
.#/ CentraliFation an* nationaliFation of +an8in",
.(/ The nationaliFation of the Dsn*icatesD0 i,e, of the main
ca-italist associations .for s)"ar0 oil0 iron0 coal0 etc,/,
15 A+olition of commercial secrec,
16 Com-)lsor Dsn*icaliFationD of in*)str0 i,e, that in*e-en*ent
firms sho)l* form -art of sn*icates,
.1/ Com-)lsor mem+ershi- of cons)mer coo-eratives0 this
meas)re +ein" relate* to the strict enforcement of wartime ration
in" re")lations .rationin" havin" +een intro*)ce* in cities in
1914%.
He e@-laine* what he meant + nationaliFation of sn*icates?
In*)str0 Finance0 Tra*e0 Plannin" &1
DTransform reactionar +)rea)cratic re")lation Oi,e, + the Provi>
sional "overnmentP into revol)tionar *emocratic re")lation of
sim-le *ecrees -rovi*in" for the s)mmonin" of a con"ress of
em-loees0 en"ineers0 *irectors an* sharehol*ers0 the intro*)ction of
)niform acco)ntanc0 control O8ontroPP + the wor8ersD )nions0
etc,K
<
This so)n*s as if he ha* in min* effective control over the
sn*icates rather than e@-ro-riation of ca-italists an* nationaliFation
of the act)al firms, 6)t -erha-s this was sim-l his view of what
o)"ht imme*iatel to +e *one0 an* not a -ro"ramme for the -art,
This was a time when some of 9eninDs tho)"hts were somewhat
Uto-ian, Th)s in DState an* Revol)tionD we can rea*?
:e0 the wor8ers0 shall or"aniFe in*)strial -ro*)ction on the +asis of
what ca-italism has alrea* create* ,,, :e shall re*)ce the role of state
officials to that of sim-l carrin" o)t instr)ctions as res-onsi+le0
revoca+le0 mo*estl -ai* Dforemen an* acco)ntantsD .of co)rse with the
ai* of technicians of all sorts/ ,,, The f)nction of control an* acco)nt>
anc0 +ecomin" more an* more sim-le0 will +e -erforme* + each in
t)rn0 will +ecome a ha+it an* will finall *ie o)t as the s#ecial f)nction
of a s-ecial section of the -o-)lation ,,, To or"aniFe the hole econom
on the lines of the -ostal service so that technicians0 foremen an*
acco)ntants0 as well as all officials0 shall receive salaries no hi"her than
wor8ersD wa"es0 all )n*er the lea*ershi- of the arme* -roletariat0 that is
o)r imme*iate aim,K
9enin was "reatl im-resse* with the !erman war econom, He
tho)"ht that the concentration of state>ca-italist -ower "ave rise to
-ossi+ilities of *irect socialist ta8eover of the levels of economic
-ower, One fin*s this e@-resse* with -artic)lar clarit in DCan the
6olshevi8s Retain State PowerGD0 also written on the eve of the
revol)tion, It is worth E)otin" from this at some len"th?
This +rin"s )s to another as-ect of the E)estion of the state a--arat)s,
In a**ition to the chiefl Do--ressiveD a--arat)s > the stan*in" arm0
the -olice an* the +)rea)crac > the mo*ern state -ossesses an a--arat)s
which has e@tremel close connections with the +an8s an* sn*icates0
an a--arat)s which -erforms an enormo)s amo)nt of acco)ntin" an*
!% .ar/ Re0olution and Re0olutionaries
re"istration wor80 if it ma +e e@-resse* this wa, This a--arat)s m)st
not0 an* sho)l* not0 +e smashe*, It m)st +e wreste* from the control of
the ca-italistsI the ca-italists an* the wires the -)ll m)st +e c%t off,
lo##ed off, cho##ed aay from this a--arat)sI it m)st +e s%"ordinated to
the -roletarian SovietsI it m)st +e e@-an*e*0 ma*e more com-rehensive0
an* nation>wi*e, An* this can +e *one + )tiliFin" the achievements
alrea* ma*e + lar"e>scale ca-italism .in the same wa as the -roletarian
revol)tion can0 in "eneral0 reach its "oal onl + )tiliFin" these achieve>
ments/,
Ca-italism has create* an acco)ntin" a##arat%s in the sha-e of the
+an8s0 sn*icates0 -ostal service0 cons)mersD societies0 an* office em-lo>
eesD )nions, Witho%t "ig "an1s socialism o%ld "e im#ossi"le-
The +i" +an8s are the state a--arat)s which we need to +rin"
a+o)t socialism0 an* which we ta1e ready!made from ca-italismI o)r
tas8 here is merel to lo# off hat ca#italistically m%tilates this e@cel>
lent a--arat)s0 to ma8e it even "igger, even more *emocratic0 even
more com-rehensive, J)antit will +e transforme* into E)alit, A
sin"le State 6an80 the +i""est of the +i"0 with +ranches in ever r)ral
*istrict0 in ever factor0 will constit)te as m)ch as nine>tenths of the
socialist a--arat)s, This will +e co)ntr>wi*e "oo1!1ee#ing, co)ntr>
wi*e acco%nting of the -ro*)ction an* *istri+)tion of "oo*s0 this will
+e so to s-ea80 somethin" in the nat)re of the s1eleton of socialist
societ,
:e can lay hold of and set in motion this state a##arat%s .which is not
f)ll a state a--arat)s )n*er ca-italism0 +)t which will +e so with )s0
)n*er socialism/ at one stro8e0 + a sin"le *ecree0 +eca)se the act)al
wor8 of +oo8>8ee-in"0 control0 re"isterin"0 acco)ntin" an* co)ntin" is
-erforme* + em#loyees, the maCorit of whom themselves lea* a -roletar>
ian or semi>-roletarian e@istence,
6 a sin"le *ecree of the -roletarian "overnment these em-loees can
an* m)st +e transferre* to the stat)s of state em-loees0 in the same
wa as the watch*o"s of ca-italism0 li8e 6rian* an* other +o)r"eois
ministers0 + a sin"le *ecree transfer railwamen on stri8e to the stat)s
of state em-loees, :e shall nee* man more state em-loees of this
8in*0 an* more can +e o+taine*0 +eca)se ca-italism has sim-lifie* the
wor8 of acco)ntin" an* control0 has re*)ce* it to a com-arativel sim-le
sstem of "oo1!1ee#ing, which an literate -erson can *o, OEm-hases are
9eninDs thro)"ho)t,P
"ndustry/ Finance/ Trade/ Plannin) !5
This is followe* + the o**l am+i")o)s statement? DThe
im-ortant thin" will not +e even the confiscation of the ca-italistsD
-ro-ert0 +)t co)ntr>wi*e0 all>em+racin" wor8ersD control O8on>
troP a"ainP over the ca-italists an* their -ossi+le s)--orters,
Confiscation alone lea*s nowhere0 as it *oes not contain the element
of or"aniFation0 of acco)ntin" for -ro-er *istri+)tion, Instea* of
confiscation0 we co)l* easil im-ose a- fair ta@ ,,,D He "oes on to
insist that the rich sho)l* wor80 that it wo)l* +e ri"ht to -)t -oor
an* homeless families into their ho)ses,
#%
Still in Octo+er #$#4 9enin wrote of the revision of the -art
-ro"ramme, Here we fin* him criticiFin" 6)8harin0 a o)n" an*
a+le collea")e who ha* st)*ie* economics in =ienna an* who will
fi")re -rominentl in the cha-ters that follow, 6)8harin in #$#4>(5
was one of those who s)""este* an e@tremel ra*ical line of instant
socialism, 9enin was more ca)tio)s, Tr)e0 Dwe are not at all afrai* of
ste--in" +eon* the +o)n*s of the +o)r"eois sstemI on the
contrar we *eclare E)ite clearl0 *efinitel an* o-enl that we shall
march towar*s socialism0 that o)r roa* will +e thro)"h a Soviet
Re-)+lic0 thro)"h nationaliFation of +an8s an* sn*icates0 thro)"h
wor8ersD control0 thro)"h )niversal la+o)r conscri-tion0 thro)"h
nationaliFation of the lan* ,,,D 6)t later0 De@-erience will tell )s a lot
more ,,, NationaliFe +an8s an* sn*icates ,,, and then e shall see
ni
.his em-hasis/,
9enin *i*0 however0 s-ea8 of Dnot +ein" a+le to nationaliFe -ett
enter-rises with one or two hire* la+o)rersD, The im-lication wo)l*
seem to +e nationaliFation of lar"er ones, However0 this was not
s-elle* o)t,
3o++0 in his ver f)ll s)rve of R)ssian *evelo-ment -)+lishe*
in #$($0 ri"htl em-hasiFe* that economic -olic at this sta"e was
s)+or*inate* to the -olitical o+Cectives? to +rea8 the -ower of the
+o)r"eoisie0 to seiFe the state machine0 to ta8e over the levers of
economic -ower, 3etails were left for s)+seE)ent im-rovisation,
#'
A month after the revol)tion0 9enin himself wrote that Dthere was
not an* co)l* not +e a *efinite -lan for the or"aniFation of economic
lifeD,K There was a -olitical strate"0 there were "eneral socialist
o+Cectives0 there was r)thless *etermination, An*0 last +)t far from
least0 was war0 *isor"aniFation an* "rowin" chaos,
!7 .ar/ Re0olution and Re0olutionaries
:e m)st never For a moment for"et that 9enin an* his followers0
nd his o--onents too0 were o-eratin" in an a+normal an* in*ee*
*es-erate sit)ation, :ho 8nows what reforms0 -olicies0 reme*ies0
the mi"ht have -ro-ose* in less tro)+le* timesG 6)t in less
tro)+le* times the wo)l* not have +een in -ower,
Most other 6olshevi8 intellect)als were too +)s with -olitical
iss)es, However0 it is worth notin" that the 6olshevi8s at this
time were far from +ein" a monolithic +o*, There were -lent
of Uto-ian ill)sions0 some i*eas ver"in" on anarcho>sn*icalism0
some i"norant to)"h>")s0 some intellect)als with "entlemanl
scr)-les0 fanatics0 *o"matists, It is har*l s)r-risin" that there
were s-lits an* factions in the first ears of Soviet -ower,
On 4 Novem+er #$#4 9enin *eclare* to the Con"ress of
Soviets? D:e m)st now set a+o)t +)il*in" a -roletarian socialist
state in R)ssia, 9on" live the worl* socialist revol)tionHD
An* now o)r stor reall +e"ins,
! .ar Communism
'he %irst 2onths o1 *ower
This cha-ter covers the -erio* from the 6olshevi8 seiF)re of -ower
)ntil the -rom)l"ation of DNEPD0 i,e, the -erio* from Novem+er #$#4
)ntil the mi**le of #$(#, Politicall an* militaril these were
stirrin"0 *ramatic ears, In 2an)ar #$#' the Constit)ent Assem+l0
with its SR maCorit0 sat for one *a an* was *is-erse*, Tort)o)s
ne"otiations with the !ermans event)all en*e* with the onero)s
-eace of 6rest>9itovs8 .A-ril #$#'/0 followe* + a revolt + the left
SRs0 terror an* co)nter>terror0 an* a vast civil war, Allie*
intervention contri+)te* to a series of *isasters0 which for a time left
the 6olshevi8s in control of onl Central R)ssia, =ictor was
event)all won0 with immense effort an* sacrifice0 +)t in #$(5 came
war with Polan* an* a last attac8 + the :hite armies from the
Crimea, 6 the en* of #$(5 victor was com-lete0 the enemies now
+ein" h)n"er0 col*0 anarch an* r)in0 as well as some +an*s of
re+els of vario)s h)es to mo- )-,
D:ar comm)nismD is the name commonl "iven to the -erio* of
e@treme comm)niFation which +e"an in the mi**le of #$#'0 i,e,
ei"ht months after the revol)tion ha* tri)m-he*, It is therefore
necessar to trace the events of the intervenin" -erio*, 3i* f)ll
fle*"e* war comm)nism arise o)t of a series of im-rovisations0 *)e
to the e@i"encies of war an* colla-se0 or was it conscio)sl
intro*)ce* as a *eli+erate lea- into socialism0 an* ascri+e* to the
war emer"enc when its fail)re was fo)n* to +e *iscre*ita+le to the
re"imeG 6oth schools of tho)"ht e@ist, :hich is ri"htG Or are the
-erha-s +oth ri"htG
In inter-retin" the events of #$#4>(#0 it is im-ortant to +ear in
min* the followin", Firstl0 there was a "oo* *eal of anarch0 of
4& -r 2o""unis"
sheer ele"entl chaos0 in the sit)ation of R)ssia in those ears,
Orders + the centre mi"ht +e o+ee*0 +)t E)ite -ro+a+l the local
a)thorities0 even if comm)nist>controlle*0 -lease* themselves,
Or*ers were in an case all too often conf)se* an* contra*ictor0
thro)"h sheer ine@-erience or +eca)se the civil service machine was
all too effectivel smashe*, 9enin himself wrote? DS)ch is the sa*
state of o)r *ecreesI the are si"ne* an* then we o)rselves for"et
a+o)t them an* fail to carr them o)t,D
#
Therefore m)ch that
ha--ene* was not *)e to central or*ers at all0 an* man of these
or*ers were *)e to *es-erate efforts to co-e with conf)sion an*
anarch,
Secon*l0 all the events of #$#4>(# were0 nat)rall0 *ominate* +
the war an* civil war0 + *estr)ction an* fi"htin"0 + *e-lete*
s)--lies an* -aralse* trans-ort0 + the nee*s of the front an* the
-riorities of +attle0 an* last +)t not least + the loss of vital
in*)strial an* a"ric)lt)ral areas to vario)s enemies, The -olicies of
the Soviet "overnment in these ears cannot0 of co)rse0 +e
consi*ere* in isolation from these con*itions,
Thir*l0 while we have alrea* note* some Uto-ian an*
)nrealistic -assa"es in 9eninDs i*eas even +efore the revol)tion0 an*
while his comra*es were even more -rone than he to ill)sions of all
8in*s0 we m)st allow for the interaction of 6olshevi8 i*eas with the
*es-erate sit)ation in which the fo)n* themselves, To ta8e one
e@am-le amon" man? rationin" an* the +annin" of -rivate tra*e in
foo*st)ffs were essential feat)res of the -erio*0 an* came to +e
re"ar*e* as "oo* in themselves, Yet +oth these meas)res were
common eno)"h amon" +elli"erent nations0 an* in fact +oth the
Tsarist an* the Provisional "overnment ha* en*eavo)re* somewhat
ineffectivel to *o C)st these thin"s, It is interestin" to note that H,
!, :ells0 who visite* R)ssia in #$(50 lai* "reat stress on C)st these
-oints0 in e@-lainin" 6olshevi8 -olic, It is not onl the 6olshevi8s
who ma*e a virt)e o)t of necessitI anone ol* eno)"h to recall
#$<' will remem+er how 9a+o)r -oliticians in 6ritain e@tolle*
rationin" .so m)ch fairer to ration + co)-on than + the -)rse/,
This Di*eolo"D *elae* the a+olition of rationin" in 6ritain, Yet its
ca)se was0 o+vio)sl0 the war, One co)l* har*l ima"ine that
9a+o)r in -ower in -eacetime wo)l* +e Di*eolo"icallD committe* to
intro*)ce rationin", Or0 to
Early 4easures 11
-)t it another wa? actions ta8en in a+normal circ)mstances for
-ractical reasons are often clothe* in i*eolo"ical "ar+ an* are
C)stifie* + reference to hi"h -rinci-les, It is all too eas then to
concl)*e0 with *oc)mentar evi*ence to -rove it0 that the action
was *)e to a -rinci-le,
This is not to sa that -rinci-les .Di*eolo"D/ ha* nothin" to *o
with it, In*ee*0 it is E)ite clear that 9enin an* his frien*s a--roache*
-ractical iss)es with a whole n)m+er of idees fi*es, an* that these
infl)ence* their +ehavio)r, The conseE)ences of actions ins-ire* +
i*eas co)l* infl)ence events + f)rther worsenin" the o+Cective
sit)ation an* therefore ren*erin" f)rther action necessar on
em-irical "ro)n*s, An* so on, There was a -rocess of interaction
+etween circ)mstances an* i*eas,
Early 4easures
The le"islation of the first months of Soviet r)le so)"ht to
im-lement the short>term -ro"ramme o)tline* + the 6olshevi8s
+efore the seiF)re of -ower,
The lan* *ecree of ' Novem+er #$#40 a*o-te* + the Con"ress of
Soviets an* em+o*ie* in a law -rom)l"ate* in Fe+r)ar #$#'0
followe* the lines of the -ro"ramme0 in this instance D+orrowe*D
from the ra*ical win" of the SRs, 9ocal committees an* Soviets
were to s)-ervise lan* *istri+)tion, 9an* was nationaliFe*0
(
the
ri"ht to )se it +elon"e* to the -easants, None sho)l* have more than
he alone co)l* c)ltivate0 since the hirin" of la+o)r was to +e
for+i**en, Some attem-t was ma*e to *efine the siFe of hol*in"s,
6)t in fact neither the 6olshevi8s nor the SRs0 nor an -olitical
force0 co)l* tell the -easants what to *o, Each villa"e ma*e its own
arran"ements0 which varie* wi*el +etween an* within re"ions,
Some of the +etter>off -easants "ra++e* more lan*, Others0
incl)*in" man who ha* consoli*ate* their hol*in"s )n*er Stol-in0
ha* their lan* ta8en awa an* -)t +ac8 into the common -ool, The
avera"e siFe of hol*in"s *iminishe*0 an* the n)m+er of -easant
ho)sehol*s with lan* increase*0 as some ver -oor or lan*less
-easants "aine* from the re*istri+)tion, :e shall see in the ne@t
cha-ter what effect this "reat conv)lsion ha* )-on
<( :ar Comm)nism
the sha-e of R)ssian a"ric)lt)re, It is s)fficient at this sta"e to
em-hasiFe that it was not in fact a reform )n*erta8en + the
a)thorities0 it was a more or less elemental act + -easants0 with
"overnment or"ans acce-tin" an* + im-lication le"itimiFin" what
was ha--enin", Arm *eserters0 often with wea-ons0 Coine* in the
-rocess of lan* allocation, The forces of -easant tra*itionalism0
e"alitarianism0 commercialism0 the interests of richer an* -oorer
-easants0 clashe* in varin" *e"rees an* in *ifferent was in
tho)san*s of villa"es where a)thorit ha* +ro8en *own, 3es-ite
efforts to -revent it0 the lan* seiF)res were accom-anie* + man
acts of senseless violence? the lan*lor*sD cattle were sometimes
sla)"htere*0 the lan*lor*sD ho)ses0 +arns or sta+les *estroe*,
The lan* law of Fe+r)ar #$#' *i* refer to -ro*)ctive efficienc0
+etter techniE)e0 lan* reallocation an* even to the *evelo-ment of a
collective sstem of a"ric)lt)re, 6)t all this remaine* on -a-er, The
6olshevi8s co)l* not even attem-t to im-ose a settlement, The ha*
no a*ministrative a--arat)s0 the ha* -racticall no -art mem+ers
in the villa"es, The ha* come to -ower on the floo*>ti*e of -easant
revolt, All the co)l* *o in the first ears was to tr to 8ee-
themselves from +ein" swe-t awa, Their actions0 as we shall see0
were *irecte* in the main to o+tainin" the foo* witho)t which the
towns an* the arm wo)l* starve0 in*ee* *i* starve,
On (4 Novem+er #$#4 came a *ecree on Dwor8ersD controlD,
Factor committees0 which e@iste* alrea* )n*er the Provisional
"overnment0 were "iven stron"er -owers, The co)l* Dactivel
interfere ,,, in all as-ects of -ro*)ction an* *istri+)tion of -ro*)cts,
The or"ans of wor8ersD control were "rante* the ri"ht to s)-ervise
-ro*)ction0 to la *own minim)m o)t-)t in*icators for the
enter-rise0 to o+tain *ata on costs ,,, The owners of enter-rises ha*
to ma8e availa+le to the or"ans of wor8ersD control all acco)nts an*
*oc)ments, Commercial secrec was a+olishe*, The *ecisions of
wor8ersD control or"ans were +in*in" on owners of enter-risesD? in
these wor*s a Soviet te@t+oo8 s)mmariFes the *ecree,
&
This
a--eare* to -)t the seal of le"alit on "rowin" sn*icalist0 not to
sa anarchic0 ten*encies which ha* +een increasin"l manifestin"
themselves for months +efore the
Early 4easures 1!
6olshevi8 seiF)re of -ower, The tra*e )nions were at least
nationall or"aniFe*0 an* so one co)l* conceive of Dwor8ersD controlD
e@ercise* + them +ecomin"0 or emer"in" into0 some sort of national
-lan for reso)rce allocation, The tra*e )nions0 however0 were in
these first months not )n*er 6olshevi8 control0 whereas man of the
factor committees were, Yet the latter0 *es-ite this control0 were
+o)n* to reflect onl the sectional interest of the factor wor8ers,
The local lea*ers ha* neither the trainin" nor the sense of
res-onsi+ilit to Ds)-erviseD an* DcontrolD -ro*)ction an* *istri+)tion,
The co)l* an* *i* sell off materials0 -ilfer0 *iso+e instr)ctions, Of
co)rse0 *isci-line ha* to +e re>im-ose*, Carr comments that Das a
wea-on of *estr)ction wor8ersD control ren*ere* in*is-)ta+le
service to the revol)tionar ca)seD, It co)l* onl a** to the alrea*
fast>s-rea*in" chaos, This was the more certain +eca)se the *ecree
also insiste* that the mana"ementDs o-erational instr)ctions were to
+e +in*in", This was0 therefore0 still 8ontrolD0 not f)ll control, 6)t
the *e"ree of control was s)fficient to inhi+it the mana"ement from
effective action0 an* *ivi*e* res-onsi+ilit meant irres-onsi+ilitI
in*isci-line0 an* even violence Qtowar*s technical staff0 ma*e wor8
virt)all im-ossi+le, The railwas were o-erate* for the first months
+ the railwa tra*e )nion0 in*e-en*entl of the Soviet "overnmentI
the )nion was not 6olshevi8>controlle*0 an* *eci*e* to r)n the
railwas as the railwamen tho)"ht fit, It was onl after some
*elicate ne"otiations0 -l)s some o)tri"ht chicaner an* finall the
threat of *irect violence .March #$#'/0 that the railwas were finall
-lace* )n*er the Soviet re"imeDs a)thorit0 with wor8ersD control
en*e*, Ami* all the m)ltifario)s ca)ses of +rea8*own an*
conf)sion0 Dthe onset of in*)strial chaos0 ra*iatin" from the ca-itals
thro)"ho)t Soviet territor0 *efies an -recise recor*D0 as Carr sas,
<
Of co)rse0 wor8ersD control was onl one of man ca)ses of this,
6)t no reme* was -ossi+le which *i* not involve the stern
s)+or*ination of the committees to some a)thorit an* *isci-line,
On (5 Novem+er #$#4 the State 6an8 was seiFe* + arme*
*etachments0 +eca)se its em-loees ha* ref)se* to iss)e mone to
what was0 in their view0 an ille"al +an* of interlo-ers callin"
themselves the Co)ncil of Peo-leDs Commissars, On (4 3ecem+er
11 .ar Communism
all -rivate +an8s were nationaliFe*0 an*0 alon" with the State 6an80
amal"amate* into the Peo-leDs 6an8 of the R)ssian Re-)+lic, In
Fe+r)ar #$#'0 all sharehol*ers in +an8s were e@-ro-riate*0 an* all
forei"n *e+ts re-)*iate*,
5+N67
On #1 3ecem+er #$#4 the S)-reme Co)ncil of National Econom
was set )-, This was 8nown + its initial letters0 =SN7H .or
6esen1ha5 .an* + these letters it shall +e calle* in this +oo8/, In
e@aminin" its -owers at the time of its creation0 we shall fin* some
evi*ence of the view hel* at this time of the role of central -lannin"
an* the intentions with re"ar* to the nationaliFation of in*)str an*
tra*e,
=SN7HDS tas8 was *efine* as follows?
The or"aniFation of the national econom an* state finance, :ith this
o+Cect =SN7H ela+orates "eneral norms an* the -lan for re")latin" the
economic life of the co)ntr0 reconciles an* )nites the activities of
central an* local re")latin" a"encies Othe co)ncil on f)el0 metal0 trans>
-ort0 central foo* s)--l committee0 an* others of the a--ro-riate
-eo-lesD commissariats? of tra*e an* in*)str0 foo* s)--lies0 a"ric)lt)re0
finance0 arm an* nav0 etc,P0 the all>R)ssian co)ncil of wor8ersD
control0 an* also the relate* activities of factor an* tra*e>)nion
wor8in">class or"aniFations,
=SN7H was to have Dthe ri"ht of confiscation0 reE)isition0
seE)estration0 com-)lsor sn*ication of the vario)s +ranches of
in*)str0 tra*e an* other meas)res in the area of -ro*)ction0
*istri+)tion an* state financeD,
=SN7H was attache* to 4#ri5 the Co)ncil of Peo-leDs Commis>
sars0 as a s-ecies of economic ca+inet0 an* the mem+ers were to +e
re-resentatives of the relevant commissariats -l)s the wor8ersD
co)ncils0 -l)s some others, The f)ll Co)ncil sel*om met0 an* a
+)rea)0 initiall of fifteen mem+ers0 was res-onsi+le for *a>to*a
wor8, It ha* the -ower to iss)e or*ers on economic affairs0 which
were .in theor/ +in*in" on everone0 incl)*in" the -eo-leDs
commissariats whose f)nctions it -artiall *)-licate*,
8ationali9ation 1*
Re"ional co)ncils .SN7H or sovnar1ho2y, et another a++reviation/
a*ministere* an* controlle* the econom locall0 )n*er the
")i*ance of =SN7H an* in close association with local Soviets an*
wor8ersD co)ncils, 6 Ma #$#' there were 4 Fonal0 &' -rovincial
an* %$ *istrict sovnar8hoF,
s
=er soon =SN7H Ds-ro)te*D
*e-artments 4glav1i5, for controllin" -artic)lar activities an* sectors0
+earin" s)ch names as Tsentromylo, Tsentrote*tiP, (lavneft,,
(lavs#ich1i, (lavles, concerne* res-ectivel with soa-0 te@tiles0 oil0
matches0 tim+er0 etc, 3)-lication with the -eo-leDs commissariats
for tra*e an* in*)str was en*e* in 2an)ar #$#' + their
liE)i*ation, :ith the -ro"ress of nationaliFation the vario)s
*e-artments of =SN7H too8 comman* of the nationaliFe* sectors
of the econom, Its str)ct)re was re-eate*l chan"e* in the ears
that followe*0 +)t there seems little -oint in +orin" the rea*er with
reor"aniFational catalo")es, M)ch more im-ortant an* interestin" is
what its f)nctions were an* how the chan"e*,
Nationali8ation
As the wor*in" of the ori"inal *ecree showe*0 =SN7H was
s)--ose* to ")i*e an* coor*inate0 +)t it was certainl not clear how
closel it wo)l* -lan an* control in*)str or tra*e0 or how m)ch of
these activities wo)l* +e nationaliFe*, It is tr)e that there were
*eclarations of intent which s)""este* that all>ro)n* nationaliFation
was the -olic, Th)s in the D3eclaration of Ri"hts of the :or8in"
an* E@-loite* Peo-leD0 -)+lishe* on #4 2an)ar #$#' an* mo*elle*
on the 3eclaration of the Ri"hts of Man of the French Revol)tion0
some of the laws on wor8ersD control an* =SN7H were seen as
D")aranteein" the -ower of the wor8in" -eo-le over the e@-loiters
an* as a first ste- towar*s the com-lete conversion of the factories0
mines0 railwas an* other means of -ro*)ction an* trans-ort into the
-ro-ert of the wor8ersD an* -easantsD stateD, However0 this
*eclaration -ro-ose* no timeta+le0 an* wo)l* have +een consistent
with a -rolon"e* e@istence of a mi@e* econom, Certainl in its first
few months of e@istence the or"ans of =SN7H incl)*e* some
mana"ers an* even owners, Th)s the r)les for Tsentrote*tiP,
a*o-te* on # A-ril #$#'0
<% :ar Comm)nism
incl)*e* in the *e-artmental co)ncil fifteen re-resentatives of the
.-rivate/ em-loers, The Soviet histor te@t+oo8 from which the
a+ove *ata were *erive* comments? D9enin too8 a -ositive view of
attem-ts to ma8e a"reements with ca-italists on *efinite con*itions
favo)ra+le to the wor8in" class, He re-eate*l sai* an* wrote thisD,
%
Serio)s ne"otiations for colla+oration were )n*erta8en with a
lea*in" Dca-italistD ma"nate0 Meshchers8, An* in an case the
vario)s "lav8i .Tsentrote@tiP0 !lavs-ich8i0 an* the rest/
corres-on*e* closel with the analo"o)s sn*icates set )- +
-rivate +)siness +efore the war0 an* )se* for -)r-oses of control +
-revio)s "overnments *)rin" the war, The offices an* m)ch of their
staff were the same,
NationaliFation *i* in*ee* +e"in, The railwas .alrea*0 in the
main0 in the han*s of the state )n*er the Tsars/ an* the merchant
fleet were nationaliFe* + 2an)ar #$#'0 +)t0 with these e@ce-tions0
in*ivi*)al -lants were nationaliFe*0 not in*)stries > at first, S)ch
nationaliFation was *)e to a n)m+er of factors, At this -erio*0 it
wo)l* certainl +e wron" to ass)me that local Soviets0 even
comm)nist>controlle*0 acte* +eca)se the centre tol* them to, The
lar"e maCorit .over two>thir*s/ of nationaliFations were local0 )ntil
2)ne #$#'0 an* ma have +een *)e to "en)inel local *ecisions,
These in t)rn co)l* have +een *)e to over>enth)siasm0 or to real or
ima"ine* sa+ota"e0 or to the ref)sal of em-loers to acce-t or*ers
from wor8ersD co)ncils, In view of the -revailin" chaos0 it is onl
too li8el that man em-loers fo)n* con*itions intolera+le an*
trie* to "et o)t,
The central a)thorities were alarme* + the e@tent of )na)thor>
iFe* nationaliFation an* on #$ 2an)ar #$#' it was *ecree* that no
e@-ro-riation sho)l* ta8e -lace witho)t the s-ecific a)thorit of
=SN7H, Clearl0 no one too8 ver m)ch notice of this0 since on (4
A-ril #$#' the same -rohi+ition was re-eate*0 this time with
financial teeth? there wo)l* +e no mone iss)e* to an enter-rises
which were nationaliFe* witho)t the a)thoriFation of =SN7H,
4
It is
not clear0 on the evi*ence0 that all>ro)n* nationaliFation was alrea*
seen as an imme*iate aim when =SN7H was set )-, In fact it wo)l*
seem that 9enin an* his collea")es were -lain" it + ear, The first
lea*ers of =SN7H0 men li8e O+olen>s80 7ritsman0 9arin0 Mil)tin0
were o)n" intellect)al enth)si>
'he +lide into .ar o$$unis$ 97
asts0 with little "ri- on the realities of a*ministration, An* in an
case m)ch of R)ssia was o)tsi*e the a)thorit of the "overnment,
7ritsman in his remar8a+le article on DThe Heroic Perio* of the
!reat R)ssian Revol)tionD0
'
refers to the -re>2)ne -erio* as one of
Delemental>chaotic -roletarian nationaliFation from +elowD, He
a**e*? D:ere it not for e@ternal factors0 the e@-ro-riation of ca-ital
wo)l* not have ta8en -lace in 2)ne #$#',D It was ho-e* that Dca-ital
.i,e, ca-italists/ wo)l* +e in some sense in the service of the
-roletarian stateD,
It ma +e a**e* that the whole E)estion of the intentions of the
"overnment at the +e"innin" of #$#' is a matter in *is-)te amon"
Soviet scholars of the -erio*, Th)s =ene*i8tov an* several others
claim that the -art *i* have a +asic -lan of nationaliFation for all
the maCor +ranches of in*)str, There was a resol)tion to this effect
-asse* + the si@th -art con"ress0 an* it is tr)e also that 9enin in
3ecem+er #$#4 s-o8e ofD*eclarin" all limite* com-anies to +e state
-ro-ertD,
$
None the less the evi*ence0 tho)"h mi@e*0 is still
consistent with the intention to maintain a mi@e* econom for a
consi*era+le -erio*, It ma not +e o)t of -lace to recall that0 at
a+o)t the same time0 the 9a+o)r Part in 6ritain was also -assin"
resol)tions a*vocatin" the nationaliFation of the means of
-ro*)ction,
6 2)ne #$#' there were still onl <'4 nationaliFe* enter-rises,
#5
The "reat lea- into war comm)nism m)st +e *ate* from the en* of
2)ne #$#' with the -rom)l"ation of the nationaliFation *ecree0
affectin" in -rinci-le all factories0 as *istinct from small wor8sho-s,
To fin* an e@-lanation of this a--arent switch in .or ver ra-i*
s-ee*>)- of/ -olic0 it is necessar to e@amine three relevant
matters? a"ric)lt)re0 tra*e an* the militar sit)ation,
'he +lide into .ar o$$unis$
It has alrea* +een e@-laine* that the -easants ha* seiFe* the lan*
an* re*ivi*e* it accor*in" to their own li"hts, The s-littin" )- of
farms ha* a *isor"aniFin" effect on -ro*)ction0 as also *i* a
str)""le amon" the -easants themselves a+o)t who was to "et
<' :ar Comm)nism
what, This str)""le was "iven ever enco)ra"ement + the Soviet
"overnment, Alrea* on #1 Fe+r)ar #$#' 9enin was s-ea8in" of
Dr)thless war a"ainst the 8)la8sDK .i,e, the +etter>off -easants/,
All this was ta8in" -lace )n*er con*itions of "rowin" h)n"er0
an* ever>wil*er inflation, The -easants0 )n*erstan*a+l0 so)"ht
to o+tain a +etter -rice for their foo*, Rationin" ha* +een
intro*)ce* in towns in #$#%0 +)t the -rices -ai* to -easants fell
far +ehin* the "eneral rise in -rices of cons)mersD "oo*s0 an* a
ver "reat shorta"e of s)ch "oo*s f)rther *isco)ra"e* sales
thro)"h official channels, The -easants ten*e* nat)rall to eva*e
the state mono-ol of "rain -)rchase0 th)s enco)ra"in" the
*evelo-ment of a flo)rishin" +lac8 mar8et, The Provisional "ov>
ernment so)"ht to com+at this0 in vain, The 6olshevi8s at first
*i* no +etter, 9eninDs writin"s show the ina+ilit to co-e with
the .to him/ *estr)ctive D-ett>+o)r"eois floo*D0 which threatene*
to swee- awa effective control, For 9enin0 tra*e at free -rices
was eE)ivalent to Dmonstro)s s-ec)lationD0 hoar*in" was consi*>
ere* sa+ota"e, He informe* the Petro"ra* Soviet on (4 2an)ar
#$#' that there sho)l* +e mass searches of stores an* ho)ses?
D:e canDt e@-ect to "et anwhere )nless we resort to terrorism?
s-ec)lators m)st +e shot on the s-ot,D Yet the ver ne@t -ara"ra-h
rea*s? DThe rich sections of the -o-)lation m)st +e left witho)t
+rea* for several *as +eca)se the Ohave stoc8s an*P ,,, can
affor* to -a s-ec)lators the hi"her -rice,K
(
The winter of #$#4>
#' was a terri+le one, In Petro"ra* the +rea* ration fell earl in
#$#' to a mere 15 "rams .( oF/ a *a even for wor8ers,
#&
Man
ha* to leave the cit0 an* factories close* for lac8 of la+o)r,
H)n"er +ecame a matter of the )tmost "ravit,
The colla-se of -ro*)ction an* trans-ort an* the *isr)-tion of
e@istin" mar8et relations were accom-anie* + an effort to ration
thro)"h the state .an* retail coo-erative/ or"ans an* + a resol)te
attem-t to s)--ress free tra*e in essentials, Private tra*e in a
wi*e ran"e of cons)mersD "oo*s was for+i**en, However0 lac8 of
"oo*s to sell an* of an effective *istri+)tion mechanism ma*e
conf)sion worse than ever, The coo-erative movement was calle*
)-on to hel-0 +)t in #$#' it was still controlle* + men hostile to
the 6olshevi8s0 an* it was not an effective -art of the official
sstem,
The Sli*e into -r Comm)nism <$
All this ha* a lo"ic of its o5n, the "ore so as conditions
worsene* shar-l, Shortages gre ever more ac%te, as the civil war
s-rea* over R)ssia in the s)mmer of #$#'0 an* as the effect of the
6rest>9itovs8 treat was felt? the tem-orar secession of the U8raine
in -artic)lar str)c8 a heav +low at the alrea* *isor"aniFe*
econom, 6etween 2)l #$#' an* the en* of #$#$0 m)ch of R)ssia
was *irectl affecte* + civil war, Railwas were *isr)-te*0 +ri*"es
+lown )-0 stores *estroe*, The Soviet>hel* territor was c)t off
from essential so)rces of materials an* foo*, There were t-h)s
e-i*emics, Stern control over the -revailin" anarch was seen to +e
vital0 an* control has a lo"ic of its own,
Referrin"0 or -)r-ortin" to refer0 to another revol)tion0 a Soviet
commentator wrote?
:hile strictl re")latin" ma@im)m cons)m-tion an* at the same time
-reservin" -rivate +o)r"eois -ro-ert an* the mone econom0 the
2aco+in state co)l* not hel- +)t intro*)ce f)rther coercive an* -lainl
terrorist meas)res, It was not -ossi+le0 + an means0 to com-el the
factor owner an* the in*ivi*)al -easant to -ro*)ce0 while sim)ltane>
o)sl r)inin" him + reE)isitions an* restrictin" his lin8s with the
mar8et, To -)t into effect laws contrar to all -rivate interests ,,, it was
necessar to stren"then the *ictatorshi- of the central a)thorit0 to
sstematiFe it0 to cover all France with -olice an* militar0 to a+olish all
free*oms0 to control thro)"h a central s)--l commission all a"ric)lt)ral
an* in*)strial -ro*)ction0 en*lessl to resort to reE)isitions0 to seiFe
hol* of trans-ort an* tra*e0 to create everwhere a new +)rea)crac in
or*er to o-erate an immense s)--l a--arat)s0 to limit cons)m-tion +
ration car*s0 to resort to ho)se>searches0 fill -risons with s)s-ects0 ca)se
the ")illotine to +e constantl at wor8, Political terror mer"e* wim
economic terror0 an* went in ste- with it,
#<
This -ict)re shows a common lo"ic in o-eration in France in
#4$& an* R)ssia in #$#', !iven the con*itions )n*er which
-rivatel owne* in*)str was to o-erate0 "iven also the rationin"
not onl of cons)mer necessities +)t also .as s)--lies ran *own/ of
man vital materials an* f)els0 there was a fatall lo"ical escalation
in the *e"ree of state control0 state o-eration an* finall also state
ownershi-, No *o)+t there was also -ress)re from those -art
Fealots who +elieve* that the revol)tion ha* to
50 .ar o$$unis$
$o "uch #urther m)ch more E)ic8l, No *o)+t too that 9eninDs
repeted nd eloE)ent wor*s a+o)t +o)r"eois e@-loiters0 an* his
use of Dwor8ersD controlD as a *eli+erate *isor"aniFin" *evice for
wea8enin" the +o)r"eoisie0 contri+)te* to the nationaliFation *rive
when it came0 as it also contri+)te* to ma8in" the wor8 of -rivate
mana"ement )tterl im-ossi+le0 even with the +est will in the worl*,
.However0 there is no reason wh the sho)l* have shown "oo*>will
to a re"ime which ha* )s)r-e* -ower an* -)+licl anno)nce* that
their r)in was a "oo* an* *esira+le o+Cective,/
#isci!line 5ersus +-ndicalis$
A conflict with the left comm)nists +ro8e o)t in the ver first
months0 over the E)estion of *isci-line an* control, For 9enin0
wor8ersD control was a tactical *evice0 C)st as in the arm a revolt
a"ainst officers an* -ro-a"an*a in favo)r of an elective comman*
was an effective means of *isr)-tin" the ol* militar str)ct)re, 6)t
once -ower was achieve*0 9enin E)ic8l +ecame a firm s)--orter of
*isci-line an* or*er, :e fin* him s-ea8in" of
the esta+lishment of strictest res-onsi+ilit for e@ec)tive f)nctions an*
a+sol)tel +)sinessli8e *isci-line* vol)ntar f)lfilment of the assi"n>
ments an* *ecrees necessar for the economic mechanism to f)nction
li8e cloc8wor8, It was im-ossi+le to -ass to this at onceI some months
a"o it wo)l* have +een -e*antr or even malicio)s -rovocation to
*eman* it Owritten on (' March #$#'P,
Here he fo)n* himself in o--osition to the left comm)nists0 who
also o--ose* him +eca)se of his willin"ness to si"n a -artic)larl
)nfavo)ra+le treat with the !ermans,
Un*o)+te*l the o-inion is ver wi*el hel* that there can +e no
E)estion of com-ati+ilit Oof one>man mana"erial a)thorit with *emo>
cratic or"aniFationP, Nothin" can +e more mista8en than this o-inion
,,, Neither railwas nor trans-ort0 nor lar"e>scale machiner an* enter>
-rises in "eneral can f)nction correctl witho)t a sin"le will lin8in" the
entire wor8in" -ersonnel into an economic or"an o-eratin" with the
(iscipline :ersus Syndicalism *1
-recision of cloc8wor8, Socialism owes its ori"in to lar"e>scale machine
in*)str, If the masses of the wor8in" -eo-le in intro*)cin" socialism
-rove inca-a+le of a*a-tin" their instit)tions in the wa that lar"e>scale
machine in*)str sho)l* wor80 then there can +e no E)estion of
intro*)cin" socialism ,,, The slo"an of -ractical a+ilit an* +)sinessli8e
metho*s has enCoe* little -o-)larit amon" revol)tionaries, One can
even sa that no slo"an has +een less -o-)lar amon" them, It is E)ite
)n*erstan*a+le that as lon" as the revol)tionariesD tas8 consiste* of
*estroin" the ol* ca-italist or*er the were +o)n* to reCect an* ri*ic)le
s)ch a slo"an, For at that time the slo"an in -ractice conceale* the
en*eavo)r in one form or another to come to terms with ca-italism or to
wea8en the -roletariatDs attac8 on the fo)n*ations of ca-italism0 to
wea8en the revol)tionar str)""le a"ainst ca-italism, J)ite clearl thin"s
were +o)n* to )n*er"o a ra*ical chan"e after the -roletariat ha*
conE)ere* an* consoli*ate* its -ower an* wor8 ha* +e")n on a wi*e
scale for lain" the fo)n*ations of a new0 i,e, socialist societ,
#1
It is in line with this -olic that a *ecision was ta8en in March #$#'
to ta8e the railwas awa from Dwor8ersD controlD an* -lace them
)n*er semi>militar comman*,
S)ch -olicies an* meas)res were o--ose* + 6)8harin0 Ra*e80
O+olens8 an* others, The resente* 9eninDs em-hasis not onl on
*isci-line +)t also on the nee* for material incentives0 -iecewor8
an* s-eciall favo)ra+le con*itions for the em-loment of
+o)r"eois s-ecialists, The acc)se* 9enin of movin" towar*s state
ca-italism, 9enin re-lie* with eloE)ence in an article entitle* D9eft>
win" Chil*ishnessD, He ref)se* to re"ar* the acc)sation of state
ca-italism as an acc)sation at all, If state ca-italism were
esta+lishe* this wo)l* re-resent an a*vance on the e@istin"
sit)ation, The real conflict0 he asserte*0 was not +etween state
ca-italism an* socialism0 +)t +etween +oth state ca-italism an*
socialism on the one han* an* the menacin" alliance of the -ett
+o)r"eoisie with -rivate ca-italism on the other, The left o--osition
contin)e* thro)"ho)t this -erio* to criticiFe meas)res *esi"ne* to
stren"then *isci-line thro)"h centraliFation an* one>man
mana"ement0 an* we shall fin* +asicall the same iss)es +ein"
*e+ate* a"ain in #$(5>(#,
Nee*less to sa0 his left o--onents E)ote* man of 9eninDs
52 .ar o$$unis$
5ords $inst him, Ha* he not written in DState an* Revol)tionD
tht s-ecialists sho)l* not +e -ai* more than wor8ersG Ha* he not
e@tolle* wor8ersD controlG :as his -resent -olic not -lainl
inconsistent with *octrineG The wor8ers wo)l* not )n*erstan*,
9enin s)ccee*e* in c)r+in" some of the e@cesses of the wor8ersD
co)ncils + havin" them mer"e* with the tra*e )nions0 which were
"ra*)all +ein" +ro)"ht )n*er firm -art control, 6)t the
e@-erience of wor8ersD co)ncils was *efen*e* + him as a neces>
sar0 if materiall *estr)ctive0 sta"e of the revol)tion, He fo)n* it
more *iffic)lt to c)r+ the e@cesses of his own collea")es0 an*0
tho)"h .as he later a*mitte*/ also +ein" over>san")ine himself on
occasion0 he re-eate*l was havin" to com+at what he calle* the
Dinfantile *isor*erD of leftism,
3o++ ar")e*
#%
that 9enin ha* no intention at first to la)nch into
the e@tremes of war comm)nism0 that he was *riven + emer"encies
of war0 h)n"er an* chaos into an attem-t to control everthin" from
the centre, It is tr)e that his more e@treme statements0 to +e cite* on
-, %5 +elow0 were ma*e s)+seE)ent to the first si@ months of
6olshevi8 -owerI tho)"h we can sa that his own -olicies
contri+)te* to the chaos0 of co)rse, He +oaste* that these ha*
D*estroe* the *isci-line of ca-italist societD, In *oin" so0 he ha* for
a time hel-e* to *estro all or*er, It is also the case that a -ro-osal0
serio)sl moote* in the s-rin" of #$#'0 to have mi@e* state>an*>
ca-italist enter-rises0 was reCecte*, An* it was -res)ma+l with
9eninDs a--roval that the chief of =SN7H in Ma #$#'0 Mil)tin0
s-o8e ofDcom-letin" the nationaliFation of in*)strD, 6)t we will
ret)rn to this -oint later,
4*rodra8verst0a4 and +tate 2ono!ol- o1 'rade
The sli*e into war comm)nism was stim)late* + the foo*
shorta"es an* the fail)re of efforts to -roc)re foo*0 es-eciall "rain0
from the -easants at official -rices, Attem-ts were ma*e to or"aniFe
sales of "oo*s to -easants0 +)t this ha* little effect, In Ma #$#' the
S)--l Commissariat 4Nar1om#rod5 acE)ire* more -owers to
o+tain an* *istri+)te foo*, In the en* it -rove* necessar to )se
force, 9enin s-o8e on (< Ma #$#' of a Dcr)sa*e
'Prodra90erst3a' and State 4onopoly of Trade *!
for +rea*D0 an* there *evelo-e* a so>calle* Dfoo* *ictatorshi-D0 with
the local or"ans of Nar8om-ro*0 with the hel- of wor8ersD
*etachments an* of the 7he1a .secret -olice/0 seiFin" stoc8s hel* +
alle"e* hoar*ers, This was mer"e* into the cam-ai"n a"ainst the so>
calle* rich -easants0 8)la8s0 which 9enin ha* +een a*vocatin" as the
means of s-rea*in" Soviet -ower into the villa"es, The -oor
-easants0 whom 9enin re"ar*e* as nat)ral allies a"ainst the r)ral
+o)r"eoisie0 were )r"e* to hel- in the tas8, On ## 2)ne #$#' the
*ecree on Dcommittees of the -oorD 41om"edy5 in the villa"es was
iss)e*, One of their -rinci-al tas8s was Dthe removal of s)r-l)s "rain
from the 8)la8sD, The class war was to +e +itterl fo)"ht in the
villa"es0 an* man real or alle"e* 8)la8s ha* some lan*0 eE)i-ment
an* livestoc80 as well as Ds)r-l)sD "rain0 confiscate*, This ste-0 sai*
9enin0 Dwas a tremen*o)sl im-ortant t)rnin" -oint in the entire
*evelo-ment an* str)ct)re of o)r revol)tionD, 6 sta"es0 the
com-)lsor *eliveries of foo* were sstematiFe* an* "iven the
name of #rodra2verst1a- This )ntranslata+le term is *erive* from
the no)n #rodovoPstvie, meanin" foo*st)ffs0 an* the ver+0
ra2verstat3 which literall means to *istri+)te or s)+>allocate .tas8s
or o+li"ations0 for instance/, It came to mean a -olic in which each
-easant ho)sehol* was or*ere* to *eliver its s)r-l)s to the state, In
some cases this was o)tri"ht confiscation0 in others it was virt)al
confiscation0 since the nominal -rices -ai* were ver low an* there
was -racticall nothin" that co)l* +e +o)"ht with the mone, The
state *eman*e* all that the -easant ha*0 over an* a+ove an ill>
*efine* minim)m reE)irement for himself an* his famil, The
-easants nat)rall resiste*0 an* either hi* their "rain or so)"ht to
*is-ose of it thro)"h a +lac8 mar8et or thro)"h ille"al +arter *eals
which contin)e* thro)"ho)t the -erio*, To com+at this the
"overnment sent wor8ersD *etachments to fin* an* seiFe "rain an* to
-)nish the hoar*ers0 an* it also so)"ht to )tiliFe the committees of
the -oor -easants0 to set them )-on their richer nei"h+o)rs an* so to
tr an* *iscover "rain hoar*s, Th)s the -rocess of "rain confiscation
went han* in han* with the effort to fan class warfare in the villa"es,
A +itter str)""le was wa"e* +etween the "overnment an* the
-easants an* amon" the -easants themselves, Arme* *etachments
so)"ht to -revent the ille"al movement of foo* to
*1 .ar Communism
)r+an mar8ets0 altho)"h in man cases this was the onl wa in
which foo* co)l* in fact reach the towns0 owin" to the inefficienc
an* ina*eE)ac of the official collection an* *istri+)tion networ8,
Peasants resente* -ro*raFverst8a *ee-l0 an* n)mero)s riots +ro8e
o)t, Some -arts of the co)ntr were in the han*s of so>calle*
D"reensD0 who were a"ainst +oth Dre*sD an* DwhitesD in the civil war
an* stoo* for -easant ri"hts, Some of them were of semi>anarchist
com-le@ion0 nota+l a -owerf)l -easant anarchist movement in the
U8raine le* + Nestor Ma8hno0 who was a maCor force in #$#$,
Others were little +etter than +an*its, In his novel 8%lio 8%renito,
Ila Ehren+)r" -ainte* a sarcastic -ict)re of the -easant attit)*es of
the time, Peasants0 he wrote0 were all for liE)i*atin" comm)nists0
officers0 2ews,
The main thin"0 however0 was to +)rn all the towns0 for thatDs where
tro)+le an* *issension +e"an, 6)t +efore +)rnin" them it wo)l* +e
necessar to salva"e an -ro-ert that mi"ht come in )sef)l0 roofin" for
instance ,,, menDs coats0 -ianos, That was their -ro"ramme, As for
tactics0 the most im-ortant thin" was to have a small cannon in the
villa"e an* a+o)t a *oFen machine>")ns, 3onDt allow stran"ers to come
near0 an* re-lace e@chan"e of "oo*s + rai*s on trains an* reE)isitionin"
of -assen"ersD +a""a"e0 which was far more sensi+le,
#4
Yet in the en* fear of a ret)rn of the lan*lor*s 8e-t eno)"h -easants
loal to the 6olshevi8 ca)se to ens)re their )ltimate victor in the
civil war, For in most DwhiteD areas the lan*lor*s *i* come +ac80 an*
-easants who ha* seiFe* their lan* were often -)nishe*,
However0 the -easants co)l* see little sense in -ro*)cin" farm
s)r-l)ses which wo)l* +e ta8en from them + reE)isition sE)a*s,
Sowin"s were re*)ce*, Pro*)ction fell, It +ecame ever more
*iffic)lt to fin* s)r-l)ses0 tho)"h the "overnmentDs -roc)rement
or"aniFations +ecame more efficient an* the reE)isitionin" *etach>
ments more r)thless as time went on, Act)al state -roc)rements of
"rain0 accor*in" to official so)rces0 *i* increase, Th)s in the
a"ric)lt)ral ear #$#4>#' total -roc)rements amo)nte* to &5
million -oo*s an* in #$#'>#$ to no million -oo*s,
#'
9enin *eclare*
that Dthis s)ccess clearl s-ea8s of a slow +)t *efinite im-rovement
in o)r affairs in the sense of the victor of com>
'Prodra90erst3a' and State 4onopoly of Trade **
m)nism over ca-italismD, It *i* not mean that con*itions in the
towns in fact im-rove*, Thro)"ho)t this -erio* it was in fact E)ite
im-ossi+le to live on the official rations0 an* the maCorit of the
s)--lies even of +rea* came thro)"h the +lac8 mar8et, The
"overnment was never a+le to -revent this mar8et from f)nctionin"0
+)t *i* s)fficientl *isr)-t it to ma8e foo* shorta"es worse, There
arose a class of -eo-le 8nown as meshochni1i, or men with sac8s0
who move* foo*st)ffs an* *o*"e* the ")ar*s who trie* to sto-
ille"al tra*e, Man townsmen a+an*one* their wor8 an* move* to
the co)ntr where at least there was some foo*, Man of the
wor8ers0 +ein" of recent -easant ori"in0 were a+le to reCoin their
relatives in the villa"es, There was a s-ectac)lar *ecline in the
-o-)lation of +i" cities0 es-eciall those which0 li8e Petro"ra*0 were
far from so)rces of foo*, The townsmen who remaine* shivere*
h)n"ril in their )nheate* *wellin"s, The so>calle* +o)r"eoisie were
often *e-rive* even of s)ch small rations as wor8ers ha*0 an* ha* to
sell off their +elon"in"s in or*er to +) +lac8 mar8et foo*, A famo)s
Soviet h)morist *escri+e* a +arter *eal in which a -easant acE)ire*
a "ran* -iano in e@chan"e for a sac8 of "rain, The -iano was too
lar"e for the -easantDs h)t an* so it was c)t into two an* -art of it
store* in an o)tho)se,
7ritsman *escri+e* the e@istence of two economies0 one le"al an*
the other ille"al, 3es-ite all the efforts to reE)isition +rea* "rain0 in
#$#'>#$0 %5 -er cent of its cons)m-tion in cities -asse* thro)"h
ille"al channels, He estimate* that in 2an)ar #$#$ in the -rovincial
ig%"erns1ie5 ca-itals R i,e, most lar"e towns R onl #$ -er cent of all
foo* came thro)"h official channelsI the fi")re rose to &# -er cent in
A-ril #$#$0 an* fl)ct)ate* thereafterI it was onl ($ -er cent in
A-ril #$(5, This ill)strates most clearl the limitations of the
"overnmentDs D-oliticalD "ri-0 the e@tent to which it was str)""lin"
with forces it co)l* not control0 for all its r)thlessness, 9enin co)l*
caCole an* threaten0 the *etachments of the Che8a co)l* confiscate
an* shoot, Yet at certain moments even the "overnment itself was
com-elle* to Dle"aliFeD ille"al tra*e, For e@am-le0 in Se-tem+er
#$#' the wic8e* s-ec)lators an* meshochni8i were a)thoriFe* to
ta8e sac8s wei"hin" )- to iS -oo*s .1< l+s/ to Petro"ra* an*
Moscow0 an* in this month0 accor*in" to 7ritsman0 the s)--lie*
fo)r times more than *i* the official s)--l or"aniFation,
1% :ar Comm)nism
The "overnment trie* to enco)ra"e vario)s forms of r)ral
coo-eration0 varin" from the loosest associations for the Coint
c)ltivation of the soil to f)ll fle*"e* comm)nes an* state farms,
More will +e sai* a+o)t these vario)s t-es in the ne@t cha-ter, It is
s)fficient here to note that even at the hei"ht of war comm)nism all
these varieties of collective or coo-erative farmin" covere* onl a
tin minorit of ho)sehol*s, In other wor*s0 the ha* little
imme*iate si"nificance for the a"ric)lt)ral sit)ation, The were0
however0 re"ar*e* as -oliticall im-ortant, Th)s a *ecree -)+lishe*
in Fe+r)ar #$#$ s-o8e of a transition to collective farmin", No
s)ch transition occ)rre* in #$#$, 6)t all this hel-e* to set a
-rece*ent for s)+seE)ent events,
9enin *i* see in these still ineffective moves towar*s collectiv>
ism the -ath to the f)t)re, As alrea* -ointe* o)t0 he was aware of
the limitations of small>hol*er a"ric)lt)re an* conscio)s of the
-olitical *iffic)lties which wo)l* arise from the *ominance of a
-rivate -easant econom, It is interestin" in this connection to E)ote
the evi*ence of H, !, :ells0 who saw 9enin in #$(5, The followin"
is his re-ort?
DEven now0D sai* 9enin0 Dnot all the a"ric)lt)ral -ro*)ction of R)ssia is
-easant -ro*)ction, :e have in -laces lar"e>scale a"ric)lt)re, The
"overnment is alrea* r)nnin" +i" estates with wor8ers instea* of
-easants where con*itions are favo)ra+le, That can s-rea*, It can +e
e@ten*e* first to one -rovince0 then another, The -easants of the other
-rovinces0 selfish an* illiterate0 will not 8now what is ha--enin" )ntil
their t)rn comesHD It ma +e *iffic)lt to *efeat the R)ssian -easant en
masseI +)t in *etail there is no *iffic)lt at all, At the mention of the
-easant0 9eninDs hea* came nearer mineI his manner +ecame confi*ential,
As if after all the -easant might overhear,K
One sees here a hint of StalinDs later *evio)sness0 not to sa -lain
*ishonest0 in res-ect of his -easant -olic, However0 this sho)l*
not lea* )s to concl)*e0 as Stalin later wishe* )s to concl)*e0 that
the collectiviFation *rive of #$&5 re-resente* 9eninist -olicies, It is
tr)e that 9enin an* his more far>si"hte* collea")es alrea* in #$#'
saw not onl the ac)te -ro+lem of -ers)a*in" -easants to -art with
foo* in the critical *as of the civil war0 +)t also a lon">term
contra*iction +etween -easant
The 4oney "llusion and Economic Collapse *5
in*ivi*)alism an* the socialist transformation of societ, However0
as we shall see0 9enin *rew lessons from the +itter e@-erience of the
war>comm)nism -erio*0 an* in his last ears co)nselle* care an*
mo*eration,
'he 2one- Illusion and )cono$ic olla!se
In ni"htmare con*itions of civil war0 mismana"ement0 chaos0 h)n"er
an* +rea8*own0 the ro)+le colla-se*, The +)l8 of state e@-en*it)re
was met thro)"h the -rintin" -ress, Free mar8et -rices rose month
+ month, I mself recall as a small chil* "ivin" a +an8note of
consi*era+le face val)e to a +e""ar0 who ret)rne* it to me sain"
that it was val)eless, From March #$#$ state enter-rises were
wholl finance* from the +)*"et0 i,e, the o+taine* from the +)*"et
all the mone the nee*e*0 an* -ai* their recei-ts into the +)*"et,
Most transactions +etween state enter-rises were of a +oo8>8ee-in"
nat)re onl an* not for cash, All this was a "ra*)al -rocess, It +e"an
with cash a*vances + =SN7H to meet wa"es -aments an* other
e@-enses for those enter-rises which ha--ene* to have r)n o)t of
liE)i* reso)rces, This -ractice s-rea*, At first0 man of the a*vances
were s)--ose* to +e cre*its an* not "rants, However0 in the "eneral
con*itions of chaos an* colla-se0 the -ractice of meetin" the r)nnin"
e@-enses of the econom o)t of the +)*"et +ecame almost )niversal
an* cash -aments "ra*)all lost their si"nificance, T-ical of the
views hel* at this time was a resol)tion of the secon* all>R)ssian
con"ress of SN7H .economic co)ncils/ to the effect that
state in*)strial enter-rises sho)l* *eliver their -ro*)cts to other state
enter-rises an* instit)tions on the instr)ctions of the a--ro-riate or"ans
of =SN7H witho)t -ament0 an* in the same wa sho)l* o+tain all the
s)--lies the reE)ire0 an* that the railwas an* the state merchant fleet
sho)l* trans-ort "ratis the "oo*s of all state enter-rises, In ma8in" this
-ro-osal0 the con"ress e@-resse* the *esire to see the final elimination of
an infl)ence of mone )-on the relations of economic )nits,
(5
This -olic was "ra*)all +ro)"ht into f)ll effect *)rin" #$#$,
/0 -r 2o""unis"
This led to 5ht was calle* the Dnat)raliFationD of economic
relations, To cite =ene*i8tov a"ain?
Enter-rises in fact ma*e no -ament for materials an* services o+taine*
from other state instit)tions0 since all e@-en*it)res too8 -lace + +oo8>
8ee-in" an* too8 the form sim-l of the transfer of wor8in" ca-ital
allocations from one acco)nt to another, The ne@t ste- was the "ra*)al
a+olition of monetar char"es levie* on state instit)tions for comm)nal
services0 first in Moscow an* later thro)"ho)t the co)ntr, At the same
time wor8ers an* em-loees an* their families an* also some other
strata of the -o-)lation were no lon"er char"e* for foo*st)ffs an*
cons)mer "oo*s0 for -ostal an* trans-ort services0 for ho)sin" an*
comm)nal services0 etc, This e@ten*e* not onl to the state sector +)t
also to the wor8in" elements of the town an* some "ro)-s of r)ral
resi*ents0 families of sol*iers an* invali*s0 etc,
(#
This entire -rocess reache* its a-o"ee at the en* of #$(5 an* was
)n*o)+te*l *ee-l infl)ence* + the i*eolo" which was so
wi*es-rea* amon" the -art *)rin" the -erio* of war comm)nism,
In*ee* =ene*i8tov himself note* in his +oo8 that some of the most
e@treme meas)res in this *irection were ta8en after final victor ha*
+een achieve* in the civil war,
In other wor*s mone lost its effective f)nction within the state
sector of the econom0 an* ha* -recio)s little f)nction at all, In
#$#$>(5 wor8ersD wa"es were lar"el -ai* in 8in*0 the mea"re
ration +ein" free, Overcrow*e* tramcars an* trains0 insofar as there
were an0 were free also0 as were m)nici-al services, 6 #$(5 there
was even an attem-t at a moneless +)*"et, This has +een well
*escri+e* + R, :, 3avies, As he -)t it?
:hen it -rove* im-ossi+le to sta+iliFe the c)rrenc an* a centraliFe*
war comm)nism econom +e"an to +e esta+lishe*0 the earlier ca)tions
a+o)t the *an"ers of the ra-i* transition to a moneless sstem were
hear* less often, News s-rea* that the civil war sstem of com-lete state
ownershi- an* the a+olition of the mar8et was the f)ll socialism of Mar@
an* En"els0 an* that mone was therefore an anachronism, An* this
view was stren"thene* + the inflation which seeme* in an case to
ma8e the a+olition of mone inevita+le, 6 the mi**le of #$(5 the view
The 4oney "llusion and Economic Collapse *
)iat the time was ri-e for the com-lete esta+lishment of a moneless
sstem was almost )niversall acce-te* an* attention was t)rne* to the
-ro+lems of o-eratin" an econom in 8in*, In the s-here of the +)*"et
the central -ro+lem +ecame *ie re-lacement of the mone + a +)*"et
or +alance of state income an* e@-en*it)re in 8in* .a material +)*"et/0 a
)nifie* -lan for )tiliFin" the material reso)rces of the econom,
Since the vario)s "oo*s ha* to +e e@-resse* in some common
*enominator0 there were *isc)ssions a+o)t fin*in" s)ch a *enomi>
nator in la+o)r )nits, :ar comm)nism en*e* +efore some of these
i*eas co)l* fin* an -ractical e@-ression,
((
9enin himself0 in writin" or a--rovin" the *raft -ro"ramme of the
Comm)nist Part in #$#$0 incl)*e* the followin" -hrases?
To contin)e )n*eviatin"l to re-lace tra*e + -lanne*0 "overnmentall
or"aniFe* *istri+)tion of -ro*)cts, The aim is to or"aniFe the whole
-o-)lation into -ro*)cersD an* cons)mersD comm)nes ,,, OThe -artP
will strive for the most ra-i* carrin" o)t of the most ra*ical meas)res
-re-arin" the a+olition of mone,
R)ssian commentators have note* the contrast +etween these wor*s
an* 9eninDs own insistence on a ver *ifferent -olic two ears
later0 em-hasiFin" that e@-erience ta)"ht him that this was the
wron" roa*,
(&
As mone lost all val)e0 -rivate tra*e was *eclare* ille"al an* the
nationaliFation of -racticall all in*)strial enter-rises was
)n*erta8en0 voices came to +e raise* amon" the comm)nists that
the were even now in the -rocess of esta+lishin" a tr)e socialist
econom, The most intelli"ent i*eolo"ist of left comm)nists0
6)8harin0 *evise* a theor to the effect that in revol)tions there is
an inevita+le mass *estr)ction of means of -ro*)ction0 an* that +
there+ *estroin" the str)ct)re an* social ha+its of the -ast it
wo)l* +e -ossi+le to +)il* from scratch the tr)e socialist R)ssia,
Mar8ets0 mone0 +)in" an* sellin"0 these characteristics of
ca-italism wo)l* swiftl vanish, So wo)l* economics0 a science
relate* to commo*it e@chan"e an* to -rivate -ro-ert in the means
of -ro*)ction,
(<
Of co)rse 6)8harin an* his frien*s were well aware
of the a--allin" shorta"e of "oo*s of ever 8in*0 an* *i* em-hasiFe
the necessit of increasin" -ro*)ction, However0
%o :ar Comm)nism
the retaine* at this -erio* a Uto-ian an* o-timistic set of i*eas
concernin" a lea- into socialism0 which wo)l* seem to have ha*
little to *o with the realit of h)n"er an* col*, Chaos increase*,
In*)strial -ro*)ction fell ra-i*l, The *estr)ctive civil war *is>
r)-te* comm)nications an* ma*e life more *iffic)lt still0 while
callin" )-on the remnants of in*)str to s)--l virt)all everthin"
for the nee*s of the front,
Shorta"e of foo* was -erha-s the 8e -ro+lem, The "overnmentDs
-olic towar*s the -easants "ave no ho-e of an im-rovement0 since
it -rovi*e* no incentives to -ro*)ce, Earl in #$#$ the "overnment
wo)n* )- the committees of the -oor which ha* wro)"ht s)ch
havoc, 6)t the -olic of reE)isitions an* arme* *etachments was
maintaine* )nchan"e* thro)"h #$#$ an* #$(5, Meas)res that ma*e
sense0 if at all0 onl in terms of the emer"enc an* *isr)-tion came
to +e re"ar*e* as "oo* in themselves, Yet the vast maCorit of the
-eo-le o+vio)sl earne* for "reater free*om of tra*e0 an* the
a)thorities 8new it ver well, The o+stinatel ref)se* to
contem-late s)ch a s)rren*er0 as the saw it0 to the -ett>+o)r"eois
instincts of the masses, 9eninDs own views at this -erio* were +oth
harsh an* e@treme, Th)s he is on recor* as havin" o--ose*
-ro-osals + +oth Trots8 an* 9arin .see -, %$>45 +elow/ to rela@
-ro*raFverst8a at the +e"innin" of #$(5, In A)")st #$#$ his notes
rea* as follows? DFree tra*e in +rea* "rains is a ret)rn to the total
-ower 9vsevlastiye: of the rich0 the lan*lor*s0 the ca-italists, It is the
+eatin" )- 9i2"iyeniye: of millions to ma8e -rofits for ca-italists, It
is ;olcha1ovshchina, it is a state crime,D
(1
Similar statements a+o)n*
thro)"h to the en* of #$(5, Other 6olshevi8s0 with few e@ce-tions0
were C)st as em-hatic as he was in o--osin" anthin" that im-lie*
the le"aliFation of -rivate tra*e, However0 their -osition +ecame
more v)lnera+le with the shar- an* contin)o)s *ecline in the
n)m+ers of towns-eo-le0 the halvin" within two ears of the
wor8in">class -o-)lation itself0 the -roletariat in whose name the
comm)nist -art e@ercise* its *ictatorshi-, There were (,% million
wor8ers in #$#40 #,( million in I$(5,
(%
Chaos an* miser were
)n+eara+le0 or rather wo)l* +ecome )n+eara+le as soon as the civil
war which "ave them some conceiva+le raison d,etre was over,
It is har* for a -rosaic writer witho)t literar "ifts to -ict)re
The 4oney "llusion and Economic Collapse %1
the state o# R)ssia t this period. It is true tht "n+ re"ote nd
isolate* villa"es live* their lives as )s)al0 =ut over most of the
co)ntr normal life ha* +ecome im-ossi+le, H, !, :ells0 in his
+oo8 E)ote* a+ove0 s-o8e of
harsh an* terri+le realities ,,, O)r *ominant im-ression of thin"s
R)ssian is an im-ression of a vast irre-ara+le +rea8*own, The "reat
monarch which was here in #$#<0 the a*ministrative0 social0 financial
an* commercial sstems connecte* with it have0 )n*er the strains of si@
ears of incessant war0 fallen *own an* +een smashe* )tterl, Never in
all histor has there +een so "reat a *e+acle +efore, The fact of the
revol)tion is to o)r min*s alto"ether *warfe* + the fact of this
*ownfall , , , The R)ssian -art of the ol* civiliFe* worl* that e@iste*
+efore #$#< fell an* is now "one ,,, Ami* this vast *isor"aniFation an
emer"enc "overnment s)--orte* + a *isci-line* -art of -erha-s
#150555 a*herents > the Comm)nist Part > has ta8en control, It has
>at the -rice of m)ch shootin" > s)--resse* +ri"an*a"e0 esta+lishe* a
sort of or*er an* sec)rit in the e@ha)ste* towns an* set )- a cr)*e
rationin" sstem,
:ells "ives a fri"htenin" -ict)re of Petro"ra*0 in which all woo*en
ho)ses were -)lle* *own for f)el an* even the woo*en -avin"s ha*
+een )se* for the same -)r-ose, All this accor*s with the -ict)re of
the -erio* which one o+tains from rea*in" s)ch a novel as 'r
<hivago- Another R)ssian novel0 !la*8ovDs 7ement, *escri+e* the
effect of the chaos of the time on the o-erations of a factor, Ami*
*es-erate shorta"es of materials an* f)el0 the remainin" wor8ers
ma*e ci"arette li"hters o)t of -ilfere* metal in or*er to have
somethin" to +arter for foo*, The tremen*o)s sha8e>)- an*
*isr)-tion of these ears left a scar on the memories an*
consciences of millions of -eo-le0 an* it is not s)r-risin" that the
e@-eriences of the -erio* with their "ran*e)r an* miseries -lae*
s)ch an im-ortant -art in s)+seE)ent literat)re, The ta+le on -, %(
shows the colla-se statisticall,
The colla-se of forei"n tra*e was *)e not onl to the -revailin"
chaos0 +)t also to the +loc8a*e maintaine* *)rin" the civil war +
the :estern -owers, There was a siFea+le 6ritish naval force in
#$#$>(5 in the !)lf of Finlan*0 for e@am-le0 +loc8a*in" 9enin"ra*,
4. -r 2o""unis"
?SNK7 ende:oured to co-e 5ith an i"possi=le Io=. B+
Septe"=er #$#$0 accor*in" to 6)8harin0 there were )n*er its
control &0&55 enter-rises0 em-loin" a+o)t #,& million -ersons0 or
so the statistical recor*s -)r-orte* to show0 while 6)8harin
himself tho)"ht the n)m+er of nationaliFe* enter-rises was =out
191( 19.1
!ross o)t-)t of all in*)str .in*e@/
1&&
(1
9ar"e>scale in*)str .in*e@/
1&& .1
Coal .million tons/
.9
$
Oil .million tons/
9..
&>'
Electricit .million 8:hs/
.,&(9
/.&
Pi" iron .million tons/
4..
O.I
Steel .million tons/ <>&
&..
6ric8s .millions/
..1 &.&1
S)"ar .million tons/
i-( &.&/
Railwa tonna"e carrie* .millions/
1(.4
&$><
A"ric)lt)ral -ro*)ction .in*e@/
1&& 4&
Im-orts .D#$#&D ro)+les/ i0&4<
.&0
E@-orts .D#$#&D ro)+les/
1,/.& .&
4So%rces: Promyshlennost, SSSR .Moscow0 #$%</0 -, &(,
6neshnyaya torgovlya SSSR 2a =>=?!@A gg- .Moscow0 i$%5/0 -, #&,
Narodnoe 1ho2yaistvo SSSR, #$&(0 -, TTTI=, Sotsialistiches1oe
stroite&stvo .Moscow0 #$&</0 --, (0<, Eta#y e1onom1hes1oi #oliti1i
SSSR, P, =ais+er" .Moscow0 #$&</ -, 11,/ Note: Some of the a+ove
fi")res *o not refer to strictl com-ara+le territor,
<05550 +)t -res)ma+l the fi")res here "iven onl relate to those
within the -)rview of =SN7H, Of the a+ove>mentione* enter>
-rises0 #0&41 were f)nctionin" in Se-tem+er #$#$, Ami* the
"eneral +rea8*own of trans-ort an* comm)nications0 the )n-re>
*icta+le movements of the war fronts0 the *eman*s of the militar
for all availa+le s)--lies an* its own cl)ms an* ine@-erience*
mishan*lin" of materials allocations0 =SN7H co)l* onl
str)""le to miti"ate where -ossi+le the "eneral colla-se of econ>
omic life, Chaos was increase* + ar+itrar arrests of real or
alle"e* D+o)r"eoisD0 incl)*in" s-ecialists0 *e-rivation of rations0
an* so on,
S)ccessive reor"aniFations consi*era+l e@-an*e* its a*minis>
trative a--arat)s, In 6)8harinDs conce-tion =SN7H was in
'he 2one- Illusion and )cono$ic olla!se :3
ver real sense actin" as a sin"le state firm, In #$#$>(50 thro)"h its
vario)s "lav8i0 it *istri+)te* s)ch materials as were availa+le0 iss)e*
or*ers as to what to -ro*)ce0 which of the *es-erate nee*s to satisf0
an* in what or*er, This was in*ee*0 as 6)8harin note*0 an attem-t at
total an* moneless -lannin"0 tho)"h in a *isinte"ratin" econom
)n*er con*itions of civil war0 with little effective coor*ination
+etween =SN7HDS own "lav8i0 let alone other controllin" +o*ies,
He note* that in Se-tem+er #$#$ a+o)t '5>$5 -er cent of lar"e>scale
in*)str ha* +een nationaliFe*0 an* he correctl foresaw that this
fi")re wo)l* reach #55 -er cent, However0 in view of the fact that
he was a lea*er of the left e@tremists at this -erio*0 it is interestin"
to note that he0 an* also Preo+raFhens80 his co>a)thor0 a**e* the
followin" wor*s?
:e m)st remem+er that we *o not e@-ro-riate -ett -ro-ert, Its
nationaliFation is a+sol)tel o)t of the E)estion0 firstl +eca)se we wo)l*
+e )na+le o)rselves to or"aniFe the scattere* small>scale -ro*)ction0 an*
secon*l +eca)se the Comm)nist Part *oes not wish to0 an* m)st not0
offen* the man millions of -ett -ro-rietors, Their conversion to
socialism m)st ta8e -lace vol)ntaril0 + their own *ecision0 an* not +
means of com-)lsor e@-ro-riation, It is -artic)larl im-ortant to
remem+er this in areas where small>scale -ro*)ction is -re*ominant,
(4
In line with the a+ove conce-tions0 the *ecree of (% A-ril #$#$
s-ecifie* that there sho)l* +e no nationaliFation of an enter-rise
em-loin" five -ersons or less .ten -ersons in the a+sence of a
-ower>*riven machine/,
3es-ite the a+ove0 man tho)san*s of small wor8sho-s were in
fact nationaliFe*0 even tho)"h the state was E)ite )na+le to ma8e
them f)nction, The statistics of the -erio* were m)**le*0 to sa the
least, The inval)a+le 7ritsman "ave a n)m+er of contra*ictor
fi")res, Th)s =SN7H claime* that on # Novem+er #$(5 there were
<0<(5 nationaliFe* enter-rises0 while another so)rce ma*e it <01<4,
Yet in A)")st #$(5 an in*)strial cens)s co)nte* over &40555
nationaliFe* enter-rises, Of these0 however0 over 10555 em-loe*
one wor8er onl, Man of these Denter-risesD were0 a--arentl0
win*millsH This ill)strates the fantastic e@tremes to which
nationaliFation was -)she* in #$#$>(50 *es-ite the clear
im-ractica+ilit of s)ch action,
%1 .ar Communism
Krits"n clled the res)ltant conf)sion Dthe most com-lete #or"
o# -roletarian nat)ral>anarchistic economD, Anarchistic +eca)se of
conflicts +etween *ifferent a*ministrative instances0 an* +eca)se of
lac8 of an coherent -lan, Anarchistic too +eca)se of the Dshoc8D
4%ndarnyi5 cam-ai"nin" metho*s0 + which the a)thorities r)she*
from +ottlenec8 to +ottlenec80 creatin" new shorta"es while see8in"
feverishl to *eal with others, He claime* that it was DheroicD, He
8new an* sai* that it was chaotic,
The war emer"encies an* the trans-ort +rea8*own were ever>
-resent reasons for ti"hter control, Alrea* in Novem+er #$#' the
Co)ncil of :or8ersD an* PeasantsD 3efence was set )- to collect an*
)tiliFe reso)rces for war, This co)ncil s-ro)te* a n)m+er of
committees with stran"el a++reviate* names s)ch as
7hre21omsna" an* 7h%sosna"arm, with s-ecial -owers over *e>
fence in*)stries0 incl)*in" those a*ministere* + =SN7H,
In March #$(5 it +ecame the Co)ncil of 9a+o)r an* 3efence
4Sovet tr%da i o"orony, STO/, 9enin was its chairman0 an* its
a)thorit conflicte* with0 an* +ecame s)-erior to0 that of =SN7H,
The STO +ecame the effective economic ca+inet an* iss)e* +in*in"
*ecrees on all 8in*s of thin"s0 from nationaliFation to +oots,
=SN7H0 the STO an* the "overnment in #$(5 were -rone to set )-
committees to ma8e -lans for the e@-ansion of -ro*)ction in f)t)re
ears, For this -)r-ose a n)m+er of so>calle* +o)r"eois s-ecialists
were *rawn in, The )se* the wor8 of s)ch men as !rinevets80
tho)"h this a+le en"ineer>-lanner was an anti>6olshevi8, Some of
these -lans re-resent interestin" -ioneerin" efforts at thin8in" o)t
means of *evelo-in" R)ssian nat)ral reso)rces on a lar"e scale0
even tho)"h in the short r)n nothin" whatever co)l* have +een *one
to ma8e a realit of them, The +est 8nown of these -lans was the so>
calle* !OE9RO0 the -lan for electrification of R)ssia to which
9enin -ai* so m)ch attention an* which :ells in his +oo8 *escri+e*
as senseless *reams ami* the )niversal r)in, This was Dthe first lon">
term *evelo-ment -lan in h)man historD,
('
The -lan was -resente*
to a Con"ress of the Part in Moscow in #$(5 + the ol* 6olshevi8
en"ineer 7rFhiFhanovs8, He ill)strate* the -lan with a vast ma- of
R)ssia in which electric li"ht +)l+s showe* the electrification of the
f)t)re, S)ch was the state of MoscowDs
The 4oney "llusion and Economic Collapse %*
electricit s)--l at the time that it was necessar to c)t off almost
all the cit in or*er to ens)re that these li"hts on the ma- wo)l* not
ca)se overstrain at the -ower station, The or"aniFation res-onsi+le
for !OE9RO was event)all mer"e* with the nascent -lannin"
or"ans0 as will +e mentione* later on,
6 the en* of #$#'0 another +o* was )n*erta8in" the coor*ina>
tion of reso)rce allocation? this was the Commission of UtiliFation
4;ommisiya is#ol,2ovaniya5, which0 as its title s)""ests0 was con>
cerne* with *istri+)tion0 not -ro*)ction, It was inter*e-artmental0
an* trie* to reconcile conflictin" interests of the vario)s "lav8i an*
commissariats, In *oin" so0 it +e"an0 however haltin"l0 the -ractice
of *rawin" )- material +alances0 later to +ecome an essential feat)re
of Soviet -lannin",
($
One "ets the im-ression of )tter a*ministrative conf)sion0
*escri+e* + =ais+er" as Da*ministrative -artisan warD, Central
or"ans0 in an* o)t of =SN7H0 while enforcin" stern centraliFation0
were often at o**s with one another, No )nifie* -lan e@iste*, There
was -riorit for war0 an* n)mero)s im-rovisations as the econom
sta""ere* from critical shorta"e to o)tri"ht +rea8*own, 6)t0 to cite
=ais+er" a"ain0 Done m)st not for"et >an* this is most im-ortant >
that )n*er these con*itions the -art coor*inate* the m)ltit)*e of
-lans an* o-erational *ecisions of the "lav8i0 re-lacin" the non>
e@istent )nifie* national>economic -lan an* ens)rin" militar
victorD,
&5
An* within the -art the effective +o*0 s)-reme oer all0
was the -olit+)rea),
3)rin" the war>comm)nism -erio* the -art ferventl *e+ate*
the lin8e* iss)es of in*)strial a*ministration an* the role of the
tra*e )nions, :e have seen that the ori"inal -rinci-les of wor8ersD
control involve* a s-ecies of )n*efine* s)-ervision over the
f)nction of mana"ement0 which "ave rise to m)ch in*isci-line an*
stren"thene* sn*icalist ten*encies, The mer"in" of the wor8ersD
co)ncils with the tra*e )nions co)l* onl im-rove the sit)ation on
con*ition that the tra*e )nions were not +ehavin" as sectional
interest or"aniFations an* that the wo)l* *o somethin" effective to
im-ose *isci-line, This conce-t of the tra*e )nions was at variance
with their re-resentative character, It is tr)e that the )nions were
increasin"l )n*er the control of mem+ers of the 6olshevi8 -art,
However0 these mem+ers were not et +ehavin"
%% :ar Comm)nism
li8e o+e*ient co"s in a machine0 an* themselves em+o*ie* ten*en>
cies which co)l* onl +e *escri+e* as sn*icalist in nat)re, Man
also ha*0 as we have seen0 ill)sions concernin" the innate virt)e of
wor8in">class initiative, O--osition to 9enin crstalliFe* aro)n* the
iss)es of one>man mana"ement an* the role of the )nions,
!ra*)all0 thro)"h #$#$ an* #$(50 9enin s)ccee*e* in havin" the
-rinci-le of one>man mana"ement in in*)str intro*)ce*0 +)t even
as late as March #$(5 he a*mitte* his fail)re to -ers)a*e the
6olshevi8 faction in the tra*e )nions to acce-t his i*eas on this
s)+Cect, In this res-ect0 as in others0 there were no clear r)les of
con*)ct, Th)s mana"ement too8 the followin" forms in vario)s
-laces?
17 A wor8er in char"e0 with a s-ecialist assistant an* a*viser,
18 A s-ecialist in char"e0 with a wor8er>commissar attache* to
him,
19 A s-ecialist in char"e0 an* a commissar who ha* the ri"ht to
E)er +)t not to co)nterman* his or*ers,
20 A colle"i)m0 with a res-onsi+le chairman,
&#
9eninDs -rinci-le of Diron *isci-lineD0 to which he ret)rne* a"ain
an* a"ain0 event)all overcame the conce-t of a mana"ement
colle"i)m which incl)*e* re-resentatives of the wor8ers, The so>
calle* :or8ersD O--osition0 le* + Shla-ni8ov an* 7ollontai0
tho)"ht in terms of tra*e>)nion control over the econom, This was
not at all 9eninDs view, He saw in the -art the em+o*iment of the
tr)e interests of the entire wor8in" class0 an* wo)l* not allow an
co)nter-osin" of tra*e )nionist or sectionalist interests to the
s)-reme a)thorit of the -art, It is interestin" to note0 in view of
later Chinese -olicies0 that the :or8ersD O--osition0 in its s-eeches
to the tenth -art con"ress in #$(#0 a*vocate* that ever mem+er of
the -art0 whatever his -osition0 sho)l* +e an or*inar wor8er for
several months in the ear,
At the other e@treme Trots8 a*vocate* the militariFation of
la+o)r, His views arose o)t of the *es-erate sit)ation of #$(5, A
DmilitarD attac8 on the chaos in rail trans-ort *i* have some s)ccess,
He too8 the view that the )r"enc of the nee* for reconstr)ction was
s)ch that it C)stifie* the creation of a 8in* of la+o)r arm which
wo)l* wor8 )n*er militar *isci-line, 9enin
The 4oney "llusion and Economic Collapse %5
o--ose* this view, The tra*e )nions in his o-inion still ha*
-rotective f)nctions0 "iven the +)rea)cratic *eformations from
which the Soviet state still s)ffere*, F)rthermore Trots80 in ma8in"
virt)e o)t of necessit0 went so far as to envisa"e la+o)r
militariFation as lastin" thro)"h the whole transitional -erio*0 )ntil
the time that socialist conscio)sness wo)l* ma8e everone *esire to
wor8 for the common weal, Until then0 the wor8ers wo)l* have to
+e com-elle* to *o what was nee*e* > an* it was the lea*ershi- who
8new what it was, 6)8harin at that time too8 a similar line, .6oth
E)ic8l chan"e* their t)ne once war comm)nism was over,/ Th)s
6)8harin feare* that "ro)-s of wor8ers Dwill fail to )n*erstan* all>
-roletarian tas8sD0 an* so one nee*e* la+o)r conscri-tion an*
*irection of la+o)r0 the Dconcentrate* coercion of the -roletarian
*ictatorshi-0 the militariFation of economic comman* f)nctionsD, He
saw no -oint in so>calle* Dfree*om of la+o)rD,
&(
These *e+ates ma seem to +e of f)n*amental im-ortance, It
mi"ht a--ear that the were concerne* with the Dconscience of the
revol)tionD an* the ver essence of the nat)re of the Soviet state,
Those who ta8e this view ma therefore *e-lore that so little s-ace
has +een *evote* here to the ar")ments of the -rota"onists, The
ar")ments were of co)rse *ee-l felt, Yet one m)st as8 oneself
whether the *e+ates reall ma*e m)ch *ifference to realit, It was
nat)ral that some comm)nists wo)l* a*vocate *irect wor8in">class
control over the factories0 an* that this wo)l* conflict with the nee*
for *isci-line an* or*er, It was nat)ral0 too0 that the a*vocates of
*isci-line an* or*er wo)l* tri)m-h0 es-eciall in the chaotic
con*itions of the -erio*, The iss)e of whether or not the a--arat)s
of economic control sho)l* +e )n*er the tra*e )nions0 which seems
so f)n*amental0 was s)rel in a ver real sense a -se)*o>iss)e, If
the tra*e>)nion a--arat)s ha* ta8en over the tas8s of r)nnin"
in*)str0 it wo)l* have +ecome transforme* into another version of
=SN7H0 the economic *e-artment of "overnment, It was E)ite
im-ossi+le for the )nions to retain their characteristics in this new
role, As for the militariFation of the econom0 Trots8Ds mista8e was
s)rel to i"nore the lon"in"s of the *emo+iliFe* sol*iers an* over>
wro)"ht citiFens for the stat)s of free wor8ers, The )nions were
:; .ar o$$unis$
of course incor-orate* into the sstem an* )se* as a Dtransmission
=eltC, +etween -art an* masses,
Nor was 9enin o--ose* to ad hoc militariFation, Here0 for
instance0 is one of his *raft *ecrees? DIn a +elt stretchin" &5>15
versts on +oth si*es of the railwa lines0 intro*)ce martial law for
la+o)r mo+iliFation to clear the trac8s,D
&&
He re-eate*l )r"e*
the mo+iliFation of the +o)r"eoisie for com-)lsor la+o)r, A
resol)tion a--rove* + him *)rin" the hei"ht of the ar")ment
with Trots8 favo)re* Dso)n* 92dorovye: forms of the militariFa>
tion of la+o)rD,
&<
Yet the fact remains that acres of scarce -a-er
an* tons of scarcer in8 were *evote* at this time to this -artic)lar
*isc)ssion0 + 9enin an* man others,
'he )ssence and )ndin& o1 .ar o$$unis$
So we can i*entif the followin" characteristics of war comm)n>
ism?
21 An attem-t to +an -rivate man)fact)re0 the nationaliFation
of nearl all in*)str0 the allocation of nearl all material stoc8s0
an* of what little o)t-)t there was0 + the state0 es-eciall for
war -)r-oses,
22 A +an on -rivate tra*e0 never E)ite effective anwhere0 +)t
s-asmo*icall enforce*,
23 SeiF)re of -easant s)r-l)ses .-ro*raFverst8a/,
24 The -artial elimination of mone from the stateDs *ealin"s
with its own or"aniFations an* the citiFens, Free rations0 when
there was anthin" to ration,
25 All these factors com+ine* with terror an* ar+itrariness0
e@-ro-riations0 reE)isitions, Efforts to esta+lish *isci-line0 with
-art control over tra*e )nions, A sie"e econom with a com>
m)nist i*eolo", A -artl or"aniFe* chaos, Slee-less0 leather>
Cac8ete* commissars wor8in" ro)n* the cloc8 in a vain effort to
re-lace the free mar8et,
6 the +e"innin" of #$(50 the :hite armies were fleein" on all
fronts0 an* the 6olshevi8s were in control of an e@ha)ste*
co)ntr, The time ha* come to consi*er the +asis on which
reconstr)ction co)l* +e achieve*, No lon"er was it -ossi+le .or
'he )ssence and )ndin& o1 .ar o$$unis$ :9
necessar/ to s)+or*inate all consi*erations to the str)""le for
s)rvival, The means of recover were now to han*, At the en* of
#$#' an* for m)ch of #$#$ the Soviet>hel* territor of R)ssia was
c)t off from most of its c)stomar so)rces of te@tile materials
.T)r8estan an* the 6altic states/0 from oil0 from the 3onets coal
+asin0 from the wheatlan*s of the North Ca)cas)s an* of the
U8raine0 from most of its iron an* steel -lants, All these ha*
ret)rne* to Soviet han*s, Tr)e0 the were in a *e-lora+l r)n*own
or *ecre-it state, 6)t the reso)rces were availa+le0 an* nee*e* to +e
activate*, The tas8 of reconstr)ction ha* to +e tac8le* an* the
attention of the -art lea*ers was increasin"l *evote* to this, The
Polish invasion .Ma #$(5/0 the s)+seE)ent R)ssian a*vance on
:arsaw0 an* the -ainf)l retreat0 interr)-te* for a time the -rocess of
re>thin8in"0 + -rovi*in" et another reason for emer"enc
meas)res, 6)t fi"htin" with Polan* en*e* in Octo+er #$(5,
However0 the 8e -ro+lem was the relationshi- with the -easants0
an* also the relate* -ro+lems of free*om of tra*e an* of -rivate
small>scale in*)str, It was +ecomin" increasin"l clear that the
state or"ans were E)ite )na+le to co-e with r)nnin" all sections of
in*)str an* with the -rocesses of material allocation0 rationin" an*
tra*e, ReE)isitionin" .-ro*raFverst8a/ was +itterl resente* + the
+)l8 of the -easants0 an* a"ric)lt)ral recover was im-ossi+le
)nless the co)l* +e "iven some incentives an* a sense of sec)rit,
State farms were not an acce-ta+le sol)tion an* the -easants were
stron"l o--ose* to the transfer to them of an )sa+le lan* which
the themselves wante*, Trots8 ma have a--eare* to +e an
e@treme s)--orter of *isci-line0 in that he favo)re* militariFation of
la+o)r in #$(5, Yet the same Trots8 was the first -rominent
6olshevi8 to acce-t the nee* to a+an*on -ro*raFverst8a0 to
s)+stit)te a ta@ in 8in* an* to allow "reater free*om for tra*e0 or at
least to +arter, He sai* as m)ch in Fe+r)ar #$(5, :e have now
learnt that a similar -ro-osal ha* +een ma*e + Y), 9arin to the
thir* con"ress of the sovnar1ho2y .economic co)ncils/ at the en* of
2an)ar #$(50 an* receive* some s)--ort0 for e@am-le from R8ov0
where)-on 9enin an* 7restins8 insiste* not onl on reCection of
the -ro-osal +)t also for+a*e its -)+lication0 which is wh it has
s)rface* onl ver
1& -r 2o""unis"
recentl+.
(/
9he Menshevi8s0 for e@am-le F, Jn, also ar")e* for
a+an*onin" -ro*raFverst8a, 6)t 9enin was im-laca+le, Yet he was
on recor* as sain" that reE)isitions were a necessar an*
tem-orar -hase0 arisin" from the emer"enc sit)ation an* the
"eneral *estit)tion of the co)ntr, He co)l* s)rel not have
ima"ine* that -easants wo)l* or co)l* +e -ers)a*e* .for lon"/ to
han* over their s)r-l)ses for what he himself *escri+e* as Dcolo)re*
-ieces of worthless -a-erD, He seems to have ho-e* for some sort of
or"aniFe* -ro*)ct e@chan"e0 which wo)l* still c)t o)t -rivate
tra*ers an* 8ee- the -easants wholl *e-en*ent on state so)rces of
s)--l, Certainl the s-eeches of the time0 an* also s)ch novels as
7ement + !la*8ov0 show that a "reat man -art mem+ers were
*evote* to the -ro-osition that free tra*e an* -rivate man)fact)rin"
were sinf)l0 that to allow s)ch thin"s was to s)rren*er to the enem0
an* that the wi*es-rea* +lac8 mar8et was an evil to +e firml
s)--resse*, 9ater on0 9enin a*mitte* that he too was affecte* + the
-revailin" atmos-here, On ($ A-ril #$(5 he sai*? D:e sa that the
-easants m)st "ive their s)r-l)s "rain to the wor8ers +eca)se )n*er
-resent>*a con*itions the sale of these s)r-l)ses wo)l* +e a
crime ,,, As soon as we restore o)r in*)str0 we will ma8e ever
effort to satisf the -easantsD nee*s of )r+an man)fact)res,D
&%
Yet
two *as earlier he ha* sai*? D:e will not fee* those who *o not
wor8 in Soviet enter-rises an* instit)tionsD0
&4
which meant it was a
crime for them>to eat,
In fact0 he seems to have "one ri"ht off the rails, Far from
mo*ifin" the e@tremes of war comm)nism0 the *ecrees a*o-te*
towar*s the en* of #$(5 were more e@treme than ever, Pro*raF>
verst8a was stron"l reasserte*, Aware of the Dacc)rse* vicio)s
circleD R no in*)strial -ro*)ction meant no foo* in towns0 no foo*
in towns meant no in*)strial -ro*)ction > he trie* to +rea8 o)t +
more r)thless reE)isitionin", The -easants0 he 8new0 Dnee*e*
Oin*)strialP -ro*)cts0 not -a-er moneD, He was willin" to sa that
Dwe a*mit o)rselves to +e *es-ots to the -easantsD, 6)t he insiste* on
their *)t to *eliver )- their s)r-l)ses, Even as late as (4 3ecem+er
#$(50 s-ea8in" to a conference in Moscow0 he )r"e* still more
attac8s on alle"e* 8)la8s0 a cate"or he ref)se* to *efine? men on
the s-ot wo)l* 8nowI a man who
The Essence and Endin) of .ar Communism 51
+o)"ht a horse for five -oo*s of "rain was a 8)la80 for instance,
:hen a *ele"ate im-lie* that *eliver o+li"ations of his area
.Stavro-ol0 North Ca)cas)s/ mi"ht +e re*)ce*0 so as to avoi*
Dconfiscations ,,, an* so as not to *estro the economD0 9enin tol*
him? DAct as o) acte* +efore, :ith strict conformit to the *ecree
of the Soviet re"ime an* o)r comm)nist conscience0D which clearl
meant R confiscate,
&'
To +e fair0 on the ver same *a he fo)n*
himself in a minorit when he -ro-ose* the iss)in" of +on)ses in
8in* to -easant ho)sehol*s who -ro*)ce* more, His collea")es
tho)"ht that +on)ses sho)l* "o onl to a"ric)lt)ral associations of
vario)s 8in*s, 9enin re-lie*? D:e have twent million se-arate
ho)sehol*s0 which are in*ivi*)all r)n an* cannot +e r)n otherwise,
Not to rewar* them for increasin" their -ro*)ctivit wo)l* +e
+asicall wron",D
&$
On ' Fe+r)ar #$(# O+olens8 -ro-ose* to the
central committee that -ro*raFverst8a sho)l* +e a+olishe* an*
9enin a--arentl a--rove*,
<5
He starte* ma8in" *rafts of resol)tions
on the s)+Cect,
Yet as late as (< Fe+r)ar #$(#0 face* with what he *escri+e* as
8)la8 risin"s an* a catastro-hic sit)ation0 he +lame* the -easant
risin"s on an SR cons-irac fomente* from a+roa*, :hG DThe
connection ma +e seen +eca)se the re+ellions occ)r in those
re"ions from which we ta8e +rea* "rains,D
<#
S)ch an a+s)r*
statement s)""ests he was overwro)"ht0 or C)st not thin8in", 6)t +
then he was a+o)t to ma8e )- his min* that chan"e was necessar,
In 3ecem+er #$(50 too0 an attem-t was ma*e to control +
*ecree the sowin" an* harvestin" on the twent million -easant
hol*in"s, Of co)rse0 this co)l* not +e ma*e effective, 6)t the
*eclaration of intent was ma*e0 an* or"aniFations to carr it o)t
were set )- 4#osev1omy, sowin" committees/0 which is a si"nificant
in*e@ to the -artDs mentalit at the time, The same e@tremism
showe* itself in in*)strial -olic, Here too0 as on the foo* front0
9enin in the same ear tho)"ht in terms of or"aniFe* action0
-riorities0 s)--ression of the mar8et, In*)str m)st +e starte* a"ain0
foo* m)st +e -rovi*e*, D:e m)st concentrate all o)r efforts on this
tas8 ,,, It has to +e solve* + militar metho*s0 with a+sol)te
r)thlessness0 an* + the a+sol)te s)--ression of all other interestsDI
so he sai* to the e@ec)tive of the Soviets on
4( :ar Comm)nism
( Fe+r)ar #$(5,
<(
Perha-s it is in the last few wor*s of this
E)otation that one fin*s the cl)e to the -olic -)rs)e* in that ear,
Colla-se was total, Priorit of reconstr)ction m)st also +e total, 6)t
the "reat ille"al )n*er"ro)n* mar8et econom0 *efin" all efforts to
control it0 was s)c8in" reso)rces awa0 corr)-tin" the a--arat)s an*
the -roletariat ali8e, =er well0 s)--ress it totall, So the m)st
have ar")e*, Onl a ear -revio)sl 6)8harin an* Preo+raFhens80
+oth at this time 8nown for their DleftismD0 ha* E)ite e@-licitl state*
.in their DA6C of Comm)nismD/ that nationaliFation of small>scale
in*)str wo)l* +e Da+sol)tel o)t of the E)estionD .see -a"e %&/, So
9enin wo)l* har*l have +een actin" )n*er -ress)re from them,
This whole lea- into e@tremism in the last months of #$(5 -lainl
-er-le@e* 7ritsman0 who ma*e no attem-t to e@-lain it, He E)ote*
the *ecree nationaliFin" all small>scale in*)str0 which was *ate* as
late as ($ Novem+er #$(50 tho)"h + then most of it ha* alrea*
+een either nationaliFe* or -aralse*, Of co)rse0 the a*ministrative
or"ans were E)ite )na+le to co-e with tho)san*s of tin -ro*)ctive
)nits, Chaos increase*, Th)s in that ear efforts were ma*e to
retain0 for the reconstr)ction -erio* at least0 the characteristic
metho*s of war comm)nism, 6)t this -rove* im-ossi+le,
Events force* their han*, Peasant riots "rew in intensit as the
menace of a :hite victor in the civil war rece*e*, 6an*its roame*
wi*e areas, In some -rovinces it -rove* necessar to *es-atch lar"e
armies to s)--ress re+ellion0 -artic)larl the An>tonov risin" in
Tam+ov, Foo* s)--lies were "ravel en*an"ere*, The final straw
was the 7ronsta*t risin"0 when the sailors re+elle* a"ainst the
misera+le con*itions of life0 an* in their slo"ans reflecte* the
-easantsD hostilit to the -artDs -olic, This risin" +e"an on ('
Fe+r)ar #$(#, 6)t -ro+a+l on ' Fe+r)ar0 at latest on (< Fe+r)ar
#$(#0 there were clear in*ications that 9enin ha* seen that a *rastic
chan"e of line ha* +ecome necessar, He e@-resse* willin"ness to
consi*er the en* of -ro*raFverst8a,
<&
The risin" ma0 however0 have
hel-e* to convince even the more e@treme of the 6olshevi8
lea*ershi- that a shar- a+o)t>t)rn was a matter of life or *eath for
the re"ime > an* therefore also for them, The New Economic Polic
was +orn,
.h- .ar o$$unis$? 73
.h- .ar o$$unis$?
:e m)st now ret)rn to the theme with which we starte* this cha-ter,
:as war comm)nism a res-onse to the war emer"enc an* to
colla-se0 or *i* it re-resent an all>o)t attem-t to lea- into socialismG
I have alrea* s)""este* that it co)l* +e +oth these thin"s at once,
Perha-s it sho)l* also +e sai* that it meant *ifferent thin"s to
*ifferent 6olshevi8s0 an* this is an im-ortant element in o)r
)n*erstan*in" their view of the a+o)t>t)rn of #$(#, Some felt that
the *as of #$#'>(5 were not onl heroic an* "lorio)s *as of
str)""le0 lea*in" to victor a"ainst heav o**s0 +)t were also sta"es
towar*s socialism or even the "atewa to f)ll comm)nism, Some of
these men were *ee-l shoc8e* + the retreat0 which seeme* to
them a +etraal of the revol)tion, Others saw the necessit of the
retreat0 +)t were a+ove all concerne* with limitin" its conseE)ences
an* res)min" the a*vance at the earliest *ate, Still others > some of
the f)t)re ri"ht win" amon" them > loo8e* forwar* to a -rolon"e*
-a)se0 an* saw in war comm)nism at +est an )navoi*a+le series of
e@cesses, For them a lar"e -rivate sector in small>scale in*)str an*
tra*e0 lin8e* with an overwhelmin"l -rivate a"ric)lt)re0 was the
con*ition of -olitical sec)rit an* economic reconstr)ction0 an* this
wo)l* "o on for a lon" time, These attit)*es were + no means
clear>c)t, 9enin himself a*mitte* that he ha* +een over>san")ine
a+o)t the war>comm)nism -erio*, More stri8in"l still0 6)8harin
sw)n" from the e@treme left to +ecome in the en* the i*eolo"ist of
ca)tion an* com-romise0 as we shall see in the ne@t cha-ter,
Evi*ence as to how the 6olshevi8s saw the events of #$#'>(#
ma +e fo)n* in some fascinatin" *e+ates hel* in the ears #$((R
< at the Socialist .later Comm)nist/ Aca*em, The men who s-o8e
were still a+le to e@-ress fran8 views0 to *isa"ree with one another0
s-ea8in" of events which the all remem+ere* vivi*l, This was no
official -ost mortem0 or the smooth cleane*>)- version of later -art
histories, It is therefore worth E)otin" what the vario)s views were0
even tho)"h all too +riefl,
E, A, PREO6RA;HENS7Y? YOU 8now mat in #$#' we intro*)ce*
51 .ar Communism
ntionliEtion onl on a ver mo*est scale0 an* onl the civil war com>
-elle* )s to "o over to nationaliFation all alon" the line,
<<
=, P, MI9YUTIN .one>time hea* of =SN7H/? In OearlP #$#' we ha* no
war comm)nism0 no all>ro)n* nationaliFation0 an* it is wron" to sa tht
there were slo"ans a*vocatin" all>ro)n* nationaliFation, On the contrar0
we move* ca)tio)sl towar*s ta8in" over a few tr)stifie* sectors of
in*)str,
<1
A, A, 6O!3ANO=? Two elements *etermine* war comm)nism, The
element of catastro#he, this is what ma*e war comm)nism necessar in
R)ssia ,,, The secon* was a formal element? comm)nism ha* to +e
achieve*, 6)t who co)l* *o itG He who 8nows how, I will remin* o) of
the Paris Comm)ne, There0 in a +esie"e* cit0 it was necessar to carr
o)t at least some comm)nist meas)res ,,, I remem+er in #$#' how
9enin trie* to -re-are the "ro)n* for the tho)"ht that for the -resent
we nee*e* onl state ca-italism, Yes0 we were ca)tio)s, I recall how the
6olshevi8s felt when -ower fell into their han*s, The first feelin" was
one of *isarra 9rasteryannosf:- These were men "iven + histor a
"i"antic +)r*en to carr, The trie* to act ca)tio)sl0 +)t militar>
revol)tionar necessit *evelo-e* an* com-elle* them0 life com-elle*
them0 to act as the *i*,
<%
6, !ORE= .e@>Menshevi8/? The most terri+le enem of the -roletariat
is the -ett>+o)r"eois -easantr0 an* this enem m)st +e ne)traliFe*,
In this >sense the e@-erience of the R)ssian revol)tion shows that the
nationaliFation of -ett tra*e sho)l* +e the last -hase of the revol)tion0
an* not the first,,, The *iffic)lt was not in the lo"ic of civil war0 as
comra*e Preo+raFhens8 thin8s0 +)t in the fact that the re+ellio)s
-roletariat *eman* eE)alit0 that is cons)mer comm)nism Oi,e, he "ives
wei"ht to -ress)re from +elowP,
<4
v, FIRSO= .minor comm)nist/? NEP was arisin" alrea* in #$#' ,,, Then
came the -erio* of civil warI Dwar comm)nismD a--eare*, O)r movement
towar*s comm)nism there+ slowe* *own0 since socialist constr)ction is
im-ossi+le when all -ro*)ction -otential is )tiliFe* )n-ro*)ctivel, The
war en*e* ,,, The inevita+le NEP
<'
a--eare*0 the first sta"e of o)r move
towar*s socialism, NEP ma +e *etesta+le an* *isa"reea+le for )s0 +)t it is
inevita+le, Is it a concession0 a ste- +ac8 from o)r i*ealsG Yes, A move +ac8
as a"ainst o)r -astG No0 since we have nothin" to retreat from, :e are C)st
+e"innin" to a*vance, NEP is the a*vance line of socialist constr)ction,
<$
:h :ar Comm)nismG 41
9, N, 7RITSMAN? :ar comm)nism was a nat)ral>anarchistic econom,
Not a socialist form0 +)t Dtransitional to socialismD,
15
YU, 9ARIN? :e ha* to r)n the econom in the almost com-lete
a+sence of normal economic con*itions0 an* so inevita+l the -lanne*
econom t)rne* sim-l into the allocation of whatever was availa+le,,,,
That is the -rinci-al reason wh the -lanne* econom )n*er war
comm)nism too8 the form of a*ministrative meas)res0 not of economic
re")lation +)t of a*ministrative allocations,
1#
Trots80 writin" in #$(50 ha* this to sa?
Once havin" ta8en -ower0 it is im-ossi+le to acce-t one set of conse>
E)ences at will an* ref)se to acce-t others, If the ca-italist +o)r"eoisie
conscio)sl an* mali"nantl transforms the *isor"aniFation of -ro*)ction
into a metho* of -olitical str)""le0 with the o+Cect of restorin" -ower to
itself0 the -roletariat is o"liged to resort to socialiFation0 in*e-en*entl of
whether this is +eneficial or otherwise at the given moment- An*0 once
havin" ta8en over -ro*)ction0 the -roletariat is o+li"e*0 )n*er the
-ress)re of iron necessit0 to learn + its own e@-erience a most *iffic)lt
art > that of or"aniFin" a socialist econom, Havin" mo)nte* the sa**le0
the ri*er is o+li"e* to ")i*e the horse > in -eril of +rea8in" his nec8,
1(
Of co)rse0 the a+ove E)otations ma have an element of e* #ost
C)stification a+o)t them, 6)t it wo)l* still +e over>sim-le to
concl)*e0 with :iles0
1&
that war comm)nism re-resente* a mo*el of
f)ll fle*"e* E)antitative -lannin"0 or0 with Pa)l Crai" Ro+erts an*
9asFlo SFam)el
1<
that it was *)e almost solel to i*eolo"0 to
trin" to follow Mar@0 tho)"h similar ar")ments can now +e
enco)ntere* in R)ssia too since #$'$, It co)l* +e ar")e*0 on the
contrar0 that 3o++0 an* the Soviet scholar !im-elson0 "ive too
m)ch wei"ht to circ)mstances0 too little to i*eolo", M own view0
alrea* state*0 is that +oth factors -lae* a maCor role an*
reinforce* each other0 an* this *iffers little from the concl)sions of
Silvana Malle0 in her f)ll>scale s)rve of the -erio*,
11
The elements
which co)l* +e e@-laine* + this +ein" a sie"e>econom were
overlai* an* sometimes overwhelme* + i*eolo"ical>Mar@ist
enth)siasm, 6)t it is not ina--ro-riate to remin* oneself that men
who consi*ere* themselves ortho*o@ Mar@ists0 s)ch as Ple8hanov0
7a)ts80 Martov0 stron"l o--ose* the theor an* -ractice of war
comm)nism,
$% -r 2o""unis"
-ht did ;enin thin8G In #$(5 he co)l* still tal8 of reconstr)c>
tion + enth)siasms R s)ch as vol)ntar e@tra wor80 the so>calle*
s%""otni1i > an* + contin)in" strict centraliFation of economic life,
:e have alrea* seen how he seems to have +ecome Dover>
enth)siasticD in #$(5, Evi*ence can +e m)lti-lie*, Th)s on #%
Octo+er #$(5 he tele"ra-he* the Soviet a)thorities in the U8raine
an* )r"e* them to *evelo- collective c)ltivation0 confiscate the
mone reserves of so>calle* 8)la8s .over an* a+ove the Dwor8ersD
normD0 whatever that was/0 to collect Df)llD all +rea*>"rain s)r-l)ses0
to confiscate the farm im-lements of 8)la8s,
1%
Tr)e0 ever now an*
a"ain he tol* his comra*es that the were "oin" too far0 as when0
commentin" on a *raft *ecree on confiscation of -ro-ert0 he
o+Cecte* to the confiscation of all mone hel* + anone which
e@cee*e* the ann)al income of a wor8er0 an* also the confiscation of
all +oo8s owne* + anone in e@cess of &0555 vol)mes,
14
6)t it is
clear that + #$(5 9enin was himself "oin" too far0 too fast,
He +ecame finall convince* of the necessit of retreat an*0 tr)e
to his nat)re0 he ma*e of the necessit a set of +asic -rinci-les0 of
which m)ch more will +e sai* in the ne@t cha-ter, The new -olic
was to +e carrie* thro)"h Dserio)sl an* for a lon" timeD, In his notes
he has left )s some interestin" insi"hts into his tho)"ht>-rocesses,
One s)ch note rea*s? D#4$< vers)s #$(#,D
1'
The 2aco+ins0 in the
French Revol)tion0 ha* fo)n* that the terror an* economic
centraliFation ha* lost their raison d,etre with the victor of #4$<,
The +eneficiaries of the revol)tion0 es-eciall the more -ros-ero)s
-easants0 ha* -resse* for rela@ation an* free*om to ma8e mone,
This ha* swe-t awa Ro+es-ierre0 an* the whole revol)tion move*
to the ri"ht after DThermi*orD .the month of Ro+es-ierreDs *ownfall/,
All R)ssian revol)tionaries ha* the e@am-le of France vivi*l
+efore them, 9eninDs notes show that he inten*e* to carr o)t the
economic retreat to avoi* a hea*>on clash with the forces that +ro8e
Ro+es-ierre, Ro+es-ierre0 in his view0 faile* to ta8e into acco)nt the
class nat)re of his enemies0 ha* str)c8 o)t a"ainst in*ivi*)als an*
ha* +een swe-t awa in the en*, He0 9enin0 wo)l* avoi* s)ch
-olitical conseE)ences + 8ee-in" the levers of -olitical -ower
firml in the han*s of a *isci-line* -art, So it was not a
coinci*ence that the +e"innin"s of NEP were accom-anie* not
.hy .ar Cornmunism; 55
onl + the final +an on all -olitical -arties other than the
6olshevi8s0 +)t also > at the tenth -art con"ress in March #$(#
> + a +an on factional or"aniFation within the 6olshevi8 -art
itself,
1 8EP
7ow han&e a$e
In the ears #$(#>(0 an* for a few ears thereafter0 the entire social>
economic +alance shifte*, The -rivate sector0 the D-ett +o)r"eoisieD0
came to act in a wa that seeme* to +e in total conflict with the
i*eolo" an* -ractice of the war>comm)nism -erio*, The role of the
mar8et0 in relations with the -easants an* even within the stateDs
own economic sector0 was *ramaticall enhance*, Yet when at last
the +itter lo"ic of circ)mstances convince* 9enin of the nee* for
chan"e0 the f)ll e@tent an* conseE)ences of the chan"e were not0 at
first0 *iscerne*,
:e have seen how0 all the wa )- to Fe+r)ar #$(#0 9enin 8e-t
st)++ornl on the co)rse of all>ro)n* nationaliFation0 centraliFation0
the elimination of mone0 an*0 a+ove all0 the maintenance of
-ro*raFverst8a, There was no -ress)re on him from his collea")es
to chan"e this -olic, Events0 rather than the central committee0
-rovi*e* a -otent means of -ers)asion, The first -)+lic si"n of
secon* tho)"hts came in a s-eech at the -lenar session of the
Moscow Soviet0 on (' Fe+r)ar #$(#? he saw the -oint of a
*ele"ateDs ar")ment to the effect that the -easants nee*e* to 8now
what the ha* to *eliver to the state0 i,e, that the seiF)re of
Ds)r-l)sesD +e re-lace* + a ta@ in 8in* 4#rodnalog5B the wo)l*
consi*er this -ro-osal,
#
Once this i*ea was acce-te*0 however
rel)ctantl0 it was +o)n* to lea* to a reconsi*eration of the entire
+asis of the war>comm)nism econom, As alrea* mentione* in the
last cha-ter0 an hesitations he ma have ha* left on the s)+Cect
were overcome when the -easant risin"s in man -arts of the
co)ntr were followe* + the 7ronsta*t sailorsD revolt, This
occ)rre* *)rin" the sessions of the tenth
Ho$ Chan)e Came 5
-art con"ress in March #$(#, As emer"enc militar meas)res
were im-rovise* to cr)sh the revolt0 so 9enin -ro-ose* the
s)+stit)tion of foo* ta@ .-ro*nalo"/ for confiscation of s)r-l)ses
.-ro*raFverst8a/,
The *ecisive *ecree went thro)"h the -art an* Soviet or"ans
*)rin" March #$(#, The ta@ in 8in* was fi@e* s)+stantiall +elow
the DreE)isitionin"D tar"ets of the -revio)s ear0 an* therefore well
+elow the act)al nee*s for -ro*)ce, Th)s the *eliver E)ota for
#$(5>(# ha* +een <(& million -oo*s0 whereas the "rain ta@ in 8in*
for #$(#>( was fi@e* at (<5 million -oo*s, For -otatoes the fi")res
were res-ectivel no an* %50 for meat (1,< an* %,10 an* so on,
(
In
#$(< ta@ in 8in* was re-lace* + a mone ta@0 +)t this was after the
sta+iliFation of the c)rrenc was well )n*er wa,
After -ament of ta@0 the -easants were to +e free to )se the rest
of their -ro*)ce as the tho)"ht fit0 an* co)l* sell it Din the local
mar8etD0 in the wor*s of the ori"inal *ecree, 6)t this wo)l* ma8e
little sense if the o+Cect was to enco)ra"e sales of foo* to the foo*>
*eficit areas0 an* so this limitation was E)ic8l for"otten,
An* since it was a+s)r* to contem-late -easants travellin"
h)n*re*s of miles to sell their own "oo*s in remote in*)strial cities0
the le"aliFation of -rivate tra*e was inevita+le too0 *es-ite the
stron" feelin"s of rev)lsion which -rivate tra*e inevita+l ca)se*
amon" man -art mem+ers, A"ain0 at first it was ho-e* to control
s)ch tra*e strictl0 to limit it, DFree*om of tra*eD0 sai* 9enin to the
tenth con"ress0 Deven if at first it is not lin8e* with the white ")ar*s0
li8e 7ronsta*t was0 none the less inevita+l lea*s to white>
")ar*ism0 to the victor of ca-ital0 to its f)ll restoration,D
&
Yet in
-ractice the *es-erate nee* for free e@chan"e of "oo*s was s)ch
that0 once tra*e of an 8in* was le"aliFe* .March #$(#/0 it "rew li8e
a snow+all an* swe-t awa restrictions, Coo-erative tra*in" was
enco)ra"e*0 an* was -artic)larl s)ccessf)l in sellin" cons)mersD
"oo*s in the co)ntrsi*e0 as well as "oo*s of all 8in*s in towns
alon"si*e the state retail networ80 which was "ra*)all +ein" +)ilt
)- from the r)ins of war comm)nism, However0 -rivate tra*ers
were allowe* "ra*)all to enter into tra*e *eals of almost ever
8in*? sellin" to -easants0
&o 8EP
+)in" from -easants0 +)in" from an* sellin" to state enter-rises0
sellin" "oo*s ma*e + state factories as well as those ma*e + a
res)r"ent -rivate man)fact)rin" sector .of which more later/,
At first0 when the -art was -ers)a*e* of the nee* for chan"e0 it
was tho)"ht that the retreat wo)l* +e limite* to the s)+stit)tion
ofDcommo*it e@chan"eD C#rod%1too"men5 for confiscations, S-ea8>
in" in Octo+er #$(#0 9enin fran8l a*mitte* this ha* +een an error0
an ill)sion, The onl wa was tra*e0 an* the state an* -art wo)l*
have to learn to tra*e, D:hat is the )se of tal8in" to )s a+o)t state
tra*e0D ar")e* a *ele"ate, DThe *i*nDt teach )s to tra*e in -rison,D
9enin re-lie*? D,,, :ere we ta)"ht to fi"ht in -risonG :ere we ta)"ht
how to a*minister a state in -risonGD
<
The lo"ic of events0 or Dthe
elemental forces of the -ett>+o)r"eois environmentD0 swe-t asi*e
efforts to restrain them,
None the less0 the -art firml hel* to the *ecision to retain in the
han*s of the state Dthe comman*in" hei"htsD of the econom?
+an8in"0 forei"n tra*e0 lar"e>scale in*)str, 6)t it was reco"niFe*
that the attem-t totall to nationaliFe man)fact)rin" was an error,
Un*er the con*itions of #$(#0 with shorta"es of ever 8in*0
es-eciall of f)el0 man state>o-erate* enter-rises ha* to +e close*0
an* some of these0 as well as small wor8sho-s nationaliFe* in the
-revio)s two ears0 were lease* to -rivate entre-rene)rs an*
coo-erative "ro)-s of vario)s 8in*s0 -ament +ein" in "oo*s0 or
ta@es in mone, S)ch small enter-rises as esca-e* the national>
iFation *ecrees were allowe* to re>o-en, On #4 Ma #$(# the *ecree
nationaliFin" all small>scale in*)str was formall revo8e*, On 4
2)l #$(# ever citiFen was a)thoriFe* Dfreel to )n*erta8e
han*icraft -ro*)ction an* also to or"aniFe small>scale in*)strial
enter-rises .not e@cee*in" ten to twent wor8ers/D, 9easin" of
enter-rises in the -ossession of =SN7H was re")late* + a *ecree
of 1 2)l #$(#0 an* leasin" contin)e* thro)"h #$((, Alrea* earl in
#$(( over #50555 enter-rises ha* +een lease*0 on terms of two to
five ears on -ament of ten to fifteen -er cent of o)t-)t0 +)t of
these the lar"e maCorit were win*mills, &0'55 were a--recia+le
enter-rises0 em-loin" fifteen to twent -ersons0 an* fift -er cent
of the lessees were -rivate in*ivi*)als0 some of them former
owners,
1
6 Octo+er #$(& the n)m+er of lease* enter-rises ha*
risen to 10%$'0 em-loin" an avera"e of si@teen
Famine &1
wor8ersI of these0 #0445 were in foo* -rocessin"0 #01#1 in hi*es an*
s8ins, O)tri"ht *enationaliFation was rare? sevent>si@ enter-rises
were Dret)rne* to their former -ro-rietorsD + the -resi*i)m of
=SN7H0 an )nstate* n)m+er + -rovincial or"ans,
%
The New Economic Polic was )niversall referre* to as NEP0
an* the D-rivateersD who flo)rishe* )n*er it were 8nown as
DNe-menD, It was a form of mi@e* econom0 with an overwhelm>
in"l -rivate a"ric)lt)re0 -l)s le"aliFe* -rivate tra*e an* small>scale
-rivate man)fact)rin", :e shall show later on that the DNe-menD *i*
ma8e consi*era+le hea*wa, However0 the a)thorities *i* not allow
the creation of +i" -rivate enter-rises0 tho)"h a total of ei"hteen
-rivate enter-rises *i* em-lo D+etween (55 an* #0555 wor8ersD
each in #$(<R1,D The vast maCorit of those en"a"e* in
man)fact)rin" an* minin" wor8e* for the state,
%a$ine
6)t the still fee+le econom was str)c8 at once + a *isaster of the
first ma"nit)*e, The c)m)lative effect of ears of -ro*raFverst8a
ha* ca)se* a mar8e* re*)ction of sowin"s0 an* on to- of this there
was a severe *ro)"ht in the east an* so)th>east, The res)lt was an
a--allin" famine, The #$(5 "rain harvest0 onl 1< -er cent of the
#$5$>#& avera"e0 was +a* eno)"h, In #$(# the harvest was onl &4,%
million tons0 onl <& -er cent of the -re>war avera"e overall0 +)t far
worse in the affecte* areas,
'
Unco)nte* millions *ie*, Relief
meas)res were ta8en, The ta@ in 8in* ha* to +e waive* in the affecte*
-rovinces, 6)t s)--lies in the han*s of the a)thorities were far too
small to ren*er effective hel- to the starvin", An emer"enc relief
committee was forme*0 with -rominent non>comm)nists0 even with
anti>comm)nists s)ch as Pro8o-ovich an* 7)s8ova0 as -artici-ants,
.The were soon afterwar*s arreste*,/ American ai* was acce-te*0
)n*er the a)s-ices of the American Relief A*ministration, Scarce
reso)rces of forei"n c)rrenc were )se* to -)rchase "rain, Yet
shorta"e of foo*0 the +rea8*own of trans-ort an* "eneral *isor"an>
iFation limite* the effectiveness of relief meas)res, 3iseases s)ch as
t-h)s carrie* off man, Millions of h)n"r s)rvivors wan*ere* in
search of some sort of foo* into the more fort)nate -rovinces,
&a 8EP
"ndustrial (ifficulties
:ith the f)el crisis ca)sin" the clos)re of man state>o-erate*
factories0 #$(# was a ni"htmare ear for -eo-le an* "overnment
ali8e, Towar*s the en* of the ear an* in #$(( there emer"e* a
ni"htmare of a *ifferent 8in*, The lea*ershi- *eci*e* that the time
ha* come to a+an*on the sstem )n*er which state in*)str ha*
+een o-eratin", Hitherto0 as has alrea* +een mentione*0 the ha*
-ro*)ce* re"ar*less of cost0 receivin" all their mone e@-enses
from the state, The vario)s factories were )n*er *ivisions ."lav8i/
of =SN7HI the -ro*)ce* to their or*ers0 an* receive* materials
an* f)el .when the receive* them at all/ in or*er to carr their
or*ers o)t, :a"es ha* almost lost their si"nificance0 an* rations an*
services were mainl free, The res)lt was a monstro)s "rowth of
+)rea)cratic tan"le0 an )nwor8a+le *e"ree of centraliFation
.D"lav8ismD/0 waste an* inefficienc, It was fo)n* necessar to close
man enter-rises +eca)se there was no f)el an* no materials, :hile
*es-erate efforts were ma*e to restore rail trans-ort an* the f)el
in*)stries > an* + the en* of #$(( s)+stantial -ro"ress ha* +een
ma*e in that *irection >the o--ort)nit was ta8en to re+)il* state
in*)str on a new commercial +asis0 to she* s)r-l)s staff an* to
com-el more efficient o-eration + ma8in" mana"ement -a its
wa, :a"es were once a"ain -ai* in cash0 an* in 2)l>A)")st #$(#
services were a"ain char"e* for, Rationin" was a+olishe* on #5
Novem+er #$(#,
$
No more was hear* of the a+olition of mone as a
means of lea-in" into socialism, M)ch was hear* instea* of the
)r"ent nee* for a sta+le c)rrenc0 in which calc)lations an*
-aments co)l* +e ma*e, State in*)str an* state tra*e was
henceforth to o-erate on economic or commercial acco)ntin"
481ho2raschyot5- Materials an* f)el ha* to +e +o)"ht, :or8ers ha*
to +e -ai*, The necessar reso)rces wo)l* have to +e o+taine* from
sales, No more s-oon fee*in"0 an* no eas so)rces of cre*it, This
stern me*icine was containe* in a "overnment *ecree of $ A)")st
#$(#, To ena+le in*)str to o-erate in this wa0 it was necessar to
*ivi*e it into a)tonomo)s )nits0 instea* of treatin" it as if it were
-art of one "reat firm of which =SN7H was the +oar* of
"ndustrial (ifficulties &!
*irectors, These )nits were0 in most cases0 8nown as Dtr)stsD0
which controlle* varin" n)m+ers of Denter-risesD 4#red#riyatiya5,
i,e, factories0 wor8sho-s0 mines, A few lar"e -lants were them>
selves consi*ere* each to +e the eE)ivalent of a tr)st, The were
all now to o-erate commerciall, At first there were vario)s
limitations on their free*om to sell or -)rchase0 tho)"h the maCor
-art of in*)str ha* alrea* *)rin" #$(# +een tol* to sell what
the co)l* where the co)l*, 6)t + earl #$(( the tr)sts .or
lar"e a)tonomo)s enter-rises/ were havin" to fen* for themselves,
Profit>ma8in" an* the avoi*ance of losses were to +e the o-era>
tional criteria, There was0 as a r)le0 no *efinite o+li"ation to "ive
-riorit to s)--lin" the stateI if D-rivateersD offere* +etter -rices0
the han*le* the "oo*s, If -rivate contractors or interme*iaries
"ave +etter service than the tra*in" or"aniFations which were
slowl re-lacin" the materials>allocation +)rea)crac of the war>
comm)nism -erio*0 then here too the Ne-men "ot the +)siness,
As 9enin sai*0 comm)nists ha* to learn to tra*e, 6)t + #$((>&
.the economic ear en*e* on &5 Se-tem+er/ 41 -er cent of all
retail tra*e was in -rivate han*s,
#5
Con*itions in #$(#>( were
anthin" +)t con*)cive to commercial acco)ntin" an* or*erl
tra*in", There was famine an* *es-erate "eneral shorta"e, Fact>
ories ha* few reserves0 an* tr)sts ha* little cash, To o+tain liE)i*
assets the ha* to sell0 an* sell E)ic8l, Yet the "eneral -overt
was s)ch that few wo)l* +), Para*o@icall0 the fee+le in*)strial
effort mana"e* to ca)se a "l)t on the hi"hl *isor"aniFe* mar8et,
Tr)sts com-ete* with one another in trin" to sell even raw
materials an* eE)i-ment to raise cash, The o-ene* their own
stalls in cit streets to *o so > this was the so>calle* ra2"a!
2arivanie, or *is-osin" of assets + +aFaar metho*s,
All this le* to a relative fall in -rices of in*)strial "oo*s as
com-are* with .ver scarce/ foo*st)ffs, .Note the wor* DrelativeDI
+oth were risin" fast with the inflation,/ Prices often faile* to
cover costs, Unsalea+le "oo*s -ile* )- ami* )niversal shorta"es,
Tr)sts were )na+le to -a their inflate* staffs0 an* )nem-loment
"rew ra-i*l0 even tho)"h over half of the -re>war -roletariat
ha* fle* from the towns, The a--arentl vital nee* for more
o)t-)t co>e@iste* with its )nsalea+ilit, S)ch were the imme*iate
conseE)ences of the s)**en immersion of in*)str in the col*
&1 8EP
+ath of commercial -rinci-les, 6)t we shall see that + #$(& the
ta+les were t)rne*,
9enin was -re-are* to "o to almost an len"ths to restore the
econom0 feelin"0 with C)stice0 that this was essential for s)rvival,
He fo)"ht har* to convince *o)+tin" comra*es that forei"n
concessions were an entirel -ro-er wa o)t of the -ro+lem of
reconstr)ction0 an* his wor8s an* s-eeches at this -erio* a+o)n* in
references to this s)+Cect, Some sai*? D:e chase* o)t o)r own
ca-italists0 an* now we call in forei"n ca-italists,D 9enin insiste*
that0 + lettin" forei"n ca-italists o-erate oilfiel*s0 e@-loit tim+er
reso)rces an* so on0 the Soviet state wo)l* o+tain materials of
which it stoo* in *es-erate nee*0 an* some mo*ern eE)i-ment
wo)l* +e -rovi*e* + the concessionaries, A maCor move in this
*irection mi"ht have le* to a +i" enclave of forei"n>owne* in*)str
insi*e 6olshevi8 R)ssia, 9enin ha* e@a""erate* ho-es of this0 an*
"ave -)+licit to a few am+itio)s ca-italists0 s)ch as the American
+)sinessman =an*erli-0 who came to Moscow with vario)s
-ro-osals, However0 in the en* it came to ver little, Onl fort>two
concession a"reements were ma*e0 an* onl thirt>one of those
f)nctione*0 mainl in tim+er, In #$(<>1 onl <0(%5 wor8ers were
en"a"e* in thirteen si"nificant Dconcession>enter-risesD,
##
All si@t>
ei"ht concessions which e@iste* in #$(' acco)nte* for 5,% -er cent
of in*)strial o)t-)t,
#(
Pro+a+l the main reason was the ac)te
*istr)st of the 6olshevi8s on the -art of the ca-italists a+roa*0 which
is har*l s)r-risin" in view of the chaotic state of R)ssia at the time0
the *eclare* hostilit of the 6olshevi8s to the ca-italist or*er0 an*
the fact that the ha* *eno)nce* an* *efa)lte* on all -ast R)ssian
*e+ts0 confiscate* forei"n -ro-ert0 etc,
Forei"n tra*e0 however0 +e"an to "row a"ain, In #$(# this was
still *ee-l affecte* + imme*iate emer"encies? "rain an* coal were
im-orte* to *eal with critical sit)ations, 6)t a more normal tra*e
-attern +e"an slowl to emer"e, A tra*e a"reement was si"ne* with
6ritain in #$((0 an* other co)ntries followe* s)it, In fact0 in #$((
there were some com-laints from tr)sts a+o)t com-etition from
im-orts0 since some cons)mersD "oo*s were -)rchase* to -rovi*e
incentives for the la+o)r force, Im-orte* locomotives0 farm
machiner0 electrical an* other eE)i-ment0
Currency Reform &*
contri+)te* "reatl to recover, E@-orts in #$(<>10 tho)"h onl a
little over a thir* of #$#& levels0 were nine times a+ove those of
19.1-..
1(
Transport
As alrea* in*icate*0 the trans-ort sit)ation in #$(# was a--allin",
Over half of the availa+le locomotives were *escri+e* as Dsic8D an*
the re-air sho-s were inca-a+le of co-in" with their tas8s0 for lac8
of man-ower0 eE)i-ment an* f)el, In*ee* in #$(# the -rinci-al
+ottlenec8 in the railwas was -oor s)--lies of f)el for locomotives0
an* even the few that were in "oo* health co)l* not r)n, !reat
efforts were ma*e to +)il* )- stoc8s of f)el0 an* scarce forei"n
c)rrenc was )se* to im-ort locomotives an* com-onents, In #$((>
& <1 -er cent more -assen"ers an* 1$ -er cent more "oo*s were
move* than in the -revio)s ear, Recover contin)e*, In #$(&>< rail
trans-ort carrie* 1< -er cent of its #$#& traffic, Alrea* in #$(%>4 it
s)r-asse* #$#& levels, It is interestin" to note that the estimate ma*e
in #$(( concernin" the recover of rail trans-ort -rove* to err
"reatl on the si*e of ca)tion? + #$(%>4 it ha* +een e@-ecte* that
onl %(,4 -er cent of the -rewar level wo)l* +e reache*, In this an*
in some other res-ects0 the a+ilit of the econom to *o +etter than
+o)r"eois s-ecialists e@-ecte* ma have infl)ence* the min*s an*
attit)*es of the -olitical lea*ershi-0 an* affecte* their s)+seE)ent
+ehavio)r when face* with warnin"s from these s-ecialists a+o)t
overo-timism,
Roa* trans-ort consiste* at this -erio* almost wholl of horse>
*rawn vehicles, Even in #$(1 the whole vast territor of the Soviet
Union containe* onl 40<<' cars0 10155 lorries an* (%& +)ses,
#<
Currency Reform
The lo"ic of NEP reE)ire*0 as we have seen0 a sta+le c)rrenc,
Meanwhile the ro)+le contin)e* to *e-reciate with startlin" ra->
i*it, The virt)al a+an*onment of -rice control0 )n*er con*itions
&% 8EP
of the most ac)te scarcit0 "ave a new twist to the inflationar s-iral,
3)rin" the war>comm)nism -erio*0 as we have seen0 man a
6olshevi8 lea*er acce-te* the -ro-osition that it was -ossi+le0 or
soon wo)l* +e0 to *o witho)t mone, Now the wor* DmoneD co)l*
+e )se* a"ain0 instea* of s)ch evasive a++reviations as sov2na1
.DSoviet to8enD/, It was one thin" to *esire c)rrenc sta+iliFation0
however0 an* another to achieve it, At first there were vario)s
e@-eriments *esi"ne* to fin* a sta+le )nit of acco)nt, Th)s the
+)*"et *rawn )- in #$(( was in terms of -re>war ro)+les0 the then
e@istin" ro)+le +ein" %50555 times "reater, 6)t ra-i* *e-reciation
le* to a shar- rise in this fi")re, There were vario)s *evices s)ch as
the D"ol* ro)+leD0 once a"ain lin8e* with -re>war -)rchasin" -ower0
a circ)mstance which le* Preo+raFhens8 to assert that the val)e of
this 8in* of Soviet mone was +ase* on the memor of what -rices
ha* +een in #$#&, 9oans were raise* an* -aments *eman*e* in this
)nit of acco)nt0 tho)"h the act)al cash in )se was still the ra-i*l
*e-reciatin" ro)+le which -o)re* from the -rintin" -resses, .The
first loan of the NEP -erio* was levie* in terms of re,/ The
*ecision was ta8en in 2)l #$(( to create a new )nit0 the chervonets,
+ac8e* + "ol*0 an* to -ass as E)ic8l as -ossi+le to a sta+le
c)rrenc0 a -ro-erl +alance* +)*"et an* so)n* finance0 +ase* on a
"ol* stan*ar* .tho)"h witho)t an free*om to +) or sell "ol*0 an*
with a strict "overnment mono-ol of forei"n tra*e an* forei"n
*ealin"s "enerall/, Memoran*a + 9enin incl)*e a reE)est to the
Commissar of Finance0 So8oPni8ov0 to sen* him a note settin" o)t
his -ro-osals for the free circ)lation of "ol*,
#1
Even tho)"h this *i*
not ha--en0 it is an interestin" fact that s)ch i*eas were moote* an*
were contem-late* + 9enin himself, In*ee*0 for a short while the
chervonets was E)ote* an* +o)"ht an* sol* in forei"n e@chan"e
mar8ets, 6)t thro)"h the rest of #$(( an* all of #$(&0 the chervonets
an* the -a-er ro)+le coe@iste* )nha--il0 the latter +ecomin" so
)tterl val)eless that 6aFarov E)i--e* that Dthe time is not far *istant
when the s)m of those nominal ro)+les will e@cee* the n)m+er of
all atoms or electrons of which o)r -lanet is com-ose*D,
#%
The
chervonts were few0 in heav *eman*0 an* onl availa+le in lar"e
*enominations, The ro)+le or sov2na1 was still le"al ten*er for most
-)r-oses, The ro)+le c)rrenc in circ)lation increase* as follows?
Currency Reform &5
(milliards)
<nur+ 19.1 1,149
1 Octo=er 19.1 4,/.9
1 Septe"=er 19.. 494,141
.1 <nur+ 19.( 1,994,444
Alrea* in Octo+er #$(( one -re>war 8o-e8 eE)alle* somethin" li8e
#550555 of these so>calle* ro)+les or sovFna8i, No won*er Din
villa"es transactions were acco)nte* in -oo*s of +rea* "rains0 which
+ecame a "eneral )nit of acco)ntD,
#4
Soviet scholars an* -oliticians
earnestl *e+ate* the nat)re an* -)r-ose of mone,
#'
For nearl two ears there was D+i-a-erismD0 a )niE)e -henom>
enon, The chervonets .M #5 new sta+iliFe* ro)+les/ +ecame sole
c)rrenc in Fe+r)ar #$(<, One of these new ro)+les was eE)al to
150555 sov2na1i of #$(& iss)es0 an* one sov2na1 ro)+le of #$(&
re-resente* one million sov2na1i of #$(# iss)e, So 150555 million
was the a--ro@imate *eval)ation ratio, :hen finall with*rawn0 the
sov2na1 circ)lation reache* '5$0%(10(#%0%%40(550555 D#$(&D
ro)+les,
#$
It is onl ri"ht to mention that !erman in #$(& Dachieve*D
even more0 if for somewhat *ifferent reasons,
This entire o-eration was carrie* o)t )n*er the ae"is of the State
6an80 create* in Octo+er #$(#0 an* of the Peo-leDs Commissariat of
Finance 4Nar1omfin5, )n*er the ener"etic an* com-etent commissar0
So8olDni8ov, Not ver s)r-risin"l0 these instit)tions *)rin" the
twenties were the ca)tio)s conservative ")ar*ians of financial
ortho*o@0 aimin" at the -reservation of a +alance which ha* +een
achieve* ami* so m)ch *iffic)lt,
In #$(( several other +an8s were create*0 with the aim -artic)>
larl of facilitatin" the necessar cre*its to in*)str .Prom+an8 an*
Electro+an80 the latter to Dfinance electrificationD/0 to m)nici-al
enter-rises .Tse8om+an8/ an* a"ric)lt)re .Coo-erative +an80 with
State 6an8 -artici-ation0 as well as -rivate sharehol*ers/,
The -ro+lem of +alancin" the +)*"et0 witho)t which c)rrenc
sta+iliFation wo)l* have remaine* a -i-e>*ream0 was solve* +
levin" a variet of e@cise ta@es0 comm)tin" a"ric)lt)ral ta@ in 8in*
an* the corvee into mone -aments0 ta@es on -rivate an* state
enter-rises0 income an* -ro-ert ta@es0 an* a whole ran"e of others
&& 8EP
.e,", a Dmilitar ta@D levie* on those who ha* Dno ri"ht to serve in the
Re* ArmD/0 -l)s vol)ntar an* force* savin"s0 s)ch as a % -er cent
+on* iss)e which was D-lace* + coercion ami* ca-italist elementsD,
In the financial ear #$(&>< the +)*"et was +alance*0 in #$(<>1
there was a s)r-l)s,
(5
.The financial an* economic ear0 )ntil #$&50
covere* the -erio* # Octo+er>&5 Se-tem+er,/
Scissors Crisis
However0 #$(& +ro)"ht a fresh crisis, From a sit)ation in which the
terms of tra*e +etween villa"e an* town were too favo)ra+le to the
former > tho)"h )n*er con*itions of famine the -easants were
)na+le to ta8e m)ch a*vanta"e of this > the chan"e* circ)mstances
le* to an o--osite *istortion? a ra-i* move in relative -rices in a
*irection )nfavo)ra+le to the villa"e0 so )nfavo)ra+le in*ee* as to
*isco)ra"e a"ric)lt)ral mar8etin"s an* to constit)te a -olitical
menace0 since the -recario)s -olitical sta+ilit of the re"ime
*e-en*e* on -easant acE)iescence0 or at least a *ecision on their
-art not to re+el,
The reasons for this remar8a+l ra-i* chan"e were the followin",
Firstl0 a"ric)lt)ral -ro*)ction recovere* more ra-i*l than in*)str,
The #$(# famine le* to a *ecline in the area sown in the followin"
ear0 since there was a shorta"e of see* an* a+le>+o*ie* -easants in
the affecte* -rovinces, This is shown in the ta+le on -a"e '$,
However0 the #$(( harvest was fairl "oo*I + #$(& the sown area
reache* almost $5 -er cent of the -re>war level0 an* while the
harvest was still far +elow #$#& levels0 the shorta"e of foo* was no
lon"er *es-erate, 6 contrast0 the r)ine* in*)strial str)ct)re too8
m)ch lon"er to re-air, The same ta+le shows that in*)str in #$(&
was relativel m)ch f)rther +elow #$#& levels than was a"ric)lt)re,
In*)str was han*ica--e* + the *estr)ction of its +asic ca-ital0
ears of ne"lect in maintenance0 shorta"es of s-ares an* of s8ille*
la+o)r0 of 8nowle*"ea+le mana"ement0 of f)el0 materials0 means of
trans-ort, The "eneral chaos of -revio)s ears ha* le* to a shift
awa from in*)strial an* towar*s foo* cro-s0 so that0 for e@am-le0
the acrea"e )n*er cotton ha* fallen from %''0555 hectares in #$#& to
450555 in #$((, It was im-ossi+le
Scissors Crisis '$
191( 19.& 19.1 19.. 19.( 19.4 19./ 19.4
Industril !#ctor+%
production
!"illion 19.4-1
rou=les%
1&,./1 1,41& .,&&4
.,419 4,&&/ 4,44& 1,1(911,&0(
2ol !"illion
tons%@ .9.& 0.1 0.9 9-/ 1(-1 14.1 10.1.1.4
Electricit+
!"illion ,-hs% 1.94/ 3
/.&
11/ 1,144 1,/4. .,9./(,/&0
Pi$ iron !thousnd
tons% 4,.14 3 114 100 (&9 1// i,/(/.,441
Steel !thousnd
tons% 4..(K 3 10( (9. 1&9
1,14&
.,1(/(,i4i
2otton #=rics
!"illion "etres% .,/0. 3
1&/
(49 491 94( 1,400.,.04
So5n re
!"illion h.% 1&/.& 3 9&( 11-1 91.1 90.1 1&4-(11&.(
Grin hr:est
!"illion tons% 0&.1144.1 & (1.41 /&.( /4.4 /1-4 1.-/14.0
)il #rei$ht crried
!"illion tons% 1(.4 3 (94L (9-9L /0-oL B1-/L 0(4L -----
U E@cl)*in" li"nite,
f This was an e@tremel favo)ra+le ear,
. These are !la*8ovDs fi")resI some other so)rces are hi"her .e,", <(,& for
#$(#/,
V For -ost>war the Deconomic earD .i,e, #$(5>Q(#0#$(#>(0 etc,/,
R Not availa+le,
4So%rces: Sotsialistiches1oe stroitefstvo SSSR .#$&</0 --, (>&I !la*8ov0
Sovets1oe narodnoe 1ho2yaistvo .4$(4>1/ .Moscow0 #$%</0 --, #1#0 &#%0&140
&'&I E, 9o8shin? Promyshlennost, SSSR, ig@A!D+ .Moscow0 #$%</0 -, &(I
Nar- ;ho2-, #$&(0 -, ',/
Note: There are minor *is-arities +etween vario)s so)rces for most ears,
to fin* c)rrenc with which to im-ort s)fficient materials to restart
the te@tile in*)str E)ic8l, In #$(( its o)t-)t was onl (% -er cent
of -re>war0 while a"ric)lt)re reache* 41 -er cent,
(#
Secon*l0 the chaotic con*itions in which newl forme* state
tr)sts )nloa*e* their "oo*s an* materials in com-etition with one
another *i* not last, Cre*its +e"an to +e availa+le from the
reor"aniFe* +an8in" sstem, =SN7H reacte* to the #$(#R(
e@-erience + creatin" Dsn*icatesD *)rin" #$((>&, These were
"overnment *is-osal a"encies which limite* or eliminate* com-eti>
tion +etween tr)sts0 an* the Coine* to"ether for the -)r-ose of
- 8EP
Coint sellin", This -lace* them in a stron" -osition to *eman* hi"her
-rices when0 as was often the case0 the state sector of in*)str was
the *ominant -ro*)cer of the items in E)estion,
Thir*l0 state in*)str was inefficient0 o-eratin" far +elow
ca-acit0 with heav overhea*s an* m)ch overstaffin", 9a+o)r
-ro*)ctivit was far +elow -re>war, Costs were therefore hi"h,
Fo)rthl0 the wholesale an* retail *istri+)tion sstem was
e@cee*in"l inefficient an* costl, Accor*in" to Preo+raFhens80
the avera"e tra*e mar"in in #$#& was #4,& -er cent, It ha* now
"rown to somethin" li8e %5 -er cent,
((
Fifthl0 the "overnment was in fact the -rinci-al -)rchaser of
+rea* "rain0 *es-ite the s)+stantial role of the Ne-men0 an* it
so)"ht to +) at low -rices,
Finall0 the -easants were losers in the inflationar race0 when
mone *e-reciate* *ail0 +eca)se even a wee8Ds *ela in a Co)rne
to town to s-en* the mone meant heav loss, .The -easants seem
to have +een the last to "et the new chervonets c)rrenc,/
The D-rice scissorsD -arte*0 in the sense that in*)strial -rices were
a+ove0 a"ric)lt)ral -rices +elow0 their #$#& -rices, On # Octo+er
#$(&0 in terms of the newl>sta+iliFe* c)rrenc0 in*)strial -rices
were (4% -er cent of #$#&0 a"ric)lt)ral -rices '$ -er cent, The same
so)rce shows the sta"es + which this remar8a+le shift in relative
-rices was achieve*?
Industril prices s rtio o# $riculturl prices
!191( reltionship ' 1&&%
-holesle )etil
Octo=er 19..
1(1 141
Jece"=er 19..
141
141
6e=rur+ 19.( 149
10&
>+ 19.( .1/ ..(
<ul+ 19.( .&. .11
Septe"=er 19.( .94
.0&
Octo=er 19.(
(1& .91
4So%rce: !la*8ov0 Sovets1oe narodnoe 1ho2yaistvo
4tgEi!F5, .Moscow0 i$%5/0 -, <#&,/
Th)s0 + Octo+er #$(&0 when the Dscissors crisisD reache* its
*lannin& and ontrol 91
-ea80 in*)strial -rices were three times hi"her0 relative to a"ric)l>
t)ral -rices0 than the ha* +een +efore the war, It was har*l
s)r-risin" that this ca)se* tro)+le,
To some e@tent this wi*e -rice *iver"ence was self>correctin",
The -easants were the -rinci-al -)rchasers of man)fact)re* "oo*s0
an* state in*)str e@-erience* severe *iffic)lties in sellin",
Seasonal factors also le* to a rise in a"ric)lt)ral -rices in the
months that followe*, However0 the "overnment reacte* stron"l0
an* hel-e* to restore a less )nhealth -rice relationshi-, =i"oro)s
attem-ts were ma*e to force -rices of state man)fact)res *ownI
there were *ecrees controllin" -rices .or -reventin" increases
witho)t a)thoriFation/I there were *rives to re*)ce s)r-l)s staff in
in*)str an* in the tra*e networ8s0 to im-rove an* e@ten* the
sstem of cons)mer coo-eratives0 to ti"hten cre*it so as to com-el
tr)sts to )nloa* stoc8s, In*)strial o)t-)t meanwhile contin)e* to
recover ra-i*l0 tho)"h still far +elow -re>war levels .see a+ove/,
=SN7H0 thoro)"hl alarme*0 was e@ercisin" its still consi*era+le
formal a)thorit over the state sector of the econom0 an* a
com+ination of all these factors le* to a -artial closin" of the +la*es
of the now>notorio)s -rice DscissorsD, 3)rin" the financial ear
#$(&>< in*)strial sellin" -rices fell + (&,& -er cent, A Peo-leDs
Commissariat for Tra*e was set )-0 which trie* with mar8e*
s)ccess to enlar"e the area of state tra*e an* to sell man)fact)re*
"oo*s in r)ral areas at -rices +elow those char"e* + Ne-men, 6
A-ril #$(< the a"ric)lt)ral -rice in*e@ ha* risen to $( .#$#& M #55/
an* the in*)strial in*e@ ha* fallen to #&#0
(&
in terms of the new
sta+le c)rrenc, 6 then voices were +ein" raise* *eclarin" that the
+la*es ha* come too close to"ether, This forme* -art of the *e+ate
a+o)t the f)t)re of NEP an* the +asic strate" of the Soviet re"ime0
which will +e *isc)sse* in the ne@t cha-ter,
*lannin& and ontrol
So the NEP sstem of mi@e* econom weathere* the storm an*0 with
the esta+lishment of a sta+le c)rrenc an* +alance* +)*"ets0 entere*
into calmer waters + #$(<, The ears #$(< an* #$(1D
ma +e *escri+e* as DHi"h NEPD, 6efore *isc)ssin" the iss)es an*
ar")ments which arose an* which0 in *)e co)rse0 en*e* the sstem0
we m)st ta8e a loo8 at the sstem as it was *)rin" this -erio*, How
*i* it wor8G :as there an -lannin" an*0 if so0 + whomG :hat was
the relative wei"ht of the -rivate sectorG How a)tonomo)s were the
tr)sts0 an* what were the -owers of =SN7HG :hat was ha--enin"
in a"ric)lt)reG :hat was the sit)ation of the wor8ers an* of the
tra*e )nionsG To these an* similar E)estions the rest of this cha-ter
will +e *evote*,
9et )s +e"in with #lanning- =SN7H was *ecentraliFe* + the
Dtr)stificationD of #$(#>(0 +)t was still the hea*E)arters of Soviet
state in*)str, Of the <&5 tr)sts f)nctionin" in #$((0 #4( were
s)+or*inate* to =SN7H *irectl or via its local or"ans 4Prom!"%ro5,
an* (1' to local sovnar1ho2y .co)ncils of national econom/, To
ta8e an e@am-le0 thirt>three tr)sts in the metal "oo*s in*)str were
s)+or*inate to =SN7H0 controllin" &#% factories em-loin"
(#'0&<< wor8ers0 while the twent>fo)r D-rovincialD tr)sts ran
ninet>five factories em-loin" #(045# wor8ers0 i,e, these were
mainl small>scale, Tr)sts were in total comman* of DtheirD factories0
the latter havin" no financial a)tonom an*0 as a r)le0 no se-arate
-rofit>an*>loss acco)nts or se-arate le"al -ersonalit, The ha*0
ro)"hl s-ea8in"0 the same stat)s as a s)+*ivision of a Soviet
enter-rise in the si@ties0 or of a s)+>)nit within a centraliFe* :estern
cor-oration, In*ee*0 the term Denter-riseD 4#red#riyatie5 was not )se*
to *escri+e them, Their entire o)t-)t was -lanne* an* sol* + the
tr)st0 who s)--lie* them with the f)n*s the nee*e*0 e,", to -a the
la+o)r force, !ra*)all this sit)ation chan"e*0 +)t it was not )ntil
#$(4 that the *irectors of what came to +e calle* Denter-risesD within
the tr)sts acE)ire* *efine* ri"hts an* *)ties > tho)"h not et a le"al
-ersonalit, Act)al -owers of *irectors varie* "reatl within
*ifferent tr)sts0 an* there was little attem-t at this -erio* at
stan*ar*iFation of -ractices, Accor*in" to a resol)tion of ($ 2)l
#$((0 =SN7H o-erate* its control over in*)str +?
26 Metho*s of an economic character? the financin" of in*)str0
the or"aniFation of in*)strial cre*it0 -rice -olic0 etc,
27 Metho*s of an a*ministrative character? a--ointment an*
*ismissal of res-onsi+le officials of tr)sts an* other tra*in">an*>
Plannin) and Control !
in*)strial )nits0 the transfer of material reso)rces #ro" one +ranch
of in*)str to another0 from enter-rise to enter-rise0 nd so forth0 in
conformit with the in*)strial -lan,
.&/ Metho*s of a -ro*)ction>-lannin" character? the *raftin" of
-ro*)ction an* *is-osal -lans0 ins-ection an* chec8in" on their
e@ec)tion0 ens)rin" the conformit of the in*)strial pln with the
"eneral -lan0 etc,
That is to sa0 +ecomin" in s)+stance the Commissariat for In*)str
an* Tra*e0 =SN7H is the real +oss 41ho2yain5 over the enter-rises
within its C)ris*iction, All tal8 of the narrowin" of =SN7HDS f)nctions
an* the transfer of -art of these to im-rovise* Cfa1%ttativnye > -erha-s
Do-tionalD/ in*)strial )nits re-resents v)l"ar free>tra*eism 4fritrederstvo5
OsicHP,, -
%
One senses in this a concern to assert the a)thorit of =SN7H0
+)t it wo)l* +e a "reat error to ta8e s)ch form)lations literall, It is
not onl that the resol)tion in E)estion ha* no le"islative effect,
Even le"al *ecrees in those *as of )ncertain Drevol)tionar le"alitD
sel*om *escri+e* the real sit)ation0 an* were in an event +a*l or
va")el *rafte*,
3ecrees *efinin" an* re>*efinin" the f)nctions an* internal
or"aniFation of =SN7H were n)mero)s0 an* no attem-t will +e
ma*e here to trace the man chan"es, A *ecree of #( Novem+er
#$(& re-eate* man of the -oints cite* a+ove0 +)t in a less assertive
wa0 with more em-hasis on tr)sts an* on relations with other
+o*ies, Th)s -oint .*/ of Section II of the *ecree "ives =SN7H the
f)nction of Dform)lation of the -ro*)ction -lan an* +)*"et of
in*)str of all>)nion si"nificance0 the e@amination of -ro*)ction
-lans an* in*)strial +)*"ets of )nion re-)+lics0 the form)lation of a
"eneral -ro*)ction -lan an* +)*"et for the in*)str of the entire
Soviet Union an* its s)+mission thro)"h !os-lan for confirmation
to the Co)ncil of 9a+o)r an* 3efence .STO/, ,,D, The new em-hasis
on )nion re-)+lics was *)e to the formation of the USSR as a
fe*eral state in #$((, The f)nction of control over its s)+or*inate
)nits is several times E)alifie* + reference to Dconformit to
e@istin" le"islationD0 -res)ma+l *esi"ne* to -revent too m)ch
interference from a+ove with the tr)sts,
1 8EP
?SNK7 in 19.(-4 included the #ollo5in$ sections0 *e-artments
or )nits?
28 The chairman an* -resi*i)m of =SN7H,
29 Internal a*ministration,
30 Chief economic a*ministration .!EU/ with the In*)strial
-lannin" commission 4Prom#lan5 attache* to it,
31 Central a*ministration of state in*)str 4Ts%g#rom5 .with
n)mero)s in*)strial s)+>*ivisions/,
32 Chief a*ministration of the armaments in*)str,
33 Scientific>technical *e-artment,
The metal in*)str an* electricit "eneration came )n*er the
s)ccessors of the former "lav8i .!lavmetall0 !lavele8tro/ which0
for some o** reason0 were *irectl s)+or*inate* to the -resi*i)m of
=SN7H an* not to Ts)"-rom, In a**ition0 other s-ecialist
committees were attache* to =SN7H,
(1
Re-)+lican co)ncils of national econom .sovnar8hoF/ were
also set )-0 with -owers over less im-ortant in*)stries an* the ri"ht
to +e cons)lte* + =SN7H, Provincial an* re"ional co)ncils
contin)e* to e@ist0 with -owers that varie* "reatl, In some cases
the a*ministere* all>)nion in*)str in their area0 in others onl
-)rel local in*)str,
So at this -erio* state in*)str of all>)nion si"nificance was
)n*er the a)thorit of =SN7H0 which .e@ce-t for metal an*
electricit/ o-erate* its control thro)"h the a+ove>name* Ts)"-rom
an* its in*)strial sector *ivisions0 sometimes *irectl an* sometimes
thro)"h local or"ans, Its "eneral>-olic f)nctions were lar"el
*)-licate* + the chief economic a*ministration .!EU/ of =SN7H0
its -lannin" f)nctions + Prom-lan within !EU, Prom-lan0 in t)rn0
*)-licate* some of the -lannin" f)nctions of !os-lan0 which was
)n*er the STO0 not =SN7H, This cl)ms a*ministrative machiner
was rearran"e* rather more lo"icall in #$(%>Q40 when +oth the
!EU an* Ts)"-rom were a+olishe*0 an* the in*)strial>sector
*ivisions were once more "iven the name an* stat)s of "lav8i an*
-lace* *irectl )n*er the -resi*i)m of =SN7H0 as also was the
-lannin" )nit Prom-lan,
These chan"es ma0 however0 amo)nt to no more than *ifferent
la+els on the *oors of mostl the same officials an* offices, The *o
not +e"in to show )s the act)al f)nctions of =SN7H0 the
Plannin) and Control *
e@tent of central control over tr)sts + its a*ministrative s)+*ivi>
sions0 or the e@tent to which in fact there was an real -lannin" in
the twenties, This is not eas to *efine or *escri+e, The +est an*
most *etaile* acco)nt is )n*o)+te*l + Carr an* 3avies,
(<
This
shows that there was mar8e* inconsistenc +etween in*)stries an*
*ates, Th)s some 8e sectors of heav in*)str0 which s)--lie*
Dstrate"icD items for the econom0 were "iven or*ers as to what to
-ro*)ce an* for whom0 an* therefore the a--ro-riate *ivision of
=SN7H e@erte*0 vis!a!vis the tr)sts0 -ower of *etaile* s)-ervision
an* control0 in man res-ects similar to the -owers of ministries vis!
d!vis enter-rises in the later DStalinD mo*el, On the other han*0 man
tr)sts0 es-eciall in the cons)mersD "oo*s in*)stries0 ma*e )- their
own -ro*)ction -lans + reference to the mar8et0 an* =SN7H *i*
little to interfere, In*ee*0 in the case of te@tiles the =SN7H *ivision
.!lavte@tilD/ was almost -owerless0 the tr)sts *ealin" a+ove all with
the Dte@tile sn*icateD0 the state wholesalin" or"aniFation which
came to act as a"ent for s)--lies to the te@tile in*)str an* to
e@ercise a *ominant role0 so m)ch so that !lavte@tilD was a+olishe*
in #$(4 as s)-erfl)o)s, =ario)s or"ans of =SN7H "ave or*ers on all
sorts of iss)esI man tr)sts were in effect wholl a)tonomo)s most
of the time, No clear -ict)re emer"es0 e@ce-t that0 firstl0 control
over new investment was m)ch ti"hter than over c)rrent +)siness0
an*0 secon*l0 control of all 8in*s +ecame stricter towar*s the en*
of the *eca*e0 as reso)rces +ecame ti"hter, There will +e more a+o)t
this in Cha-ter %, :e m)st now loo8 +riefl at the -lannin"
mechanism as it e@iste* at this time,
!os-lan0 as we have seen0 was set )- to assist the Co)ncil of
9a+o)r an* 3efence .STO/, The latter +o* was nominall a
commission of the Co)ncil of Peo-lesD Commissars0 +)t in fact it
was the effective economic>militar ca+inet0 was -resi*e* over +
9enin while he was still ca-a+le of wor80 an* incl)*e* amon" its
mem+ers the chairman of =SN7H0 as well as the commissars of
:ar0 9a+o)r0 Trans-ort0 A"ric)lt)re0 S)--lies an* a re-resentative
of the tra*e )nions,
(4
Its *ecrees carrie* le"al force0 as if the were
iss)e* + the "overnment, !os-lan .at first officiall 8nown as the
state "eneral>-lannin" commission/ was set )- on (( Fe+r)ar #$(#
to Dwor8 o)t a sin"le "eneral state economic
$% NEP
-lan an* metho*s an* means of im-lementin" itD, The mem+ers
were a--ointe* + the STO, Its *)ties were re*efine* on (# A)")st
#$(&0 its title +ein" now the more familiar Dstate -lannin"
commissionD, The first -ara"ra-h concernin" its f)nctions was
re-rinte* almost ver+atim as a+ove, It was also to hel- to -re-are
the +)*"et0 e@amine D+asic E)estions concernin" c)rrenc0 cre*it
an* +an8in"D0 in*)strial location an* stan*ar*iFation, It ha* an
essential coor*inatin" f)nction0 in that it ha* the ri"ht to e@amine
an* e@-ress its views on all -lans an* -ro*)ction -ro"rammes -)t
forwar* + -eo-leDs commissariats .incl)*in" =SN7H/,
It can +e seen that *)-lication an* some rivalr with the -lannin"
*ivision of =SN7H inevita+l arose, Th)s the wor8 of -re-arin" the
Dcontrol fi")res for #$(1>%D was )n*erta8en onl + !os-lan0 an*
7rFhiFhanovs80 !os-lanDs hea*0 com-laine* to the fifteenth -art
con"ress a+o)t the lac8 of coo-eration with other a"encies,
However0 as alrea* -ointe* o)t0 the wor* D-lannin"D ha* a ver
*ifferent meanin" in #$(&>% to that which it later acE)ire*, There
was no f)ll wor8e*>o)t -ro*)ction an* allocation -ro"ramme0 no
Dcomman* economD, The e@-erts in !os-lan0 man of them non>
-art or former Menshevi8s0 wor8e* with remar8a+le ori"inalit0
str)""lin" with ina*eE)ate statistics to create the first D+alance of the
national economD in histor0 so as to -rovi*e some sort of +asis for
the -lannin" of "rowth, The -ioneerin" contri+)tion of R)ssian
economics at this -erio* will +e the s)+Cect of comment in the ne@t
cha-ter, The -oint is that what emer"e* from these calc)lations were
not -lans in the sense of or*ers to act0 +)t Dcontrol fi")resD0 which
were -artl a forecast an* -artl a ")i*e for strate"ic investment
*ecisions0 a +asis for *isc)ssin" an* *eterminin" -riorities, An
e@-ert committee of =SN7H0 8nown as OS=O7 .Co)ncil for the
Restoration of 6asic Ca-ital/ st)*ie* the ca-ital assets an* nee*s of
vario)s +ranches of the econom0 an* -ro*)ce* a series of re-orts
an* recommen*ations .#$(&>1/0 which affecte* "overnment
thin8in", 6)t neither was this et o-erational -lannin",
So neither !os-lan nor =SN7H co)l* -rovi*e0 or trie* to
-rovi*e0 o)t-)t -lans for all tr)sts an* enter-rises0 e@ce-t some in
some 8e sectors, Most tr)sts ma*e their own arran"ements0
Prices' 4ar3ets and Pri0ate Enterprise 5
with onl -artial s)-ervision from a+ove, The varie* "reatl in
siFe an* mod%s o#erandi- Some were ver lar"e in*ee*0 s)ch as
the 6a8) oil or"aniFation0 which0 +ein" res-onsi+le for the +)l8
of Soviet oil -ro*)ction0 was closel lin8e* with the relevant
s)+*ivision of =SN7H, Others were more remote from the
control of =SN7H0 an* ma*e contracts freel with other tr)sts0
with -rivate tra*ers0 coo-eratives an* the li8e0 ne"otiate* cre*it
arran"ements with the +an80 or with each other0 ")i*e* ver
lar"el + the -rofit motive0 with s-asmo*ic efforts at -rice
control + the centre0 tho)"h there was a mar8e* ten*enc
towar*s ti"hter control later in the *eca*e0 as we shall see,
3FerFhins80 chairman of =SN7H an* hea* of the Che8a
.-olice/0 wrote in #$(<? D:e have almost ever tr)st *oin" C)st
what it -leases0 it is its own +oss0 its own !os-lan0 its own
!lavmetall Othe metals *ivision of =SN7HP0 it is its own
=SN7H0 an* if anthin" *oes not wor8 o)t ri"ht it hi*es +ehin*
the +ac8s0 an* receives the s)--ort0 of local or"ans,D
('
He so)"ht0
with onl mo*est s)ccess0 a ti"hter *e"ree of control over the
tr)sts,
Alrea* some of the tr)sts themselves were felt to +e too
)nwiel* an* too lar"e for economic o-eration, Th)s one fin*s
the twelfth -art con"ress .#$(&/ )r"in" tr)sts to "ive more
initiative to the enter-rises com-risin" them0 also to calc)late
-rofita+ilit an* to iss)e +on)ses at enter-rise level, 6)t little
was chan"e* )ntil m)ch later,
Prices/ 4ar3ets and Pri0ate Enterprise
:ith the comin" of NEP0 the -ro+lem of -rice control +ecame
-artic)larl ac)te0 es-eciall )n*er con*itions of scarcit of "oo*s0
when wa"es were a"ain +ein" -ai* in mone0 an* free rations an*
services were en*in", A *ecree of 1 A)")st #$(# set )- a Prices
Committee attache* to the Commissariat of Finance, It ha*
-ower to fi@ wholesale an* retail -rices for "oo*s ma*e or sol* +
state enter-rises0 as well as -rices at which "overnment a"encies
were to +) from others0 for instance -rivate -easants, However0
these controls were lar"el i"nore*0 an* in #$(( were re-lace* +
so>calle* Da--ro@imateD 4orientirovochnye5 -rices0 which soon came
to +e re"ar*e* as minima0 so the tr)sts -lease* themselves,
E@ce-tions were the sellin" -rices of some mono-oliFe* commo*>
ities0 s)ch as salt0 to+acco0 8erosene an* matches0 an* where -rices
were "en)inel fi@e* + the "overnment0 tho)"h -rivate tra*ers sol*
them0 when the co)l* "et them0 at an -rice which the local mar8et
co)l* +ear, A Commission on Tra*e attache* to the STO0 set )- in
#$((0 en*eavo)re* with some s)ccess to esta+lish *irect lin8s
+etween state in*)str an* cons)mer coo-eratives0 an* to c)t o)t
-rivate commission a"ents0 +)t ha* no effective wa of controllin"
-rices,
($
The co>e@istence of -rivate an* state .-l)s a lar"el a)tonomo)s
coo-erative/ sectors0 )n*er con*itions of inflation0 trans-ort
+rea8*owns an* a*ministrative inefficienc0 le* to some ver
s)+stantial -rice fl)ct)ations, :e have alrea* referre* to the -rice
DscissorsD crisis of the a)t)mn of #$(& an* the "reat *iffic)l ties
e@-erience* at this time + state in*)str in sellin" their hi"h>cost
-ro*)cts0 which +ecame even *earer when the finall reache* the
cons)mer0 es-eciall in r)ral areas0 thro)"h man -rivate
interme*iaries, The Ne-man was almost the sole seller in man
r)ral areas in #$(&, :here a r)ral coo-erative e@iste*0 it was
e@cee*in"l inefficient, The followin" ta+le0 showin" the fi")res for
Octo+er #$(&0 ill)strates this?
Cloth Nails 7erosene S)"ar Salt
Tr)st .man)fact)rersD/ -rice #55 #55 #55 #55 #55
Provincial coo-erative -rice #4< #&% #55 #%( #54
=illa"e coo-erative -rice (<& #44 #(' ((( #(#
4So%rce: Malafeev0 $storiya tsenoo"ra2ovaniya v SSSR .Moscow0 #$%</0 P>
S&/
:ith s)ch colossal mar"ins0 the coo-eratives co)l* har*l com-ete
effectivel with Ne-men,
Even in Moscow0 where in #$(( a Dcommo*it mar8et centreD
4tovarnaya "ir2ha5 was set )- )n*er official a)s-ices0 the Ne-men
controlle* #< -er cent of -)rel wholesale tra*e0 15 -er cent of
mi@e* wholesale>retail tra*e an* '& -er cent of retail0 coo-eratives
Prices/ 4ar3ets and Pri0ate Enterprise
ta8in" #5 -er cent an* the state onl 4 -er cent, D:holesale tra*e in
te@tiles in the co)ntr as a whole )ntil March #$(& was at least 15
-er cent in the han*s of -rivate ca-ital,D Private tra*e in #$((>&
constit)te* 4' -er cent of all retail tra*e0 the -ro-ortion fallin" to
14,4 -er cent in #$(&><0 <(,1 -er cent in #$(<>10 <(,& -er cent in
#$(1>% an* &%,$ -er cent in #$(%>4,
&5
However0 this fallin" -ercenta"e at first re-resente* an increase in
a+sol)te vol)me0 within a ra-i*l "rowin" total tra*e t)rnover, 6oth
wholesale an* retail -rivate tra*e rose + a+o)t 15 -er cent in #$(1>
%, It was in the ne@t ear that the a+sol)te vol)me of -rivate tra*e
+e"an to fall,
Private tra*e fille* the "a- left + the ina*eE)ac of the state an*
coo-erative networ8, As alrea* note*0 it *ealt with "oo*s -ro*)ce*
+ state enter-rises0 as well as the +)l8 of the -ro*)cts of -rivate
in*)str an* han*icrafts > of which more in a moment, From #$(&0
at an increasin" rate0 the "overnment e@-an*e* the state an*
coo-erative networ80 an* their share in the tra*e t)rnover rose
constantl, At first this was + com-etition0 an* *ivertin" more
state>-ro*)ce* "oo*s thro)"h DofficialD channels, 9ater on0 the
Ne-men were sE)eeFe* o)t + metho*s of less a"reea+le 8in*s0 as
we shall see,
As for in*)strial -ro*)ction0 in #$(<>1 the sit)ation was as
follows? Dlar"e>scaleD in*)str R ro)"hl cotermino)s with factor
as *istinct from wor8sho- -ro*)ction R was overwhelmin"l in
state han*s, A mere #,'( -er cent was -rivate, However0 the total
o)t-)t of small>scale an* han*icrafts in*)str was *ivi*e* as
follows?
19.(-4 19.4-/ 19./-4 19.4-1
!percent$e o# totl output%
Stte ... ..4 ../ ..(
2ooperti:e 0.1 .&.4 19.0 .&..
Pri:te 09.1 11.& 11.1 11./
(Source: Gld,o:, So'etskoe narodnoe kho(yaist'o !A&.A-/%,
!>osco5, i94&%, p. .&1.%
In #$(10 the followin" were em-loe* in the a+ove?
IOO NEP
Stte industr+ (&,444
2ooperti:es 1.1,14.
Pri:te cr#ts"en@ .,.0/,141
Pri:te e"plo+"ent # .1&,0.(
9otl, s"ll-scle .,11(,19&
@ Not e"plo+in$ l=our outside #"il+, t
E"plo+in$ l=our, or e"plo+ed.
(Source: ibid., p. .&4.%
This shows the *omination of the -rivate sector in small>scale
in*)str0 an* also C)st how small>scale this in*)str was0 with so
lar"e a -ro-ortion of it con*)cte* on an in*ivi*)al or famil +asis,
These -rivate activities were "reatl *e-en*ent on s)--lies of
materials from state in*)str0 an* most of the wor8sho-s were
lease* from the state, A Soviet historian commente*? DThis -lace* in
the han*s of the state a -owerf)l wea-on for controllin" small>scale
-ro*)ction,D
&#
Em-loment in -rivate in*)str rose as follows?
)per cent)
19.4-/ M1(
19./N4 M .&
19.4-1 M . or /
This was followe* + a catastro-hic fall0 the reason for which will
+e *isc)sse* later, D6asic f)n*sD .ca-ital/ in the -rivate sector as a
whole increase* in each of the ears in E)estion,
&(
However0 the
"overnment was ra-i*l achievin" an effective *ominance0 an*0
once the state an* es-eciall the coo-erative tra*in" networ8 was
effectivel e@ten*e* into r)ral areas0 it co)l* sE)eeFe o)t -rivate
tra*e + starvin" it of man)fact)re* "oo*s0 an* -rivate in*)str +
starvin" it of f)el an* raw materials0 as an* when it chose, In fact
state>enco)ra"e* an* state>s)--orte* coo-erative retail tra*e
m)lti-lie* e@cee*in"l ra-i*l, In #$((>& its share in retail t)rnover
was onl #5 -er cent .as a"ainst 41 -er cent for -rivate tra*e/I in
#$(%>4 its t)rnover ha* risen nineteen times in constant -rices0 the
-ict)re evolvin" as follows?
&&
A&riculture and the *easants 101
#$((>& #$(%>4
4millions of ro%"les5
State 1#( #0'#4
Coo-erative &%' %0'&'
Private (0%'5 1,5%&
Total &01%5 #&04#'
The fi")res .in ro)+les of constant val)e/ show the e@tremel ra-i*
rate of recover which characteriFe* the first ears of NEP,
A&riculture and the *easants
In a"ric)lt)re0 the -rivate sector was -re*ominant thro)"ho)t the
NEP -erio*, There were few collectives an* comm)nes in #$#'>(50
in s)+seE)ent ears there were even fewer, Even as late as #$(4 the
sit)ation was as follows?
Sown area
4#er cent5
State farms #,#
Collective farms .all t-es/ 5,%
In*ivi*)al -easants $',&
4So%rce: Eta#y e1onomiches1oi #oliti1i
SSSR, e*ite* + P, =ais+er" .Moscow0
#$&</, P> &1/
The effect of the lan* rea--ortionment of #$#4>#'0 to"ether with
the f)rther meas)res of Dclass war in the villa"esD in #$#'>(50 le* to
the elimination not onl of the lan*lor*sD estates +)t also of man of
the lar"er -easant hol*in"s too, Millions of lan*less la+o)rers0 or
e@>-easants who ha* ret)rne* from town in the *as of war
comm)nism0 ha* acE)ire* lan*, Therefore the n)m+er of -easant
farms rose shar-l, From ro)"hl #4 or #' million on com-ara+le
territor +efore #$#4 .e@act com-arisons *o not seem to +e
availa+le/ the n)m+er of famil hol*in"s rose
#5( NEP
to (& million in #$(< an* (1 million in #$(4, Poorer -easants ha*
"aine* lan* at the e@-ense of their nei"h+o)rs, The avera"e siFe of
lan*hol*in" fell0 the e@tremes of riches an* -overt *iminishe*,
The ears of revol)tion ha* )n*one m)ch of the -ositive effects
of the Stol-in reform, The tra*itional -easant comm)nit ha*
-resi*e* over most of the lan* re*istri+)tion in #$#', It now ha*
more -ower than at an time since #$5% to re*istri+)te -easant
hol*in"s0 to insist on tra*itional stri- c)ltivation, In #$(1 over $5
-er cent of the -easants +elon"e* to villa"e comm)nities, It co)l*
+e asserte* that &150555 s)ch comm)nities controlle* the economic
life of the villa"e,
&<
Th)s the effect of the revol)tion was0 in a
technical sense0 reactionar, 9an* was sometimes scattere* over
*oFens > sometimes a h)n*re* > stri-s locate* in wi*el se-arate*
fiel*s0 an* s)+Cect to re*istri+)tion, The three>fiel* sstem was
-re*ominant0 an* mo*ern cro- rotations little )se*0 as the *i* not
fit the mir arran"ements, Accor*in" to evi*ence cite* + 9ewin0
even as late as #$('0 1,1 million ho)sehol*s still )se* the so1ha
.woo*en -lo)"h/0 an* half the "rain harvest was rea-e* + sic8le or
scthe, Fort -er cent was threshe* with flails, S)ch mo*erniFation
as ha* +e")n earlier in the cent)r was lar"el lost, All this set +i"
-ro+lems +efore the re"ime,
The sit)ation was e@acer+ate* + class attit)*es, The sim-le
cate"ories of 8)la80 mi**le an* -oor -easant0 to which sho)l* +e
a**e* the lan*less la+o)rer 4"atra15, were in realit anthin" +)t
sim-le, M)ch was written an* more was s-o8en a+o)t D-easant
stratificationD0 an* statisticians an* analsts la+o)re* to fit Mar@ist>
9eninist *efinitions to com-le@ -henomena which ref)se* to
conform to the -re-are* la+els, .Theo*ore Shanin has -ointe* o)t0
in his A1ard 7lass,
GH
that inter"enenrtional mo+ilit an*
intermarria"e ca)se* real -easant attit)*es to *iver"e from the
oversim-lifie* DclassD cate"ories )se* in -art *e+ates,/ Since the
whole E)estion was -olitical *namite0 *isintereste* research was at
a *isco)nt0 or ris8, As Carr -)t it? DIt was no lon"er tr)e that class
analsis *etermine* -olic, Polic *etermine* what form of class
analsis was a--ro-riate to the "iven sit)ation,D
&%
A)riculture and the Peasants 1-!
An a*mira+le acco)nt o# the sit)ation ma =e #ound in the 5or,
o# Moshe 9ewin0 an* what follows is lar"el +ase* on his
researches, The *iffic)lt was that each cate"or sha*e* into the
other, The Dlan*lessD ma have ha* some lan*0 +)t so little that one or
more mem+ers of the ho)sehol* s-ent m)ch of the ear wor8in" for
another -easant0 or for the mir .e,", as she-her*s/0 or in seasonal
em-loment awa from the villa"e, The D-oor -easantD 4"ednya15 +
*efinition ha* not eno)"h lan* to fee* his famil0 an* he too hire*
himself o)t for -art of the ear0 or mem+ers of his famil *i*, It
m)st +e remem+ere* that the -easant Dho)sehol*D 4dvor5 )s)all
incl)*e* several in*ivi*)als of wor8in" a"e0 an* this too ma*e
classification somewhat com-le@, The Dmi**le -easantD was often
ver -oor in*ee* + an reasona+le stan*ar*0 an* at the lower levels
was in*istin")isha+le from the -oor -easant0 in that mem+ers of the
ho)sehol* freE)entl ha* to hire themselves o)t0 +)t some also
ma*e )se of hire* la+o)r themselves, Man so>calle* mi**le
-easants were amon" those who ha* no horse .<5 -er cent of all
-easants in the U8raine0 <' -er cent of those in Tam+ov -rovince0
etc,/, Sometimes the analsts )se* the term malomoshchnyi .wea8/0
a term which covere* the less well>favo)re* mi**le -easant as well
as the -oor, Those a+ove this ill>*efine* level wo)l* +e classe* as
2a2hitochnye .-ros-ero)s/0 or 1re#1ie .stron"/0 an* this wo)l*
incl)*e some ar+itrar -ro-ortion of mi**le -easants as well as the
so>calle* 8)la8s, =, Ti8honov has ar")e* that in #$#' the 8)la8s .the
real ones/ ha* +een eliminate*0 that the *i* not reall e@ist in the
twenties0 a view challen"e* + =, 3anilov,
&4
:hat0 then0 was a 8)la8G This too was a cate"or re>*efine* +
statisticians to s)it the -olitical circ)mstances0 or re>*efine* +
-oliticians who or*ere* statisticians to -ro*)ce a--ro-riate fi")res
to -rove their -oint, 7)la8s were "enerall *eeme* to n)m+er
somewhere +etween 1 an* 4 -er cent of the -easantr, Yet + far the
lar"er n)m+er of these were0 + :estern stan*ar*s0 -oor, Two
horses an* two cows0 an* eno)"h lan* to ens)re a sE)are meal the
ear ro)n* an* somethin" to sell0 mi"ht E)alif a -easant for the
*esi"nation 8)la8, Yet0 accor*in" to *ata collecte* + 9ewin0 onl #
-er cent of the total n)m+er of -easant ho)sehol*s em-loe* more
than one la+o)rer,
io1 8EP
Some 8)la8s were a+le to act as )s)rers .the wor* 1%la1, DfistD0
was ori"inall a term of a+)se relate* to this -artic)lar f)nction/,
Some were a+le to len* their -oorer nei"h+o)rs "rain when0 as often
ha--ene*0 the ran o)t of foo* in the s-rin", The were also a+le to
hol* stoc8s of foo* an* so +enefit from hi"her -rices0 whereas the
less well>off -easants ha* to sell E)ic8l after the harvest0 when
-rices were low, The often ha* s)ch machiner as was availa+le0
an* +enefite* from hirin" it o)t0 as well as hirin" o)t a horse or +)ll
or other scarce +east, 7)la8s ha* initiative0 the ha* commercial
sense, The e@cite* Cealo)s at times0 +)t the were also what ever
am+itio)s -easant wante* to +ecome,
The n)m+ers of alle"e* 8)la8s seeme* to +e "rowin"?
19.. 19.( 19.4 19./
Percent$e o# totl householdsG
lesin$ lnd ..0 (.( 4.. 4.1
e"plo+in$ l=our 1.& 1.& 1.1 1.9
(Source: Gld,o: !19.1-/%, p. .11.%
6)t some of the Dem-loersD onl )se* hire* la+o)r for a ver few
months in the ear,
The "overnmentDs *ilemma from the first was this, There was the
attem-te* DclassD analsis, All -easants ha* a 8in* of *)al alle"iance0
+ein" semi>-roletarian0 semi>-ett>+o)r"eois, The vacillate*0 the
co)l* -rovi*e fertile "ro)n* for the res)rrection of ca-italism, On
the other han*0 the USSR was the re-)+lic of or1ers and #easants-
NEP was +ase* on the lin8 or alliance 4smych1a5 +etween them, The
-olitical concl)sion was *rawn0 remem+erin" 9eninDs ol* *icta0 that
the -oorer -easants wo)l* +e allies0 the mi**le -easants -erha-s
tolerant associatesI the 8)la8s re-resente*0 + *efinition0 the enem0
the menace, If an mi**le -easants0 + their s)ccess0 +ecame
8)la8s0 then the too Coine* the cam- of those who wo)l* see the
Soviet re"ime as a hostile force0 an* who wo)l* +e +)sil secretin"
or en"en*erin" ca-italism an* -olitical o--osition,
However0 to *efine an -easant who ma*e "oo* as an enem
wo)l* ma8e nonsense of the -rinci-le of the smch8a, Even more
A)riculture and the Peasants 1-*
im-ortant0 -erha-s0 was the fact that it ma*e economic nonsense
to -enaliFe s)ccess when0 a+ove all0 more -ro*)ction an* more
mar8etin"s were nee*e*, Here0 )n*erlin" all the factional *is>
-)tes in the -art over the -easant0 which will +e treate* in
the ne@t cha-ters0 were some ver real -er-le@ities an*
*ilemmas,
Meanwhile recover ha* to ta8e -lace within an instit)tional
settin" of a semi>me*ieval character0 )n*er which the vast maCor>
it of small>hol*er -easants ha* little o--ort)nit0 incentive or
reso)rces to im-rove their metho*s of -ro*)ction or to )se
machiner, Their wa forwar* as in*ivi*)al -easants wo)l* onl
+e thro)"h consoli*atin" hol*in"s0 increasin" commercial -ro*)c>
tion0 an* in "eneral followin" the -ath which two million -easants
ha* +e")n to trea* on the morrow of the Stol-in reforms .see
Cha-ter #/, 6)t for 6olshevi8s this was a -ath which le* > or
mi"ht lea* > to ca-italism,
9enin0 in one of his last wor8s0 saw a wa o)t? coo-eration an*
also mechaniFation, !ra*)all0 coo-eration wo)l* wean the -eas>
ant from in*ivi*)alism, Shown the a*vanta"es of mechaniFe*
c)ltivation0 shown the -ower of the tractor0 he wo)l* in time
+ecome converte* to socialism, 6)t for a lon" time to come he
ha* to +e han*le* caref)ll0 an* certainl he m)st not +e force*0
he m)st +e -atientl -ers)a*e*, This was acce-te* + all factions
in the first ears of NEP, R)ral cons)mer coo-eratives were
favo)re* +eca)se0 inter alia, the acc)stome* the -easants to
coo-eration, The were therefore *eeme* to +e an instalment of
D9eninDs coo-erative -lanD, As for -ro*)cersD coo-eratives0 little
was sai* a+o)t them0 an* even less *one0 as ma +e seen from
the fi")res cite* on -a"e #5&, T-ical of the -erio*0 an* )n>
E)estione* at the time0 was the assertion of N, Meshchera8ov0
in a s-eech on a most formal occasion0 an aca*emic meetin" in
hono)r of 9enin shortl after his *eath? D9enin was a *etermine*
enem of an sort of coercion in the area of a"ric)lt)re, 9enin
sai* that onl a fool co)l* thin8 of coercion in relation to the
-easantr ,,, There is onl one roa*0 that of -ers)asion,D
&'
It
matters little in the -resent conte@t that this was har*l a correct
characteriFation of what 9enin act)all *i* in #$#'>(#, This is
how his views were inter-rete* in #$(<,
io% NEP
The -easants were han*ica--e* not merel + the o+solete
sstem of lan*hol*in", The First :orl* :ar an* the civil war ha*
carrie* awa man of the horses0 which was one reason wh man
even of the Dmi**le -easantsD *i* not have one, There were heav
losses in other cate"ories of livestoc8, Sowin"s of in*)strial cro-s
ha* fallen shar-l0 -artl as a res)lt of in*)strial colla-se0 -artl
+eca)se of the -riorit "iven + the -easants to s)+sistence cro-s,
It was a characteristic of the R)ssian -easant to -ro*)ce mainl
for s)+sistence, In -re>revol)tionar times0 accor*in" to Soviet
calc)lations0 lan*lor*s an* 8)la8s -rovi*e* +etween them 4# -er
cent of mar8ete* "rain, The mi**le an* -oor -easants0 n)mericall
far s)-erior0 mana"e* less than ($ -er cent an* cons)me* most of
their -ro*)ction themselves .onl #<,4 -er cent of their cro-s were
mar8ete*/, The revol)tion ha* "reatl a**e* to the mi**le an* -oor
-easants0 an* "reatl re*)ce* the n)m+er an* sco-e of o-erations of
the 8)la8s, So inevita+l there arose a contrast +etween total o)t-)t0
which recovere* first0 an* mar8etin"s which la""e* +ehin*,
The siFe of sown area an* harvests an* n)m+ers of livestoc8
showe* ra-i* rise from the famine con*itions of #$(#, The
followin" are the relevant fi")res?
!191(% 19.. 19./
So5n re !"illion hectres% !1&/.&% 11.1 1&4.(
Grin hr:est !"illion tons% !0&.1% /&.( 1../
7orses !"illion hed% !(/-/@%
*
+,
.
1-C
2ttle !"illion hed% !/0.9@% 4/.0 4..1
Pi$s !"illion hed% !.&.(@% 1..& .1.0
@ 1914
(Source: Sotsialisticheskoe stroitetst'o !>osco5, 19(4%, p. 4.%
6 contrast0 "rain mar8etin"s remaine* +elow -re>war, The
e@tent of the shortfall was *eli+eratel e@a""erate* + Stalin, He
claime* that in #$(4 the -ro-ortion of "rain mar8ete* was onl half
of what it ha* +een in #$#&, This fi")re has +een re-eate* +
n)mero)s a)thors0 Soviet as well as :estern, The Soviet writer
Mosh8ov as well as the American analst 2, 7arcF have
A)riculture and the Peasants 1-5
-ointe* o)t that Stalin s)+stantiall )n*erstate* the level of
mar8etin"s in the late twenties0 an* he also *istorte* the -ict)re
+ com-arin" them with the sin"le ear #$#&0 which was
a+normall favo)ra+le, 6oth Mosh8ov an* 7arcF wo)l* a"ree
that mar8ete* "rain amo)nte* to #%,4 million tons .a+o)t (1
-er cent of -ro*)ction/ in the ears #$5$R#&0 an* that it was
somethin" of the or*er of #% million tons as an avera"e of the
ears #$(%>'0 or ro)"hl (# -er cent of total o)t-)t0 an* not
#& -er cent as claime* + Stalin an* others, However0 R, :,
3avies has shown that0 on a narrow *efinition of mar8ete*
"rain0 Stalin ma have +een ri"ht,
&$
Even if one allows f)ll for
StalinDs statistical *evices0 the fact remains that mar8etin"s were
+elow -re>war0 while the nee* for "rain was increasin" an*
wo)l* E)ite o+vio)sl increase ra-i*l as in*)strialiFation "ot
)n*er wa,
The -rinci-al reason for, low mar8etin"s has alrea* +een
mentione*? the shift to a small>-easant s)+sistence>t-e econom,
In #$(1 the -easants were eatin" +etter0 sellin" less, Contri+)tor
reasons0 however0 were )nfavo)ra+le terms of tra*e with the
towns .es-eciall in the DscissorsD crisis -erio*0 an* the +la*es of
the scissors0 as we shall see0 -arte* a"ain in *)e co)rse/0 the
efforts ma*e to e@-an* livestoc8 n)m+ers .livestoc8 have to +e
fe*/0 the "reater attractiveness of in*)strial cro-s .after #$(&/
an*0 last +)t not least0 the res)lts of *eli+erate "overnment
efforts to control "rain -)rchase -rices, Th)s as earl as #$(<>1
D*ecisive meas)res were ta8en to +rin" or*er into the sstem of
O"rainP -roc)rements ,,, to stren"then -lannin" an* re")lation0
to -)sh o)t the -rivate tra*ers, In #$(1>% meas)res were ta8en
which re*)ce* -rivate tra*e in "rain ,, ;
<5
Alrea* the "overn>
ment was the *ominant -)rchaser0 +)in" 41 -er cent of mar8ete*
"rain in #$(1>%, :ith the a+an*onment of ta@ in 8in* in #$(<0 a
mone ta@ +ein" s)+stit)te*0 the "overnment was more than ever
intereste* in -ain" as low a -rice as -ossi+le for the sta-le cro-0
"rain, :e shall see the effects of this -olic on later *evelo->
ments,
E@-orts were a -rinci-al s)fferer from the low mar8etin"s0 as
the followin" fi")res show .in #$#&0 a "oo* harvest ear0 "rain
constit)te* <5 -er cent of total e@-orts/?
io& 8EP
(millions of tons)
1913 12.0
1925-6 2.0
1926-7 2.1
1927-8 0.3
The -easants on their -art reacte* vario)sl to the new sit)>
ation an* the o--ort)nities it affor*e*, The nat)rall welcome*
free tra*e an* the -rivate tra*er, Some +etter>off -easants trie*
to e@-an* their activities, O--ort)nities were not lac8in"0 when
so man of the -oorer -easants ha* ins)fficient lan* on which to
live0 an* lease* it officiall or )nofficiall to a more -ros-ero)s
nei"h+o)r an* went to wor8 for him, There are contra*ictor
statistics on all this0 no *o)+t *)e to the infl)ence of factionalism
on statisticians, This conf)se* Soviet researchers in later ears,
Th)s whereas0 as we have seen0 !la*8ovDs +oo8 "ave -easant
ho)sehol*s hirin" la+o)r as #,$ -er cent of the total0 another
historian "ave the fi")re as 4,% -er cent for the same ear0 #$(1,
He also recor*e* #,4 million lan*less la+o)rers0
<#
whereas !la*>
8ov -ointe* o)t that <150555 of these were em-loe* as her*smen
+ villa"e comm)nities an* not + 8)la8s, 6)t o+vio)sl -easant
*ifferentiation *ee-ene*I a richer -easant class was emer"in",
This was0 of co)rse0 a E)ite nat)ral an* inevita+le *evelo-ment
within the -easantr0 an* the "overnment *i* not li8e it0 the
more so as the tra*itional -easant meetin" of el*ers 4s1hod5 was a
m)ch more effective a)thorit than the fee+le an* ineffective
r)ral Soviet, The -art was e@cee*in"l wea8 in the villa"es, How>
ever0 )- to an* incl)*in" #$(10 -riorit was "iven to enco)ra"in"
o)t-)t an* sales0 an* therefore the less -oor -easants receive*
some enco)ra"ement0 to the *isma of -art activists in villa"es0
an* of those -oor -easants who e@-ecte* s-ecial favo)rs, This0 as
will +e shown later0 was the s)+Cect of m)ch +itter ar")ment,
There is m)ch evi*ence0 -resente* es-eciall + Y)ri
!olan*0
<(
to the effect that most r)ral -art ca*res were o--ose*
to the -olic of #$(<>10 seen + them as e@cessivel -ro>-easant,
At the fo)rteenth -art conference .in #$(1/0 Y), 9arin0 criticiFin"
6)8harin0 sai*? Dhe *eman*s of )s a -romise that we will never0
A)riculture and the Peasants 1-
i,e, not in #1 or (5 ears0 confiscate or e@-ro-riate 8)la8s0 semi>
lan*lor*s0 the )--er +o)r"eois strata, This we cannot "ive ,,, :e will
confiscate0 e@-ro-riate0 lar"e -rivate enter-rises when the time
comes for so *oin",D Clearl0 these views were wi*el share* in the
-art, Stalin0 at that time 6)8harinDs all0 sai* in his s-eech in
2an)ar #$(1 to the Moscow -rovincial -art conference? DThe
tro)+le0 comra*es0 is that man of o)r comra*es *o not an* will not
)n*erstan* the vital im-ortance of this O-easantP E)estion, The sa
that the lea*ers in Moscow fin* it fashiona+le to tal8 of -easants,
This cannot +e serio)s, This m)st +e *i-lomac0 nee*e* for the
o)tsi*e worl*, :e can "o on with -revio)s -olicies ,,, If the
moscovites *i* not sit in their offices an* came to the localities0 the
wo)l* see what the -easants reall are an* how ta@es are collecte*,D
7aUnin com-laine* a+o)t *iscriminator meas)res towar*s the
+etter>off -easants, !olan* cites a contem-orar -art critic0 Ya,
6)rov0 who collecte* m)ch evi*ence of resistance + -art ca*res to
the so>calle* Dnew co)rseD in the villa"es .Do)r -art cannot reall
"ive )- its -olitical -ower to the -easantrD0 an* so on/, So when
Stalin shifte* his "ro)n*0 he ha* s)--ort D+elowD,
As for the -easant attit)*e to the re"ime0 this m)st have +een
ver mi@e*, Tr)e0 the ha* "aine* lan*, However0 the were well
aware that the ha* seiFe* the lan* themselves, F)rthermore the
ha* +een m)ch shoc8e* + their e@-erience of reE)isitions in the
war>comm)nism -erio*0 an* ha* little )n*erstan*in" of or
sm-ath for the t-ical0 overwhelmin"l )r+an0 comm)nist
officials, The -art lea*ersD man -rono)ncements a+o)t the D-ett>
+o)r"eois seaD that s)rro)n*e* them m)st have "iven "ro)n* for
)neasiness amon" those who rea* s)ch -rono)ncements, Events
wo)l* show that there were "ro)n*s for this *istr)st, The -easant0 in
an case0 ha* the nat)ral am+ition to acE)ire more lan*0 another
horse0 a cow0 -erha-s a la+o)rer, Then0 he 8new0 he wo)l* +e
classe* as a 8)la80 -)+licl revile* as a menace an* a +loo*s)c8er0
-erha-s ta@e* heavil0 an* alwas conscio)s of a--earin" to +e a
menace in the ees of at least some of the men in the 7remlin,
Peasants0 for the re"ime0 were Dthe acc)rse* -ro+lemD, One ima"ines
that most of the -easants reci-rocate* s)ch sentiments, The fact that
)r+an em-loment
no 8EP
o--ort)nities remaine* mo*est )ntil the en* of the twenties ha* one
other conseE)ence? the alrea* consi*era+le *e"ree of r)ral over>
-o-)lation0 in relation to lan* reso)rces0 was "rowin" worse as the
nat)ral increase of the -o-)lation re-lace* the heav losses from
war0 famine an* -estilence,
'he <r,an .or0ers
:hat of the wor8ers0 the D-roletariatD in whose name the -art
e@ercise* its *ictatorshi-G The fall in their n)m+ers *)rin" the
-erio* of war comm)nism has alrea* +een note*, Accor*in" to
Soviet so)rces0
<&
the total n)m+er of wa"e> an* salar>earners ha*
fallen from ro)"hl n million in #$#& to onl %C million in #$(#R(,
The n)m+er of in*)strial wor8ers more than halve* in the same
-erio*,
:ith the comin" of NEP an* of recover0 con*itions altere*
*rasticall0 +)t at first it seeme* to +e a matter of C)m-in" o)t of the
frin" -an into the fire, :ith the a+olition of free rations an*
services the wor8ers ha* to +) everthin" with a wa"e of
min)sc)le -ro-ortions0 which was +ein" eaten awa + ra"in"
inflation, Of co)rse0 the shorta"es of all 8in*s ma*e a stan*ar* of
life well +elow -re>revol)tionar levels inevita+le, However0 *)rin"
war comm)nism0 at least the wor8er was favo)re*0 )s)all receivin"
hi"her rations an* sometimes a -air of reE)isitione* +o)r"eois +oots
or tro)sers into the +ar"ain, Now came NEP, In DrealD terms .i,e, in
constant ro)+les/ wa"es in #$(( came to $,<4 ro)+les -er month
.h)n*re*s of tho)san*s0 or even millions0 of the then e@istin"
sovFna8 ro)+les/, The #$#& wa"e level in those same -rices was (1
ro)+les,
<<
Private tra*ers char"e* -rices which *ismae* the
)n*er-ai* -roletarian0 an* ma*e -rofits which ma*e him wince, The
conversion of wor8ersD -a into -)rel mone wa"es *i* not ha--en
at once, At its lowest0 in the first E)arter of #$(#0 onl %,' -er cent
of Dwa"esD were -ai* in mone0 the rest +ein" iss)e* free in the form
of "oo*s an* services, Onl in the mi**le of #$(( *i* over half of
the wa"e ta8e the form of mone0 an* even in the first E)arter of
#$(&0 (5 -er cent of the wa"e was in 8in*,
<1
There were stri8es0
*iscontent0
The Ur+an :or8ers ###
com-laints, The tra*e )nions0 still res-onsive to -ress)re0 ma*e
re-resentations,
Con*itions im-rove* as more "oo*s +ecame availa+le, The
avera"e monthl wa"e of wor8ers in constant ro)+les was as fol>
lows?
Monthl Ho)rl
4ro%"les5 41o#e1s5
191(
(&-49
14..
19.&-.1 1&.1/
/-4
19.1-. 1..1/
1-(
19..-(
1/00 0.9
19.(-4 .&.1/
11.1
C19.4-/ ./.10 14-(
19./-4 .0./1 14.4
4So%rce: !la*8ov0 Sovets1oe narodnoe
1ho2yaistvo .4$(4>1/ .Moscow0 i$%5/0
P> 1&%/
The statistics are of *o)+tf)l acc)rac0 "iven the "reat variet of
local -rices an* the inflationar twists an* t)rns0 +)t the *o reflect
the conseE)ences of ra-i* recover of -ro*)ction, Farm -rices0 as
we have seen0 were relativel low after #$((, #$(1 was a
-artic)larl favo)ra+le ear0 as all statistics show,
The com-arison with #$#& is more favo)ra+le if one ta8es social
services into acco)nt, These0 for the D-roletariatD0 were relativel
"enero)s, Alrea* the Provisional "overnment ha* a*o-te*
a*vance* la+o)r le"islation0 an* the la+o)r co*e of the war>
comm)nism -erio* wo)l* have +een ver a*vance* in*ee* if it ha*
+een -ossi+le to ma8e a realit of it in the chaos of the time, The
la+o)r le"islation of #$(( reasserte* some of the -rinci-les of -ast
*ecrees0 an* lai* *own some new ones, :or8ers were entitle* to an
ei"ht>ho)r *a .less in heav wor8/0 two wee8sD holi*a with -a0
social ins)rance +enefits .incl)*in" sic8 -a0 )nem-loment -a0
me*ical ai*/, Collective a"reements +etween mana"ement an*
)nions wo)l* re")late wa"es an* wor8in" con*itions, A *is-)tes
commission0 with the )nion stron"l re-resente*0 wo)l* consi*er
"rievances, The re"ime co)l* -oint with -ri*e to s)ch le"al
enactmentsI the were well ahea* of their time,
<%
However0 a "rave -ro+lem emer"e*? that of )nem-loment, It
rose -artic)larl ra-i*l in #$(&0 when tr)sts were fin*in" it
*iffic)lt to sell their "oo*s0 an* when the "overnmentDs -olic was
to enco)ra"e -rofit>ma8in"0 an* the elimination of s)r-l)s Co+s an*
feather+e**in", :ith so m)ch -re>war in*)strial ca-acit still o)t
of )se there was not eno)"h wor8 to "o ro)n*0 even for the re*)ce*
)r+an la+o)r force, Unem-loment reache* #,(< million in 2an)ar
#$(<0 an* fell to $150555 in the ne@t ear0 +)t +e"an risin" a"ain to
reach a fi")re of #,% million in #$($,
<4
This mi"ht not at first si"ht
seem serio)s0 since )nem-loment in 6ritain was of a+o)t this
ma"nit)*e at the time0 an* 6ritain was a m)ch smaller co)ntr,
However0 this wo)l* +e a mislea*in" im-ression, The vast maCorit
of the -o-)lation of the Soviet Union were -easants0 an* -easants >
whether or not the are in fact lin" on the stove an* co)ntin" fleas
> are not consi*ere* to +e )nem-loe*, Ta8en as a -ercenta"e of the
em#loyed la+o)r force0 #,<% million was a ver hi"h fi")re in*ee*I
there were onl 'S million Dwor8ers an* em-loeesD in #$(<0 still
well +elow #$#& levels, Th)s the -ro+lem of )nem-loment was
serio)s0 an* remaine* so )ntil the en* of NEP an* of the *eca*e0
when a ver *ifferent -olic ra-i*l ca)se* an ac)te shorta"e of
la+o)r,
The social conseE)ences of hi"h )nem-loment affecte* the
o)n" -eo-le in -artic)lar0 -artl +eca)se the -ro"ressive la+o)r
le"islation of #$(( "ave them s-ecial -rivile"es .incl)*in" a si@>
ho)r *a/0 which nat)rall ma*e the em-loers .+e the state
mana"ers or -rivate Ne-men/ thin8 twice a+o)t em-loin" them,
Yo)th was alrea* m)ch sha8en + its e@-erience in the civil war,
The n)m+er of or-han va"a+on*s 4"es#ri2ornye5 was a menace to
-)+lic or*er, The fact that there were so few honest Co+s for them to
*o was of no hel- in reha+ilitatin" them, Crime rates were hi"h,
:a"e *etermination was s)--ose* to +e centraliFe*? a )nifie*
seventeen>"ra*e wa"e sche*)le was a*o-te* in #$((, 6)t this was
)nenforcea+le an* was sstematicall i"nore* in favo)r of local
+ar"ainin", The tra*e )nions ha*0 on a formal level0 increase*
a)thorit to -rotect the wor8ers an* a*vance their interests,
However0 the )nion lea*ers0 amon" whom Toms8 was -artic)larl
-rominent0 were in a *ilemma, The were senior -art
The Ur+an .or3ers 11!
officials0 with the closest lin8s with the -art lea*ershi-, Times
were ver har*0 it was everoneDs *)t to -)ll to"ether, The +oat
sho)l* not +e roc8e*, Stri8es wo)l* *ela recover an* were to
+e *isco)ra"e*, It is tr)e that in #$#$>(5 the tra*e>)nion com>
m)nists f)nctione* as a E)asi>a)tonomo)s "ro)-0 as witness their
reCection of 9eninDs views on mana"erial a)thorit .see Cha-ter
&/, However0 -art *isci-line ha* -erce-ti+l ti"htene* since
then0 -artic)larl since Stalin ha* ass)me* the "eneral secretar>
shi- of the -art in #$((, :ith 9enin o)t of action from the en*
of #$((0 his s)ccessors were increasin"l intolerant of *issent, In
an case0 the e@ercise of -ower in a hostile environment .Daro)n*
)s > the -ett>+o)r"eois seaD/ -re*is-ose* them to stan* to"ether
vis!d!vis the )n-re*icta+le an* fic8le masses0 even tho)"h the
co)l* an* *i* fi"ht each other in the corri*ors of -ower,
The )nions *i* have a clear an* le"itimate role as far as -rivate
em-loers were concerne*, 6)t the *i* not )se their -ower to
fi"ht them0 as this wo)l* have +een contrar to the s-irit of NEPI
the *earth of all commo*ities reE)ire* everone to -ro*)ce more,
In state enter-rises0 the tra*e>)nion committee secretar -lae*
a si"nificant role alon"si*e the mana"er an* the -art secretar,
This 8in* of Dtri)mvirateD mana"ement -ersiste* thro)"h most of
the twenties, No *o)+t it was a ste- forwar* from Dwor8ersD
controlD0 +)t it was still not an efficient metho*, However0 since
all the s#etsy .s-ecialists/ an* most mana"ers were +o)n* to +e
+o)r"eois an* so of *o)+tf)l loalt0 this was a wa of ens)rin"
that each was -rovi*e* with two watch*o"s,
!iven that tra*ition reE)ire* some more *irect wor8ersD -artici>
-ation0 there were also D-ro*)ction co)ncilsD C#roi2vodstvennye
soveshchaniya5 an*0 in #$(<0 D-ro*)ction commissionsD0 the latter
+ein" -ermanent cons)ltative +o*ies within factories0 re-resenta>
tive of the em-loees,
<'
The seem not to have ha* m)ch effect
on mana"ement -ractices0 +)t the *i* have an e*)cational
-)r-ose? o)t of the wor8ers that came forwar* in these +o*ies
were chosen man f)t)re mana"ers of a new t-eI the were sent
off on trainin" co)rses which -rovi*e* new ca*res0 no lon"er of
D+o)r"eoisD ori"in, In 9enin"ra* alone0 + A-ril #$(10 $55 s)ch
in*ivi*)als were nominate* for trainin" for Dvario)s a*ministra>
tive0 technical an* economic -ostsD,
<$
#$(1 ma +e sai* to have +een the hi"h -oint of NEP, The -artDs
-easant -olic was at its most tolerantI real or alle"e* 8)la8s were
allowe* to increase o)t-)t, The h)morist ;oshchen8o wrote a stor
at this time a+o)t a 8)la8 whose ho)se was +)rnin" *ownI the
.-oor>-easant/ fire +ri"a*e *i* not r)sh to -)t the fire o)t0 +)t
neither *i* the 8)la8, He was ins)re*H So Dthe fire +ri"a*e was
*e-orte* for left>win" *eviationD .the leftists0 as will +e seen0 were
acc)sin" the lea*ershi- of +ein" soft on 8)la8s/, At the same time0
while e@-an*in" state tra*e0 the "overnment was allowin" Ne-men
to f)nction0 as tra*ers an* as -ett man)fact)rers an* artisans0
witho)t m)ch let or hin*rance, A nationaliFe* in*)str was
o-eratin" on a lar"el *ecentraliFe* +asis, There was m)ch tal8 of
-lans an* -lannin"0 +)t no comman* econom, !rowth was ra-i*0
an* so the sstem seems to +e s)ccee*in" +eon* reasona+le
e@-ectation, 6)t this "rowth was +ase* to a "reat e@tent on the
reactivatin" of e@istin" ca-acit0 the re>a+sor-tion of availa+le
factor la+o)r, Th)s0 accor*in" to 7virin"
15
"ross investments in
#$(<>1 .&'1 million ro)+les/ were not "reatl in e@cess of
*e-reciation allowances .(44 million ro)+les/0 an* et the rate of
"rowth in -ro*)ction in that an* the ne@t ear was ver ra-i*,
F)rther -ro"ress wo)l* reE)ire a m)ch "reater investment effort0
*evote* more to +)il*in" new -lant than to re-airin" an* renovatin"
ol* ones, 2)st as to re-air ol* Dsic8D locomotives an* to re>la
*ama"e* trac8 cost m)ch less than +)il*in" a totall new railwa0
so0 as the -erio* of reconstr)ction came "ra*)all to an en*0 the rate
of ret)rn on investment was fo)n* to *ecline s)+stantiall, Far>
si"hte* -art lea*ers co)l* *iscern new -ro+lems an* -itfalls ahea*0
callin" -erha-s for new -olicies,
Some of these lea*ers were alrea* loo8in" with *istaste at the
NEP com-romise, Their ar")ments will form an inte"ral -art of the
ne@t cha-ter,
* The #reat (e+ate
.hat was N)*?
In the -revio)s cha-ter we have +een "ivin" an o)tline of the
evol)tion of the economic sstem within the "eneral -attern an*
ass)m-tions of NEP, It is now necessar to -ass from a *escri->
tion of an evolvin" sit)ation to an analsis of the *isc)ssions of
the twenties0 which were of the ver "reatest -olitical an* eco>
nomic im-ortance, The have a si"nificance far +eon* the -erio*
an* location in which the too8 -lace, Man *evelo-in" co)ntries
to*a face similar -ro+lems? the financin" of ca-ital acc)m)lation0
the strate" of economic "rowth in in*)strialiFation0 the role of
the -easantr after lan* reform in the conte@t of *evelo-ment0
these -ro+lems have arisen in man -laces o)tsi*e R)ssia, It ma
+e sai* that the arose in R)ssia first0 or rather that -oliticians
an* economists first +ecame conscio)s of s)ch -ro+lems in the
Soviet Union, Far +e it from me to s)""est that the Stalin
sol)tion of s)ch -ro+lems is a mo*el for an *evelo-in" co)ntr,
Elsewhere the answers to the E)estions -ose* ma +e ver
*ifferent, It remains +oth interestin" an* im-ortant to st)* the
tho)"ht -atterns of -oliticians an* economists in the Soviet
Union in these ears0 when relativel fran8 *isc)ssion was still
-ossi+le0 an* har*>hittin" *e+ates too8 -lace in aca*emic an*
-olitical circles, Altho)"h StalinDs -olitical machine alrea* con>
trolle* m)ch of what was "oin" on0 it was still -ossi+le to
con*)ct a "en)ine -)+lic *e+ate on +)rnin" iss)es,
First of all0 what e@actl was the nat)re of NEPG
9enin ha* left +ehin*0 in his articles an* s-eeches0 a n)m+er
of inter-retations which were + no means consistent, His s)cces>
sors0 +)sil en"a"e* in a -olitical str)""le an* an@io)s to -reserve
the 6olshevi8 re"ime0 all trie* to -resent themselves as ortho*o@
9eninists, So it wo)l* +e -ro-er to ret)rn in tho)"ht to #$(#0 to the
en* of Cha-ter &, It was alrea* shown there that 9enin ha* +een
thin8in" of #4$<0 of the nee* to avoi* Ro+es-ierreDs fate + timel
retreat, He )se* the wor* DretreatD re-eate*l, In referrin" to war
comm)nism he )se* the -arallel of Port Arth)r0 which ha* +een
)ns)ccessf)ll attac8e* + the 2a-anese at the +e"innin" of the
sie"e, The then with*rew0 re"ro)-e* their forces an* res)me* their
assa)lt more metho*icall0 s)ccee*in" in the en*, The moral
seeme* to +e that some )ns)ccessf)l attac8s were a necessar -re>
con*ition to a victorio)s a*vance0 since otherwise the ri"ht roa*
co)l* not +e fo)n*, On either of these two inter-retations0 NEP
re-resente* a force* an* hi"hl )n*esira+le retreat0 an* lo"icall
the ne@t ste- sho)l* +e to re"ro)- an* to res)me the a*vance in *)e
co)rse,
Yet at other times 9enin hotl *enie* that NEP was )n*esira+le,
He ar")e* that0 +)t for the necessities of war0 it wo)l* have +een
-ossi+le to contin)e the m)ch mil*er -olicies which were +e")n
earl in #$#', In still another moo*0 9enin wo)l* -oint to the errors
an* st)-i*ities of the war>comm)nism -erio*0 to e@cessivel
swee-in" nationaliFation0 over>centraliFation0 etc, However0 on this
view NEP co)l* har*l +e re"ar*e* as retreat at all, If the economic
sstem of #$#'R(# was either a force* reaction to an emer"enc
sit)ation or an error0 then a ret)rn to the stat%s 0%o ante 2)ne #$#'
was a ret)rn to the correct roa*0 an* not a with*rawal in the face of
the s)-erior forces of the enem,
:hat then was in 9eninDs min* when NEP was f)ll esta+lishe*
an* fate remove* from him the -ower of movement an* coherent
s-eechG 3i* he0 as 6)8harin +elieve*0 *raw from the horrors an*
e@cesses of war comm)nism a ca)tio)s0 "ra*)alist concl)sionG
NEP0 he asserte*0 was inten*e* Dserio)sl an* for a lon" timeD, How
lon" is a lon" timeG 9enin himself answere* this E)estion + hintin"
that twent>five ears wo)l* +e a rather -essimistic view,
#
9enin
an* all his comra*es m)st have +elieve* that the a*vance wo)l* +e
res)me*0 otherwise the ha* no raison d,etre as 6olshevi8s at all,
The were +o)n* to re"ar* the )ltimate achievement of socialism as
the one -ossi+le C)stification for their +ein" in -ower, 6)t when was
the a*vance to +e
.hat $as 8EP; 115
res)me*G At what s-ee*G In what *irectionG A+ove all0 what was to
+e *one to convert or transform the -easant maCorit of the
-o-)lation0 an* how was the in*)strialiFation of R)ssia to +e
-)rs)e* after the -erio* of reconstr)ction ha* come to an en*G
J)estions s)ch as these interacte* with -olitical iss)es0 concerne*
with the -ower -osition of in*ivi*)als an* factions an* the
s)ccession to 9enin,
In *isentan"lin" the vario)s stran*s of the ar")ment it is
im-ortant to *istin")ish +etween a n)m+er of as-ects of a hi"hl
com-le@ sit)ation, There was first an* foremost the +asic *ilemma
of a 6olshevi8 revol)tion0 tri)m-hant in the name of Mar@ism an*
the *ictatorshi- of the -roletariat in an overwhelmin"l -easant
co)ntr, The -art ha* -ower0 the -re>revol)tionar -ro*)ctive
ca-acit ha* +een0 or was +ein"0 restore*, 6 #$(1>% the -art ha*
to face a vast E)estion of -olitical econom? how to transform the
entire social>economic sit)ation + *eli+erate action from a+ove, If
this was to +e *one + -lannin"0 then + what 8in*0 enforce* +
what mechanismG A lar"e increase in savin"s0 in acc)m)lation of
ca-ital0 wo)l* +e necessar, :ho was to =er the sacrifices0 an*
how severe wo)l* these sacrifices +eG In *e+ates in R)ssia )n*er
!or+achev the -oint was re-eate*l ma*e0 nota+l + Y),
Afanasev0 !efter an* Tsi-8o0
(
that 6olshevism an* NEP were
inherentl incom-ati+le0 that +oth i*eolo"ical an* -ractical>
economic consi*erations wo)l* s-ee*il *rive the lea*ershi- into a
collision co)rse with the essential feat)res of a mi@e* mar8et>
orientate* econom, S)ch a view has m)ch to commen* it,
Another as-ect of the -ro+lem concerne* national sec)rit, Of
co)rse 9enin an* Stalin were not the first to see the intimate
relationshi- +etween in*)strial *evelo-ment an* militar -otential,
:itte0 thirt ears earlier0 ha* 8nown all a+o)t this an* ha* +een
"reatl infl)ence* + s)ch consi*erations, However0 the isolation of
the 6olshevi8 revol)tion0 alone in a worl* *ominate* + Dim-erialistD
-owers0 lent a s-ecial )r"enc to the sit)ation0 as this was seen +
the lea*ershi-, The e@tent an* the vi"o)r of intervention *)rin" the
civil war were e@a""erate*0 +)t the fact that intervention ha*
occ)rre* stren"thene* the -re*is-osition to +elieve that another
series of Dim-erialistD cons-iracies wo)l* soon
n; 'he Great #e,ate
challen"e the sec)rit of the Soviet state, In the mi**le twenties the
:estern -owers were E)iescent0 +)t the rec)rrent alarms a+o)t the
-lots of DCham+erlain an* PoincareD were onl -artl a matter of
*eli+erate invention for -olitical reasons, The fears seem to have
+een "en)ine, The +rea8in">off of *i-lomatic relations + 6ritain in
#$(4 lent some s)+stance to these fears, There was also nervo)sness
a+o)t the 2a-anese in the Far East, The im-ortance of these attit)*es
in the -resent conte@t la in their im-act on the s-ee* of
in*)strialiFation an* on its *irection an* -attern, The hi"her the
-roCecte* rate of "rowth0 the "reater the savin"s an* sacrifices,
EE)all clearl0 the more wei"ht that Kwas "iven to national sec)rit
consi*erations0 the more the -riorit affor*e* to militar mi"ht an*
economic in*e-en*ence, This meant more attention to heav
in*)str0 to steel0 coal0 machiner0 at the e@-ense of cons)mersD
"oo*s, 6)t this meant even more sacrifices0 which ha* one f)rther
conseE)ence which -rove* to +e of the ver "reatest si"nificance, If
the em-hasis in investment was to +e on heav in*)str0 then the
-easants co)l* not +e offere* material incentives s)fficient to
-ers)a*e them to sell more -ro*)ce, This in t)rn severel limite* the
-ower of manoe)vre of an in*)strialiFin" Soviet "overnment0 within
the conte@t of the a"ric)lt)ral settlement +eE)eathe* + the
revol)tion,
'he *easants and Accu$ulation
There has alrea* +een some *isc)ssion in the -revio)s cha-ter of
the conseE)ences of the lan* settlement of #$#4>#', A"ric)lt)ral
-ro*)ction recovere* fairl ra-i*l0 +)t there was a -ersistent
shorta"e in mar8ete* -ro*)ce0 an* the towns co)l* onl +e fe* at
the cost of a *rastic re*)ction in e@-orts of "rain, Yet )r+aniFation
calle* for a s)+stantial increase in off>farm cons)m-tion of foo*
an* also for a lar"e e@-ort s)r-l)s to -a for essential im-orts of
ca-ital "oo*s, Co)l* this -ro+lem +e resolve* within the tra*itional
-easant metho*s of -ro*)ction0 the three>fiel* sstem0 stri-s0 tin
hol*in"sG :as this not a +ottlenec8 which wo)l* hol* +ac8 the
entire economic *evelo-ment of R)ssiaG NEP was +ase* on the so>
calle* smch8a with the -easants0 the
The Peasants and Accumulation 11
wor* im-lin" a lin80 coo-eration0 harmon, Yet 9enin 8new an*
sai* that a mar8et>orientate* -rivate -easantr "enerate* ca-ital>
ism, It is tr)e that 9enin0 in his last ear of -olitical life0 also sai*
that the -easants ha* to +e shown the a*vanta"es of socialism an*
coo-eration0 that the sho)l* not +e coerce*, This -resente* his
s)ccessors with a ver com-le@ E)estion, It was from the +etter>
off -easants that mar8eta+le s)r-l)ses wo)l* come, An -easant
who s-ecialiFe* in -rovi*in" mar8eta+le s)r-l)ses wo)l* increase
his income, :o)l* this +e a *an"ero)s "rowth of -otentiall or
act)all ca-italistic elementsG :hat alternative was there0 witho)t
+ein" in +reach of +oth the ass)m-tions of NEP an* of the
-rinci-les of the smch8aG 6)8harin0 who ha* +een a lea*er of
the left win" *)rin" the war>comm)nism -erio*0 +ecame the +est
8nown of the lea*ers of the mo*erates .the f)t)re Dri"ht>win"
*eviationD/ in the twenties, He reasone* as follows? NEP is to +e
-ersiste* with for a lon" time0 for a "eneration at least, It is o)t
of the E)estion to )se force a"ainst the -easants, :hile s)--ort
for the -oor -easants ma +e -oliticall -refera+le from the
6olshevi8 -oint of view0 it isK from the mi**le an* +etter>off
-easants that the nee*e* farm s)r-l)ses will come0 an* in no
circ)mstances m)st the +e anta"oniFe*, On the contrar0 the
m)st +e enco)ra"e*, The alternative -olic wo)l* +rin" +ac8 the
+lac8 *as of confiscations0 an* "ravel en*an"er the 6olshevi8
hol* on -olitical -ower0 since it wo)l* lea* to -easant re+ellion,
6)8harin was in favo)r of +)il*in" socialism0 +)t onl at a -ace
which the in*ivi*)al -easant -ro*)cers co)l* +e -ers)a*e* to
acce-t, In his view0 "reater -ros-erit amon" the -easants0 more
commercial -ro*)ction0 was not onl essential +)t was also not
*an"ero)s, In the -rocess of time these -easants too wo)l* D"row
into socialismD, Followin" his own lo"ic0 he la)nche* in A-ril
#$(1 the slo"an D!et richD, The R)ssian wor* for this0 o"ogas!
chaites, was the e@act translation of a slo"an coine* in the #'<5s
+ !)iFot0 the minister of 9o)is Phili--e of France? enrichisse2!
vo%s-
Parallels with French revol)tionar histor were never far
from the min*s of 6olshevi8 intellect)als, !)iFot was a +o)r"eois
statesman #ar e*cellence- The slo"an was too m)ch, :hile at this
-erio* Stalin was in -olitical alliance with 6)8harin0 an* favo)re*
ta@ concessions to the more -ros-ero)s -easants0 which were in fact
accor*e* in #$(10 he never committe* himself as far as *i*
6)8harin to the lo"ic of his -easant -olic, He *eclare* to the
fo)rteenth -art conference in the same month? DThe slo"an K"et
richK is not o)r slo"an,D 6)8harin was force* to with*raw the
offen*in" wor*s an* to a*mit that 8)la8s were an evil to +e limite*
an* sE)eeFe*, In*ee* + #$(4 he s-o8e of Da stron" offensive
a"ainst the 8)la8D,
However0 this retreat from the lo"ic of his -olic ma*e
6)8harinDs entire -osition )ntena+le, A 8)la8 is a -ros-ero)s
-easant, A mi**le -easant is a less -ros-ero)s -easant, The official
line in #$(1>4 acce-te* the mi**le -easant as the in*is-ensa+le
-rovi*er of farm s)r-l)ses0 while ma8in" -olitical "est)res towar*s
the -oor -easant .there were +itter com-laints that the -oor
-easantsD interests were in fact ne"lecte*/, 6)t this meant that an
mi**le -easant who was s)ccessf)l in *evelo-in" commercial sales0
who so)"ht to e@-an* his hol*in" + leasin" or his -ro*)ction +
em-loin" a co)-le of la+o)rers0 wo)l* s-ee*il convert himself
into a 8)la8, A"ric)lt)re ha* to s)ccee*0 an* et it co)l* not +e
allowe* to s)ccee* on the +asis of a -ros-ero)s -rivate -easant,
This was not a sensi+le or lo"ical -olic, Yet what was the
alternativeG
This 8in* of *ilemma has +een face* in other *evelo-in"
co)ntries, There is a ten*enc for the same -eo-le to *eman* +oth
lan* reform an* in*)strialiFation, Yet lan* reform often has the
effect0 at least in the short term0 of re*)cin" the vol)me of
mar8eta+le -ro*)ction0 an* sometimes of total -ro*)ction0 +eca)se
an e"alitarian lan* re*istri+)tion stren"thens the tra*itional
s)+sistence sector, The -ro+lem can in -rinci-le +e resolve* + the
emer"ence of a commerciall min*e* -easant minorit0 tho)"h no
one who 8nows anthin" a+o)t a"ric)lt)ral -ro+lems in *evelo-in"
co)ntries wo)l* fall into the error of s)--osin" that there is an eas
sol)tion, In the s-ecial case of the Soviet Union )n*er 6olshevi8
r)le0 an a*vance in this *irection came )- a"ainst an
i*eolo"icalB-olitical +arrier,
The lo"ic of the 6)8harin a--roach necessaril involve* an
em-hasis on the -ro*)ction .or im-ortation/ of "oo*s the -easants
wante*, The same lo"ic calle* for relativel slow "rowth0 since
The Peasants and Accumulation 1,1
-ro"ress wo)l* +e limite* + the -easantsD willin"ness to save an* to
s)--l the state with foo* s)r-l)ses, 6)8harin himself s-o8e of
Dri*in" into socialism on a -easant na"D, 6)t co)l* the -easant na" +e
-ers)a*e* to "o in the ri"ht *irectionG :o)l* the -art +e a+le to
control itG It m)st not +e for"otten that Soviet -ower in the villa"es
was wea80 an* that tra*itional -easant comm)nal instit)tions were
in effective comman*I within them the more -ros-ero)s -easants
ten*e* to +ecome *ominant as nat)ral villa"e lea*ers an* +eca)se so
man of their -oorer nei"h+o)rs *e-en*e* on them,
The so>calle* left o--osition challen"e* the vali*it of 6)8harinDs
-olicies, As mi"ht +e e@-ecte*0 their ar")ments were *ee-l
infl)ence* not onl + their views on the -artic)lar iss)es +)t also
+ the lo"ic of factional str)""le, It is this same lo"ic which in the
mi**le twenties le* to a tem-orar alliance +etween Stalin an* the
6)8harin faction, ;inoviev an* 7amenev in #$(& fo)n* it -olitic to
s)--ort +oth Stalin an* 6)8harin in a str)""le a"ainst the left
o--osition, In #$(10 ;inoviev an* 7amenev Coine* the Trots8
"ro)-0 an* there)-on saw virt)es in the left o--ositionDs case which
ha* E)ite esca-e* their notice two ears earlier, However0 these an*
other -olic Fi"Fa"s sho)l* not ca)se )s to s)--ose that the
-er-le@in" iss)es face* + all these men were )nreal, Iss)es are
often a*o-te* + -olitical men for their own -)r-oses,
The most co"ent theoretical statement of the o--ositionDs case0
an* one which li"hts )- most vivi*l the nat)re of the *iffic)lties
which face* the re"ime0 came from the -en of Preo+raFhens8, He
ha* +een a colla+orator of 6)8harinDs in #$#'0 +)t )nli8e 6)8harin
he acce-te* NEP with man reservations an* clearl wishe* to
res)me the offensive a"ainst the hate* -rivate sector at the earliest
*ate, He therefore em-hasiFe* the *an"ers which the re"ime ran if it
were to -ersist for lon" in the co)rse set in #$(#><, Alrea* in #$(&
he was E)otin" with a--roval the conce-t of D-rimitive socialist
acc)m)lationD0 an* his lect)res on the s)+Cect in #$(< at the
Comm)nist Aca*em were later e@-an*e* an* -)+lishe* as a +oo8,
&
Primitive .or initial/ ca-italist acc)m)lation was *escri+e* +
Mar@ )sin" 6ritish mo*els, Ca-ital was acc)m)late* thro)"h the
e@-ro-riation of the -easantr0 + the enclos)res of a"ric)lt)ral
lan*0 colonial e@-loitation0 the Hi"hlan* clearances in Scotlan*, The
res)ltant concentrations of ca-ital came to +e investe* in in*)strial
*evelo-ment, A--lin" this analsis to the sit)ation of the USSR0
Preo+raFhens8 -ointe* o)t that there were no colonies to e@-loit
an* the -easants co)l* not +e e@-ro-riate*0 an* et the necessar
socialist acc)m)lation ha* to come from somewhere, It wo)l* +e
necessar not onl in or*er to finance in*)strialiFation0 +)t also to
e@-an* the socialist sector of the econom at the e@-ense of the
-rivate sector, Clearl the necessar reso)rces co)l* not arise
wholl or even mainl within the socialist sector of the econom,
A-art from the fact that it was too small to +ear the +)r*en + itself0
it was wron" an* -oliticall *an"ero)s that the sacrifices sho)l* +e
+orne + the wor8in" class em-loe* + nationaliFe* in*)stries,
Reso)rces wo)l* therefore have to +e o+taine* from the -rivate
sector, The +)l8 of the -rivate sector were the -easants,
Preo+raFhens8 saw that the necessar ca-ital wo)l* not +e
-rovi*e* + vol)ntar savin"s, The +etter>off -easants were ver
)nli8el to len* s)fficient mone to the "overnment0 an* the
Ne-men in the cities nat)rall )se* whatever ca-ital the -ossesse*
to ma8e ha while the s)n shone0 realisticall fearin" that it mi"ht
not shine for lon", Reso)rces wo)l* *o)+tless have to +e o+taine*
+ ta@ation0 +)t most of all thro)"h )neE)al e@chan"e0 +
De@-loitationD of the -rivate sector, The state sho)l* )se its -osition
as the s)--lier of the +)l8 of in*)strial "oo*s0 an* as the forei"n
tra*e mono-olist0 to -)m- reso)rces o)t of the -rivate sector an* so
finance the stateDs investments into the e@-an*in" socialist in*)strial
sector, Preo+raFhens8 never faile* to em-hasiFe the im-ortance of
this conflict +etween socialist an* ca-italist elements0 an* he wrote
of the str)""le +etween Dthe law of val)eD an* the -rinci-le of
-rimitive socialist acc)m)lation0 i,e, +etween the forces of the
mar8et an* those of the socialist state e@-an*in" the socialist
sectors,
6)8harin an* other lea*ers of the -art maCorit stron"l
co)nter>attac8e*, This *octrine0 in their view0 was threatenin" the
alliance +etween wor8ers an* -easants, The wor* De@-loitationD an*
the -rinci-le of )neE)al e@chan"e were severel criti>
The Peasants and Accumulation 1,!
ciFe*, After all0 this was #$(<0 when the co)ntr was onl C)st
correctin" the e@cessivel )nfavo)ra+le terms of tra*e for -easants
which characteriFe* the DscissorsD crisis of #$(& .see -revio)s
cha-ter/, Ever effort was still +ein" ma*e to com-el a f)rther
relative re*)ction in the -rices char"e* + state in*)str, :as this
the time to s-ea8 of )neE)al e@chan"eG It ma well +e that some
reasone* -rivatel th)s? DOf co)rse we will have to e@-loit the
-easants in *)e time0 +)t for "oo*nessD sa8e let )s 8ee- E)iet a+o)t
it now,D
Trots80 Preo+raFhens8 an* their followers *evelo-e* two
f)rther criticisms, Firstl0 the hel* that the official line ha* +een too
favo)ra+le to the +etter>off -easants, The s-o8e lo)*l of the 8)la8
*an"er an* envisa"e* the *e"eneration of the -art into some sort of
a*C)nct of the NEP +o)r"eoisie, .:e shall see that this *e"eneration0
s)ch as it was0 was of a ver *ifferent 8in*0 +)t this was not a--arent
to the o--osition at the time,/ The -art maCorit was )n*er
contin)o)s attac8 from the left for +ein" soft on the 8)la8s,
Secon*l0 the left o--osition conten*e* that the -artDs
in*)strialiFation -ro"ramme was too mo*est0 that a maCor cam-ai"n
to +)il* )- in*)str far +eon* the levels of #$#& sho)l* +e
la)nche* forthwith, 6oth Stalin an* 6)8harin ar")e* at this time
that hi"her "rowth rates an* a**itional investments a*vocate* + the
left o--osition re-resente* an a*vent)rist an* )n-ractical -olic0
which wo)l* en*an"er har*>won financial sta+ilit an* im-ose
intolera+le sacrifices, This wo)l* +e inconsistent with the -rinci-les
of NEP, It is tr)e that the same Stalin was a few ears later
a*vocatin" tem-os which were far more am+itio)s an* r)thless than
an which the o--osition ha* -ro-ose*,
The entire controvers was lin8e* with a famo)s *e+ate on
Dsocialism in one co)ntrD, One m)st intro*)ce a warnin" here, It
mi"ht a--ear lo"ical that the in*)strialiFers an* D-rimitive
acc)m)lationistsD sho)l* favo)r this slo"an0 while the ca)tio)s
StalinR6)8harin "ra*)alists wo)l* +e a"ainst it, In fact the reverse
was the case, Stalin an* 6)8harin sai* that the wo)l* +)il*
socialism in one co)ntr0 even tho)"h 6)8harin *i* sa that the
-rocess wo)l* +e lon" an* slow, The left o--osition0 es-eciall
;inoviev0 cite* 9enin to show that this was im-ossi+le
an* )northo*o@, The factional consi*erations which le* to the
ar")ments aro)n* this -olitical slo"an are o)tsi*e the sco-e of this
+oo8, However0 there is an economic -oint to +e ma*e which is
relevant to an )n*erstan*in" of the lo"ic of the left -osition,
Preo+raFhens8 himself reco"niFe*0 in one of the last articles in
which he was allowe* to e@-ress his own -oint of view0 that )n*er
con*itions of isolation R)ssiaDs -ro+lem was virt)all insol)+le as
he envisa"e* it, He liste* the man contra*ictions, He *rew the
concl)sion that all this showe* Dhow closel o)r *evelo-ment
towar*s socialism is connecte* with the necessit of ma8in" a
+reach in o)r socialist isolationI not onl for -olitical +)t also for
economic reasons we m)st +e ai*e* in the f)t)re + the material
reso)rces of other socialist co)ntriesD,
<
:ithin the -olitical>economic
ass)m-tions of NEP0 it wo)l* in*ee* +e im-ossi+le sim)ltaneo)sl
to fi"ht the 8)la8s0 raise -rices char"e* to -easants0 increase Uoff>
farm s)r-l)ses0 raise wor8ersD wa"es an* "reatl to raise the levels
of ca-ital acc)m)lation, Yet Preo+raFhens8 never face* )- to the
-ossi+ilit of resolvin" the *ilemmas thro)"h coercion0 thro)"h
e@-ro-riatin" the -easantr, A wa wo)l* +e -rovi*e* + a
revol)tion in more a*vance* :estern co)ntries0 which wo)l* come
to the ai* of *evelo-in" R)ssia an* so miti"ate the harshness of
R)ssian in*)strialiFation, Therefore the ar")ment of the left
o--osition over the slo"an Dsocialism in one co)ntrD to some e@tent
reflecte* their *is+elief in the -ractica+ilit of an sol)tion to the
*ilemmas of the twenties so lon" as the USSR remaine* isolate*,
This was -oliticall a wea8 -oint in their ar")ments0 an* it is har*l
s)r-risin" that Stalin an* his collea")es attac8e* their alle"e* lac8
of faith in socialism an* in R)ssia,
Of co)rse the a+ove re-resents onl the ro)"hest s)mmar of
ar")ments a*vance*, There were -lent of other -oints of *is>
a"reement an* also -lent of other -rota"onists, Th)s there was the
Peo-leDs Commissariat for Finance .Nar8omfin/ which was *evote*
a+ove all to financial so)n*ness, In their economic -olicies the
Commissar0 So8olDni8ov0 an* the hea* of the State 6an80 Shanin0
co)l* +e i*entifie* as on the e@treme ri"ht0 +eca)se of their
insistence that an in*)strial -roCect +e so)n* an* -rofita+le, Yet
So8olDni8ov was a -olitical s)--orter of
The Peasants and Accumulation 1,*
;inoviev0 who ha* Coine* the left o--osition, There is of co)rse no
inherent reason wh one sho)l* not s)--ort a conservative
investment -olic0 owin" to conscio)sness of the ac)te shorta"e of
ca-ital0 an* at the same time invei"h a"ainst the *an"ers of 8)la8s in
villa"es, The lines of controvers were + no means clear>c)t, It
m)st +e em-hasiFe* also that the -rota"onists share* man common
ass)m-tions, All too8 for "rante* the necessit of the retention of
sole -olitical -ower + their -art, All too8 for "rante* the necessit
of in*)strialiFation an* were )n*er no ill)sions concernin" the
limitations of in*ivi*)al -easant a"ric)lt)re, Peasant coo-eration
an* collectiviFation were re"ar*e* + all as *esira+le aims, The
*ifference la in tem-os0 metho*s0 the assessment of *an"ers0 the
strate" to +e followe* in -)rs)it of aims ver lar"el hel* in
common, Soviet historians were fon* of contrastin" the -olicies of
the maCorit .Dthe -artD/ with the ne"ative0 *efeatist0 anti>
in*)strialiFin"0 -ro>-easant -olicies of vario)s o--ositions, S)ch a
-ict)re is a most *istorte* one, The fo)rteenth con"ress of the -art
meetin" in #$(10 -asse* resol)tions favo)rin" in*)strialiFation0
while the fifteenth con"ress .#$(4/ *eclare* in favo)r of
collectiviFation an* of the five>ear -lan, However0 these resol)tions
were a*o-te* with the s)--ort of the f)t)re ri"ht>win" o--osition,
In*ee* the Din*)strial -lanD resol)tion in #$(4 was intro*)ce* +
R8ov0 who was 6)8harinDs most infl)ential s)--orter,
Trots8Ds views have also +ecome *istorte*0 not least + those
who -)r-ort to +e Trots8ists, Until #$(10 when he was e@-elle*
from the -olit+)rea)0 he remaine* wholl within the ass)m-tions of
NEP, In his s-eech to the #(th -art con"ress in #$(&0 an* on other
occasions0 he acce-te* the nee* to enco)ra"e the -rivate -easant
-ro*)cer, He was +etter a+le than his all Preo+raFhens8 to see the
necessit for the co>e@istence of -lan an* mar8et0 an* -erha-s this
hel-s to e@-lain wh Preo+raFhens8 +ro8e with Trots8 when0 in
#$('0 Stalin t)rne* DleftD,
1
:hile +elievin"0 as the all *i*0 in a f)t)re mar8etless socialism0
Trots8 was eloE)ent a+o)t the nee* for a mar8et in what he calle*
Dthe transitional e-ochD, For e@am-le? DFor the ne@t -erio* we shall
have a -lanne* econom allin" itself more an* more with the
mar8et an*0 as a res)lt0 a*a-tin" itself to the mar8et,,,
i2: 'he Great #e,ate
The -resent sellin" crisis is a harsh warnin" the -easant mar8et is
"ivin" @is ,,, The correct wor8 of o)r state -lannin" commission ,,,
OisP not + s)--ressin" the mar8et +)t on the +asis of the mar8etD
.an* m)ch more in the same vein/0 this from his Ne 7o%rse,
-)+lishe* in #$(&, As for his view of socialism in R)ssia0 while
o--ose* to the i*ea that socialism co)l* +e com-letel D+)iltD in one
co)ntr0 he acce-te* the nee* to +e D+)il*in"D it .in R)ssian there is
a "rammatical *istinction +etween stroif ! the -rocess of +)il*in"0
an* #ostroif, the com-lete* action/,
%
3oes this mean that the ar")ment was concerne* onl or mainl
with who sho)l* wiel* -olitical -owerG S)ch a concl)sion wo)l* +e
totall mislea*in", The -olic *ifferences were *ee-l felt, It is tr)e
that Stalin later on stole man of the clothes of the left o--osition0
+)t 6)8harinDs entire vision of Soviet *evelo-ment *iffere*
ra*icall from that which came to +e a*o-te* + Stalin0 *es-ite the
fact that the share* some common aims, 6)8harin wishe* to
-reserve NEP for a lon" time et, Stalin *estroe* it, The ri"ht
o--osition were horrifie* + StalinDs -easant -olicies an* + his
in*)strialiFation strate"0 as well as + his -olitical metho*s, There
were *ee- an* sincerel hel* -olic *ifferences,
+o$e =ri&inal )cono$ic Ideas
:e have so far +een em-hasiFin" *ifferences of o-inion amon"
-rofessional -oliticians, 6)t the *e+ates an* controversies of the
twenties contain m)ch more that is of interest for the economic
historian0 an* -erha-s most -artic)larl for the historian of
economic tho)"ht, 3evelo-ment economics co)l* +e sai* to have
+een +orn here,
It is not that the Soviet economists0 -lanners an* statesmen were
more intelli"ent or ima"inative than their :estern contem-oraries,
It is C)st that the instit)tional an* -olitical circ)mstances -ose*
-ro+lems in R)ssia which *eman*e* consi*eration, Even at the
hei"ht of NEP0 the +)l8 of investment ca-ital was in the han*s of the
state, Even the most mo*erate -rota"onist of the NEP com-romise
was +o)n* to reflect on the ne@t ste-0 an* th)s on the *evelo-ment
strate" to +e followe*, In the :est0
Some <ri)inal Economic "deas 1,5
economic theor *i* not even *isc)ss investment criteria, S)ch
matters were encom-asse* within the theor of mar8et eE)ili+ri)m0
an*0 since the ver notions of *evelo-ment an* "rowth were a+sent
from the *isc)ssions0 the i*ea of an *eli+erate -olic with re"ar* to
investment was a+sent too0 the more so as the +)l8 of ca-ital assets
an* investment reso)rces were in the -rivate sector0 an* so were not
s)+Cect to -)+lic -olic0 even if one co)l* +e ima"ine*, Therefore
the Soviet theorists an* -ractitioners fo)n* themselves in the role of
-ioneers, :hatever wea8nesses there ma have +een in their
thin8in" an* their -ractice0 it m)st +e em-hasiFe* that the co)l*
have learnt nothin" )sef)l from the :est0 which *i* not +e"in to
*isc)ss these iss)es )ntil #$<10 or even #$11,
As this is not a histor of economic tho)"ht0 these matters will +e
*ealt with +riefl, The intereste* rea*er is referre* to the wor8s
liste* in the 6i+lio"ra-h0 an*0 so far as theor is concerne*0
-artic)larl to 2, M, Collette0
4
on whose research m)ch of what
follows is +ase*,
There was0 first0 the iss)e of a"ric)lt)re vers%s in*)str0 an* the
lin8e* E)estions of forei"n tra*e an* com-arative a*vanta"e, The
Soviet Union was a hi"h>cost an* inefficient -ro*)cer of in*)strial
"oo*s in "eneral0 of eE)i-ment in -artic)lar, As the DscissorsD crisis
)n*erline*0 it was a relativel m)ch lower>cost a"ric)lt)ral
-ro*)cer, It mi"ht then a--ear to follow that the correct -olic was
to invest in a"ric)lt)re0 to increase mar8eta+le s)r-l)ses0 to e@-an*
e@-orts0 an* there+ to o+tain in*)strial "oo*s0 es-eciall ca-ital
"oo*s0 a+roa*, Shanin was a -artic)larl stron" s)--orter of this
view, Of co)rse0 in the ver short r)n this was the onl -ossi+le
tactic, In the a+sence of an a*eE)ate ca-ital "oo*s in*)str there
was no alternative to +)in" machiner a+roa* in e@chan"e for foo*
an* tim+er, 6)t whereas the more ra*ical Din*)strialiFesD wishe* to
orientate these -)rchases towar*s the ra-i* creation of the USSRDs
own heav in*)str0 Shanin an* his frien*s envisa"e* a lon"er>term
*e-en*ence on the *evelo-e* :est, This ar")ment is familiar
eno)"h amon" *evelo-ment economists to*aI the role of
a"ric)lt)re is often the s)+Cect of *e+ate,
Then there was the E)estion of the conflict +etween short>
1,& The #reat (e+ate
term investment criteria an* strate" for *evelo-ment, This was
relate* to the im-ortant iss)e of )nem-loment an* the s)r-l)s
la+o)r which0 + )niversal consent0 was availa+le in the villa"es,
Ca-ital was ac)tel scarce, There was a shorta"e of most "oo*s in
the aftermath of the civil war, Therefore0 ar")e* some0 the most
im-ortant thin" was to )se scarce ca-ital to the +est a*vanta"e0 this
+ein" *efine* as ma@imiFin" em-loment an* -ro*)cin" as m)ch
as -ossi+le for the least -ossi+le e@-en*it)re of ca-ital, This -olic0
a*vocate* + P, P, Maslov0 le* to the followin" -ractical
recommen*ations?
.i/ Ca-ital>savin"0 la+o)r>)sin" investments were to +e -referre*,
34 :hile one sho)l* also see8 to choose investments which
-romote* a hi"h or E)ic8 rate of ret)rn0 the fact was reco"niFe*
.twent ears +efore :, Arth)r 9ewis/ that the e@istence of s)r-l)s
la+o)r was not a*eE)atel reflecte* in the wa"e rates an* social
+enefits which entere* into costs of -ro*)ction,
35 Heav in*)str reE)ire* massive investments which mat)re*
over a lon" -erio*, Therefore consi*erations of econom of scarce
ca-ital0 the e@-ansion of -ro*)ction in time of )niversal shorta"e
an* the -ro+lem of )nem-loment all calle* for -riorit to +e "iven
to li"ht in*)str an* a"ric)lt)re,
However0 as we 8now0 this a--roach sel*om satisfies the
*evelo-ment -lanner, Alrea* in #$(%0 6ernstein>7o"an was
conscio)s of a *ilemma or contra*iction, This is how Collette
s)mmariFe* his ar")ment? DEither save investment reso)rces +
maintainin" the lowest -ossi+le ca-ital intensit0 an* so con*emn the
Soviet econom to lon">term sta"nationI or else renew the e@istin"
eE)i-ment intensivel0 *evelo- the +asic in*)stries0 install a
-owerf)l infrastr)ct)re an* lower consi*era+l the rate of ret)rn on
investment,D
'
There was m)ch *isc)ssion of the )se of interest as a
means of time>*isco)nt0 as an ai* to choiceI +)t in itself it co)l* not
resolve the -ro+lem, The talente* economist 6aFarov0 also in #$(%0
asserte* the nee* to *ivi*e the econom into two > a -riorit sector
.e,", electrification0 trans-ort/ to which the criteria of rates of ret)rn
were not to +e strictl a--lie*0 an* the rest of the econom,
(e0elopment Strate)ies 1,
#evelo!$ent +trate&ies
As with NEP so with theories of *evelo-ment0 #$(% was a ear in
which the atmos-here chan"e*, Perha-s this was *)e to the virt)al
com-letion in that ear of the restoration of the -re>war econom0
an* a conscio)sness that a new investment -olic was necessar,
This too fo)n* its reflection in the -olitics of the time0 with
resol)tions favo)rin" in*)strialiFation hi"h on the a"en*a, Nee*less
to sa0 the ar")ments of the economists were also relate* to the
-olitical factions0 either *irectl or in*irectl, Th)s the ar")ment in
favo)r of investment in a"ric)lt)re an* the cons)mersD "oo*s
in*)str wo)l* nat)rall fit into the 6)8harin a--roach to NEP,
EE)all clearl0 it wo)l* fin* little sm-ath amon" the s)--orters
of the left o--osition0 or0 when he move* left0 from Stalin, It is
+eca)se of this .sometimes )nwante*/ association of theoretical
ar")ments with factional str)""les that so man of the a+le
economists who e@-resse* ori"inal i*eas in the twenties *ie* in
-rison in the thirties,
All -lannin"0 in the sense of *eli+erate *ecision>ma8in" affectin"
the )se of reso)rces0 m)st re-resent some sort of com-romise
+etween two -rinci-les0 which in Soviet *isc)ssions came to +e
8nown as D"eneticD an* Dteleolo"icaF, The first las stress on the
e@istin" sit)ation? mar8et forces0 relative scarcities of factors0 rates
of ret)rn0 -rofita+ilit, The secon* reflects a *esire to chan"e the
-ro-ortions an* siFe of the econom0 to ma@imiFe "rowth0 to
em-hasiFe strate" of *evelo-ment rather than a*a-tation to
circ)mstances, The conflict +etween the two attit)*es0 on +oth the
theoretical an* the -ractical>-olitical -lanes0 increase* in the secon*
half of the *eca*e, Nat)rall0 neither si*e to the ar")ment was
)naware of the nee* for some sort of reconciliation of the o--osin"
-rinci-les0 tho)"h the ori"inal an* intelli"ent e@>Menshevi8
economist =, !roman *i* assert that there was some Dnat)ralD
relationshi- +etween a"ric)lt)re an* in*)str which remains .or
sho)l* remain/ constant over time, Most of the K-rota"onists were
concerne* with relative em-hasis, S)rel0 as 6aFarov -ointe* o)t0
an -lan which i"nore* the e@istin" sit)ation was *oome* to fail)reI
an -lan which saw no f)rther than the
1!- The #reat (e+ate
*eman*s of the imme*iate -resent was -atentl ina*eE)ate, The
chan"in" em-hasis after #$(% le* more an* more to the stress on
*rastic chan"e0 an* as -art -olic veere* towar*s ra-i* in*)stri>
aliFation one hear* more an* more voices a*vocate the -riorit of
heav in*)str0 assertin" the criterion of ma@imiFin" "rowth, The
economist of this -erio* whose name is now most familiar was
FelD*man0 whose "rowth mo*el has +een intro*)ce* to :estern
rea*ers + E, 3omar,
$
Evi*entl0 if the o+Cective is the most ra-i*
in*)strialiFation0 the investment choices in an *evelo-in" co)ntr
are +o)n* to +e +ase* on -rinci-les E)ite *ifferent to those which
wo)l* minimiFe )nem-loment or economiFe scarce ca-ital in the
short term, As Collette has -ointe* o)t0 this t-e of thin8in" was
fo)n* in the :est onl after #$11,
M)ch was ma*e0 + the s)--orters of a shar- rise in investments0
of the -hrase De@tin")ishin" c)rveD C2at%1hay%shchaya 1rivaya5-
This was the forecast of a re*)ce* rate of "rowth0 ma*e + a
committee of =SN7H0 alrea* referre* to )n*er its a++reviation
OS=O7, Its concl)sions followe* lo"icall from the inevita+le
slow*own which wo)l* +e the conseE)ence of the en* of
reconstr)ction, In -art the ass)me* +oth a rise in the ca-ital>o)t-)t
ratio an* a fall in the vol)me of investment, 6)t the i*ea of a
slow*own was )nacce-ta+le to the -olitical lea*ershi-I an* in*ee*
contra*icte* the *namism an* o-timism witho)t which the -art
ran8>an*>file wo)l* lose m)ch of their *rive an* morale, It was
shar-l reCecte*, The fact that these an* other +o)r"eois s-ecialists
were so ver ca)tio)s in their -ro"nostications later enco)ra"e*
Stalin an* his collea")es to i"nore Dmo*erateD a*vice,
A Dstrate"icD *ecision0 m)ch *isc)sse* at the time0 concerne* the
so>calle* Urals>7)Fnets8 com+ine, This was an immense -roCect
lin8in" the iron ore of the Urals with the e@cellent co8in" coal of the
7)F+as0 a tho)san* miles awa in Central Si+eria, It was a lon">
term -roCect #ar e*cellence- It wo)l* loc8 )- a "reat *eal of ca-ital,
It co)l* not +e C)stifie* + rate>of>ret)rn calc)lations, It mi"ht have
vast e@ternal effects in the lon" r)n, It wo)l* > it *i* > save the
sit)ation militaril in the event of invasion + Dim-erialistD -owers,
The iss)es are f)ll *isc)sse* in several wor8s in the :est,
#5
.The
Urals>7)Fnets8 com+ine -roCect was in fact +e")n in #$&5,/
(e0elopment Strate)ies 1!1
The iss)e of +alance* vers%s )n+alance* "rowth0 8nown to most
economists from the .-ost>war/ wor8 of Hirschman an* N)r8se0
was also *isc)sse* in R)ssia at this -erio*, In -art this was incl)*e*
in the D"enetic>teleolo"icaP *e+ate0 an* in -art it came )- as a
-ro+lem of how to tac8le e@istin" or antici-ate* +ottlenec8s,
6)8harin in -artic)lar a*vocate* a caref)l attention to +alance0 an*
warne* of the conseE)ences of ne"lect of this factor which0 after
#$('0 ten*e* to *iscre*it this a--roach0 since it was associate* with
ri"ht>win" heres, This was re"retta+le0 since it affecte* the fate of
another of the Soviet innovations? the D+alance of the national
economD, Usin" *ata from #$(&><0 a "ro)- of "ifte* men le* +
Po-ov an* !roman create* the D"ran*fatherD of the in-)t>o)t-)t
ta+les of later ears, The invente* a new i*ea0 witho)t which
-lannin" co)l* har*l +e"in, It was necessar to trace the
interconnections of the sectors com-osin" the economI to *iscover
how m)ch f)el was .or wo)l* +e/ nee*e* to -ro*)ce a "iven
E)antit of metal0 to ta8e C)st one e@am-le, The attem-t was in
man was ina*eE)ate0 man of the necessar *ata were missin",
6)t it was the first s)ch attem-t0 if one e@ce-ts J)esnaDs Ta"lea%
economi0%e, to which Soviet economic literat)re ma8es freE)ent
reference,
The twenties were an intellect)all e@citin" -erio*, Not onl were
there *e+ates amon" 6olshevi8 lea*ers an* intellect)als0 amon"
whom were men of "reat eloE)ence an* wit0 +)t E)ite in*e-en*ent
i*eas were -)t forwar* + men who were not 6olshevi8s at all,
!os-lan an* =SN7H e@-erts incl)*e* man former Menshevi8s0
later to +e acc)se* of +ein" -lotters an* sa+ote)rs, Men li8e
!roman0 6aFarov an* !inF+)r" contri+)te* si"nificantl to -olic
*e+ates, E@>-o-)lists0 e@>SRs0 were active too0 for e@am-le the
famo)s economist 7on*ratiev0 the a"ric)lt)ral e@-erts Chaanov
an* Chelintsev, Even non>socialists0 li8e 9itoshen8o an* 7)tler0
co)l* raise their voices, There was a one>-art state0 there were no
le"al means of or"aniFin" an o--osition0 +)t con*itions were far
from resem+lin" the monolithic thirties, The comm)nists were ver
wea8l re-resente* at this time amon" the -lanners, Th)s in #$(<0
o)t of 1(4 em-loees of !os-lan0 onl fort>nine were -art
mem+ers0 an* twent>three of these were *rivers0 watchmen0 t-ists0
etc,K
The "reat *e+ate0 or more -ro-erl *e+ates0 m)st +e seen as
ta8in" -lace at man *ifferent levels, There was the -olitical
str)""le for -ower, There was the conflict at the -olitical level
+etween a*vocates of *ifferent -olicies towar*s the -easants0 or on
in*)strialiFation rates .tem-os/0 or Dsocialism in one co)ntrD, There
were *isc)ssions an* -ro-osals -)t )- + e@-erts on investment
criteria an* "rowth strate"ies, Theor an* -ractice0 e@-ert
C)*"ement an* -olitics0 interacte* in vario)s was, Th)s0 not
s)r-risin"l0 -olitical men who were not allowe* to e@-ress o-en
*issent in a -olitical wa *i* so in their ca-acit as e@-erts0 C)st as
others *i* so as novelists an* -oets, Politicians )se* e@-erts0 an*
selecte* statistics to s)it their ar")ments0 which event)all -rove*
ver *an"ero)s for the e@-erts, Th)s the a--arentl a+stract
ar")ment a+o)t -easant stratification +ecame -olitical *namite0
inevCta+l lin8e* with the E)estion of the 8)la8 *an"er an* the ste-s
which co)l* or sho)l* +e ta8en to com+at it, Even so statistical an
iss)e as the vol)me of mar8ete* "rain +ecame hi"hl D-oliticalD0 as
we have seen,
% The End of 8EP
*olic- han&es and their auses
NEP reache* its a-o"ee in #$(1, 3)rin" #$(% the a+sol)te "rowth
of the -rivate sector o)tsi*e a"ric)lt)re came to a halt, As alrea*
shown in Cha-ter <0 its relative -osition +e"an to *ecline earlierI
however0 )ntil this *ate it co)l* +e sai* that it was the "eneral
)n*erstan*in" that -rivate enter-rise ha* its le"itimate -art to -la
in Soviet life, The *ecline of NEP cannot +e *ate* -recisel0 the
more so as official statements on the s)+Cect were am+i")o)s or
*eli+eratel mislea*in", Th)s Stalin even in #$($ was still in*i">
nantl *enin" r)mo)rs to the effect that NEP was to +e en*e*0 an*
in fact as late as #$&# the tenth anniversar of NEP was the
occasion for statements that it was still in o-eration, The five>ear
-lan0 in its o-timal variant a*o-te* as late as the s-rin" of #$($0
envisa"e* an increase over the five ears in the national income
"enerate* in the -rivate sector + as m)ch as (& $ -er cent,
#
Yet0 as
we shall see0 the offensive a"ainst the Ne-men o)tsi*e a"ric)lt)re
ha* alrea* +een ra"in" at this *ate for some time0 an* the offensive
a"ainst the -rivate -easants was a+o)t to +e"in, The followin"
ta+les show the *ecline in le"al -rivate activities?
Tra*e
Total -rivate Per cent
t)rnover of total
4million ro%"les5 tra*e
19.4-/ (.(&& 4../
19./-4 4,94( 4..(
1(4 9he End of NEP
Tra*e .cont,/
9otl pri:te Per cent
turno:er o# totl
(million roubles)
/,&4(
trde
19.4-1 (&-9
19.0 (.4o4 .../
19.9 .,.1( 1(-/
19(& i,&4( /-4
19(1
R R
CSo%rce: Malafeev? $storiya
tsenoo"ra2ovaniya v SSSR .Moscow0 #$%</0 -,
#&<, The a)thor *raws attention to the lar"e
vol)me of ille"al an* )nrecor*e* tra*e in an*
after #$($,/
The share of the -rivate sector in the national income is sai* to
have *ecline* as follows?
#$(1>% #$(%>4 #$(' #$($ #$&5 #$&# #$&(
.-er cent/
SocialiFe* <1,$ <',4 1(,4 %#,5 4(,( '#,1 $5,4
Private 1<,# 1#,# <4,& &$,5 (4,' #',1 $,&
CSo%rces: #$(1>% an* #$(%>40 Narodnoe 1ho2yaistvo SSSR, =>GE, --, @lvi>@lvii0
#$('>&(, E, 7virin"0 Pro"lemy e1onomi1i, Nos, #5>#( .#$&#/ -, 1,/
As alrea* in*icate* earlier0 the state ha* a -otential stran"lehol*
on the -rivate tra*in" an* man)fact)rin" sectors0 in that s)--lies of
raw materials an* of "oo*s to sell *e-en*e* "reatl on state
in*)str, Therefore a sim-le a*ministrative *ecision co)l* chan"e
the sit)ation0 even witho)t le"al or ta@ meas)res s-ecificall
*irecte* at the Ne-men, It was not )ntil #$&5 that -rivate tra*e
+ecame 4de facto5 the crime of s-ec)lation an* the em-loment of
la+o)r for -rivate "ain +ecame in fact ille"al,
(
6)t well +efore that
*ate the sE)eeFe was on, The -osition of DNe-manD tra*ers was
-recario)s even in the *as of Dhi"h NEPD? th)s as earl as Fe+r)ar
#$(< a tho)san* tra*ers were acc)se* of
Policy Chan)es and their Causes 1!*
Ds-ec)lationD an* or*ere* o)t of Moscow,
&
An* alrea* in the a)t)mn
of #$(10 some materials in short s)--l were +ein" increasin"l
reserve* for state an* coo-erative0 as *istinct from -rivate0 )se an*
sale,
<
It is noteworth that there was a stea* increase in s)rchar"es
on trans-ort of -rivate "oo*s + rail? D6 #$(% the s)rchar"es for
trans-ortin" -rivate "oo*s reache* 15 to #55 -er cent0 an* in
s)+seE)ent ears were raise* )- to <55 -er cent for some "oo*s,D
1
The ear #$(% also saw the first of a series of fiscal meas)res
*esi"ne* to ma8e -rivate tra*e less -rofita+le? th)s + *ecree of #'
2)ne Da tem-orar state ta@ on s)-er>-rofitsD was im-ose* on
Ne-men, It was the first of man, On $ A-ril of the same ear the
central committee -len)m *eci*e* that flo)r mills in -rivate han*s
sho)l* +e D*rasticall c)rtaile*D, An ever shar-er tone cre-t into -art
-rono)ncements a+o)t Ne-men an* 8)la8s,
Ta@es on +etter>off -easants were increase*0 as the followin"
ta+le shows?
19./-4 19.4-N1
Poor pesnts !rou=les per nnu"% 1.0( &.9&
>iddle pesnts 1(../ 11.11
Kul,s 4(.4& 1&&.11
(Source: G. >r+,hin, -oprosy istorii, No. 4 !1941% p. .1.%
An amen*ment to the criminal co*e a*o-te* in #$(% Denvisa"e*
im-risonment for )- to three ears with total or -artial confiscation
of -ro-ert for those ")ilt of evil>intentione* C2lostny5 increases in
-rices of commo*ities thro)"h -)rchase0 hoar*in"0 or non>-lacin"
on the mar8etD,
%
This is the famo)s Article #54 of the Co*e0 which
was to +e )se* + Stalin two ears later, At the time at which it was
-rom)l"ate* it remaine* ver lar"el a *ea* letter, However0 the
fact that it was a*o-te* in #$(% is an in*ication of the evol)tion of
official o-inion with re"ar* to -rivate tra*e in "eneral,
:h this shift of -olicG Official -art histories ten*e* to
)n*er-la the chan"e, The res)m-tion of the offensive a"ainst
1!% TheEndof8EP
the -rivate sector0 accor*in" to s)ch a view0 was inherent in the ver
conce-t of NEP from the first, The state was now stron"er0 +etter
a+le to r)n tra*e an* in*)str0 an* in a -osition to +e"in to -rovi*e
the ca-ital eE)i-ment which wo)l* )ltimatel revol)tioniFe social
an* -ro*)ctive relations in a"ric)lt)re, S)ch an inter-retation is not
wholl wron", For lar"e n)m+ers of -art mem+ers NEP was a
force* com-romise with the hate* enem0 who was to +e attac8e*
as soon as con*itions were ri-e0 )sin" an wea-ons at the -artDs
comman*, However0 to see thin"s in this wa is "ravel to
)n*erestimate the e@tent of the chan"e of -olic which was ta8in"
sha-e "ra*)all from the en* of #$(1, This c)lminate* at the en* of
the *eca*e in what can +est +e *escri+e* as the Soviet "reat lea-
forwar*0 involvin" the *estr)ction of the last +astion of -rivate
enter-rise in the "reat collectiviFation cam-ai"n,
The ca)ses of the chan"e of -olic were n)mero)s an* com-le@0
an* interacte* with one another,
Firstl0 we m)st note the close relationshi- +etween am+itio)s
investment -ro"rammes an* the en* of NEP, As has alrea* +een
note*0 #$(1>% saw the en* of what mi"ht +roa*l +e calle* the
reconstr)ction or restoration -erio*, It is tr)e that the metall)r"ical
in*)str was still +elow its #$#& level0 an* that some other
in*)stries0 nota+l electricit "eneration0 coal minin" an* some
+ranches of en"ineerin"0 were alrea* a+ove it, The essential -oint
was that henceforth f)rther efforts to increase in*)strial -ro*)ction
wo)l* ca)se increasin" strain, In 3ecem+er #$(1 a resol)tion of the
fo)rteenth -art con"ress calle* for in*)strialiFation0 an* also for
the victor of the socialist sector, The concentration of reso)rces in
the han*s of the state seeme* inconsistent with the activities of
Ne-men0 who com-ete* for reso)rces an* *iverte* them from the
-riorit tas8s of the moment0 an* in*ee* ma*e -rofits o)t of the
shorta"es which an investment -ro"ramme was alrea* ca)sin",
3i* the Soviet national income in #$(' e@cee* the level of #$#&0
as the !os-lan fi")res claime* at the time0 or was it still +elow that
level0 as is asserte* + Pa)l R, !re"or in a challen"in"
recalc)lationG The *ifference is essentiall *)e to the choice of -rice
*eflator, He s)""ests that his res)lts im-l that recover
Policy Chan)es and their Causes 1!5
was not et com-lete, However0 whether or not this was so
statisticall0 all the -artici-ants in the D"reat *e+ateD ha* soli* "ro)n*
for +elievin" that in*)strial reconstr)ction ha* +een com-lete*0 an*
that the res)m-tion of the in*)strialiFation -rocess calle* for new
investment on a lar"e scale, It was the -ace of this -rocess0 its
financin"0 its -riorities0 that ca)se* controvers,
A secon* an* ver im-ortant feat)re of the sit)ation0 to which
s)fficient wei"ht is sel*om attache* in histories of the -erio*0 was
the -rice -olic -)rs)e* + the "overnment, :e have seen in
Cha-ter < that its res-onse to the DscissorsD crisis of #$(& was to
-ress the state tr)sts to re*)ce their costs an* their -rices, This
-olic was contin)e* in s)+seE)ent ears0 altho)"h +oth )r+an an*
r)ral incomes rose faster than the vol)me of o)t-)t .tho)"h the
latter *i* rise ra-i*l/, Face* with stron" mar8et -ress)re for -rice
increases0 the "overnment o+stinatel -ersiste* with its -olic of
-rice c)ts0 an* in or*er to ma8e them effective e@ten*e* -rice
control over an ever wi*er -ortion of state in*)str an* state an*
coo-erative tra*e, As mi"ht have +een -re*icte*0 this s-ee*il "ave
rise to the -henomenon of D"oo*s famineD, These wor*s occ)r
re-eate*l in official an* )nofficial -rono)ncements from mi*>#$(1
onwar*s, A talente* o)n" economist0 who was to contri+)te "reatl
to the re+irth of Soviet economics fort ears later0 *escri+e* the
sit)ation as follows? DCommo*ities no lon"er see8 +)ers0 the +)ers
see8 commo*ities ,,, There are lon" E)e)es in front of some sho-s,
In -rivate tra*e -rices are si"nificantl hi"her than the sellin" -rices
of the state tr)sts0 #55 -er cent or (55 -er cent hi"her for some
commo*ities, 9imitations on -)rchase are intro*)ce*? the "oo*s
most in *eman* are sol* + state an* coo-erative sho-s not to all
those willin" to +) them0 +)t to selecte* cate"ories of +)ers0 for
instance mem+ers Oof the coo-erativesP or mem+ers of tra*e )nions,
If in +i" cities the "oo*s shorta"e has ta8en s)ch ac)te forms0 the
sit)ation in the villa"es is worse still,D This is *)e to -rice -olic,
DThe shorta"e of "oo*s0 therefore0 occ)rs onl when -rices cease to
carr o)t their f)nction in +alancin" s)--l an* *eman*0 when the
+ecome inert an* )nres-onsive to mar8et forces,D S)r-l)s
-)rchasin" -ower move* into the area in which -rice controls *i*
not o-erate0 an* so -rivate tra*e too8 on the characteristics of
1!& TheEndof8EP
s-ec)lation0 since it was -rofita+le to +) state>-ro*)ce* "oo*s for
resale0 there+ in effect transferrin" reso)rces to the -rivate sector,
More serio)sl0 it ha* a "rave a*verse effect on -easant -)rchasin"
-ower, Even tho)"h the re*)ction in -rices char"e* + state tr)sts
an* state tra*e ma have +een ori"inall motivate* + the *esire to
close the -rice DscissorsD0 i,e, to im-rove the -easantsD terms of tra*e0
the effect was E)ite *ifferent in -ractice, Since the official -rices
were +elow eE)ili+ri)m -rices0 those closest to the factories "ot at
the "oo*s first, DTowns are closer to the so)rces of in*)strial "oo*s0
the villa"es are f)rther awa, Therefore the towns a--ear to o+tain a
lar"er share of in*)strial "oo*s than the wo)l* have o+taine* at
-rices which +alance s)--l an* *eman*, The -olic of low -rices
not onl faile* to lower -rices for the villa"e0 +)t on the contrar it
lowere* -rices for the towns at the cost of raisin" them for the
villa"e0 an* + a lar"e -ercenta"e too,D The o)n" critic -atientl
-ointe* o)t that this -olic was a+s)r*0 an* wo)l* +ecome the more
a+s)r* as state investments increase*0 since the wo)l* "enerate
incomes which wo)l* constit)te still heavier *eman* on the
availa+le cons)mer "oo*s an* services,
4
This a*vice was i"nore*, A whole series of *ecrees an* *eclara>
tions *eman*e* f)rther c)ts in -rices, On ( 2)l #$(% the STO
.Co)ncil of 9a+o)r an* 3efence/ iss)e* a *ecree the title of which
m)st s)rel seem )nso)n* even to the *immest first>ear st)*ent of
economics? DThe re*)ction in retail -rices of "oo*s in short s)--l
ma*e + state in*)strD, The re*)ction was to +e #5 -er cent0 an*
there was another an* similar re*)ction or*ere* on #% Fe+r)ar
#$(4,
The -)rs)it of s)ch a -olic was -lainl inconsistent with the
lo"ic of NEP0 an* was +o)n* to lea* to an attac8 on -rivate tra*ers
who were sellin" man)fact)re* "oo*s in the villa"es at -rices more
than *o)+le those char"e* + state an* coo-erative sho-s0 in which0
however0 the "oo*s co)l* not +e o+taine*, 9i8ewise the a**itional
-rofit ma*e + the still>le"al -rivate man)fact)rers an* craftsmen
wo)l* har*l a--eal to the -olitical an* fiscal a)thorities,
Thir*l0 a similar 8in* of +l)n*er *istorte* a"ric)lt)ral -ro*)c>
tion an* -roc)rements, The -easantsD willin"ness to sell was
Policy Chan)es and their Causes 1!
alrea* a*versel affecte* + the "oo*s famine, This alrea*
a*versel affecte* state -roc)rements o)t of the relativel "oo*
harvest of #$(10 an* it has +een ar")e* that man of the lea*ers .an*
Stalin himself/ were *ismae* + the -easantsD res-onse .or lac8 of
res-onse/ to the concessions ma*e to them in #$(<>1I the ha*
antici-ate* a siFea+le e@-orta+le s)r-l)s of "rain0 an* -lanne*
hi"her im-orts on this +asis, 9ac8 of e@-ort earnin"s ma*e it
necessar to c)t the im-ort -lan, This in t)rn contri+)te* to the
D"oo*s h)n"erD that emer"e* in #$(1>%0 an* this *es-ite ver hi"h
rates of "rowth of in*)strial -ro*)ction,
'
6e this as it ma0 the
ma*e the sit)ation worse + re*)cin" state -roc)rement -rices0
aimin" to re*)ce the strain on the state +)*"et an* on the mone
s)--l, In the a"ric)lt)ral ear #$(%>Q4 the "eneral level of state
-roc)rement -rices fell + a+o)t % -er cent com-are* with the
-revio)s ear, No s)ch re*)ction was C)stifie* + the mar8et
sit)ation, 6)t worse still0 for ever mesmeriFe* + the 8e role of
"rain0 the "overnment c)t -rices for this -artic)lar cro- m)ch more
severel0 + as m)ch as (5>(1 P
er

cent
> The res)lt0 as mi"ht have +een
foreseen0 was a rel)ctance to sell "rain to the state0 a ten*enc to
concentrate on other cro-s an* on livestoc80 for which -rices were
more favo)ra+le0 an* the emer"ence of a lar"e "a- +etween official
state -rices an* those -ai* to the -easants for their -ro*)ce + the
still le"al Ne-men tra*ers, :e shall have m)ch more to sa a+o)t
the conseE)ences of this later in the *eca*e,
:h were these -rice -olicies a*o-te*G A little reflection clearl
shows them to have +een totall o)t of line with the -rinci-les of
NEP0 an* in*ee* the contin)ance of s)ch -rice -olicies was +o)n* to
lea* to "rave conflict an* conf)sion0 even in the a+sence of other
factors, No *o)+t m)ch can +e e@-laine* + a com+ination of
o+stinate +lin*ness with a +)ilt>in *isli8e of mar8et forces which
characteriFe* man 6olshevi8s, However0 -art of the o+stinac ma
have ha* a -olitical e@-lanation, Trots8 an* his frien*s ha*
favo)re* increasin" the level of savin"s an* investments0 an* the
lo"ic of their -osition *eman*e* somewhat hi"her0 not lower0 -rices
of man)fact)re* "oo*s0 since in this wa the state wo)l* o+tain the
necessar reven)e, This in itself wo)l* have +een an ar")ment for
Stalin to o--ose s)ch a
11- TheEndof8EP
move0 an* he *o)+tless saw -olitical a*vanta"es in contrastin" his
-olic of lower -rices with that of the o--osition, The -ress)re to
increase "rain -rices0 in t)rn0 came es-eciall from 6)8harin an*
his frien*s of the f)t)re Dri"ht>win" *eviationD, Here a"ain0 Stalin
ha* -olitical reasons for o+stinac, This is not mere s)rmise, Stalin
re-eate*l acc)se* vario)s o--ositionists of wantin" hi"her -rices,
The -art -len)m hel* on 4>#( Fe+r)ar #$(40 in reaffirmin" the
nee* for lower -rices all ro)n*0 em-hasiFe* that Din the -ro+lem of
-rices are interlin8e* all the +asic economic an* -olitical -ro+lems
of the Soviet stateD, The -olic chosen was +asicall hostile to
mar8et forces in in*)str0 tra*e an* a"ric)lt)re, Either the -olic
wo)l* have to +e amen*e*0 or the mar8et an* its manifestations
wo)l* have to +e *estroe*, The s)rvival of NEP was conceiva+le
onl if this -rice -olic was altere*, It was not altere*0 an* NEP was
*oome*, Onl after the *ecisive *efeat of the D-rivateersD was a ver
*ifferent -rice -olic followe*0 this time in or*er to finance the
s-ectac)lar e@-ansion of state in*)str, 6)t m)ch more of this later
on,
The a--roach of man0 if not most0 -art mem+ers to the whole
E)estion of tra*e an* -rices is well e@-resse* in a -am-hlet + a
lea*in" official of the Tsentrosoy%2 .central cons)mer coo-erative/
or"aniFation, For him0 the whole -oint of the s-rea* of coo-erative
sho-s was that this wo)l* com+at an* "ra*)all sE)eeFe o)t the
-rivate tra*er, He was well aware of the fact that the latter co)l*
char"e m)ch hi"her -rices0 owin" to the D"oo*s famineD, However0
he *rew the concl)sion that in Dtearin" the mass of commo*ities o)t
of the han*s of elemental mar8et forces0 of -rivate tra*in"
s-ec)lationD0 cons)mer coo-eratives were hel-in" to D*i" *efensive
trenches aro)n* socialist in*)strD, It was a matter of Dwho shall +eat
whomD 41to 1ovo5, -art of the +attle for socialism, The fact that
coo-eratives s)--lie* "oo*s chea-er than the -rivate tra*ers0 i,e,
that the sol* at +elow s)--l>an*>*eman* -rices0 was to +e )se* to
-ers)a*e the -easants to si"n contracts )n*erta8in" to sell farm
-ro*)ce .at state>fi@e* -rices/ in e@chan"e for an )n*erta8in" to
s)--l them with man)fact)re* "oo*s .at state>fi@e* -rices/0 all
these -rices +ein" +elow the mar8et level, D:hat wo)l* it matter if
the -rivateer>s-ec)lator -ai* this or that -easant a few ro)+les e@tra
-er h)n*re*wei"ht of
"ndustriali9ation and the (raft Fi0e=>ear Plans 111
wheatG After all0 this wo)l* +e offset + his +an*it>s-ec)lationist
overchar"in" in s)--lin" the -easants with the "oo*s the nee*,D
The last ears of the twenties *i* see an attem-t to ma8e contracts
of this 8in* C1ontra1tatsiya5, an* the a)thor of the -am-hlet
evi*entl ho-e* that these contracts wo)l* form the +asis of
relations +etween town an* villa"e0 an* "row into Dthe hi"her form
of -ro*)cts e@chan"eD,
$
O+vio)sl0 s)ch tho)"ht>-atterns as these
were )nli8el to +e affecte* + economistsD ar")ments a+o)t mar8et
eE)ili+ri)m,
Industriali8ation and the #ra1t %ive->ear *lans
These were the ears of the -olitical tri)m-h of Stalin0 an* this was
accom-anie* + a chan"e in the whole atmos-here of Soviet life,
:hether in literat)re or in -hiloso-h0 in the -artDs own internal
arran"ements or in the s-here of economics0 the line +ecame one of
stern im-osition of conformit0 centraliFe* a)thorit0 s)--ression of
)ncontrolle* initiatives, The Ne-men were th)s to some e@tent
victims of a more "eneral ten*enc, This same ten*enc le*0 as *i*
the lo"ic of the in*)strialiFation *rive0 to "rowin" centraliFation of
the stateDs own -lannin" mechanism, As alrea* note* in Cha-ter <0
the intention to -lan effectivel from a+ove was voice* even *)rin"
the -erio* of hi"h NEP, There was a -roce*)re + which the
in*)strial an* financial -lans of tr)sts 4#romfin#lany5 were
a--rove* + =SN7H, At first this ha* little -ractical effect0 +)t it
*i* -rovi*e a mechanism + which control co)l* +e ti"htene*, As
earl as #$(1 one fin*s in -lannin" *oc)ments s)ch *eclarations as?
DThe state is +ecomin" the real master of its in*)str, ,,, The
in*)strial -lan m)st +e constr)cte* not from +elow +)t from a+ove,D
.I owe the reference to R, :, 3avies,/ Proce*)res for -rice control
e@iste* from the earl *as of NEP an* the +e"an to +e )se* to
8ee- -rices of some +asic in*)strial materials an* f)els0 an* also of
frei"ht trans-ort0 at low levels, S)+si*ies were often calle* for, A
"oo*s famine therefore *evelo-e* in the fiel* of -ro*)cersD "oo*s
too, This le* + #$(%>Q4 to a more sstematic control of -ro*)ction
an* *istri+)tion of some 8e commo*ities0 -artic)larl metals0 +
11, TheEndof8EP
=SN7H, It was onl lo"ical that this sho)l* res)lt in closer
inte"ration +etween !os-lanDs -ers-ective -lans an* the =SN7HDS
c)rrent o-erations, To cite a Soviet a)thor0 at the en* of #$(1 Dthere
was a new ccle of a*ministrative interferenceD, Cre*its cease* to +e
re")late* + interest rates an* +e"an to +e a*ministrativel
allocate*, DAt the en* of classical NEP the mar8et was retreatin"
+efore war>comm)nism>li8e metho*s on the entire front, The )nreal
in*)strial an* "rain>-roc)rement -lans of #$(1>% +ro)"ht the
co)ntr to the e*"e of crisis,D
#5
!ra*)all the e@tent of a*ministrative controls increase*0 the role
of mar8et forces *ecline*, :hile man +ranches of in*)strial
activit still o-erate* with ver consi*era+le a)tonom )ntil the en*
of the *eca*e0 the conto)rs of the f)t)re comman* econom were
+ecomin" increasin"l visi+le0 an* the ac)te strains an* shorta"es of
the ne@t ears wo)l* lea* to m)ch ti"hter an* sstematic centraliFe*
-lannin", The -len)m of the central committee hel* in A-ril #$(%0
em-hasiFin" the nee* for more ca-ital acc)m)lation0 also s-o8e of
Dthe stren"thenin" of the -lannin" an* the intro*)ction of a re"ime
of -lanne* *isci-line into the activities of all state or"ansD, The
fifteenth -art conference .(% Octo+er to & Novem+er #$(%/
*eclare* for Dthe stren"thenin" of the economic he"emon of lar"e>
scale socialist in*)str over the entire econom of the co)ntrD0 an*
s-o8e of the necessit of strivin" to achieve an* s)r-ass the most
a*vance* ca-italist co)ntries Din a relativel minimal historical
-erio*D,
To *o this it was necessar to form)late a lon">term -lan0 an* so
we m)st now consi*er the five>ear -lan, Earl *rafts of s)ch a -lan
were wi*el *isc)sse* amon" economists *)rin" the mi**le
twenties,
Pre-arator wor8 for a lon">term -lan +e"an in earnest in #$(4,
On ' 2)ne #$(4 a *ecree + the Co)ncil of Peo-leDs Commissars
calle* for the creation of Da )nite* all>)nion -lan0 which0 +ein" the
e@-ression of economic )nit of the Soviet Union0 wo)l* facilitate
the ma@im)m *evelo-ment of economic re"ions on the +asis of
their s-ecialiFation ,,, an* the ma@im)m )tiliFation of their
reso)rces for the -)r-ose of in*)strialiFation of the co)ntrD, The
role of !os-lan was stren"thene*0 an* the re-)+lican !os-lans
-lace* )n*er its a)thorit, 6)t the e@-ansion
"ndustriali9ation and the (raft Fi0e=>ear Plans 11!
of in*)strial investment *i* not await the form)lation of a lon">
term -lan, In the economic ear #$(%>4 the total vol)me of
investments increase* + &#>4 -er cent0 +)t investments in new
constr)ction more than *o)+le*,
##
Persistent shorta"es of metal
ca)se* vi"oro)s efforts to e@-an* -ro*)ction of iron an* steel0
an* also ore minin", The "reat 3nie-er 3am was +e")n0 an* so
was the T)r8si+ railwa, :hile the vol)me of investments in this
ear was soon "reatl to +e s)r-asse*0 the im-ose* a strain on
the econom which reacte* on the availa+ilit of reso)rces for
other -)r-oses an* so contri+)te* to the D"oo*s famineD,
Meanwhile the co)ntrDs lea*in" e@-erts0 +elon"in" to vario)s
c)rrents of 6olshevi8 o-inion an* those +elon"in" to no -art0
were har* at wor8 form)latin" a five>ear -lan, The teleolo"ical
school increasin"l o+taine* the )--er han*0 an* so the s-ecialists
in !os-lan an* =SN7H were )n*er contin)o)s -ress)re to
a*o-t am+itio)s "rowth tar"ets, These -ress)res an* revisions0 as
well as the tr)l colossal nat)re of the tas80 e@-lain wh a five>
ear -lan which was to o-erate with effect from Octo+er #$('
was s)+mitte* to the a--roval of the si@teenth -art conference
in A-ril #$($0 i,e, when im-lementation was alrea* in f)ll
swin", It -rove* necessar to form)late the -lan in two versions?
the initial variant an* the o-timal variant, As ma +e seen from
the ta+le on -, #<10 the initial variant was o-timistic eno)"h, It
was reCecte* + the si@teenth -art conference in favo)r of the
more am+itio)s version, :e shall see that this in its t)rn was
re-lace* + et more fantastic tar"ets,
The formation of the -lan reE)ire* an immense amo)nt of
*etaile* wor80 for which there was no -rece*ent, Tr)e there ha*
+een Dcontrol fi")resD for earlier ears0 an* a +alance of the
national econom ha* +een *rawn )-0 as was mentione* in the
-revio)s cha-ter, However0 the h)"e tas8 of *raftin" a five>ear
*evelo-ment -lan to transform the economic str)ct)re of R)ssia
reE)ire* m)ch more information a+o)t inter>in*)str lin8s than
co)l* +e availa+le in the then e@istin" state of information an*
statistics, The *etaile* tar"ets therefore incl)*e* m)ch that was
insec)rel +ase*0 an* contem-orar comment ma*e no secret of
this, One of the a)thors of the -lan0 !, !rinD8o0 writin" in
Fe+r)ar #$($0 showe* that man of the *etaile* calc)lations
#<< TheEn*ofNEP
availa+le at this *ate were still +ase* on the first variant of the -lan0
an* !rinD8o himself treate* the lower variant as Dso to s-ea8 a
")arantee* minim)m within the o-timal variantD0 which wo)l* +e
achieve* if the favo)ra+le ass)m-tions )n*erlin" the more
o-timistic version -rove* to +e ill>fo)n*e*,
#(
The -lan as a*o-te* was0 to sa the least0 over>o-timistic,
Miracles sel*om occ)r in economic life0 an* in the a+sence of
*ivine intervention it is har* to ima"ine how one wo)l* e@-ect
sim)ltaneo)s increases of investment an* cons)m-tion0 not to s-ea8
of the o)t-)t of in*)str0 a"ric)lt)re an* la+o)r -ro*)ctivit0 +
s)ch tremen*o)s -ercenta"es, Efficienc in la+o)r an* mana"ement
was to +e s)ch that costs an* -rices were s)--ose* to +e
s)+stantiall re*)ce* *)rin" the five ears, It is har* to see how
an+o* co)l* have re"ar*e* this as realistic at the time0 let alone in
retros-ect,K Yet the o-timal variant was shortl afterwar*s re-lace*
+ a still more fantastic series of tar"ets, However0 we will *efer
consi*eration of this -hase )ntil the ne@t cha-ter,
The five>ear -lan as a*o-te* far e@cee*e* in the scale of its
investments the *eman* of the *efeate* left o--osition, In #$(%
the ha* +een *eno)ncin" as far too mo*est the -lans a*o-te* +
the Stalin>6)8harin maCorit, The latterDs line ha* +een that Trots8
an* his frien*s were *eman*in" a tem-o of "rowth :hich wo)l* +e
inconsistent with economic an* -olitical +alance0 with the smch8a,
The ma well have +een ri"ht, Certain it was that the hi"her
tem-os now a*o-te* were inconsistent with the maintenance of the
alliance +etween Stalin an* 6)8harin, The latter -)+lishe* a veile*
attac8 on e@cessive an* )n+alance* "rowth rates in his DNotes of an
economistD 4<amet1i e1onomista, in Pravda, &5 Se-tem+er #$('/,
Nor were s)ch tem-os reconcila+le with NEP0 an* es-eciall with
the e@istin" sit)ation in the villa"es an* in a"ric)lt)re,
The heav financial e@-en*it)res which +e"an in #$(4 were
-artl finance* + the -lacin" of in*)strialiFation loans0 at relativel
hi"h rates of interest .th)s +on*s iss)e* on # 2)ne #$(4 to the val)e
of (55 million ro)+les0 re-aa+le in ten ears0 carrie* a #( -er cent
interest rate/, The nee* for reven)e also enco)ra"e* the re"ime to
im-ose heavier ta@es on the Ne-men an* 8)la8s, The -olic of
char"in" relativel low -rices for the -ro*)cts of
IndustriliEtion nd the Jr#t 6i:e-Oer Plns
6irst #i:e-+er pln
19.1-0 19(.-(
(per cent
19(.-(
(per cent
ctul #irst
:ersion
increase) Copti"l
:ersionC
increase)
.ggregates
E"plo+ed l=our #orce
!"illion%
PQ( 14.0 !(&-9% 1/0
!(9-0%
In:est"ents !ll% !19.4-1
prices "illird rou=les%
0.. .&.0 !1/(% .1.1 !.(1%
Ntionl inco"e !"illird
rou=les%
.4.4 44-4 !0.% 49-1 !1&4%
Industril production
!"illird rou=les%
10.( (0.1 !1&0% 4(-. !1(4%
o# 5hichG
ProducersC $oods
!"illird rou=les%
4.& 1/-/ !1/0% l0.I !.&1%
2onsu"ersC $oods
!"illird rou=les% 1..( ...4 !0(%
./1
!1&4%
*$riculturl production
!"illird rou=les% 14.4 .(-9 !41% ./.0 !//%
2onsu"ptionG Non-
$riculturl !index%
1&&
1/..& 111.4
*$riculturl popultion
!index%
1&&
1/1.4 141.4
/ndustrial output targets
Electricit+ !"illird
8:hs/
/-&/ 11.& !.(4% ...& !((/%
7rd col
!"illion tons% (/-4 40.& !9.% 1/-& !in%
Oil !"illion tons% 11.1 19.& !4.% ...& !00%
Iron ore !"illion
tons% /-1
1/.& !14(% 19.& !.((%
Pi$ iron !"illion
tons% (-(
0.& !14.% 1&.& !.&(%
Steel !"illion tons%
4.&
0-( !1&1% 1&.4 !14&%
>chiner+ !"illion
rou=les% 1,0..
D
R
4,400 !1/1%
Superphosphtes
!"illion tons%
&1/ ..4 !14&&% (-4 !.1&&%
-ool cloth
!"illion "etres%
91 19.
!90%
.1&
!110%
4So%rce: Pyatiletnii #lan .&r* e*ition0 #$&5/0 --, #($ ff, Machiner fi")res from
DF)lfilment of first five>ear -lanD0 (4&,/
11% TheEndof8EP
state in*)str was -ersiste* with0 however, Inflationar -ress)re
"rew0 an* with it the "a- +etween official an* free -rices for the
-ro*)cts of +oth in*)str an* a"ric)lt)re,
3i* Stalin a*o-t a -lan which he 8new to +e im-ossi+le0 as a
-olitical manoe)vreG 3i* 7)i+shev0 the chairman of =SN7H0 or
Str)milin0 a lea*in" -art -lanner0 a*o-t -ro-a"an*a -lansG It is
*iffic)lt to sa, Plannin" as a techniE)e was har*l +orn,
Overo-timism0 which contri+)te* to the e@cesses of the #$($>&&
-erio*0 ha* alrea* infecte* the lea*ershi-, Pro*)ctive ca-acit0
h)man ener"0 the conseE)ences of a "reat *rive0 the effects of
enth)siasm0 were all overestimate*, It was +elieve* that Dthere was
no fortress that the 6olshevi8s co)l* not ta8eD, The voices which
calle* for ca)tion0 which *rew attention to *iffic)lties an*
+ottlenec8s0 were tho)"ht to +e those of former Menshevi8s or SRs0
or +o)r"eois s-ecialists, The latter were *iscre*ite* an* s)s-ect
followin" a show trial0 the so>calle* Sha1hty affair0 hel* in #$('0
which -)r-orte* to show that a "ro)- of s)ch s-ecialists were
wrec8ers an* *eviationists in the -a of forei"n -owers, Ca)tion0
an* em-hasis on +alance0 were also attri+)tes of the ri"ht>win"
o--ositionI the were *eno)nce* + Stalin with increasin"
vehemence in an* after #$(', E@-erts who "ave )nwelcome a*vice
were thr)st asi*eI men whose a*vice was more con"enial were -)t
in their -laces, Perha-s man of the -art lea*ers were "en)inel
carrie* awa, Some ma also have seen some a*vanta"e in the
mo+iliFin" force of a -lan which wo)l* ca)se ma@im)m effort0 an*
so in the en* achieve more than a so)n*0 soli*0 +alance* -lan wo)l*
*o,
'he *easant *ro,le$ A&ain? 'he *rocure$ent risis
However0 it is now time to ret)rn to the -easants, It ha* not esca-e*
the notice of Stalin that the am+itio)s in*)strial investment -lans
an* the e@istin" str)ct)re of -easant a"ric)lt)re were inconsistent
with one another, In his s-eech to the fifteenth -art con"ress
.3ecem+er #$(4/0 he s-o8e a+o)t the relativel slow rate of
*evelo-ment of a"ric)lt)re0 a*vance* familiar reasons to e@-lain
this +ac8war*ness0 an* then sai*?
The Peasant Pro+lem A)ain? The Procurement Crisis 115
:hat is the wa o)tG The wa o)t is to t)rn the small an* scattere*
-easant farms into lar"e )nite* farms +ase* on c)ltivation of the lan* in
common0 to "o over to collective c)ltivation of the lan* on the +asis of a
new hi"her techniE)e, The wa o)t is to )nite the small an* *warf
-easant farms "ra*)all +)t s)rel0 not + -ress)re +)t + e@am-le an*
-ers)asion0 into lar"e farms +ase* on common0 coo-erative0 collective
c)ltivation of the lan* ,,, There is no other wa o)t,
#<
In the resol)tion a*o-te* + the fifteenth con"ress one fin*s the
followin" wor*s? DAt the -resent time the tas8 of )nitin" an*
transformin" the small in*ivi*)al -easant hol*in"s into lar"e
collectives m)st +ecome the -rinci-al tas8 of the -art in the
villa"es,D Yet0 for reasons which have alrea* +een e@-laine*0 this
was not )n*erstoo* to mean the imminence of a revol)tion from
a+ove, The "eneral *esira+ilit of collective a"ric)lt)re was not in
*is-)te, If it was to +e *one vol)ntaril an* + e@am-le0 there was
no *an"er of anthin" -artic)larl *rastic ha--enin" E)ic8l,
Un*o)+te*l what +ro)"ht matters to a hea* was the -ro+lem of
mar8etin"s0 in -artic)lar of state -roc)rements, Ever ear the
lea*ers watche* an@io)sl as *eliveries mo)nte* in the a)t)mn an*
winter0 won*erin" if there wo)l* +e eno)"h to fee* the towns an*
the arm an*0 who 8nows0 somethin" for e@-ort too, Attention was
-artic)larl concentrate* on "rain0 the 8e cro- since +rea* was the
staff of life in R)ssia0 an* +eca)se over '5 -er cent of all sown lan*
was sown to "rain,
3iffic)lties acc)m)late* after #$(1, Some of the reasons have
alrea* +een mentione*, There was the D"oo*s famineD, There was
the re*)ction of -roc)rement -rices0 affectin" -artic)larl "rain,
This nat)rall *isco)ra"e* mar8etin"s, The -easants trie* to sell
"rain to the still>s)rvivin" -rivate tra*ers rather than to the state
-roc)rement a"encies0 to hol* "rain in e@-ectation of hi"her -rices0
or to fee* it to livestoc8, As Stalin s)+seE)entl -ointe* o)t0 the
+etter>off -easants were a+le to manoe)vre more effectivel than
their -oorer nei"h+o)rs to ta8e a*vanta"e of an -ossi+ilit of
o+tainin" +etter terms, The "overnment reacte* + meas)res a"ainst
Ne-men0 + streamlinin" the state -roc)rement a--arat)s to avoi* a
sit)ation in which *ifferent -roc)rement a"encies +i* a"ainst one
another0 an* also + meas)res a"ainst
11& TheEndof8EP
8)la8s0 who were hel* res-onsi+le for the shorta"es, Th)s the
resol)tion of the fifteenth con"ress instr)cte* the central committee
to *evise hi"her an* more -ro"ressive ta@es on the more -ros-ero)s
-easants, The tone of -art -rono)ncements on the 8)la8 E)estion
+ecame shar-er, The i*ea of liE)i*atin" them as a class was not et
+orn0 or at least not et mentione*, However0 the were to +e
limite*0 -enaliFe* an* "enerall *isco)ra"e*, This was a -olic
har*l *esi"ne* to enco)ra"e the more am+itio)s -easants to
e@-an* -ro*)ction or investment,
As alrea* mentione*0 the fifteenth con"ress a*vocate* the
s-rea* of collectiviFation, Of the vario)s 8in*s of a"ric)lt)ral
-ro*)cersD associations0 the most -romisin" seeme* to +e the
loosest0 the TO; .the letters stan* for DAssociation for the 2oint
C)ltivation of the 9an*D/, In these associations the mem+ers retaine*
ownershi- of their tools an* im-lements0 most of their livestoc8 an*
control over their lan*, The sim-l carrie* o)t some of the farm
wor8 Cointl, The more a*vance* forms of -ro*)cersD coo-eration
which then e@iste* were tho)"ht to +e )nattractive to the -easantsI
for instance in the *ecree of #% March #$(4 it was lai* *own that
the TO; was to +e favo)re*, However0 in #$(4 all the vario)s t-es
of collectives an* coo-eratives acco)nte* for onl a tin -ro-ortion
of -easants an* of a"ric)lt)ral -ro*)ction0 an* a few inefficient state
farms ma*e little *ifference to the "eneral -ict)re,
Collective an* state a"ric)lt)re in #$('
Percenta"e of sown area
In*ivi*)al -easants $4,&
Collective farms #,( .of which a+o)t 5,4 T O ;/
State farms #,1
4So%rce: Sotsialistiches1oe stroitefstvo SSSR .Moscow0
#$&1/0 P> @@@i@,/
It was consi*ere* a@iomatic that the -easant -ro+lem was to +e
han*le* ca)tio)sl, Coercion was e@cl)*e*, Ha* not 9enin0 an*
+efore him En"els0 warne* a+o)t the nee* for -atience an* the
The Peasant Pro+lem A)ain? The Procurement Crisis 11
-reservation of the vol)ntar -rinci-leG The -oorer -easants co)l*
+e allies0 the mi**le -easants sho)l* +e +efrien*e*0 or at least
ne)traliFe*0 the 8)la8s co)l* an* sho)l* +e restricte* or ta@e*,
There were still no "ro)n*s to s)--ose that a storm wo)l* +rea8
over the hea*s of the entire -easantr,
6)t the storm clo)*s were "atherin"0 an* the -roc)rement
*iffic)lties of #$(4 le* to the first flash of li"htnin", There was
alrea* a shortfall in -roc)rements of "rain +efore the fifteenth
-art con"ress assem+le* in 3ecem+er0 an* this was -ointe* to +
the left o--osition0 which a*vocate* a com-)lsor "rain loan as a
wa o)t, .However0 their own -olicies0 callin" for more vi"oro)s
meas)res a"ainst the so>calle* 8)la8s0 wo)l* have ma*e thin"s
worse,/ The -olit+)rea) maCorit *enie* that the sit)ation was
critical )ntil after the con"ress0 +)t critical it was,
The shortfall in "rain -roc)rements ma +e seen from the fact
that + 2an)ar #$(' the state ha* s)ccee*e* in -)rchasin" onl &55
million -oo*s0 as a"ainst <(' million on the same *ate in the
-revio)s ear, The shortfall was -artic)larl "reat in Si+eria0 the
=ol"a an* the Urals0 where the harvest was reasona+l "oo* .+a*
weather was the ca)se of *iffic)lties in the North Ca)cas)s/,
#1
The
effect was not onl to create ac)te -ro+lems in s)--lin" the cities
with +rea*0 +)t also to threaten s)--lies of in*)strial cro-s, Th)s the
maintenance of the cotton acrea"e in UF+e8istan was threatene* +
"rain shorta"e there, Archive information shows a flow of
com-laints a+o)t this from local -art or"aniFations to the central
committee,
#%
Some of the reasons for this critical sit)ation have
alrea* +een "iven? the low -rice of "rain0 shorta"e of man)fact)re*
"oo*s0 the "a- +etween official an* free -rices, :ith "rain
-roc)rement -rices so low0 -easants nat)rall concentrate* on other
commo*ities, For e@am-le0 in the area of the Urals "rain sales to the
state were onl %& -er cent of the -revio)s ear0 +)t meat sales
increase* + 15 -er cent0 while sales of e""s *o)+le*0 +acon
E)a*r)-le*0 an* eleven times as m)ch +acon fat was *elivere* as in
the -revio)s ear,
#4
Nat)rall the -easants waite* for the rise in
official "rain -rices0 the necessit for which seeme* E)ite o+vio)s,
However0 Stalin an* his collea")es *rew ver *ifferent concl)sions,
I"norin" the -ro-osals of 6)8harin an* others to increase
1*- TheEndof8EP
"rain -rices0 Stalin *eci*e* instea* to la)nch a *irect attac80 which
revive* memories of the e@cesses of war comm)nism, There ha*
+een a "oo* harvest in the Urals an* :est Si+eria, There went
Stalin with a tas8 force of officials an* -olice, Free mar8ets were
close*0 -rivate tra*ers thrown o)t0 -easants or*ere* to *eliver "rain
an* -)nishe* as criminals if the faile* to *o so, Stalin ma*e
s-eeches0 which were -)+lishe* onl twent ears later0 *eno)ncin"
la""ar* officials0 reE)irin" them to seiFe 8)la8 "rain0 *eman*in"
that the invo8e a hitherto )n)se* article of the criminal co*e
.Article #54/ a"ainst Ds-ec)lationD0 to le"aliFe the seiF)res, He
moc8e* the D-rosec)tin" an* C)*icial a)thorities OwhoP are not
-re-are* for s)ch a ste-D, He )se* e@treme lan")a"e to the -art
officials0 who were slow to )n*erstan* that a +asic chan"e of
attit)*e was e@-ecte* of them? DCan it +e that o) are afrai* to
*ist)r+ the tranE)illit of the 8)la8 "entrG Yo) sa that
enforcement of Article #54 a"ainst the 8)la8s wo)l* +e an
emer"enc meas)re0 that it wo)l* not +e -ro*)ctive of "oo* res)lts0
that it wo)l* worsen the relations in the co)ntrsi*e, S)--ose it
wo)l* +e an emer"enc meas)re, :hat of itG ,,, As for o)r
-rosec)tin" an* C)*icial officials0 the sho)l* +e *ismisse*,K
'
At the
same time0 scarce in*)strial "oo*s were *irecte* to the "rain>
s)r-l)s re"ions,
R)mo)rs s-rea* that the "overnment Dwill -a all forei"n *e+ts
with "rain an* is therefore reinstatin" -ro*raFverst8a0 ta8in" all
"rain awaD, Re-ortin" this an* citin" contem-orar archives0 a
Soviet writer "ave the followin" t-ical instance? DIn the villa"e of
Pan8r)shino the 8)la8s s-rea* the r)mo)r that all "rain was +ein"
collecte* in one vast storeho)se in the town of 7amens80 that the
-easants wo)l* +e "iven a +rea* ration0 that arme* *etachments
were sco)rin" the villa"es for +rea* an* that the wo)l* soon
arrive,K
$
The same so)rce E)otes n)mero)s re-orts in the -ress
a+o)t alle"e* 8)la8 o--osition0 tho)"h it seems more than -ro+a+le
that this was sim-l stron" -easant reaction to the seiF)re of their
-ro*)ce,
The 8)la8s )n*ertoo8 lar"e>scale a"itation0 assertin" that Soviet -ower
im-overishe* the -easant0 *i* not allow him to im-rove his income0 that
NEP was +ein" a+olishe*, 7)la8s0 -riests0 former white>")ar*ists en>
The Peasant Pro+lem A)ain? The Procurement Crisis 1*1
*eavo)re* to )tiliFe in their co)nter>revol)tionar a"itation certain cases
of *istortion 9sic: of the Part line in cre*it an* ta@ -olic ,,, In the
villa"e of Troits8oe in the 3on area there was )nmas8e* a -riest who
hi* "rain an* or"aniFe* in the cemeter a 8)la8 meetin"0 where he ma*e
a re-ort on D"rain -roc)rements an* the international sit)ationD,
(5
This so)rce also a*mits that there were in*ee* "ro)n*s for
a"itation,
Not infreE)entl meas)res were ta8en which hit not onl the 8)la8s +)t
the mi**le -easant, S)ch meas)res were? the confiscation of "rain
s)r-l)ses witho)t the C)*"ement of a co)rt )n*er Article #540 a*ministra>
tive -ress)re on the mi**le -easant0 the )se of +arrier *etachments .i,e,
forci+le -revention of -rivate trans-ort of "rain/0 the forci+le iss)in" of
+on* certificates in -ament for "rain an* as a con*ition for the sale of
scarce commo*ities to the -easants0 an* so on,
(#
In*ee* ar+itrar confiscation was a common -henomenon0 an* +
strictl inter-retin" Article #54 the a)thorities co)l* choose to
re"ar* the mere -ossession of "rain stoc8s as ille"al hoar*in" with a
s-ec)lative -)r-ose an*0 therefore0 a fit s)+Cect for confiscation
witho)t -ament, News-a-ers of the time were f)ll of re-orts a+o)t
evil 8)la8 hoar*ers of "rain0 an* also of re-orts concernin" -easant
meetin"s in which the *eliver of "rain to the state was e@tolle* an*
the 8)la8s con*emne*, S)ch re-orts m)st +e ta8en with a -inch of
salt, Th)s the same so)rce which referre* to the -ament of -easants
with +on* certificates instea* of mone0 an* referre* to it as an
im-ermissi+le e@cess0 cites a--rovin"l an alle"e*l s-ontaneo)s
*ecision + -easants Dto ref)se to acce-t mone an* to reE)est
-ament in +on*s for the entire amo)nt of *elivere* "rainD0 an* a
resol)tion wor*e* th)s? DNot a sin"le -o)n* to the -rivate
s-ec)lator,D
((
Stalin himself concentrate* on :est Si+eria an* the Urals0 an*
other senior officials -)rs)e* the -roc)rement cam-ai"n in other
areas? for e@am-le0 ;h*anov in the =ol"a re"ion0 7ossior in the
U8raine an* the Urals0 An*reev in the North Ca)cas)s, The chief
coor*inator of the entire o-eration was sai* to have +een Mi8oan,
(&
All the a+ove were *evote* mem+ers of the Stalin faction,
1*, TheEndof8EP
These ar+itrar -roce*)res later D*is")ise*D as locall initiate*0
+ecame 8nown as the DUrals>Si+erian metho*D, In retros-ect
this m)st +e re"ar*e* as a "reat t)rnin">-oint in R)ssian histor,
It )-set once an* for all the *elicate -scholo"ical +alance )-on
which the relations +etween -art an* -easants reste*0 an* it was
also the first time that a maCor -olic *e-art)re was )n*erta8en
+ Stalin -ersonall0 witho)t even the -retence of a central
committee or -olit+)rea) *ecision,
6)8harin0 R8ov an* Toms80 three of the -olit+)rea) of the
-art0 -roteste* vehementl, In A-ril #$('0 at the -len)m of the
central committee0 Stalin +eat an a--arent retreat0 an* acce-te* a
resol)tion con*emnin" e@cesses0 reassertin" le"alit an* -romis>
in" that nothin" similar wo)l* +e re-eate*, 6)t events showe*
that StalinDs com-liance was a mere manoe)vre, Forci+le -roc)re>
ments were re-eate* in man areas in #$('>$, Stalin soon ma*e
it clear that the DUrals>Si+erian metho*D wo)l* +e )se* when>
ever necessar, Yet s)rel it was o+vio)s that -easants wo)l* not
increase mar8ete* -ro*)ction if the state wo)l* seiFe the -ro*)ce
at whatever -rice it chose to -a0 an* im-rison anone who
conceale* "rain, The o)t+rea8 of ar")ment amon" the lea*ers
was caref)ll conceale* from the -)+lic0 an* from the -art
mem+ershi- at lar"e, Onl later it +ecame 8nown that 6)8harin0
at last realiFin" what his erstwhile all was )- to0 +e"an to s-ea8
of !en"his 7han0 of Dmilitar>fe)*al e@-loitationD of the -eas>
antr0 of Dtri+)teD 4dan,5 levie* on the villa"e, It was in the
conte@t of these fears an* feelin"s that we m)st rea* his -lea for
+alance* "rowth0 mentione* on -a"e #<< a+ove, In the alrea*
s)ffocatin" -olitical atmos-here0 he was )na+le to voice his real
fears in -)+lic, These concerne* most of all the conseE)ences of
the comin" clash with the -easants,
ollectivi8ation on the A&enda
Stalin an* his faction *i* not et show an si"n that the ha*
*eci*e* on an all>o)t collectiviFation cam-ai"n, In*ee*0 there is
no evi*ence at all that s)ch a *ecision was ta8en )ntil the earl
a)t)mn of #$($0 an* the Soviet -)+lic first hear* of it on 4
Collecti0i9ation on the A)enda 1*!
Novem+er #$($, Some ma consi*er that Stalin ha* a secret -lan
all rea* for the -ro-itio)s moment0 +)t this seems )nli8el,
:hat he clearl wishe* to *o after the DUrals>Si+erianD e-iso*e
of Fe+r)ar #$(' was to free the re"ime from over>*e-en*ence
on the -easantr, This view he ha* alrea* e@-resse* *)rin" his
DUrals>Si+erianD to)r? DIn or*er to -)t "rain -roc)rements on a
satisfactor +asis other meas)res are reE)ire* ,,, I have in min*
the formation of collective farms an* state farms,D
(<
An imme*iate
conseE)ence of this was the *ecision0 in A-ril #$('0 to set )- a
D"rain tr)stD 4<ernotrest5, aimin" to create new state farms coverin"
#< million hectares .&% million acres/, However0 this was still not
to +e re"ar*e* as a ste- towar*s mass collectiviFation0 since these
farms were to +e set )- on )n)se* lan*, No one was to +e
e@-ro-riate* or force*, ConseE)entl this *ecision was not a
challen"e to 6)8harin an* his frien*s0 an* ma even have +een
acce-te* + them, It -rove* )nwor8a+le an* ina*eE)ate,
The 2)l #$(' -len)m of the central committee was still0 so far
as its official statements were concerne*0 *ominate* + the nee*
to reass)re the -easants .or to 8ee- the 6)8harin "ro)- E)iet/,
Tr)e0 the resol)tion s-o8e of Dvol)ntar )nion of -easants into
collectives on the +asis of new techniE)esD0 +)t no one co)l*
o+Cect to this0 the more so as the a+sence of new eE)i-ment was a
-rinci-al ar")ment of the D"o>slowD school, The resol)tion a*mit>
te* that low "rain -rices contri+)te* to e@istin" *iffic)lties an*
resolve* to increase them0 +)t this was a case of m)ch too little
an* too late, The resol)tion also s-o8e of Dthe f)rther raisin" of
the level of small> an* me*i)m>siFe in*ivi*)al .-easant/ econo>
miesD, So at the time there seeme* to +e a ret)rn to mo*eration,
6)t here a"ain the historian faces the *iffic)lt that some 8e
-olic statements were ma*e onl +ehin* close* *oors, If the
were to +e incl)*e* in a chronolo"ical acco)nt0 the s)r-rise an*
shoc8 which "reete* s)+seE)ent anno)ncements of -olic chan"es
wo)l* +e incom-rehensi+le, At the same 2)l -len)m0 Stalin
a*mitte* +oth the nee* for Dtri+)teD from the -easants0 an* that
the *i* an* ha* to over-a for man)fact)re* "oo*s an* were
)n*er-ai* for farm -ro*)ce, This followe* from the nee* to
Din*)strialiFe the co)ntr with the hel- of internal acc)m)la>
tionD,
(1
In other wor*s0 Preo+raFhens8 .an* Trots8/ were ri"ht
all alon", 6)t his s-eech too was -)+lishe* onl in #$<$I when it
was ma*e0 Trots8 was in Alma Ata )n*er effective ho)se>arrest0
an* Preo+raFhens8 ha* +een *e-orte*, If anone chose to remin*
Stalin of the so)rce of his i*eas0 this was omitte* from the +elate*l
-)+lishe* recor*,
In a -)+lic s-eech after the 2)l -len)m0 Stalin too8 )- an
a--arentl mo*erate -osition? D:e nee* neither *etractors nor
e)lo"iFers of in*ivi*)al -easant farmin"0D +)t he *i* )r"e once a"ain
the "ra*)al *evelo-ment of collective an* state farms, His tone
shar-ene* in his first #%"lic attac8 on Dri"ht>win" *eviation>istsD
.namin"0 as et0 no names/ on #$ Octo+er #$('0 an* at the
Novem+er #$(' -len)m of the central committee one hear* more of
the inefficienc of a"ric)lt)re hol*in" +ac8 in*)str0 of the
enco)ra"ement of collective an* state farms0 an* of meas)res to
limit the 8)la8s, In the winter the DUrals>Si+erian metho*D was
E)ietl rea--lie* to the -easants0 an* )n*er cover of anti>8)la8
meas)res the metho* once a"ain hit the mi**le -easants har*0 since0
after all0 most of the "rain came from them, Stalin attac8e*
6)8harin vi"oro)sl in the A-ril #$($ -len)m of the central
committee0 +)t most of his wor*s remaine* )n-)+lishe* at the time,
Conf)sion in the -)+lic min* over -easant -olicies was hei"ht>
ene* + the resol)tion of this -len)m0 when the wor* Dtri+)teD0
acce-te* + Stalin in the -revio)s ear in an %n#%"lished s-eech0
was now treate* as a slan*ero)s an* lin" acc)sation *irecte* at
Stalin + 6)8harin0 who was now o-enl attac8e*, It was a*mitte*
that -easants *i* over-a for some in*)strial "oo*s0 +)t this wo)l*
s-ee*il +e -)t ri"ht,
The si@teenth -art conference0 meetin" in the same month0
a--rove* the Do-timalD version of the five>ear -lan0 as we have
seen, This incl)*e* a section on a"ric)lt)re, There was to +e a
mar8e* a*vance in collectiviFation0 an* + the en* of the -lan it
was ho-e* to have twent>si@ million hectares c)ltivate* + the
state an* all 8in*s of collectives .incl)*in" TO;s/I these wo)l*
-rovi*e over #1 -er cent of the total a"ric)lt)ral o)t-)t, It was not
at all clear + what means this e@-ansion in a"ric)lt)ral
collectiviFation was to +e achieve*, However0 "iven five ears an*
the necessar reso)rces0 it was not an )nrealistic -ers-ective,
The (ecision to Attac3 1**
:hile in the ears #$(#>4 there ha* +een no move + the -easants
towar*s an t-e of collective farmin"0 this co)l* +e +lame* on the
lac8 of in*)cement0 in*ee* on the ne"lect of the few collectives that
*i* e@ist, S)ch a -ro"ramme0 if carrie* o)t0 wo)l* still have left the
vast maCorit of the -easantr in the -rivate sector0 -ro*)cin" the
+)l8 of ever cro- an* ownin" most of the livestoc8,
The (ecision to Attac3
Now that 6)8harin was at last o-enl *eno)nce* as a ri"ht>win"
*eviationist .he was not e@-elle* from the -olit+)rea) )ntil
Novem+er #$($/0 Stalin m)st have felt free to la)nch the cam-ai"n
that was mat)rin" in his min*, Yet + not a wor* or "est)re *i* he
-re-are the -art0 the -eo-le0 the -easants0 for the "reat t)rn0 the
Drevol)tion from a+oveD which was to sha8e R)ssia to its
fo)n*ations, In fact0 even as late as (4 2)ne #$($ a *ecree on
a"ric)lt)ral mar8etin" coo-eration still ass)me* the -re*ominance
of the -rivate sector in a"ric)lt)re for an in*efinite -erio*0 an* we
shall see that it was not )ntil the cam-ai"n ha* +e")n that there was
an amen*ment of the -lan to achieve a mere #1 -er cent
collectiviFation + #$&&,
No *oc)ment e@ists which can tell )s e@actl when Stalin ma*e
)- his min*, 3)rin" #$($ the strains of the investment -ro"ramme
of the five>ear -lan +e"an to affect all sectors of the econom,
Rationin" of cons)mers in cities was intro*)ce* "ra*)all *)rin"
#$(' in some areas an* +ecame "eneral earl in #$($0 -erha-s the
first an* onl recor*e* instance of the introd%ction of rationin" in
time of -eace, The "oo*s famine increase* in intensit, The "a-
+etween free an* official -rices wi*ene*0 as the ta+le on -, #1%
*emonstrates, 6 #$&5 the *ifference increase* ver ra-i*l,
=oices from the ri"ht )r"e* slow*own0 hi"her farm -rices0 a
mo*ification of the investment -ro"ramme, R8ov -ro-ose* a Dtwo>
ear -lanD0 with em-hasis on a"ric)lt)re, !rain -roc)rement -rices
were in fact raise*0 far too late0 in #$($0 + #<>#$ -er cent0
(%
+)t the
mar8et sit)ation was s)ch that -rivate tra*ers
#1% The En* of NEP
)etil prices G!i9C( '
1&&%
6ood >nu#ctures
Pri:te O##icil Pri:te O##icil
19.4 !Jece"=er%
19.1 !Jece"=er%
19.0 !Jece"=er%
19.9 !<une%
190
... .9(
4/&
101
11/ 104
.&&
./1
.4&
./(
.19
.&0 100
19& 19.
4So%rce: Malafeev0 $storiya tsenoo"ra2ovaniya v SSSR .Moscow0 #$%</0 --,
&'<0 &'1,/
were +)in" in that ear at -rices which rose + over #55 -er cent,
In the U8raine0Dfor instance0 -rivate tra*ers were +)in" at #45 -er
cent a+ove state -roc)rement -rices,
(4
However0 there were a
n)m+er of ar")ments for an all>o)t *rive forwar*, In the first -lace0
it m)st have alrea* seeme* im-ossi+le to contin)e on the +asis of a
com+ination of -rivate a"ric)lt)re an* -erio*ic coercion, Secon*l0
StalinDs faction wante* to -rove the ri"ht to +e wron"0 an* wo)l*
+enefit from stealin" the clothes of the left o--osition now that it
ha* +een *efeate* an* its lea*er0 Trots80 e@ile*, Thir*l0 man
-art activists ha* all alon" hate* NEP an* were willin" to throw
their ener" an* enth)siasm into the "reat tas8 of Dsocialist
constr)ctionD, Pravda *escri+e* how the *ele"ates to the fifth
con"ress of Soviets0 which a--rove* the five>ear -lan in Ma
#$($0 "aFe* )-on a vast ma- which showe* the vario)s constr)ction
-roCects, D6efore o)r ees we saw o)r co)ntr0 as it will +e in five
earsD time, E@citin" -ros-ectH As if + some ma"ic han* the
c)rtains which conceal the f)t)re have +een -arte*, The enth)siasm
of the con"ress fo)n* e@-ression in a -otent ren*erin" of the
Internationale,D
('
There were *o)+tless a few cnics -resent0 et the
enth)siasm m)st have +een "en)ine, Of co)rse the maCorit of
or*inar -eo-le ma have felt ver *ifferentl0 +)t this was har*l
consi*ere* relevant in a co)ntr in which nearl '5 -er cent of the
-)+lic consiste* of -easants0 most of whom co)l* not +e e@-ecte* to
feel the *namism of a socialist transformation an* who in an case0
when the were not *an"ero)s enemies of the re"ime0 *i* not 8now
what was "oo*
The (ecision to Attac3 1*5
for them, SacrificesG :ell0 man o)n" comm)nists fo)n* "reat
satisfaction in livin" har* in tents an* h)ts0 +)il*in" the "reat
factories which wo)l* chan"e R)ssia an* ma8e a ha-- f)t)re for
"enerations to come, Stalin himself was no romantic0 +)t saw
a*vanta"es in harnessin" s)ch feelin"s as these,
So the *ecision was ta8en? to force )- still f)rther the tem-os of
in*)strial constr)ction0 an* la)nch the cam-ai"n to collectiviFe the
-easantrI this meant the maCorit of the -easantr0 not #1 -er cent0
an* imme*iatel0 not + #$&&, The relevant *ata are e@amine* in the
ne@t cha-ter,
:h0 then0 *i* the D"reat t)rnD ha--enG :h the revol)tion from
a+ove0 wh collectiviFationG M)ch in8 has +een e@-en*e* in
*isc)ssin" these E)estions, Some of the answers have +een
in*icate* in the -revio)s -a"es, To reca-it)late0 the followin"
factors were of evi*ent im-ortance?
36 The *esire of man -art mem+ers0 an* nota+l Stalin
himself0 to eliminate an in*ivi*)al -easantr which0 as 9enin ha*
sai* an* Stalin re-eate*0 D-ro*)ces ca-italists from its mi*st0 an*
cannot hel- -ro*)cin" them0 constantl an* contin)o)slD,
($
Tr)e0
9enin a*vise* ca)tion0 -ers)asion0 e@am-le, Tr)e0 the +r)tal
metho*s which will +e *escri+e* in the ne@t cha-ter were E)ite
)nC)stifie* + *octrine an* i*eolo"0 a fact which e@-lains the
secrec an* -lain lies which were characteristic of the entire
o-eration, 6)t what if a*herence to the vol)ntar -rinci-le meant
the in*efinite *ominance of in*ivi*)alist a"ric)lt)reG
37 The -ro+lem of in*)strial *evelo-ment0 with -riorit of heav
in*)str0 an* the lin8e* iss)es of ca-ital acc)m)lation an* farm
s)r-l)ses, Stalin *i* not *en that there was an alternative roa*0 that
of Dma8in" a"ric)lt)re lar"e>scale + im-lantin" ca-italism in
a"ric)lt)reD, He reCecte* this as he reCecte* the 8)la8s,
&5
He left
himself little choice thereafter, .After all0 even 8)la8s were ver
mo*est farmers + :estern stan*ar*s,/
38 The -rice -olicies0 in in*)str an* a"ric)lt)re0 which
*evelo-e* in #$(% an* were o+stinatel contin)e*0 an* which co)l*
of themselves have *estroe* NEP0 even if no other com-lications
ha* ens)e*,
39 The -olitical atmos-here0 the -reC)*ices a"ainst the mar8et
an* Ne-men "enerall0 the rise of monolithism an* of Stalin0 the
1*& TheEndof8EP
Dlea- forwar*D -scholo", Fears of internal class enemies0 an*
also of the hostile environment0 affecte* +oth the social -olicies
of the re"ime an* the *e"ree of -riorit accor*e* to heav
in*)str0 as the +asis of militar ca-acit,
Years later0 a Menshevi8 wrote of StalinDs metho*s as D-rimitive
socialist acc)m)lation + the metho*s of TamerlaneD, He a**e*?
DThe financial +asis of the first five>ear -lan0 )ntil Stalin fo)n*
it in levin" tri+)te on the -easants0 was e@tremel -recario)s ,,,
OIt seeme* thatP everthin" wo)l* "o to the *evil, ,,DK
All this in no wa C)stifies what act)all occ)rre*, It *i* occ)r0
an* it was not an acci*ent or a conseE)ence of -rivate whims, To
)n*erstan* is not to for"ive, It is sim-l +etter than the alterna>
tive0 which is not to )n*erstan*,
5 The So0iet #reat 6eap For$ard? "'
Collecti0i9ation
+uddenl- and .ithout .arnin&
The events of #$($>&< constit)te one of the "reat *ramas of
histor, The nee* m)ch more s-ace than the can -ossi+l
receive here0 an* a more eloE)ent -en than the a)thorDs to
*escri+e them, The nee* also a so)n*er +ase in relia+le *ata
than is availa+le at -resent to an historian0 in East or :est, For
we are now enterin" a -erio* in which the lines *ivi*in" -ro-a>
"an*a from re-orte* fact ten* to *isa--ear0 an* statistics too
often +ecome an a*C)nct of the -artDs -)+licit office, Official
statements an* -rono)ncements + lea*ers can no lon"er +e
chec8e* a"ainst co)nter>ar")ments ma*e + contem-orar critics0
since criticism is silence*0 or is confine* to minor local *etail,
The whole flavo)r of intellect)al life )n*erwent a *rastic chan"e,
Anone who 8nows R)ssian can o+serve the chan"e for himself0
C)st + rea*in" articles in learne* Co)rnals on social>economic
iss)es -)+lishe* in #$(' an* com-arin" them with what was
-)+lishe* in0 sa0 #$&(, 6etween these *ates not onl was serio)s
criticism ren*ere* im-ossi+le0 +)t articles +ecame increasin"l
the vehicle for stri*ent assertions of +rilliant s)ccesses an* *en)n>
ciations of real or alle"e* *eviationists as a"ents of forei"n
-owers, Therefore the historian m)st0 so to s-ea80 chan"e "ear0
an* )se his so)rce>material *ifferentl when he "ets into the
thirties, In the most recent ears archives have +een o-ene*0 an*
+ecome accessi+le +oth to R)ssian an* :estern scholars0 so more
information has +ecome availa+le0 ena+lin" some +lan8 -a"es to
+e fille*, However0 the -revailin" atmos-here affecte* the E)alit
an* content even of confi*ential re-ortin",
The *ramatic events to +e *escri+e* affecte* virt)all ever
as-ect of Soviet life0 an* to treat them chronolo"icall wo)l*0 on
+alance0 +e more conf)sin" than to tac8le each sector se-aratel, So
we shall +e"in with collectiviFation an* its conseE)ences0 an* "o on
to in*)str0 constr)ction0 trans-ort0 finance an* tra*e0 la+o)r an*
livin" stan*ar*s an* the reor"aniFation of -lannin",
On i 2)ne #$($ the total n)m+er of -easant mem+ers of
collectives of all 8in*s was +arel one million0 an* of these %5 -er
cent were in the TO; .loose/ t-e of -ro*)cersD coo-eratives, 6 #
Octo+er the n)m+er ha* risen to #,$ million .%( -er cent TO;/,
#
It
was this increase which "ave Stalin the +asis for his statement0 in his
famo)s article of 4 Novem+er #$($0 that Dthe mi**le -easant is
Coinin" collectivesD an* that the "reat t)rn was )n*er wa, It is now
a"ree* + virt)all all historians0 :est an* East0 that -ress)re was
even then +ein" a--lie*0 an* that -easants were not D"oin"D collective
en masse- It seems that0 silentl an* secretl0 Stalin an* his frien*s
or*ere* local officials in a few selecte* areas to tr o)t mass
collectiviFation + whatever means were han*, :hen the res)lt
showe* that victor was -ossi+le0 Stalin0 with Molotov an*
7a"anovich as his closest associates in the matter0 *eci*e* to la)nch
the collectiviFation cam-ai"n0 )sin" for the -)r-ose the activists
alrea* mo+iliFe* to enforce "rain collection + the well>trie*
DUrals>Si+erian metho*D, This is convincin"l ar")e* + M, 9ewin in
his alrea*>cite* st)*,
No *o)+t the final *efeat of the ri"ht o--osition facilitate* the
o-enin" of the offensive, This0 in*ee*0 is a -oint s-ecificall ma*e
+ one of the a+lest Soviet analsts of the -erio*0 Mosh8ov? DThe
con*emnation of the ri"htists ena+le* the central committee to
o-erate more consistentl the line of the offensive a"ainst the 8)la8s
,,,D An* not onl the anti>8)la8 -olic was affecte*, Mosh8ov refers
also to instr)ctions of the central committee to -art or"ans in
selecte* "rain re"ions0 iss)e* in A)")st #$($0 )r"in" them to reach
hi"h collectiviFation -ercenta"es in that ver ear, DIn -art circles
the view was har*enin" to the effect that onl + collectiviFation
co)l* the -ro+lem of "rain -ro*)ction +e solve*,D Mosh8ov lai*
consi*era+le stress on the effect on the -easants of the Dnew sstem
of -roc)rementsD0 which he i*entifies as havin" +een enforce* +
the *ecrees of (' 2)ne #$($ .RSFSR/ an* & 2)l #$($ .U8raine/,
These have not0 as a r)le0 +een note*
Suddenly and .ithout .arnin) 1%1
as im-ortant + other analsts0 an* et Mosh8ov treats them as in
effect si"nallin" the en* of NEP in the villa"e,
(
There is m)ch evi*ence to s)--ort this, Until this *ate0 the
forci+le collections of "rain0 which ha* +e")n earl in #$('0 were
officiall *escri+e* an* viewe* as emer"enc meas)res, However0
these *ecrees -rovi*e* for the im-osition of -roc)rement -lans on
-artic)lar areas + the "overnment0 an* em-owere* the a)thorities
to fine .an* in some cases0 im-rison/ recalcitrant ho)sehol*s who
faile* to *eliver the E)antities s-ecifie* + the *eliver -lan as it
affecte* them0 an* to sell )- their -ro-ert if nee* +e, This -ower0 it
is tr)e0 was to +e e@ercise* + local Soviets0 which were o+li"e* to
call a "eneral meetin", However0 whole villa"es were now receivin"
-roc)rement E)otas0 an* were enco)ra"e* to -lace the ma@im)m
+)r*en on the 8)la8s or other -ros-ero)s elements, 6)t all were
*oome* in*efinitel to *eliver "rain s)r-l)ses to the state at low
-rices, Mosh8ov ver -ro-erl ma8es two f)rther comments, Firstl0
this *ecree0 as a--lie* + the "overnment0 serve* as the C)*icial
fo)n*ation of the first wave of D*e8)la8iFationD0 which0 as we shall
note0 ha* +e")n alrea* in the secon* half of #$($0 witho)t an
*eclaration or *ecree s-ecificall to that effect, That is to sa0 in
selecte* "rain>"rowin" areas the 8)la8s were *eli+eratel over>
assesse* for "rain *eliveries an* the were then e@-ro-riate* for
failin" to o+e, Secon*l0 an* more f)n*amentall0 f)rther "reat
chan"es were +o)n* to follow0 since Das the e@-erience of the civil
war showe*0 the Oim-ose*P -lanne* *eliver of "rain to the state at
-rices which were )nfavo)ra+le to the -easants inevita+l le* to the
re*)ction in -ro*)ction of "rain to s)+sistence levelD,
&
In other
wor*s0 the -easants in "eneral .not C)st the 8)la8s/ were +o)n* to
re*)ce sowin"s0 once the f)n*amental +asis of NEP was s)+verte*
+ a ret)rn to a 8in* of -ro*raFverst8a, This metho* of -roc)rement
was s)ccessf)l0 at least in the short r)n, The s)+*ivision of the total
-roc)rement -lan + re"ions0 the mo+iliFation of -art -ersonnel0
le* to a <$ -er cent increase in state -roc)rements of "rain over the
-revio)s ear, This co)l* well have increase* StalinDs confi*ence in
the effectiveness of -olitical -ress)re in "eneral0 an* so
D-roc)rements went -arallel with the -rocess of the wholesale
collectiviFation of whole re"ions ,,, an*
1%, Collecti0i9ation
were closel lin8e* with itD,
<
There is m)ch in favo)r of s)ch an
inter-retation of events,
6e this as it ma0 after StalinDs article on the D"reat t)rnD0 -)+lishe*
on 4 Novem+er #$($0 a -len)m of the central committee was hel*
on #5>#4 Novem+er, It *eci*e* that there e@iste* Da move of the
+roa*est mass of -oor> an* mi**le>-easant ho)sehol*s towar*s
collective forms of a"ric)lt)reD0 which was *escri+e* as
Ds-ontaneo)sD 4sti1hiinaya5- !iven that no s)ch s-ontaneo)s move
e@iste* in nat)re0 while the entire cam-ai"n was con*)cte* on the
s)--osition that it *i*0 an* "iven also that there was no 8in* of
inE)ir or -rior warnin"0 the events that followe* were +oth
conf)se*0 an* a+ove all0 ill>-re-are*, There is not the sli"htest
evi*ence that there ha* +een a -art or state s)+>committee en"a"e*
in assessin" how +est to chan"e the wa of life of most of the
-o-)lation of a vast co)ntr, Since in fact it was to +e *eci*e* that
the loose TO; was not DcollectiveD eno)"h0 that the arteP with its
more a*vance* *e"ree of collectivism was to +e -referre*0 it is tr)l
e@traor*inar that nothin" was *one +efore, 3ecem+er to clarif
what 8in* of arte? was inten*e*0 for there were man variants?
some -ai* mem+ers D+ eatersD 4#o edo1am, i,e, in relation to mo)ths
to fee*/0 some in some ro)"h -ro-ortion to wor8 *one0 some in
accor*ance with the lan* an* im-lements contri+)te*I in some
farms a "oo* *eal of livestoc8 was collectiviFe*0 in others not,
In*ee* the -art ca*res were not too clear whether the f)ll fle*"e*
comm)ne0 with total collectiviFation0 was not in the min*s of the
lea*ers, :e shall see that these conf)sions ha* consi*era+le
infl)ence on events,
As a Soviet writer on this theme has -ointe* o)t0 DE@cesses ,,,
were *)e in -art to the fact that there was no clear e@-lanation of the
nat)re of the metho*s an* forms of wholesale collectiviFation0 or of
the criteria for its com-letion ,,, Man officials inter-rete* it ,,, as
the imme*iate incor-oration of all toilin" -easants in 8ol8hoF,D
DStalin an* his closer co>wor8ers *i* not consi*er it essential to
*isc)ss the -artDs new -olic for the villa"es in a +roa* -art
for)m0 s)ch as a con"ress or conference,D If -ro-er *isc)ssion ha*
ta8en -lace0 man mista8es wo)l* have +een avoi*e*0 asserte*
another writer,
1
An all>)nion collective>farm centre 4;ol1ho2tsentr5 was create*0
Suddenly and .ithout .arnin) 1%!
as well as an all>)nion Nar1om2em .Peo-leDs Commissariat of
A"ric)lt)re/0 )n*er Ya8ovlev, The same Ya8ovlev hea*e* a s-ecial
-olit+)rea) commission set )- on ' 3ecem+er #$($0 a month after
Stalin anno)nce* the "reat t)rn0 to *isc)ss how to collectiviFe, It
s-ro)te* a whole n)m+er of s)+>committees0 amon" them one on
tem-os0 another on the or"aniFational str)ct)re of collectives0 et
another on 8)la8s0 etc, On #%>#4 3ecem+er the met to ar")e
vario)s -ro-osals, On (( 3ecem+er the commission -resente*
-ro-osals to the -olit+)rea)0 which +ecame the +asis of a *ecree
-asse* on 1 2an)ar #$&5, It mi"ht +e -ro-er to concl)*e that it ha*
no time to consi*er the colossall com-le@ iss)es involve*, Ahea* of
an re-ort0 or*ers were alrea* "oin" o)t to the localities0 )r"in"
instant action, Th)s a tele"ram from 7ol8hoFtsentr on #5 3ecem+er
#$($ rea*? DTo all local or"aniFations in the areas of total
collectiviFation? to achieve #55 -er cent collectiviFation of wor8in"
animals an* cows0 '5 -er cent of -i"s0 %5 -er cent of shee- an* also
-o)ltr0 an* (1 -er cent of the collectives to +e comm)nes,D
%
Meanwhile the commission -ro-ose* the followin" timeta+le Dfor
total 4s#loshnaya5 collectiviFationD? the lower =ol"a + the a)t)mn
of #$&50 the central +lac8>earth area an* the U8rainian ste--es +
the a)t)mn of #$&#0 the Dleft +an8 U8raineD + the s-rin" of #$&(0
the North an* Si+eria + #$&&,
Accor*in" to evi*ence -)+lishe* in #$%10
4
Stalin an* Molotov
-resse* for more ra-i* tem-os, 6 contrast0 others > s)ch as
An*reev .-art secretar of North Ca)cas)s/ an* Shli8hter
.U8rainian commissar for a"ric)lt)re/ > ar")e* for *ela, The were
overr)le*, The same so)rce0 which ha* access to archives an*
E)otes them0 tells that the )nfort)nate Ya8ovlevDs *raft incl)*e* the
-rovision that collectiviFation sho)l* ta8e -lace Dwith the
-reservation of -rivate -easant ownershi- of small tools0 small
livestoc80 milch cows0 etc,0 where the serve the nee*s of the
-easant familD0 also that Dan ste- towar*s comm)nes m)st +e
ca)tio)s an* m)st *e-en* on -ers)asionD, 6oth these limits on
ar+itrar e@cesses were crosse* o)t + Stalin himself, It was StalinDs
fa)lt0 therefore0 that the *ecree of 1 2an)ar #$&5 containe* nothin"
to s)""est to ill>-re-are* an* conf)se* local ca*res that the were
not to "o ahea* an* collectiviFe all -easant
1:9 ollectivi8ation
-ro-ert *own to chic8ens0 ra++its0 hoes an* +)c8ets, To ma8e their
conf)sion worse0 an* to ens)re the wil*est e@cesses0 the hea* of the
-artDs a"itation an* -ro-a"an*a *e-artment0 !, 7amins80 *eclare*
in 2an)ar #$&5? DIf in some matters o) commit e@cesses an* o)
are arreste*0 remem+er that o) have +een arreste* for o)r
revol)tionar *ee*s,D
'
Stalin an* Molotov )r"e* all -ossi+le s-ee*,
The local ca*res a--ear to have )n*erstoo* their tas8 as >f)ll steam
ahea*, It was har*l s)r-risin" that there was D)nC)stifie* forcin" of
the -aceD, Ya8ovlev warne* in vain? avoi* Da*ministrative
enth)siasm0 C)m-in" ahea*0 e@cessive hasteD, The -art ca*res were
to Dlea* the s-ontaneo)s "rowthD Cvo2glavlyat, sti1hi!inyi rost5 of
collectiviFation,
$
He an* the reci-ients of his warnin" were victims
of the mth an* the lie, How co)l* the lea* a none@istent
s-ontaneo)s movementG How co)l* the achieve it vol)ntaril
when the 8new that what the saw in front of them was a coercive
o-eration in its ver essenceG A Soviet researcher fo)n* a re-ort in
the archives which state* the followin"? DE@cesses are to a
consi*era+le e@tent e@-laine* + the fact that re"ional an* local
or"aniFations0 fearf)l of ri"ht>win" *eviation0 -referre* to over*o
rather than )n*er*o 4#red#ochli #eregn%t, chem nedogn%i
=
5? Simi>
larl0 7alinin re-orte* that collectiviFation of all livestoc8 was +ein"
)n*erta8en + officials Dnot of their own free will0 +)t owin" to fear
of +ein" acc)se* of ri"ht>win" *eviationD,
#5
9ocal officials anno)nce*? DHe who *oes not Coin a 8ol8hoF is an
enem of Soviet -ower,D The ha* Deither to achieve #55 -er cent
4s#los1naya5 in two *as0 or han* in o)r -art car*D, The assa)lt
was la)nche*0 re"ar*less of lac8 of -re-aration0 re"ar*less of local
con*itions0 of o-inion0 of everthin" e@ce-t the "reat cam-ai"n,
There was0 one can see0 some lo"ic a"ainst "oin" slow? -easants
who 8new what was comin" wo)l* react + c)ttin" *own
-ro*)ction0 -erha-s *estroin" their tools an* livestoc8, 6etter "et
it over0 an* +efore the s-rin" sowin",
'he 3i@uidation o1 the 6ula0s as a lass
6)t if whole re"ions were to +e #55 -er cent collectiviFe*0 what
was to +e *one with the 8)la8sG 3)rin" the secon* half of #$($ a
The 6i@uidation of the Aula3s as a Class 1%*
*e+ate on this E)estion went on, It was at this -oint not et clear
what 8in* of collectiviFation cam-ai"n there wo)l* +e0 +)t alrea*
the iss)e of -ossi+le e@-)lsion or e@-ro-riation of 8)la8s was -ose*,
The maCorit view was a"ainst s)ch *rastic sol)tions, In 2)ne #$($
Pravda hea*e* an article with the wor*s? DNeither terror nor
*e8)la8iFation0 +)t a socialist offensive on NEP lines,D Others
+elieve* in a "rave *an"er to Soviet -ower in the 8)la8s0K tho)"h
one mi"ht have tho)"ht that their o--osition was *)e in lar"e -art to
the meas)res which were +ein" ta8en a"ainst them, The *e+ate
cease* when Stalin0 in his statement to the Da"rarian Mar@istsD at the
en* of 3ecem+er #$($0 asserte* an* C)stifie* the -rinci-le of their
DliE)i*ation as a classD, The were not allowe* to enter the
collectives0 -res)ma+l in case the *ominate* them from within0 as
the ha* *ominate* man a villa"e assem+l 4s1hod5 in the
twenties,
StalinDs C)stification of these *rastic meas)res showe* how0 once
the o--osition was silence*0 he +ecame contem-t)o)s of serio)s
ar")ment, Millions were to +e )-roote*0 a mo)ntain of h)man
miser create*0 +eca)se the "rain -ro*)ce* an* mar8ete* + 8)la8s
co)l* now +e re-lace* + collective an* state farms, In
conseE)ence0
Now we are a+le to carr on a *etermine* offensive a"ainst the 8)la8s0
eliminate them as a class ,,, Now *e8)la8iFation is +ein" carrie* o)t +
the masses of -oor an* mi**le -easants themselves ,,, Now it is an
inte"ral -art of the formation an* *evelo-ment of collective farms,
ConseE)entl it is ri*ic)lo)s an* foolish to *isco)rse at len"th on
*e8)la8iFation, :hen the hea* is off0 one *oes not mo)rn for the hair,WX
There is another E)estion no less ri*ic)lo)s? whether 8)la8s sho)l* +e
-ermitte* to Coin collective farms, Of co)rse not0 for the are sworn
enemies of the collective farm movement,
#(
These harsh -hrases -)t a sto- to a -ainf)l an* serio)s *isc)ssion
of the 8)la8sD fate, 6)t in fact0 + a mi@t)re of local -art ca*resD
im-rovisations an* semi>s-ontaneo)s E)asi>lootin"0 the -rocess of
*e8)la8iFation ha* +e")n +efore StalinDs wor*s ha* seen the li"ht of
*a,
At first there was no clear line, 9ocal officials0 actin" Dat their
own ris8 an* -erilD0 +e"an *e-ortations0 these +ein" lin8e* at first
#%% CollectiviFation
not with collectiviFation +)t with meas)res to enforce "rain
*eliveries0 as mentione* a+ove, Onl on < Fe+r)ar #$&5 was there
an instr)ction iss)e* from the central committee a+o)t how to treat
the 8)la8s, 3e-ortation *i* in fact +e"in in some re"ions + the en*
of #$($0 an* reache* its -ea8 in #$&5>&#, Accor*in" to Ivnits8 a
total of a+o)t &550555 8)la8 ho)sehol*s were *e-orte* .ro)"hl #,1
million -eo-le/I he E)otes other Soviet estimates ran"in" from
(<50414 .in the official -art histor/ to &'#05(%0 tho)"h he thin8s
that this co)l* have +een *)e to some families +ein" co)nte* twice,K
However0 some estimates of *e-ortations are m)ch hi"her, For
e@am-le0 6est)Fhev>9a*a s-ea8s of the *e-ortation of D+etween an
ei"hth an* a si@th of the (1 million -easant ho)sehol*sD,
#<
Nor *o we
et 8now what -ro-ortion was resettle* )n*er tolera+le or
intolera+le con*itions0 how man *ie* en ro)te or in the froFen
wil*erness0 how man were treate* as Ds-ecial resettlersD or en*e* )-
in !)la" cam-s0 or fo)n* Co+s on constr)ction sites, There is am-le
evi*ence of a--allin" ill>treatment, However0 ConE)estDs estimates
of 8)la8 *eaths *o a--ear to +e too hi"h .)nli8e his estimates of
famine victims0 of which more +elow/,
:hat is E)ite clear is that collectiviFation went han* in han* with
*e8)la8iFation0 an* *e8)la8iFation with half>*is")ise* ro++er,
Poorer -easants seiFe* their nei"h+o)rsD "oo*s in the name of the
class str)""le0 or with no e@c)se at all0 an* the officials fo)n*
themselves instr)cte* to Dwin the s)--ort of -oor -easantsD an* were
then +lame* for Dallowin" the *istri+)tion of 8)la8 -ro-ert amon"
the -oor an* lan*less0 in contravention of -art *irectivesD,
#1
In fact
Stalin intervene* to -rohi+it the *is-ersal of 8)la8 -ro-ert amon"
-oor -easants0 since this wo)l* ma8e their s)+seE)ent
collectiviFation more *iffic)lt + "ivin" them somethin" to lose, His
concl)sion .in Fe+r)ar #$&5/ was? since *e8)la8iFation onl ma*e
sense in relation to collectiviFation0 D:or8 har*er for collectiviFation
in areas in which it is incom-leteD,
#%
3etails of C)st who was or sho)l* have +een *e8)la8iFe* are still
ina*eE)atel *oc)mente*, 7)la8s were *ivi*e* into three
cate"ories, The first0 *escri+e* as Dactivel hostileD0 were to +e
han*e* over to the O!PU .-olitical -olice/ an* sent to
The 6i@uidation of the Aula3s as a Class 1%5
concentration cam-s0 while Dtheir families were s)+Cect to *e-orta>
tion to *istant re"ions of the north0 Si+eria an* the far eastD,
#4
The
secon* cate"or was *escri+e* as Dthe most economicall -otent
8)la8 ho)sehol*sD, These were to +e *e-orte* o)tsi*e the re"ion of
their resi*ence, Finall0 the thir* "ro)-0 re"ar*e* as least no@io)s0
were to +e allowe* to remain in the re"ion +)t were to +e "iven lan*
of the worst 8in*, The -ro-ert of the first two cate"ories was
virt)all all to +e confiscate*, Those in the thir* cate"or were to +e
allowe* to 8ee- essential eE)i-ment0 which im-lie* -artial
confiscation, On their inferior lan* the were to "row eno)"h cro-s
to meet the ver lar"e *eman*s of the state for com-)lsor
*eliveries, The same so)rce s-ecificall mentions e@tremel hi"h
-roc)rement E)otas0 an* ta@es risin" to 45 -er cent of their income,
Fail)re to *eliver -ro*)ce or to -a ta@es was consi*ere* as anti>
Soviet activit0 an* was often followe* + *e-ortation, It is clear
from the evi*ence that man of these *e-ortations too8 -lace after #
2)l #$&50 so it is -ossi+le that in the en* all the -ersons *escri+e*
as 8)la8s were in fact *e-orte*, Some *etails of the -roce*)res )se*
ma +e fo)n* in the archives of the Smolens8 -art committee,
Others will +e cite* in s)ccee*in" -a"es,
It is also clear that -ersons who were not 8)la8s at all were
arreste* an* *e-orte*, How else can one inter-ret a warnin"0 to +e
fo)n* in the Smolens8 archives0 a"ainst contin)in" to *e-ort so>
calle* Di*eolo"icalD 8)la8s0 these +ein" -lainl o--onents of
collectiviFation0 rich or -oorG In the archives ma also +e fo)n*
references to 8)la8s +ein" ro++e* of their clothes an* +oots0 an*
those en"a"e* in the -rocess of *e8)la8iFation were 8nown to
reE)isition an* *rin8 an vo*8a fo)n* in the 8)la8 ho)se,
#'
Or*ers
were iss)e* to sto- s)ch +ehavio)r, 6)t what co)l* the "overnment
e@-ectG There were few relia+le -art mem+ers in the villa"es an*
the ha* to )tiliFe an* enco)ra"e an ra""e* r)ffians who co)l* +e
-revaile* )-on to e@-ro-riate an* chase o)t their +etter>off
nei"h+o)rs .in the name of the class str)""le0 of co)rse/, The -art
an* -olice officials fo)n* themselves vin" with each other in their
*e8)la8iFin" Feal, If families were se-arate*0 chil*ren left )ncare*
for0 tho)san*s sent on Co)rnes with little foo* an* water to Si+eria
in railwa wa"ons0 then this
#%' CollectiviFation
seems to have +een acce-te* as an inevita+le -art of the str)""le to
e@tir-ate the last e@-loitin" class, There were far more warnin"s
a"ainst Drotten li+eralismD an* sentimentalit than there were a"ainst
so>calle* e@cesses, There is still some *is-)te as to the e@tent to
which the state was a+le to mo+iliFe the anti>8)la8 feelin"s of -oor
-easants, Even hi"hl critical literar an* historical so)rces .e,",
Platonov in his ;otlovan, an* Ten*ra8ov in his a)to+io"ra-hical
s8etches/ refer to s)ch feelin"s0 tho)"h attri+)tin" them to Cealo)s
of the i"norant0 *r)n8en an* inca-a+le, Several writers have
analse* the +ac8"ro)n* of these -ett officials an* D*eclasse*D
-easants who Coine* in the collectiviFation *rive,K One wo)l* li8e to
see more evi*ence of the e@tent of s-ontaneo)s action, Some of the
resol)tions cite* in TrifonovDs +oo8 loo8 s)s-icio)sl as if the were
a*o-te* + a -art activist an* ramme* *own the -easantsD throats,
oercion and 'e$!orar- (etreat
The "reat assa)lt was la)nche* ami* in*escri+a+le conf)sion, It
ma +e0 as has +een ar")e* + Ol"a Nar8iewicF0
(5
that some or
m)ch of collectiviFation remaine* on -a-er0 or was confine* to
re-orts + -er-le@e*0 conf)se* or over>enth)siastic comra*es, The
fact remains that it was anno)nce* + (5 Fe+r)ar #$&5 that 15 -er
cent of the -easants ha* Coine* collective farms0 of which most were
either arteli or Dcomm)nesD, The TO; was lar"el *iscar*e*, Half of
the -easant -o-)lation in seven wee8sH
Of co)rse the threat of +ein" la+elle* a 8)la8 was wi*el )se* as
a means of caColin" -easants to Coin, Those stron"l o--ose* co)l*
+e0 an* were0 *e-orte* as 8)la8s0 whatever their economic stat)s,
This was a vast e@ercise in coercion0 an* the +ewil*ere* -easants
won*ere* what ha* hit them, No *o)+t0 in the a+sence of a*eE)ate
+riefin" or -re-aration0 there were "reat variations in *ifferent
localities, Until m)ch more is -)+lishe*0 we sim-l cannot tell, 6)t
this was in*ee* a Drevol)tion from a+oveD,
9ar"e n)m+ers of conflictin" instr)ctions have +een cite* +
Soviet analsts0 which hel- to e@-lain the variet of -olicies
followe* on the s-ot, Occasional warnin"s were -)+lishe* in the
Coercion and Temporary Retreat 1%
central -ress in 2an)ar>Fe+r)ar #$&50 -artic)larl on the )n*e>
sira+ilit of forcin" collectiviFation in the more +ac8war* national
re-)+lics, However0 the warnin"s were sometimes am+i")o)sl
wor*e*0 an* the re"ional -art committees iss)e* eE)all am+i")>
o)s or*ers, Th)s 6o"*en8o E)ote* from the archives of the Si+erian
-art resol)tions warnin" severel a"ainst e@cesses0 +)t *eman*in"
at the same time the com-letion of collectiviFation + that ver
s-rin", Since at the *ate of the Dwarnin"D .( Fe+r)ar #$&5/ onl #(
-er cent of Si+eriaDs -easants ha* +een collectiviFe*0 the cam-ai"n
inevita+l contin)e*0 or even intensifie*, In !eor"ia0 Armenia0
7aFa8hstan an* UF+e8istan there were sai* to +e a few areas .ill>
*efine*/ s)ita+le for wholesale collectiviFation,
(#
Not ver
s)r-risin"l0 all these meas)res -ro*)ce* a shar- reaction from the
-easants, Th)s in Central Asia alone in the first five *as of March
#$&5 the archives recor* fort>five o-en *emonstrations
4vyst%#leniya5 involvin" #40<55 -ersons,
((
Another so)rce refers to
Dre+ellions an* a"itationsD 4tnyate2hi i volneniya5, -rovo8e* +
D8)la8s an* anti>Soviet elements in some -lacesD,
(&
:h *e-ort so man real or alle"e* 8)la8sG 3i* this not0 at a
+low0 *e-rive Soviet a"ric)lt)re of its most ener"etic an* 8nowl>
e*"ea+le h)s+an*menG 9ewin has s)""este* the most -ro+a+le
reason? to *rive the mi**le -easants into the collectives0 not onl +
scarin" them +)t also + finall slammin" in their faces the *oor to
their f)t)re a*vance 0%a in*ivi*)al -easantsI that *oor0 it was
*emonstrate*0 le* to 8)la8 stat)s an* that was a fairl s)re tic8et to
Si+eria, As well as 8)la8s0 the terminolo" of the time i*entifie* an
even less *efina+le cate"or0 #od1%lachni1, or 8)la8>s)--orter .or
Ds)+>8)la8D/0 to whom re-ressive meas)res were also a--lie* as an*
when necessar,
A Soviet writer has state* E)ite fran8l that Dmost -art officialsD
tho)"ht that the whole -oint of *e8)la8iFation was its val)e as an
Da*ministrative meas)re0 s-ee*in" )- tem-os of collectiviFationD0
(<
which clearl means that it ha* "reat val)e as a wea-on of coercion
in relation to the -easantr as a whole, .7)la8s were not eli"i+le to
Coin the collectivesH/
6)t chaos0 *es-air an* coercion wo)l* not "et the s-rin" sowin"
*one, After enco)ra"in" e@cesses of ever 8in*0 Stalin
#45 CollectiviFation
calle* a halt, :ith a rare effronter0 he +lame* the local officials,
The were D*iFF with s)ccessD, He wrote? DThe s)ccesses of o)r
collective farm -olic are *)e0 amon" other thin"s0 to the fact that it
rests on the vol%ntary character of the collective>farm movementD
.his em-hasis/, He warne* a"ainst i"norin" re"ional an* national
*ifferences, He a*mitte* that there was some D+)rea)cratic
*ecreein"D of collectiviFation0 which lac8e* realit0 an* threats0 s)ch
as *e-rivin" some -easants in T)r8estan of irri"ation water an*
man)fact)re* "oo*s )nless the Coine*, In the same article0 Stalin
a*vocate* the artelD form of collectives an* sai* that within the artelD
Dsmall ve"eta+le "ar*ens0 small orchar*s0 the *wellin" ho)ses0 some
of the *air cattle0 small livestoc80 -o)ltr0 etc, are not sociali2ed
=
-
He *eno)nce* the collectiviFation of -o)ltr0 of *wellin" ho)ses0 of
all cows0 the removal of ch)rch +ells0 the Dover>Fealo)s socialiFersD,
(1
This seeme* to im-l a ren)nciation of the coercion -rinci-le0 a
con*emnation of what the -art ca*res in the villa"es ha* +een so
feverishl see8in" to accom-lish0 an* from the .ver/ hi"hest level,
:ithin wee8s the -ro-ortion of the -easantr collectiviFe* fell
from 11 -er cent .# March/ to (& -er cent .# 2)ne/, Per-le@e* an*
*emoraliFe* officials were ma*e sca-e"oats an* fools, The letter of
one s)ch to Stalin has +een -)+lishe*I 7hataevich .a -rominent
-art secretar/ wrote on % A-ril #$&5? D:e have to listen to man
com-laints Ofrom -art ca*resP that we have +een wron"l *eclare*
to +e *)n*erhea*s 9golovotya#y:- Reall0 instr)ctions sho)l* have
+een "iven to the central -ress so that0 in criticiFin" the *eviations
an* e@cesses which too8 -lace0 the sho)l* attac8 an* moc8 not
onl local officials, Man *irectives on collectiviFin" all livestoc80
incl)*in" the smallest t-es0 came from 7ol8hoFtsentr0 from the
a"ric)lt)ral commissariat,D
(%
He mi"ht have +een trin" to shame
Stalin, .No -riFe is offere* for ")essin" whether 7hataevich
s)rvive* the "reat -)r"e,/
Others Dwent so far as to for+i* -eo-le to rea* StalinDs article0
remove* the iss)es of the news-a-ers containin" the article0 an* so
onD, Archives show that some local officials treate* the new -olic
as a s)rren*er to the -easants,
(4
In fact the conf)sion was increase*
+eca)se StalinDs article was am+i")o)s, He calle*0 it is
Coercion and Temporary Retreat 151
tr)e0 for the en* of e@cesses an* of coercion, 6)t he also calle* the
-art to Dma8e firmD 42a1re#i?5 the e@istin" level of collectiviFation,
It was not too clear whether0 an* if so on what terms0 -easants co)l*
+e allowe* to leave the farms, It too8 man wee8s of clarification
+efore it was finall force* )-on -art officials in some re"ions that
StalinDs *irective0 an* the resol)tion of the central committee which
followe* it0 reall *i* mean that one co)l* wal8 o)t, The ver "reat
re"ional variations are shown + the followin" e@tract from a m)ch
lon"er ta+le?
Percent$e o# pesnt households collecti:iEed, 19(c R
1 >rch 1& >rd
h 1 *pril
(1-(
1 >+
D
1 <une
USS) 0otal //-& /1-4 .(.4
North 2ucsus 14.0 19-( 44.&
41..
/0.1
>iddle ?ol$ /44 /1-.
41.& ./.. ./..
U,rine 4..0 44.4 44.. 41-( (0..
2entrl =lc,-erth re$ion 01.0 01./ (0.& 10./ 1/-1
Urls 40.0 1&.4 /..4
.9.&
.4.4
Si+eria 44.0 /&.0
4..1
./-4 19.0
KE,hstn (1-1 41-9 /4.4 44-4 .0./
UE=e,istn .1.9 4/-/ (&.0 D .1-/
>osco5 pro:ince 1(-& /0.1
1..(
1-/
1-.
-estern re$ion (9-4 (1-4
1/&
1-1 4.1
Belorussi /1-9 //-0 44-1 D PS/
)Source: Bo$den,o !citin$ rchi:e nd other "terils%, p. (1.%
Several concl)sions follow, One is the fantastic )-s>an*>*owns in
the lives of the lar"e maCorit of the -o-)lation of the Soviet Union
within a few short months, Another is the variation in the e@tent to
which the -easants co)l* .or were allowe* to0 or wante* to/ leave
collectives, Th)s a lar"e n)m+er were retaine*0 no *o)+t +
a--ro-riate -ress)res0 in s)ch 8e "rain>s)r-l)s areas as the North
Ca)cas)s an* U8raine0 whereas in some other areas collectiviFation
was almost a+an*one* .see fi")res for Moscow0 the :est an*
6elor)ssia/, Finall0 the -ress)re to collectiviFe in some Asian
re-)+lics starte* late an* was contin)e* well after D3iFF with
s)ccessD0 as the 7aFa8hstan fi")res show > an* this *es-ite
-artic)larl em-hatic warnin" to "o caref)ll an* slowl in the
com-le@ circ)mstances of these +ac8war* areas, 6)t + the
172 ollectivi8ation
en* of A-ril there was an o)tflow of -easants from the half>+a8e*
8ol8hoFes in all areas0 tho)"h at *ifferent rates0 while0 in the wor*s
of a Soviet scholar0 Dcon*itions in the villa"es0 create* + e@cesses0
were straine* in the hi"hest *e"reeD, In man areas0 a ver lar"e
-ro-ortion even of -oor -easants an* lan*less la+o)rers wal8e*
o)t,
('
It is interestin" that man of them forme* what were
*escri+e* as Dcoo-eratives of the sim-lest t-eD an* trie* to wor8
to"ether,
($
It is one of the tra"e*ies of this -erio* that this an* other
8in*s of "en)ine coo-eration were so E)ic8l wi-e* o)t,
Yet0 ami* all this chaos0 the heavens chose to smile, The weather
was e@cellent0 somehow most of the sowin" *i* "et *one0 an* the
#$&5 harvest was +etter than that of #$($0 an* nota+l +etter than
the harvest that s)ccee*e* it .see ta+le on -a"e #'%/,
Official Soviet e@-lanations s)ffere* from an in+)ilt *efect, Th)s
an a)thoritative article -)+lishe* in #$%1 too8 the followin" line, It
as8e* if it was wron" to -ress on with collectiviFation0 an*
answere*? DNo, Un*er con*itions of ca-italist encirclement an*
constant threat of intervention0 it was im-ossi+le to *ela for lon"
the reconstr)ction of a"ric)lt)re0 the liE)i*ation of co)nter>
revol)tionar 8)la8s,D It was a*mitte* that in Novem+er>3ecem+er
#$($ Stalin e@a""erate* the -easantsD *esire to +e collectiviFe*0 that
he -)she* officials into e@cessive haste an* harshnessI warnin"s that
Dthe 9eninist vol)ntar -rinci-leD was +ein" *isre"ar*e* were
i"nore* + him, In *isc)ssin" whether heav losses in livestoc8
co)l* have +een avoi*e*0 the a)thors *eclare*? the were avoi*a+le
Dif the 9eninist -rinci-le of the vol)ntar entr of -easants into
8ol8hoFes were )n*eviatin"l o+serve*D,
&5
6)t this was sim-l not a
tena+le -osition, How can one assert the necessit of
collectiviFation .an* *efen* D*e8)la8iF>ationD too0 thirt ears after
the event/0 an* solemnl assert that collectiviFation sho)l* have
+een vol)ntarG It co)l* not have +een *one witho)t mass coercion0
an* the m)st have 8nown it -erfectl well, Even in #$'40 so
consi*era+le a scholar as 3anilov0 in an article in Pravda .$ A)")st
#$'4/ on DThe Ori"ins an* 9essons of CollectiviFationD0 while
em-hasiFin" that coercion was wi*el )se* to force -easants to Coin0
an* that the -roteste*0
The <ffensi0e Resumed 15!
none the less concl)*e* that in *)e co)rse Dthe -easantr
+ecame a class in socialist societ0 a class of collectivist toilersD,
This was also !or+achevDs line0 in his s-eechBof ( Novem+er
#$'4, However0 not onl the a+)ses +)t also the -olic of collectiv>
iFation are now not merel E)estione* +)t *eno)nce*0 the whole
-olic characteriFe* as a +r)tall im-ose* *isaster0 an* this +oth
+ conservative neo>slavo-hils s)ch as SolFhenitsn an* + ra*i>
cals of man h)es0 as well as .after #$'4/ + !or+achev,
The ol* villa"e comm)nit or"aniFations 4o"shchina, mir5 were
formall *issolve*0 in areas s)+Cect to collectiviFation0 + a *ecree
of &5 2)ne #$&5, Their f)nctions were ta8en over + the collective
farms an* + r)ral Soviets,
'he =11ensive (esu$ed
!ra*)all0 the -easants were force*0 -ers)a*e*0 caCole*0 ta@e*0
or*ere*0 +ac8 into collective farms, The total fi")res for the
USSR .for 2)l/ are as follows?
19( B i9(R 19(. 19(( C9(4 C9(/ 19(4
Percent$e o# pesnt
households collecti:iEed .(.4 /..1 41./ 44.4 11.4 0(.. 09.4
Percent$e o# crop re
collecti:iEed ((.4 41.0 11.4 0(.1 01.4 94.1 3
(Source: Sotsialisticheskoe stroite1st'o SSSR !19(4%, p. .10. Stte #r" re nd
household plots included.%
The f)ll stor of how it was *one has et to +e tol*, Onl some
of the facts are as et availa+le, Peasants o)tsi*e the 8ol8hoF were
"iven inferior lan*0 were loa*e* with e@tra ta@es or *eliver
o+li"ations0 or +oth, There were re-eate* instances in #$&#>( of
com-)lsor -)rchase of -easant livestoc8,
&#
More areas were
*eclare* as *)e for all>ro)n* collectiviFation, Th)s a *ecree of
( A)")st #$&# s-ecifie* the Dcotton>"rowin" area of Central
Asia0 7aFa8hstan an* Transca)casia an* +eet>"rowin" areas
of the U8raine an* central +lac8>earth re"ionsD as +ein" *)e for
151 Collecti0i9ation
collectiviFation *)rin" #$&#, A lon" an* +itter str)""le ra"e*,
Peasants sla)"htere* livestoc8, Sholo8hov has left a vivi* -ict)re of
what ha--ene*?
Stoc8 was sla)"htere* ever ni"ht in !remach 9o", Har*l ha* *)s8
fallen when the m)ffle*0 short +leats of shee-0 the *eath>sE)eals of -i"s0
or the lowin" of calves co)l* +e hear*, 6oth those who ha* Coine* the
8ol8hoF an* in*ivi*)al farmers 8ille* their stoc8, 6)lls0 shee-0 -i"s0
even cows were sla)"htere*0 as well as cattle for +ree*in", The horne*
stoc8 of !remach was halve* in two ni"hts, The *o"s +e"an to *ra"
entrails a+o)t the villa"eI cellars an* +arns were fille* with meat, The
coo-erative sol* a+o)t two h)n*re* -oo*s of salt in two *as0 that ha*
+een lin" in stoc8 for ei"hteen months, D7ill0 itDs not o)rs an more
,,,D D7ill0 theDll ta8e it for meat anwa ,,,D D7ill0 o) wonDt "et meat
in the 8ol8hoF ,,,D cre-t the insi*io)s r)mo)rs, An* the 8ille*, The
ate till the co)l* eat no more, Yo)n" an* ol* s)ffere* from stomach>
ache, At *inner>time ta+les "roane* )n*er +oile* an* roaste* meat, At
*inner>time everone ha* a "reas mo)th0 everone hicco)"he* as if at
a wa8e, Everone +lin8e* li8e an owl0 as if *r)n8 from eatin",
&(
The new farms lac8e* all e@-erience in han*lin" the collectiviFe*
livestoc8, Man *ie* of ne"lect, The -art activists from the towns
sent to s)-ervise the -easants were i"norant of a"ric)lt)re0
s)s-icio)s of a*vice, There was a crisis in #$&(0 owin" to +a*
-lannin"0 low -a0 cr)*e coercion within 8ol8hoFes0 -oor or"aniFa>
tion of wor80 an* )nfavo)ra+le weather,
CollectiviFation s-rea* into -rimitive0 -astoral 7aFa8hstan0 with
catastro-hic res)lts, 9ivestoc8 losses were *isastro)s everwhere0
+)t in 7aFa8hstan the virt)all wi-e* o)t the shee- -o-)lation,
KE,hstn, sheep nd $ots
(millions)
19.0 19(/ 194&
19.. ..4 1.&
(Source: "ar.kho(. 2a(akh.
SSSR,i3#4,p. 141.%
The <ffensi0e Resumed 15*
A recent article + three 7aFa8h historians shows that the losses
amon" the 7aFa8hs were catastro-hic? no less than <5 -er cent of
the entire 7aFa8h -o-)lation -erishe* in #$&#>&0 from h)n"er an*
*isease,
&&
Shorta"es of fo**er were a maCor ca)se of the re*)ction in
livestoc8 in some areas0 nota+l in the U8raine0 where the stateDs
e@actions left ver little on which to fee* animals, In #$&# sowin"
s)ffere* ac)tel from the a--allin" state of the h)n"r horses,
&<
Amon" metho*s )se* to force -easants +ac8 into collectives were
ar+itrar e@actions 8nown as Dhar* o+li"ationsD 4tvyordye 2adaniya5
to *eliver vast E)antities of "rain to the state, Th)s0 to ta8e one
e@am-le0 in Se-tem+er>Octo+er #$&5 in the Crimea 44 -er cent of
all those assesse* for s-ecial o+li"ator *eliveries faile* to *eliver
the reE)ire* amo)nt0 *es-ite what the so)rce calle* Dthe to)"hest
str)""leD0 an* the were -)nishe* + sale of their -ro-ert0 fines0
im-risonment0 etc,0 the e@act fi")res +ein" cite* from the archives
+ the so)rce,
&1
Similar meas)res were ta8en in other re"ions, 7)la8s ha* +een
lar"el liE)i*ate* in #$&50 so the attac8 was now on D8)la8 an*
+etter>off -easants0 an* was E)ite clearl inten*e*0 in the winter of
#$&5>&#0 to *rive the -easants +ac8 into the collectives, To cite the
same so)rce a"ain0 DThis str)""le "rew into another wave of
liE)i*ations of 8)la8s as a class0 which in its t)rn was *irectl
lin8e* with the new wave of collectiviFation in the winter an*
s-rin" of #$&#,D This was re-eate* in #$&#>(0 an* there were also
man cases re-orte* where o+stinate in*ivi*)al -easantsD -rivatel
owne* horses were com-)lsoril )se* on the collective farms,
&%
Some victims of these meas)res were *e-orte*0 others eva*e* ever>
"rowin" *eliver o+li"ations + Coinin" collectives Dvol)ntarilD,
Mosh8ov commente*? DThe Oe@ce-tionalP *eliver o+li"ations
affecte* not onl 8)la8s +)t also the )--er strata of the mi**le
-easants, However0 in -ractice0 the were treate* *ifferentl to
8)la8s0 +ein" "iven the chance 9sic: to enter the 8ol8hoFes,D
&4
Percenta"es rose0 tho)"h *etaile* evi*ence shows that some
-easants left the 8ol8hoFes0 man fleein" to wor8 in towns an* on
constr)ction sites,
#4% CollectiviFation
The #$&(>& Crisis
In #$&(0 face* with mass -illa"e of DsocialistD -ro-ert + the
*emoraliFe* an* often h)n"r -easantr0 the followin" *raconian
le"islation was a*o-te*0 as an amen*ment to Article 1' of the
Criminal Co*e? -ilferin" on the railwas an* of 8ol8hoF -ro-ert
.incl)*in" the harvest in the fiel*s0 stoc8s0 animals0 etc,/ was to +e
-)nishe* D+ the ma@im)m means of social *efence0 shootin"0 or0 in
case of e@ten)atin" circ)mstances0 *e-rivation of free*om Oi,e,
-rison or cam-C for not less than ten ears0 with confiscation of all
-ro-ertD,
&'
Even Stalin *i* not *o s)ch thin"s witho)t "oo* reason,
The fact that s)ch laws were -asse* in -eacetime shows that he0 at
least0 8new he was at war, His letter to Sholo8hov0 which
7hr)shchev cite* thirt ears later0 showe* what he tho)"ht,
Sholo8hov ha* -roteste* a"ainst e@cesses in the area of the 3on in
#$&&0 which ha* incl)*e* mass arrests .also of comm)nists/0 ille"al
seiF)res0 e@cessive "rain -roc)rementsI Stalin in his re-l a*mitte*
that some officials0 in wor8in" a"ainst Dthe enemD0 also hit frien*l
-ersons Dan* even commit sa*ismD, D6)t ,,, the hono)ra+le c)ltivators
of o)r re"ion0 an* not onl o)r re"ion0 committe* sa+ota"e an*
were E)ite willin" to leave the wor8ers an* the Re* Arm witho)t
"rain, The fact that the sa+ota"e was silent an* a--arentl "entle .no
+loo* was s-ilt/ *oes not chan"e the fact that the hono)ra+le
c)ltivators in realit were ma8in" a KsilentK war a"ainst Soviet
-ower, :ar + starvation0 m *ear comra*e Sholo8hov,D
&$
This0 of co)rse0 was the -oint ma*e + Stalin in his famo)s tal8
with Ch)rchill0 re-orte* in Ch)rchillDs :ar Memoirs, Stalin it was
who com-are* his str)""le a"ainst the -easants with the terri+le
e@-erience of the war a"ainst the !ermans,
The essential -ro+lem was all too sim-le, Harvests were -oor,
The -easants were *emoraliFe*, Collective farms were inefficient0
the horses sla)"htere* or starvin"0 tractors as et too few an* -oorl
maintaine*0 trans-ort facilities ina*eE)ate0 the retail *istri+)tion
sstem .es-eciall in r)ral areas/ )tterl *isor"aniFe* + an over>
-reci-itate a+olition of -rivate tra*e, Soviet so)rces s-ea8 of
a--allin"l low stan*ar*s of h)s+an*r0 with #& -er cent
The 1!,=! Crisis 155
of the cro- remainin" )nharveste* as late as mi*>Se-tem+er in
the U8raine0 an* some of the sowin" +ein" *elae* till after #
2)ne,
<5
=er hi"h e@-orts in #$&5 an* #$&# .see -, #'50 +elow/
*e-lete* reserves0 an* the ra-i* "rowth of the )r+an -o-)lation
le* to a shar- increase in foo* reE)irements in towns0 while
livestoc8 -ro*)cts *ecline* -reci-itatel with the *isa--earance
of so hi"h a -ro-ortion of the animals, The "overnment trie* to
ta8e more o)t of a smaller "rain cro-, :e now have foo* an*
fo**er +alances for the ears #$('>&(0 an* also #er ca#ita con>
s)m-tion fi")res,
7ilo"rams -er ca-ita
6rea* "rains Potatoes Meat L lar* 6)tter
A 6 A 6 A 6 A 6
#$(' #4<,< (15<
'
4N HiD 1
2
>4 (<>' (,$4 #,11 19(.
.11.( .14.4 11&.& 1./.& 14.9 11.. 1.1/ &.1&
A M Ur+an 6 M R)ral
4So%rce: Mosh8ov0 <ernovaya #ro"lema v gody s#loshnoi 1ol11tivi2atsii .Moscow
Universit0 #$%%/0 -, #&%0 E)otin" archives,/
These fi")res show that )r+an citiFens ate more +rea* an*
-otatoes0 in the -lace of meat an* +)tter, 6)t the -easants ate
less of everthin", That was the res)lt of *eli+erate -olic, A
Soviet scholar commente* that the vast increase Din state -roc)re>
ments *)rin" the ears of wholesale collectiviFation0 with low
levels of "rain -ro*)ction0 cannot +e e@-laine* merel + errors0
im-erfections of -lannin" or ,,, + the i"norin" of the interests
of a"ric)lt)re an* of the r)ral -o-)lation0 as is alle"e* +
+o)r"eois writers in the :est, The co)ntr was lain" the
fo)n*ation of a mi"ht in*)strial +ase,D
<
D Yes0 +)t at the -easantsD
e@-ense, Proc)rements in #$&# left man -easants an* their
animals with too little to eat, The U8raine an* North Ca)cas)s
s)ffere* -artic)larl severel, CollectiviFe* -easants relie* almost
e@cl)sivel on "rain *istri+)tion + 8ol8hoFes for their +rea*0
since mone was virt)all )seless in this -erio*I +rea* was
ratione* in towns an* )no+taina+le in the co)ntr save at
astronomical DfreeD -rices .see ne@t cha-ter/, These e@cessive
#4' CollectiviFation
-roc)rements threatene* the ver e@istence of the -easantr in some
areas, In fact0 accor*in" to Mosh8ov0 e@actions were so severe that
the state ha* to ret)rn "rain which ha* alrea* +een collecte* .(#
-er cent of the total in :est Si+eria0 for instance/ so that there
wo)l* +e some see*0 foo* an* fo**er, There were tremen*o)s
variations +etween areas an* +etween farms in the same area0 owin"
to the almost incre*i+le ar+itrariness of the -roc)rement or"ans,
<(
All this le* in #$&( to tro)+le0 -ilferin"0 in*isci-line0 conceal>
ment of cro-s, As a res)lt0 Stalin evi*entl *eci*e* to rela@ the
-roc)rements -ress)re somewhat0 an* the -roc)rement -lan for
#$&(0 which ha* ori"inall +een fi@e* at an im-ossi+le ($,1 million
tons0 was re*)ce* to #',# millions0 while "reater free*om was
offere* to 8ol8hoFes an* remainin" in*ivi*)al -easants to sell on
the free mar8et0 -rovi*e* the re*)ce* *eliver -lan was f)lfille*
first,
<&
However0 con*itions "rew even more chaotic, Proc)rement
or"ans rela@e* their -ress)re0 an*0 +eca)se of the vast *is-arit
+etween the low state +)in" -rices an* the ver hi"h free mar8et
-rices0 "rain flowe* into )nofficial channels0 an* in -artic)lar into
the -easantsD own storeho)ses0 since the harvest was not a "oo* one
an* the foo* shorta"es of the -revio)s winter were vivi*l recalle*,
3isci-line colla-se* in some areas, The re*)ce* state -roc)rement
-lan was threatene*, Tele"rams from Moscow ha* no res)lt, In the
North Ca)cas)s the harvest was -artic)larl -oor0 a mere <,<>1,$
E)intals -er hectare0 a misera+le cro- on the +est lan* in the USSR,
In this area0 an* in the U8raine0 evil>intentione* -ersons Ds)ccee*e*
in awa8enin" -rivate>-ro-ert feelin"s0 in *ivertin" man 8ol8hoF
-easants from the correct -ath an* -oisonin" them with
in*ivi*)alism, Some 8ol8hoFes in the North Ca)cas)s an* the
U8raine cease* to come )n*er the or"aniFin" infl)ence of the -art
an* the state,D
<<
.These were ver stron" wor*s in*ee* for a Soviet
a)thor0 in*icatin" a 8in* of re+ellion,/
F)rthermore0 the #$&( harvest seems to have +een s)+stantiall
overstate* in official claims, Accor*in" to evi*ence collecte* + M,
Ta)"er0
<1
it was -erha-s +arel 15 million tons0 a"ainst the
-)+lishe* %$,40 so that even the re*)ce* -roc)rement E)otas left
The 1!,=! Crisis 15
little for the -easants an* their animals0 es-eciall in areas of
tra*itional "rain>s)r-l)ses0 s)ch as the U8raine0 the North Ca)cas)s
an* the 9ower =ol"a, So the re*)ce* -roc)rement tar"ets -rove* too
hi"h,
This le* to severe co)nter>meas)res0 which in t)rn le* to the "reat
tra"e*? the famine of #$&&, DAll forces were *irecte* to
-roc)rements,D The law of 4 A-ril #$&(0 which0 as we have seen0
-rovi*e* for the *eath -enalt for -ilferin" foo*st)ffs in 8ol8hoFes0
was )se* a"ainst those who Dwith evil intent ref)se* to *eliver "rain
for OstateP -roc)rements, This -artic)larl affecte* sociall alien
"ro)-s, Or"aniFers of sa+ota"e in 8ol8hoF were han*e* over to the
co)rts0 incl)*in" *e"enerate comm)nists an* 8)la8>s)--orters
amon" the 8ol8hoF lea*ershi-, In accor*ance with the central
committee *irectives0 re"ions which *i* not satisfactoril f)lfil
-roc)rement -lans cease* to +e s)--lie* with commo*ities ,,,
Ille"all *istri+)te* or -ilfere* "rain was confiscate*, Several
tho)san*s of co)nter>revol)tionaries0 8)la8s an* sa+ote)rs were
*e-orte* ,, -
,@D
The -art was -)r"e*, In the North Ca)cas)s <& -er
cent of all investi"ate* -art mem+ers were e@-elle*, There were
some a--allin" e@cesses, Stalin *eclare*0 in a s-eech to the
-olit+)rea) on (4 Novem+er #$&(0 that coercion was C)stifie*
a"ainst Dcertain "ro)-s of 8ol8hoFes an* -easantsD0 that the ha* to
+e *ealt a D*evastatin" +lowD, 7a"a>novich anno)nce* that r)ral
comm)nists were ")ilt of +ein" D-ro>8)la80 of +o)r"eois
*e"enerationD,
<4
Mass arrests went +eon* all +o)n*sI half of local
-art secretaries in the North Ca)cas)s were e@-elle* on the or*ers
of 7a"anovich, DAll "rain witho)t e@ce-tion was remove*0 incl)*in"
see* an* fo**er0 an* even that alrea* iss)e* to -easants as an
a*vance O-ament for wor8*asP,D
<'
The res)lt was Dan e@tremel
"rave foo* shorta"e in man so)thern areasD0 an* a Dheav loss of
livestoc8D0 which too8 a lon" time to re-air, M)ch the same
ha--ene* in the U8raine, A local -art secretar commente*?
D:itho)t a*ministrative -ress)re on the -easant we will not "et the
"rain0 so it *oes not matter if we over*o thin"s a little,D
<$
In 2an)ar
#$&& a more or*erl sstem of com-)lsor -roc)rements was
*ecree*0 +ase* on acrea"e sown0 re-lacin" the -)rel ar+itrar
.tho)"h nominall vol)ntar/ sstem of 1ontra1tatsiya- 6)t the
*ama"e ha* alrea*
1&- Collecti0i9ation
+een *one, The famine0 -art an* conseE)ence of the str)""le
*escri+e* a+ove0 was terri+le,
!rain -roc)rements *i* in*ee* increase0 as the followin"
fi")res *emonstrate?
Stte $rin procure"ents
(millions of tons)
19.0 19.9 19(& I9(
1
19(. 19((
1&.0 14.1 ...1 ...0 10./ ...4
(Source: >l#e+e:, /storiya tsenoobra(o'aniya ' SSSR !>osco5,
1944%, PP- 11/.111%
Grin exports
(millions of tons)
19N1-0 19.9 19(& 19(1
&.&.9 5,
l
6 4.14 /.&4
19(. 19((
1.1( 1.49
(Source: So:iet trde returns.%
:e now 8now a "reat *eal more a+o)t the n)m+er of Ds)r-l)s
*eathsD .from famine an* from *iseases which wea8ene* +o*ies
co)l* not resist/ in these ears0 from wor8 + Ma8s)*ov0 :heat>
croft an*0 of co)rse0 ConE)est0 as well as + a n)m+er of Soviet
a)thors,
15
If0 as one m)st0 one incl)*es the 7aFa8hstan *isaster0 a
total *eath>roll of 4 million for the -erio* #$&#>& seems li8el
to +e near the tr)th0 the *emo"ra-hic loss +ein" hi"her +eca)se
all evi*ence shows that +irths showe* a stee- *ecline in the har*
ears, The U8raine s)ffere* severel0 as *i* the 9ower =ol"a an*
North Ca)cas)s, I *o not a"ree with ConE)est a+o)t StalinDs
motive? it was s)rel to stri8e a D*evastatin" +lowD at -easants in
"rain>s)r-l)s areas0 man of whom were U8rainian0 rather than
at U8rainians0 man of whom were -easants, .Neither e@-lanation
is a consolation for the millions that *ie*,/ It was a *rea*f)l time0
as historians of ever school conc)r, This was a man>ma*e
famine0 )nli8e the Dnat)ralD famine of #$(#0 an*0 )nli8e in #$(#0
no relief meas)res were ta8enI the ver fact of famine was
shro)*e* in secrec for man *eca*es,
The #$&(>& Crisis #'#
In his a)to+io"ra-h 7oestler *escri+e* a visit to 7har8ov at this
-erio*, As well as h)n"er there was a +rea8*own of electricit,
News-a-ers faile* to a--ear, :hen the were event)all -rinte*0
the mentione* neither foo* shorta"es nor the -ower +rea8*own,
Clearl0 historians who +elieve* that there is no fact witho)t
*oc)mentar -roof were har* -)t to it to *escri+e the events of the
-erio*,
Finall to win* )- this *e-lora+le stor0 the $ million -easants
left o)tsi*e collectives in #$&< were *)l attac8e*, The were0 it
seems0 col*>sho)l*ere* an* treate* as hostile elements0 +)t allowe*
to s)rvive, This toleration was treate* as a Dri"ht>win" *eviationD, On
( 2)ne #$&<0 at a conference of officials on collectiviFation0 Stalin
*eman*e* R an* this is E)ote* from the archives > that Din or*er to
ens)re the )ninterr)-te* "rowth of collectiviFation0 there sho)l* +e
a ti"htenin" of the ta@ screw 4nalogovyi #ress5 on the in*ivi*)al
-easantsD,
1#
Yet this article en*s with the still>com-)lsor mth .this
in #$%<H/? DThe m)lti>million -easantr +ecame even more
convince* of the incontroverti+le s)-eriorit of socialist a"ric)lt)re0
of the mi"ht 8ol8hoF sstem,D
The or"aniFation str)ct)re of 8ol8hoFes was at first E)ite
conf)se*, Stalin lai* *own that the artelD was to +e -re*ominant0 an*
in #$&# $#,4 -er cent of collectiviFe* lan* was within arteli .<,4 -er
cent TO;0 &,% -er cent comm)nes/, However0 internal arran"ements
were e@cee*in"l ha-haFar*0 -easantsD ri"hts were ill>*efine*0 their
incomes )ncertain not onl in E)antit .the remaine* that )ntil
#$%%/ +)t also in their nat)re, How was -ament to +e ma*eG The
2)ne #$&# -len)m of the -art *eci*e* that -ament m)st +e in
accor*ance with wor8 *one0 an* not -er hea* or -er Dmo)thD, A
ro)"h>an*>rea* sstem of -iece>rates was to +e *evise*, This
"ra*)all +ecame the tr%doden
=
.wor8*a )nit/0 which was
Dle"aliFe*D + *ecree of 1 2)l #$&(0 an* more closel *efine* in
2an)ar #$&&, These an* other r)les +ecame )ltimatel em+o*ie* in
the mo*el charter of 8ol8hoFes0 a*o-te* in #$&10 of which more in
Cha-ter $,
1&, Collecti0i9ation
Party Control and the 4TS
7ol8hoFes were )n*er the close s)-ervision an* t)tela"e of the
-art, The -art sent o)t (10555 )r+an activists to act as s)-ervisors0
farm chairmen0 -olitical officers, Their i"norance of r)ral E)estions
an* mis)n*erstan*in" of the -easant min* contri+)te* to the errors
an* e@cesses of the -erio*, A 8e element in the control mechanism
was -rovi*e* + the -roc)rement or"ans 4<agot2erno, an* others/0
+)t -erha-s the most im-ortant were the Machine Tractor Stations
.MTS/0 which reE)ire more *etaile* e@amination,
The DancestorD of MTS was a Dtractor col)mnD0 a state>r)n tractor
service0 ren*ere* to in*ivi*)al -easants as well as to the few
collective or state farms0 in the O*essa -rovince, The MTS were
or"aniFe* after a *ecree of 1 2)ne #$($, At first the were r)n as a
8in* of Coint enter-rise0 with -easants +)in" shares in
Tra1tortsentr,I
E
+)t the +ecame f)ll fle*"e* state>controlle*
or"aniFations, It was *eci*e* *)rin" the -rocess of collectiviFation
to "ive the MTS s)ch tractors an* other -ower>*riven machines as
were availa+le0 an* to ma8e of them a 8in* of com-)lsor service
a"enc0 while sim)ltaneo)sl stressin" their role as s)-ervisors
.*ecree of # Fe+r)ar #$&5/, In 2an)ar #$&& the -art -len)m
*eci*e* to create -olitical *e-artments in the MTS an* state farms0
of which more in a moment, So from the first the MTS *evelo-e*
into a )niE)e com+ination of -rovi*in" +oth tractor>-ower an*
-olitical>economic ")i*ance, Their contract)al relationshi-s with
8ol8hoFes ha* +een +ase*0 since Fe+r)ar #$&&0 on -aments in
8in*0 )s)all in the form of a -ercenta"e of the harvest, Perha-s for
this reason #$&& saw the +irth of a statistical *evice0 D+iolo"ical
iel*D0 which0 as will +e shown later0 overstate* the harvest, The
stateDs share0 receive* via -aments in 8in* for the wor8 of the MTS
as well as + *irect -roc)rements0 was increase* + this *evice,
Tractor -ro*)ction rose s)+stantiall in these ears0 +)t at first the
net effect was merel to re-lace the ha)la"e -ower of horses
sla)"htere* *)rin" collectiviFation,
The -olitical *e-artments of the MTS were0 on the face of it0
Party Control and the 4TS 1&!
another means of e@ertin" -ress)re on the -easants, Yet in a well>
*oc)mente* -a-er on the s)+Cect0 the Soviet historian ;elenin shows
that thin"s *i* not alwas wor8 o)t that wa, The -olitical
*e-artments were res-onsi+le to the -artDs central committee0 an*
were not )n*er the -art secretar of the *istrict which the
o-erate*0 a circ)mstance which ca)se* m)ch friction, Each -olitical
*e-artment incl)*e* a re-resentative of the O!PU .-olitical -olice/,
The hea* of the *e-artment was0 e* officio, *e-)t *irector of the
MTS an* char"e* with vast -owers over -ro*)ction -lans an*
-roc)rement activities, These hea*s were s-eciall selecte*0 lar"el
vol)nteers, ;eleninDs evi*ence shows that0 when the reache* the
villa"es earl in #$&&0 the saw with their own ees the *rea*f)l
effects of the e@cesses *escri+e* a+ove, The tal8e* to the -easants0
the ar")e*0 the learnt, 6ein" tol* to +rin" some or*er into the
sit)ation in a"ric)lt)re0 the E)ic8l realiFe* that e@cessive
-roc)rements m)st +e c)t *own0 that -easants m)st +e allowe*
a*eE)ate incentives, The fo)n* themselves instr)cte* instea* to
-)r"e the 8ol8hoFes of s)+versive elements > for StalinDs line was
that the enem0 *is")ise* as storemen0 +oo88ee-ers0 a"ronomists0
was en"a"e* in Dsilent sa--in"D, So it was re-orte* + the -olitical
*e-artment that0 in #$&&0 in twent>fo)r -rovinces of the USSR &<,<
-er cent of storemen0 (1 -er cent of +oo88ee-ers0 etc, were
*ismisse*0 an* Dman were acc)se* of wrec8in"D,
1&
Man -olitical
officers came into conflict with their collea")es0 who were too a-t to
arrest an* *ismiss0 as archive material E)ote* + ;elenin shows, In
the en*0 man -olitical *e-artments +e"an to *efen* -easant
interests0 an* in -artic)lar to -rotest a"ainst e@cessive "rain
-roc)rements0 es-eciall when the a)thorities so)"ht to increase
*eliver -lans over an* a+ove the norms s)--ose*l lai* *own +
the com-)lsor -roc)rement *ecree of 2an)ar #$&& .a -ractice
which contin)e*/, In the 2)ne #$&< -len)m of the central
committee0 the hea* of the "rain -roc)rement or"aniFation acc)se*
local officials0 incl)*in" the hea*s of -olitical *e-artments0 of Danti>
state ten*enciesD in see8in" to *iminish the stateDs e@actions, S)ch
-rominent -art lea*ers as S, 7ossior0 P, Postshev0 I, =arei8is0 also
acc)se* the -olitical *e-artments of this, Some -olitical officers ha*
the a)*acit to *raw )- foo*>an*>fo**er
1;9 ollectivi8ation
+alances to -rove that the stateDs e@actions were e@cessive0 an* were
shar-l con*emne*? s)ch +alances were0 it seems0 D8)la8 ten*encies
9sic:, *irecte* to the +reach of the law on "rain *eliveriesD,
1<
In
Novem+er #$&< the -olitical *e-artments of the MTS were
a+olishe*, Tho)"h there remaine* a *e-)t>*irector .-olitical/ of
the MTS0 he no lon"er ha* a *e-artment0 or an s-ecial -owers vis!
a!vis the local -art or"aniFation,
State farms 4sov1ho2y5 were0 at first0 "reatl favo)re* + the
re"ime, However0 their hi"h cost an* inefficienc le* to a chan"e of
-olic, This is eas to )n*erstan* if one +ears in min* the -rinci-al
reason for collectiviFation0 which was -roc)rement of -ro*)ce at
minim%m cost- In the case of 8ol8hoFes0 hi"h cost an* inefficienc
meant sim-l that the -easant mem+ers were ver -oorl -ai*0 since
the *ivi*e* amon" themselves whatever was availa+le0 with no
")arantee* minim)m of an 8in*, 6)t a state farm wor8er was a
wa"e>earner0 an* losses ma*e + s)ch farms ha* to +e met o)t of
the +)*"et, The Di*eolo"icalD s)-eriorit of state farms none the less
le* to a shar- rise in their n)m+ers0 the area sown increasin" from
#,4 million hectares in #$(' to #&,< million in #$&( an* #%,# million
in #$&1, It *ecline* thereafter0 an* state farms *i* not -la a maCor
role in Soviet a"ric)lt)re )ntil after StalinDs *eath, .More a+o)t state
farms in Cha-ter $,/
'he %ree 2ar0et and *rivate *lots
How *i* the -easants s)rvive the conf)sion an* har*shi- of the
Drevol)tion from a+oveDG The co)l* not have s)rvive* witho)t the
toleration0 in an* after #$&50 of some -rivate foo*>"rowin"0 an*0
after the initial e@cesses of s)-er>collectiviFation0 the were
allowe* some *omestic animals, !reat +itterness was ca)se* + the
com-)lsor acE)isition + 8ol8hoFes of livestoc80 es-eciall cows0
)n*er con*itions in which the collectives ha* neither the +)il*in"s
nor the 8nowle*"e or e@-erience for loo8in" after +i" her*s .which
have to +e 8e-t in*oors *)rin" the winter/0 an* when mil8 for
-easant chil*ren co)l* onl +e -rovi*e* from their own cows0 in the
a+sence of an alternative so)rce of s)--l .this remaine* the case0
in most of R)ssia0 even in #$4#0 let alone in
The Free 4ar3et and Pri0ate Plots 1&*
#$&#/, !ra*)all a sort of mod%s vivendi emer"e*0 an* Stalin
himself +e"an to ma8e -romises to hel- -easants acE)ire cows,
ss
6)t
the *rastic *ecline in the livestoc8 -o-)lation ma*e this a rather
*istant -roCect0 an* man co)l* mana"e to 8ee- onl "oats0 which
some +itterl *escri+e* .in whis-ers/ as DStalinDs little cowsD,
However0 -easant ri"hts +ecame more clearl *efine*0 an*
"ra*)all there *evelo-e* an )n*erstan*in" as to the -ermissi+le
)--er limits of collective -easantsD -rivate hol*in"s0 which emer"e*
finall in the mo*el stat)te0 *escri+e* in Cha-ter $,
The E)estion arose of the ri"ht to sell freel after meetin" the
stateDs -roc)rement E)ota0 the latter havin" the le"al stat)s of a ta@
levie* on the collective0 on -easant mem+ers an* .more heavil/ on
the s)rvivin" in*ivi*)al -easants, There was s-ora*ic interference
with the f)nctionin" of an free mar8et0 while -rivate tra*ers were
+ein" *riven o)t an* the -rocess of collectiviFation com-lete*0 an*
man cases of closin" all mar8ets were re-orte*, On % Ma #$&( a
*ecree allowe* free sales of "rain + 8ol8hoFes an* collectiviFe*
-easants after the stateDs -roc)rement -lan ha* +een f)lfille*, Fo)r
*as later the same ri"hts of sellin" in Dmar8ets an* +aFaarsD were
e@ten*e* also to livestoc8 -ro*)cts, On (5 Ma the ta@ levie* on
s)ch sales at mar8ets .this tra*e never wholl cease*/ was lowere*0
an* the ri"ht to sell at free -rices reasserte*, In this *ecree it was
state* that the o-enin" of -rivate sho-s0 an* -rivate *ealers0 were to
+e +arre*, On (( A)")st of the same ear0 Ds-ec)lators an* *ealersD
were to +e sent to Da concentration cam- for from five to ten earsD0
to cite the wor*s of the *ecree,
1%
These were the final nails in the
coffin of the NEP conce-t of free tra*e, Peasant tra*e was *ifferent0
in so far as it consiste* of sales + the -ro*)cers of their own
s)r-l)s -ro*)ce0 an* so *i* not constit)te earnin" a livin" + tra*e,
Private tra*e0 i,e, +)in" an* sellin" for -rofit0 was not in fact
le"aliFe* )ntil March #$$#,
In #$&&0 which was a ver *iffic)lt ear0 the ri"ht to mar8et "rain
was more strictl *efine*? onl Dafter f)lfillin" the -roc)rement -lan
for the whole re-)+lic0 1rai, -rovince0 an* ma8in" f)ll -rovision for
see*D,
14
In these ears 8ol8hoF tra*e was still on the e*"e of semi>
ille"alit0 since ar+itrar e@actions of all 8in*s for the nee*s of the
state co)l* ha--en at an time0 with acc)sations
1&% Collecti0i9ation
of s-ec)lation an* D8)la8D +ehavio)r, This0 as well as the ac)te
shorta"es -revailin"0 ca)se* an e@tremel stee- rise in free>mar8et
-rices0 which will +e *oc)mente* later in this cha-ter,
A"ric)lt)re reache* its lowest -oint in #$&&0 an* then +e"an a
-ainf)l recover0 the stor of which can +e left asi*e for the -resent,
+o$e +tatistics
The harvest an* livestoc8 statistics of the -erio* were as follows
.the D+iolo"ical iel*D fi")res0 which *istorte* Soviet *ata from #$&&
)ntil after StalinDs *eath0 are also "iven0 since the were )se* to
falsif realit an* to facilitate e@cessive -roc)rements/?
#$(' #$($ #$&5 #$&# #$&( #$&& #$&< #$&1
!rain harvest0 real
.million tons/ 4&,& 4#,4 '&,1 %$,1 %$,%U %',< %4,% 41,5
!rain harvest0
+iolo"ical .million
tons/ R R R R R '$,' '$,< $5,#
Cattle .million
<5,4 &',< <(,< <$>&
11.4 1..1
#4<
...4
/.-1 /&.. 1i>$ 41.1
hea*/ 45,1 %4,# 1(,1 <4,$
Pi"s (%,5 (5,< #&,% #<,<
Shee- an* "oats #<%,4 #<4,5 #5',' 44,4
U The #$&( harvest fi")re a--ears to have +een overstate* an* ma have +een nearer
15 .see -, #4' a+ove/,
4So%rces: Sotsialistiches1oe stroitel,stvo, =>GD, --, &<(>&0 &1<I Mosh8ov0 <ernovay
#ro"lema v gody s#loshnoi 1olle1tivi2asii .Moscow Universit0 #$%%/0 -, ((%,/
3i* collectiviFation in fact contri+)te to ca-ital acc)m)lationG This
has +een the s)+Cect of controvers0 an* the rea*er ma +e referre*
-artic)larl to wor8s + 2ames R, Millar an* Michael Ellman,
1'
It
has +een correctl -ointe* o)t that the real a"ric)lt)ral s)r-l)s
cannot +e meas)re* sim-l + the vol)me of sales off the farmI
in*)strial in-)ts into a"ric)lt)re an* the villa"e m)st +e *e*)cte*0
an* a s)r-l)s so *efine* then *e-en*s *ecisivel on -rice, Evi*ence
is then E)ote*0 es-eciall that -resente* + the Soviet economic
historian 6arsov0 to show that
Some Statistics 1&5
-rices *i* not move a*versel to the villa"e in the ears followin"
#$('0 when allowance is ma*e for the hi"h free>mar8et -rices,
6arsov also -)r-orts to -rove that when val)e* in #$#& or #$('
-rices0 or in la+o)r>val)es0 the flow of "oo*s in the two *irections
*i* not show an si"nificant rise in the s)r-l)s e@tracte* from the
villa"eI the contrar is tr)e in some ears, From this it ma seem to
follow that the increase* acc)m)lation of ca-ital in the -erio* #$('>
&4 came not from a"ric)lt)re +)t from the )r+an sector .incl)*in"
former -easants who ha* mi"rate* to the towns/,
This is a most com-le@ s)+Cect0 which *eserves more thoro)"h
e@amination than it can receive here, It is certainl tr)e that the state
-roc)re* less than it ori"inall inten*e*0 o)t of a m)ch lower
o)t-)t0 while havin" to s)--l e@tra in-)ts to offset losses in
*ra)"ht animals, It is also tr)e that the )r+an sector also +ore
sacrifices0 that wor8ersD livin" stan*ar*s *ecline*, However0 a-art
from serio)s *o)+ts as to the vali*it of 6arsovDs fi")res0 there is an
im-ortant sense in which the *ata are mislea*in" in -rinci-leI th)s
the -rices of #$#& an* #$('0 let alone la+o)r>val)es0 +ear a+sol)tel
no relationshi- to the relative scarcities of the earl thirties, :hat is
the Dval)eD of +rea* "rain to a starvin" -easantG The -rice which
r)le* in #$('0 when there was -lent of +rea*G The la+o)r>time
reE)ire* to -ro*)ce itG Another wa of e@-ressin" the same -oint is
to sa that massive )se of coercion was nee*e* to ta8e awa "rain
an* other -ro*)cts which0 as a res)lt of collectiviFation0 ha*
+ecome ac)tel scarce0 an* were conseE)entl val)e* m)ch hi"her
.+ -easants an* + cons)mers/ than the -rice -ai* for them + the
state, Secon*l0 -rices in the earl thirties ha* little meanin" when
"oo*s were so often )no+taina+le, A ration car*0 a -ass to a s-ecial
sho-0 were more im-ortant than mone in a har* ear s)ch as #$&&
in which0 it sho)l* +e note*0 millions of #easants starve*, Finall0
the evi*ence on the vol)me of sales of in*)strial "oo*s in these
ears is of ver *o)+tf)l vali*it, An intelli"ent o+server0 whose
re-orts are in the 6ritish Forei"n Office archives0 note* that when0
followin" a #$&( *ecree on sen*in" more cons)mersD "oo*s to
villa"es0 he visite* r)ral sho-s0 he fo)n* that *eliveries ha*
consiste* lar"el of vo*8a an* cosmetics,
1$
#'' CollectiviFation
So was collectiviFation act)all co)nter-ro*)ctive0 i,e, *i* it
im-e*e rather than facilitate in*)strialiFation in these earsG
Millar ta8es the first view0 Ellman the secon*, It seems )nneces>
sar for )s to ta8e si*es in this *e+ate0 im-ortant tho)"h the iss)e
)n*o)+te*l is0 es-eciall as one is conscio)s that more research
is nee*e*,
In loo8in" +ac8 at the im-act of those ears on a"ric)lt)re an*
the -easants0 critical comment is s)-erfl)o)s, The events *e>
scri+e* cast a *ee- sha*ow over the life of the co)ntrsi*e0 of the
whole co)ntr0 for man ears thereafter, M)ch more evi*ence
has recentl +ecome availa+le0 an* this cha-ter is no more than a
+are s)mmar of s)ch evi*ence, It is to the cre*it of Soviet
scholarshi- that so m)ch has +een ma*e availa+le0 after so
-rolon"e* a silence .for which the scholars cannot +e +lame*/
a+o)t what + common consent m)st +e a -ainf)l -erio*0 of
which man men in hi"h -laces m)st have felt ashame* in their
hearts,
& The So0iet #reat 6eap For$ard? ""'
"ndustry/ 6a+our and Finance
An a*eE)ate histor of the first five>ear -lan has et to +e written,
Official Soviet acco)nts overstresse* the achievements0 *welt
en*lessl on the D-athos of constr)ctionD, The -ositive feat)res seem
also to +e overstate* in novels of the -erio*, As for anti>Soviet
writers0 for them the ears #$($>&& are com-ose* e@cl)sivel of
coercion0 h)n"er0 shorta"es an* inefficienc0 an* the achievements
are mentione* onl as a 8in* of a-olo"etic aftertho)"ht, Here it will
+e necessar to *well on man ne"ative feat)res0 which are an
inte"ral -art of the stor, Yet so are the achievements which m)st +e
seen a"ainst a +ac8"ro)n* of a--allin" *iffic)lties,
=!ti$is$ (uns (iot
In the -revio)s cha-ter we note* the a*o-tion of a hi"h Do-timal
variantD of the five>ear -lan, This was s-ee*il followe* + s)-er>
o-timal variants of the most fantastic 8in*s, The )-war* revision of
the Do-timalD tar"ets +e"an ver soon after their a*o-tion, The ear
#$('>$ -rove* E)ite s)ccessf)l in in*)str0 an* this ca)se*0 in the
*ecree of # 3ecem+er #$($0 an )-war* amen*ment of the -lan for
the economic ear #$($>&5, On 1>#5 3ecem+er #$($ a con"ress of
Dshoc8 +ri"a*esD a*o-te* a call to f)lfil the five>ear -lan in fo)r
ears, This +ecame official -olic0 an* in the en* the five>ear -lan
was *eeme* to have r)n its co)rse on &# 3ecem+er #$&( instea* of
&5 Se-tem+er #$&&0 nine months ahea* of sche*)le0 it havin" +een
*eci*e* .in #$&5/ to ma8e the economic an* the calen*ar ear
coinci*e, Of co)rse0
1- "ndustry/ 6a+our and Finance
this of itself was an )-war* revision, Others followe*, The
si@teenth -art con"ress resolve* to review the machiner -lans in
or*er D*ecisivel to free in*)str0 an* the national econom from
*e-en*ence on forei"n co)ntriesD, This last -oint ma +e sai* to +e
ins-ire* + militar>strate"ic consi*erations0 +)t it wo)l* +e
incorrect to assert that militar e@-en*it)re as s)ch was res-onsi+le
for the acceleration of the heav>in*)str -lans? militar s-en*in"
remaine* mo*est0 the Re* ArmDs re>eE)i-ment la still some
*istance ahea*,
The net effect was that *)rin" #$($ an* #$&5 the five>ear -lan
.now a fo)r>ear -lan/ was altere*0 as the followin" selection of
fi")res shows?
19.1-0 19(.-( 19(. i9(
.
!Copti"lC% !"ended% !ctul%
2ol !"illion tons% (/.& 1/.& 9/-1&/ !44.&%
Oil !"illion tons% 11.1 .1.1 4&-// !.14%
Iron ore !"illion tons% 4.1 .&.. .4-(. !1..1%
Pi$ iron !"illion tons% (.. 1&.& 1/-14 !4..%
(Sources: S. Bessono:, Problemy ekonomiki, No. 1&-11 !19.9%, p. .1 nd pln-
#ul#il"ent report.%
Still wil*er fi")res were enco)ntere* in #$&5>&#, Stalin himself
s-o8e on < Fe+r)ar #$&# of f)lfillin" the -lan Din three ears in all
the +asic0 *ecisive +ranches of in*)strD,
#
In the same s-eech he
*eclare*? DIt is sometimes as8e* whether it is -ossi+le to slow *own
the tem-o somewhat0 to -)t a chec8 on the movement, No0
comra*es0 it is not -ossi+le, The tem-o m)st not +e re*)ce*H On the
contrar0 we m)st increase it,, ,D
(
It was then that he ma*e the C)stl
famo)s -ro-hec? D:e are fift or a h)n*re* ears +ehin* the
a*vance* co)ntries, :e m)st ma8e "oo* this *istance in ten ears,
Either we *o so0 or we shall "o )n*er,D #$<# was ten ears awa,
6)t a sense of comin" *an"er is no e@c)se for attem-tin" the im>
-ossi+le, The e@tent of the )-war* amen*ments in ann)al -lans ma
+e ill)strate* + the ta+le on -, #$#0 which also shows the *ownwar*
amen*ment of the te@tiles tar"ets0 i,e, the shift in mi*>-lan in the
relative -riorities of heav as a"ainst li"ht in*)str,
<ptimism Runs Riot 11
Nee*less to sa the new tar"ets were far +eon* -ractical
-ossi+ilit, The r)sh0 strain0 shorta"es0 -ress)res0 +ecame intoler>
a+le0 an* ca)se* "reat *isor"aniFation, Nat)rall0 s)--lies of
materials0 f)els0 "oo*s wa"ons0 fell short of reE)irements,
In*e@ n)m+ers #$&5>&# .#$(4>' ' 1&&%
Ori"inal Amen*e*
PlanU Plan
Pro*)cersD "oo*s0 all #$%,& &<$>$
Coal #11 .&../
Oil
#%% (%%
Ferro)s metall)r" #4%,' (54,4
Machiner0 total #$',' <'(,#
A"ric)lt)ral machiner
....0
11(>%
Electro>technical in*, (&1>' 1$N>1
6asic chemicals (1(>& &$5,5
Cons)mersD "oo*s0 all #%#,$ #%&,#
Te@tiles #<',& 1.1..
Foo* #<$,' #%%,(
All in*)str0 total #4%,4 (<<>1
U Accor*in" to five>ear -lan0 o-timal variant, 4So%rce: A
7ol*ovs80 Pro"lemy e1onomi1i, Nos, <>1 !19(&% p. 1&9.%
It was then that the "overnment0 + sta"es0 im-ose* )-on the
econom its own -riorities0 + ever>ti"htenin" control over reso)rce
allocation0 -hsical o)t-)t0 cre*it, The DStalinD mo*el was create* in
the -rocess of trin" to *o the im-ossi+le0 an* therefore + facin"
ever *a the necessit of ass)rin" s)--lies to the 8e -roCects or
Dshoc8>constr)ctionsD 4%darnye stroi1i5, at the e@-ense of others
re"ar*e* as of lesser im-ortance,
Plans were +orn of a conflict +etween s-ecialists an* 8een
comra*es convince* that revol)tionar elan wo)l* -erform mir>
acles, One ol* oil e@-ert0 "iven what he re"ar*e* as an a+s)r* or*er
to increase -ro*)ction0 is sai* to have written to the central
committee as follows? DI cease to +e res-onsi+le for the -lannin"
*e-artment, The O-lanP fi")re of <5 million tons I consi*er to +e
-)rel ar+itrar, Over a thir* of the oil m)st come from )ne@-lore*
areas0 which is li8e c)ttin" )- the s8in of a +ear +efore it is ca)"ht
or even locate*, F)rthermore0 the three crac8in" -lants
1, "ndustry/ 6a+our and Finance
which now e@ist are to +e t)rne* into #(5 -lants + the en* of the
five>ear -lan, This *es-ite the ac)te shorta"e of metal an* the fact
that the hi"hl com-le@ crac8in" techniE)e has not +een mastere*
+ )s ,,, I stan* for hi"h tem-os0 +)t *)t *eman*s ,,,D an* so on, To
this0 accor*in" to the writer0 a o)n" woman re-lie*? D:e *o not
*o)+t the 8nowle*"e or "oo*will of the -rofessor ,,, +)t we reCect
the fetishism of fi")res which hol*s him in thrall, ,, :e reCect the
m)lti-lication ta+le as a +asis for -olic,D
&
This -ossi+l ima"inative
reconstr)ction *escri+e* a common eno)"h sit)ation, M)ch waste
of effort inevita+l res)lte*0 +)t it co)l* +e ar")e* that more was
achieve* in the en* than if Dso)n*D a*vice ha* +een ta8en, The
res)ltant chaos has +een *escri+e* + man writers, Here is the
f)t)re Minister of Tractors an* A"ric)lt)ral Machiner
remem+erin" the +irth of the Stalin"ra* tractor wor8s?
Even one who saw those *as with his own ees fin*s it har* to -ict)re
to*a how thin"s then loo8e* ,,, One cha-ter of a +oo8 of the -erio* is
hea*e*? DYes0 we smashe* lathes,D This cha-ter was written ,,, + a
wor8er who came to the =ol"a from a Moscow factor, Even he was f)ll of
won*er at the American lathes witho)t +elt transmission0 with their own
motors, He co)l* not han*le them, :hat is one to sa of the -easants fresh
from the villa"esG The were sometimes illiterate > it was a -ro+lem for
them to rea* an* write, Everthin" was a -ro+lem in those *as, There
were no s-oons in the canteen > an* this matter was *ealt with when
Or*Fhoni8i*Fe arrive* at the factor an* *eman*e* that thin"s +e -)t
ri"ht, There was the -ro+lem of +)"s in the wor8ersD h)ts > an* the
secretar of the o)n" comm)nist central committee0 7osarev0 ma*e )s
"et ri* of them, The first *irector of the factor0 Ivanov0 wrote as follows?
DIn the assem+l sho- I tal8e* to a o)n" man who was "rin*in" soc8ets, I
as8e* him how he meas)re*0 an* he showe* me how he )se* his fin"ers,
:e ha* no meas)rin" instr)mentsHD Now0 after fift "lorio)s ears0 we
m)st remem+er all this in *etail0 remem+er how this in*)str was create*0
which now -ro*)ces the lar"est n)m+er of tractors in the worl*0 how an*
in what con*itions the first "reat tractor>wor8s in the co)ntr was +)ilt in
a ear an* wor8in" to f)ll ca-acit a ear later, All this was *one in a
co)ntr where as late as #$#5 over two thir*s of the -lo)"hs were woo*en,
<
S)ch facts0 E)otations0 e@am-les0 co)l* +e m)lti-lie* man times,
Achieve$ents o1 the %irst %ive--ear *lan 193
=ast -roCects "ot )n*er wa, :hile some were the wor8 of force*
la+o)r .the =ol"a>:hite Sea canal0 for instance/0 there is no *o)+t
that there was enth)siasm too, There was0 for instance0 the stor of
Ma"nito"ors8, A "reat new metall)r"ical centre was create* in the
wil*erness0 an* the wor8ers an* technicians wor8e* )n*er the most
-rimitive con*itions0 et man seeme* to have +een fire* + a real
faith in the f)t)re an* in their own an* their chil*renDs -art in it
.tho)"h we now 8now that some of the +)il*ers were also force*
la+o)rers/, There were0 es-eciall in later ears0 all too man
e@am-les of -hone official s)-erlatives0 which "ave rise to
wi*es-rea* cnicism, So it is all the more necessar to stress that
tho)san*s .of o)n" -eo-le in -artic)lar/ -artici-ate* in the D"reat
constr)ction -roCects of socialismD with a will to self>sacrifice0
acce-tin" har*shi- with a real sense of comra*eshi-, Statistics will
also +e cite* to show that others ha* ver *ifferent attit)*es to their
wor80 not onl -risoners or *e-ortees +)t also -easants fleein" the
collectives,
Achieve$ents o1 the %irst %ive--ear *lan
The 8e fi")res of -lan f)lfilment were as shown on -, #$<,
6efore -rocee*in" to inter-ret the ta+le0 it is most im-ortant to
stress the limitations of the statistics, In +rief0 these limitations are
as follows?
40 All a""re"ates .in*ices of national income an* in*)strial
o)t-)t in -artic)lar/ are lia+le to statistical DinflationD, For reasons to
+e e@amine*0 costs rose shar-l *)rin" the -lan -erio*0 an* the
nominal Dconstant #$(%>4 -ricesD0 in which the in*ices were
com-)te* *rifte* )-war*s0 ca)sin" a si"nificant e@a""eration of the
vol)me in*e@,
41 This is -artic)larl noticea+le in the machiner sector, Th)s it
is s)rel *eci*e*l o** that the -lan for machiner was s)--ose* to
have +een ver "reatl over>f)lfille*0 whereas +oth metal an* f)el
o)t-)t la""e* far +ehin* -lan, Constr)ction .another +i" metal>)ser/
e@cee*e* its -lan too, Im-orts rose >th)s #,& million tons of steel
sheet was im-orte* in #$&# R +)t shorta"es -ersiste*, It is not0 as
some ima"ine0 that the critics
i1 "ndustry' 6a+our and Finance
#$(4>' #$&(>& #$&(
.act)al/ .-lan/ .act)al/
National income .milliar* #$(%>Q4
ro)+les/ (<,< <$>4 <1>1
!ross in*)strial -ro*)ction .milliar*
#$(%>4 ro)+les/ #',& <&>( <&>&
Pro*)cersD "oo*s .milliar* #$(%>4
ro)+les/ %,5
10.1 .(1
Cons)mersD "oo*s .milliar*
#$(%>Q4 ro)+les/
1..( ./1 .&..
!ross a"ric)lt)ral -ro*)ction
.milliar* #$(%>4 ro)+les/
1(1
(1,' #%,%
Electricit .milliar* 8:hs/ 1>51
...&
D&><
Har* coal .million tons/ &1>< 41 %<&
Oil .million tons/
11.1 .. .1.4
Iron ore .million tons/ 1>4
19 1..1
Pi" iron .million tons/ &>&
1&
%,(
Steel .million tons/ <,5 1&.4 1>$
Machiner .million #$(%>4 ro)+les/ 1,0.. <0%'' 40&%(
S)-er-hos-hates .million tons/ &.1/ &>< &.41
:ool cloth .million metres/ $4
.1&
$&>&
Total em-loe* la+o)r force
.millions/ KY& #1>'
...0
4So%rces: #$&( fi")res from Sotsialistiches1oe stroitePstvo .#$&</ an* the
f)lfilment of first five>ear -lan, For so)rces of other fi")res see ta+le on
-a"e #<1,/
claim that metal an* machiner -ro*)ction o)"ht to e@-an* at the
same rate, The -oint is that0 if m)ch less metal is -ro*)ce* than was
-lanne*0 then maCor metal>)sin" in*)stries m)st +e c)t +ac8, Yet
there is no si"n of this in the fi")res, The most -ro+a+le e@-lanation
is that man machines were -rice* hi"h0 an* were entere* in the
D#$(%>4D -rice in*e@ at a lar"e s)m in ro)+les, In -art this is a
wei"htin" -ro+lemI the few machines which were ma*e in R)ssia in
#$(%>4 were in*ee* e@-ensive0 an* so the in*e@ wo)l* loo8 m)ch
less favo)ra+le if a later Soviet -rice -attern0 or :estern -rices0
were )se*, 6)t few t-es of machines ma*e in0 sa0 #$&( were
+ein" ma*e in #$(%>40 or onl e@iste* as -rotot-es, Since -lan
f)lfilment was meas)re* in D#$(%>4D ro)+les0 it -ai* all mana"ers to
strive for the acce-tance of the hi"hest -ossi+le D#$(%>4D -rice,
Official statisticians0 )n*er -ress)re to show "oo* res)lts an* hi"h
"rowth rates0 wo)l* har*l +e in a stron" -osition at this time to
resist,
Achie0ements of the First Fi0e=year Plan 1*
42 There was the fate of han*icrafts0 small wor8sho-s0 *omestic
-ro*)ction of man 8in*s, Am-le evi*ence e@ists for the -ro-osition
that these cate"ories were in a *ecline0 sE)eeFe* o)t as -art of the
*rive a"ainst the Ne-men0 an* also + the -revailin" shorta"es of
materials an* f)el, Private wor8sho-s were close*0 -rivate
craftsmen force* into -ro*)cersD coo-eratives0 +)t the latter were
freE)entl s)s-ecte* of +ein" mere *is")ises for Ne-men an* there
were n)mero)s instances re-orte* of their +ein" *issolve* for this
reason, The net effect was0 *es-ite the contrar -rovision of the
five>ear -lan *raft0 a mar8e* *ecline in the n)m+ers of artisans of
all 8in*s, There was also some re-lacement of *omestic -ro*)ction
+ factor -ro*)ction? less +rea*>+a8in" in the home an* more
+a8eries0 less *omestic s-innin"0 an* so on, There ha* +een a
ten*enc to )n*erstate the o)t-)t of the artisans an* omit the -)rel
*omestic -ro*)ction0 an* so this *ecline *i* not fin* its -ro-er
reflection in statistics, This can hel- e@-lain the -ara*o@ that is
shown in the a+ove ta+le? o)t-)t of cons)mersD "oo*s was s)--ose*
to +e risin" ra-i*l at a time of most ac)te -rivation,
43 The effects of ra-i* )r+aniFation0 in R)ssia as elsewhere0
ten* to ca)se an increase in meas)ra+le o)t-)t m)ch "reater than
an real increase in cons)mersD welfare,
6)t tho)"h the claims in their totalit are *)+io)s0 there is no
*o)+t at all that a mi"ht en"ineerin" in*)str was in the ma8in"0
an* o)t-)t of machine>tools0 t)r+ines0 tractors0 metall)r"ical
eE)i-ment0 etc, rose + "en)inel im-ressive -ercenta"es, The f)el
"ro)- *i* well0 tho)"h fallin" short of the tar"ets .ver short of the
a+s)r* s)-er>tar"ets referre* to on -,#$5/, The metall)r"ical "ro)-
was far short of its "oals0 an* the re-ort on -lan f)lfilment fran8l
a*mitte* that the -ossi+ilities of so s-ee*il constr)ctin" an*
eE)i--in" iron an* steel>wor8s ha* +een "reatl overestimate*,
However0 a "reat *eal was achieve* in the Urals0 the 7)F+as0 the
=ol"a0 an* the U8raine, En"ineerin" wor8s in the Moscow an*
9enin"ra* areas were e@-an*e* an* mo*erniFe*, The "i"antic
3nie-er *am was +)ilt s-ee*il0 an* -rovi*e* -ower for more
in*)stries, A-art from *evelo-in" new -ro*)ction in Dtra*itionalD
in*)strial areas0 s)ch as Moscow0 9enin"ra* an* the 3on+as0 an* in
the Urals area0 in*)strialiFation
#$% In*)str0 9a+o)r an* Finance
+e"an to to)ch the more +ac8war* national re-)+lics? a te@tile mill
in Central Asia0 minin" in 7aFa8hstan0 en"ineerin" in !eor"ia,
Achievements were sometimes ver "reat0 sometimes ver -atch,
Chemicals tar"ets were0 with the e@ce-tion of snthetic r)++er0 not
f)lfille*, StalinD +e"an to listen to the voices of a*visers who tol*
him that a"ronomic -anaceas .the travo#olye rotation scheme
a*vocate* + =ilDams/ wo)l* ena+le "reat savin"s to +e ma*eI
mineral fertiliFer wo)l* +e )nnecessar,
Te@tile o)t-)t ten*e* to fall rather than rise, This was *)e -artl
to the low -riorit of cons)mersD "oo*s in the investment
-ro"ramme0 +)t most of all to the +alance of -aments sit)ation,
These were ears of *e-ression in the Dca-italistD worl*0 an* -rices of
raw materials an* foo* were fallin" m)ch faster than -rices of
machiner, Th)s the Soviet "overnment fo)n* itself havin" to
e@-ort more in or*er to o+tain from the Dca-italistsD the machiner
an* eE)i-ment nee*e* f-r the new factories0 an* this ma*e the strain
worse, Im-orts of cotton an* es-eciall of wool ha* to +e c)t, At the
same time wool -ro*)ction in the USSR itself was a*versel
affecte* + the *rastic re*)ction in the n)m+er of shee-, The cotton>
"rowin" areas were -resse* to increase acrea"e0 +)t there was
resistance0 at a time when sta-le foo*st)ffs were so short an* cotton
-rices were )nfavo)ra+le .the were "reatl raise* in #$&</, So a
shorta"e of raw materials was the -rinci-al +ottlenec8 in the te@tile
in*)stries, Therefore the com+ination of three factors ca)se* the low
livin" stan*ar*s of these ears? e@cessive investment in heav
in*)str0 the conseE)ence of collectiviFation in a"ric)lt)re0 an* the
worsenin" terms of tra*e, One sho)l* also mention the trans-ort
*iffic)lties, M)ch ha* to +e *one to ena+le the railwas to carr
"reatl increase* frei"ht0 since there were few roa*s or vehicles0 an*
rivers an* canals froFe in winter, The T)r8si+ line0 lin8in" Si+eria
with Alma Ata0 an* the im-ortant line to the 7ara"an*a coalfiel*s0
were +)ilt in these ears0 an* man sin"le>trac8 lines converte* to
*o)+le>trac8, 6)t the -lan envisa"e* the com-letion of #%0555
8ilometres of new railwa0 while in fact onl 10155 were +)ilt, There
was a "rave shorta"e of railwa eE)i-ment of all 8in*s,
1
6eca)se the "lo+al in*)strial o)t-)t fi")res loo8e* satisfactor
6a+our Pro+lems 15
the "overnment was a+le -ro)*l to anno)nce s)ccess, The five>
ear -lan ha* +een f)lfille* + the en* of #$&(0 ahea* of sche*)le, A
caref)l loo8 at the ta+le .-,#$</ shows that onl in the .statisticall
s)s-ect/ machiner an* metal>wor8in" "ro)- was the -lan over>
f)lfille*0 an* in most im-ortant in*)strial sectors0 not to s-ea8 of
a"ric)lt)re0 the shortfalls were si"nificant, This is not to *en that a
lea- forwar* ha* +een achieve*0 an* that the s)ccesses which were
to +e re-orte* in the ears #$&<>% were *)e in a lar"e -art to the
com-letion of -roCects +e")n in the first five>ear -lan -erio*,
However0 #$&(0 an* still more #$&&0 were ears in which strain an*
*isor"aniFation reache* their hi"hest -oint0 an* the har*shi-s of the
-o-)lation were severe even if the were not -)+licl a*mitte*,
How can one meas)re these strains0 which were the cost of what
ha* +een achieve*G The increase in force* savin"s is in*icate* +
the rise of the share of ca-ital acc)m)lation in the national income0
from #$,< -er cent to &5,& -er cent in #$&(,
%
There are several other hi"hl relevant in*icators, 9et )s +e"in +
loo8in" at -ro*)ctivit an* la+o)r -lans,
3a,our *ro,le$s
Accor*in" to the -lan>f)lfilment re-ort0 the increase in n)m+ers
act)all em-loe* was as follows?
#$(4>' #$&(>&
r
$&
(
.-lan/f .act)al/
All +ranches of the national econom
.tho)san*s/ ##0&15 #1#4%< ((0'5<
of which? Cens)sDin*)strU .tho)san*s/ &05'% &0'1' %0<##
6)il*in" .tho)san*s/ %(1 #0''5 &0#(%
U E@cl)*es small>scale in*)str an* han*icrafts,
t O-timal variant,
4So%rce: Calc)late* from Pyatiletnii #lan, nar- 1ho2- stroite&stva, SSSR .Moscow0
#$&5/0 =ol, (0 --, #%1>4#0 an* &%lfilment of first five!year #lan, -, #'%,/
1& "ndustry' 6a+our and Finance
The )r+an -o-)lation in #$&( was estimate* + the -lan to +e
&(,1 million, It was act)all &',4 million,
On the cre*it si*e0 the ori"inal -lan ha* e@-ecte* that s)+stantial
)nem-loment wo)l* contin)e0 whereas it ha* +een eliminate*
from the towns + #$&(0 an* la+o)r shorta"e was a fairl
wi*es-rea* -henomenon, Also on the cre*it si*e was the intro*)c>
tion in these ears of a seven>ho)r *a0 tho)"h the citiFensD
enComent of leis)re was com-licate* + the intro*)ction0 +e"in>
nin" in the a)t)mn of #$($0 of the D)ninterr)-te*D #yatidnev1a, or
five>*a wee8, This is not to +e conf)se* with a DrealD five>*a wee80
i,e, a free lon" wee8en*, The i*ea was that factories sho)l* wor8
ever *a0 with a fifth of the -ersonnel off on an one *a .fo)r
*asD wor80 one *a free/, This le* to -ro+lems, Th)s maintenance
was ne"lecte*0 8e -ersonnel were lia+le to +e awa when wante*
an* mem+ers of families sel*om ha* the same *a off, On (#
Novem+er #$&# the wor8 Dwee8D was somewhat len"thene*0 +ein"
t)rne* into five *as on0 one *a off0 with some fi@e* *ates at which
the wor8s wo)l* +e close*, All this eliminate* S)n*a as a re")lar
*a of rest0 which0 at a time of anti>reli"io)s e@cesses0 was
*o)+tless one of the o+Cects of the e@ercise, :e shall see that a
seven>*a wee8 .with S)n*a the normal free *a/ was restore* in
#$<5,
However0 the main -oint was that the -ro*)ctivit estimates of
the -lan were over>o-timistic, O)tsi*e the .s)s-ect/ machiner an*
metal>wor8in" sector0 the -ro*)ctivit "ains were ver far +elow
e@-ectation an* on occasion even ne"ative, =ast n)m+ers of -eas>
ants comin" in from the co)ntr0 sometimes as ref)"ees from col>
lectiviFation0 immensel com-licate* the -ro+lems of elementar
la+o)r *isci-line0 time>8ee-in"0 trainin", The -lanne* e@-ansion of
the la+o)r force calle* for "reat efforts to teach new s8ills0 to
increase the ina*eE)ate n)m+ers of en"ineers an* technolo"ists0 to
e@-an* e*)cational esta+lishments, This -rove* e@tremel *iffic)lt
to achieve in -ractice0 an* mere statistics cannot meas)re the hast
mass>-ro*)ction of semi>E)alifie* -ersonnel which was r)she* into
the +reach, For this -)r-ose normal secon*ar e*)cation was totall
*isr)-te* for a few ears .thro)"h mass conversion into emer"enc
Dtechnic)msD/0 as the followin" fi")res show?
6a+our Pro+lems 1
N)m+ers in secon*ar schools
#$('>$ $4404'4
19.9-(& 1,111,0.4
19(&-(1 (0(,4/0
19(1-. 4,.(4
19(.-( 1,.4(,.1.
19((-4 .,&11,190TTTTTTTTTTTT
4So%rce: ;%lt%rnoe stroitel,stvo
SSSR .Moscow0 #$1%/0 -, '#,/
6)t of co)rse trainin" schemes co)l* +arel to)ch the millions
who were recr)ite*0 or fle*0 from the co)ntrsi*e, Soviet lea*ers
an* novelists now freel a*mit that m)ch *ama"e was *one +
sheer cl)msiness? e@-ensive im-orte* machines were smashe* + in>
e@-erience* la+o)rers or )nE)alifie* s)+stit)te>en"ineers, Too often
in the -revailin" atmos-here there was s)s-icion of sa+ota"e,
A consi*era+le n)m+er of forei"n s-ecialists an* s8ille* wor8ers
came to the USSR in these earsI some were )n*er contract with
forei"n firms to hel- erect the new factories an* teach their R)ssian
collea")es, Others went to R)ssia as i*ealistic vol)nteers0 or
+eca)se of the "rowth of mass )nem-loment in the :est as the
*e-ression *ee-ene*, In some cases0 these men too fell )n*er
s)s-icion, In #$&& there too8 -lace the DMetro>=ic8ers trialD0 in
which 6ritish s-ecialists em-loe* in R)ssia + this firm were
fo)n* ")ilt of sa+ota"e,
The tro)+les of Soviet in*)str an* constr)ction were intensifie*
+ a -henomenall hi"h la+o)r t)rnover, The -easant>wor8ers0
+ewil*ere* + their new s)rro)n*in"s0 often short of foo* an*
a*eE)ate lo*"in"0 rootless an* )nsettle*0 wan*ere* a+o)t in search
of +etter thin"s, Not for them the D-athosD of the "reat constr)ction of
socialism, The ta+le "iven on -, (55 tells its own tale,
These fi")res mean that the avera"e wor8er in the coal in*)str0
to ta8e the worst e@am-le0 left his em-loment almost three times
*)rin" #$&5, No won*er Stalin saw the nee* to *isco)ra"e free
movement an* enco)ra"e the acE)isition of s8ills,
Man wor8ers alrea* in Co+s ha* retaine* close famil lin8s
with their villa"es0 an* one effect of collectiviFation was to ca)se
,-- "ndustry/ 6a+our and Finance
7abour turno'er, all large,scale industry (per too employees)
19.9 19(& 19(1 19(.
Entered e"plo+"ent 1...4 114.4 1/1.. 1.1.1
;e#t e"plo+"ent 11/.. 1/..4 1(4.0 1(/.(
7abour turno'er, coal industry (per too employees)
19.0 19.9 19(& 19(1 19(. 19(( 19(4
Entered e"plo+"ent 14&.4 .&1.4 (&1.. .(..0 10/.4 1.9-. 9&.1
;e#t e"plo+"ent 1(..& 19..& .9/.. .&/.. 101.9 1.&.1 9/.4
(Sources: Sotsialistkheskoe stroitefst'o SSSR !19(4%, p. /(&U 0rud ' SSSR !19(/%,
p. 1&9.%
man of them0 miners in -artic)lar0 to r)sh home to see to their
familiesD sit)ation, This ca)se* some short>term *isr)-tion in these
ears0 an* e@-lains wh #$&5 shows the worst fi")res,
The "reat infl)@ of e@tra la+o)r into in*)str an* +)il*in" ha* a
n)m+er of conseE)ences,
44 Ho)sin" an* amenities in towns were "reatl overta@e*,
Trams .there were few alternative means of )r+an trans-ort then/
were -ac8e* to s)ffocation, There was a shorta"e of water0 sho-s0
caterin" facilities, The -lan ha* envisa"e* an increase of the
ho)sin" s-ace in cities from #%5 million to (#& million sE)are
metres .o-timal variant/, It was reco"niFe* that this wo)l* -rovi*e
onl a small increase in the ver ina*eE)ate livin" s-ace0 from 1,4
to %,& sE)are metres -er hea*, 6)t ho)sin" was c)t to ma8e room
for an increase* factor>+)il*in" -ro"ramme0 an*Bor +eca)se of
shorta"e of materials, The total ho)sin" s-ace in #$&( -rove* to +e
not (#& +)t onl #'1 million sE)are metres0 an increase of #% -er
cent not && -er cent, Th)s the )r+an -o-)lation rose + m)ch more
than -lanne*0 ho)sin" s-ace + m)ch less0 an* overcrow*in"
+ecame worse than ever, Ne"lect of maintenance ma*e con*itions
even less +eara+le, No Soviet citiFen is li8el to *en that lac8 of
s-ace0 share* 8itchens0 the crow*in" of several families -er
a-artment0 often *ivi*e* rooms0 were the lot of the maCorit of the
)r+an -o-)lation for over a "eneration0 an* that this was a so)rce of
a "reat *eal of h)man miser,
45 There was a -artic)larl lar"e increase in the em-loment of
women0 with far>reachin" social conseE)ences, Certain -rofes>
Inflationar Press)res (5#
sions0 nota+l me*icine an* teachin"0 +ecame almost wholl
feminine -reserves0 while to)"h e@>-easant women -rovi*e* a lar"e
-art of the )ns8ille* la+o)r force,
.&/ The "reat increase in em-loment ha*0 alon" with other
factors0 the effect of ma8in" nonsense of the -lanDs cost estimates0
an* so contri+)te* to inflation .whose manifestations will +e
*escri+e* in the followin" -a"es/,
It m)st also +e mentione* that in this -erio* -risoners an*
*e-ortees0 es-eciall the latter0 emer"e* as si"nificant factors in the
economic life of the co)ntr, For e@am-le0 onl a small -ortion of
the inha+itants of the new town of 7ara"an*a went there of their
own volition, An* m)ch worse was to come,
In1lationar- *ressures
A consi*era+le contri+)tion to inflation was also ma*e + the ver
lar"e increase in the vol)me of investments, 3)e -artl to e@-ensive
errors an* -artl to )n*erestimation of costs0 as well as to )-war*
amen*ment of earlier -lans0 total state investments amo)nte* in fo)r
an* a half ears to ##( -er cent of the five>ear -lan0 while heav
in*)strDs were #<1 -er cent of the -lan, Of co)rse0 these fi")res too
were -ro+a+l affecte* + statistical DinflationD0 es-eciall of the
val)e of installe* machiner, However0 the ver lar"e e@cess
n)m+er of +)il*in" wor8ers0 shown in the ta+le on -, #$40 to"ether
with the 8nown fact that new -roCects were a**e* to the -lan an*
others s-ee*e* )-0 wo)l* +e consistent with an Dover>f)lfilmentD0
tho)"h a *ownwar* allowance m)st +e ma*e for *isinvestment
.)n-lanne*/ in the -rivate a"ric)lt)re an* han*icrafts section,
DHeav in*)strD investments have the effect of increasin" incomes
witho)t an corres-on*in" rise in o)t-)t of cons)mersD "oo*s an*
services,
Another maCor ca)se of inflationar -ress)re .an* -artl ca)se*
+ this -ress)re/ was the rise in wa"es, 3eman* for la+o)r
roc8ete*0 as -lanners an* mana"ers trie* to achieve the im-ossi+le,
The *rew in e@tra la+o)r to ma8e )- for inefficienc or -lannersD
over>o-timism0 the +i* a"ainst each other for whatever la+o)r was
availa+le, In the face of a *rive to f)lfil -lans in time
,-, "ndustry/ 6a+our and Finance
Dat an costD0 financial controls were ineffective, :a"e +ills rose
hi"h a+ove e@-ectations, Costs0 nat)rall0 rose too, The ori"inal
-lan envisa"e*0 as was shown on -, #<<0 a re*)ction in costs0 also in
wholesale an* retail -rices, The avera"e wa"e of wor8ers in lar"e>
scale in*)str was -lanne* to rise from %%,$5 .#$(4>'/ to $',('
ro)+les -er month .#$&(>&0 o-timal variant/0 i,e, + <%,$ -er cent0
+)t -rices were to fall + #5 -er cent0 so real wa"es wo)l* increase
+ a+o)t 1( -er cent, The act)al real wa"es will +e e@amine* later
on, It is eno)"h at -resent to note what ha--ene* to mone wa"es?
in Dcens)s in*)strD the reache* #(& ro)+les -er month -er wor8er
in #$&(, Over the entire econom0 avera"e wa"es e@cee*e* -lan +
<< -er cent0 an* the total -aroll e@cee*e* e@-ectations + m)ch
more than this .since the n)m+ers in em-loment increase* ver
ra-i*l/, Tr)e0 man -easants s)ffere* a loss in income +eca)se of
the conseE)ences of collectiviFation, However0 mone incomes in
total far e@cee*e* -lan0 +)t "oo*s an* services availa+le were less
than ha* +een ho-e* for,
More will +e sai* later a+o)t how the -lan was in fact finance*,
For the -resent0 let )s +riefl e@amine the "overnmentDs -rice
-olicies0 an* the effect of these on o)r tas8 of assessin" the im-act
of the events of the time,
It has alrea* +een -ointe* o)t that the "overnment0 in la)nchin"
the -lan0 ma*e m)ch of the nee* to re*)ce -rices0 or at least to
o--ose -rice increases, Rationin" ha* +een intro*)ce* in cities in
the winter of #$('>$0 an* ration -rices were 8e-t at low levels, It
e@ten*e* to ever more commo*ities0 incl)*in" te@tiles an* clothin"0
as shorta"es "rew more ac)te, As for in*)strial materials an* f)els0
these were strictl -rice>controlle*0 an*0 as costs rose0 s)+si*ies
were -ai* o)t of the +)*"et, Almost ever in*)strial -ro*)cerDs
"oo* came )n*er ever stricter control on the -art of the -lanners0 as
-art of the effort to "ive -riorit to the heav>in*)str -roCects
which were re"ar*e* as the 8es to the s)ccess of the entire -lan,
3eman* for materials an* f)el co)l*0 in -rinci-le0 +e 8e-t *own
+ a*ministrative allocation0 tho)"h over>ta)t -lannin" *i* ca)se
freE)ent s)--l an* trans-ort *iffic)lties, However0 the -eo-le ha*
increasin" s)ms of mone in their -oc8ets0 an* less to s-en* it on,
A +lac8 .or DC"reD/ mar8et *)l flo)rishe*0 *es-ite
*rices" 'aAes and *urchasin& *ower 203
efforts to s)--ress it0 an* *ecrees .e,", on (( A)")st #$&(/ s-ea8 of
the D"reater freE)enc of cases of s-ec)lationD, Peasant +aFaars were
at times close* .or their o-enin" ma*e con*itional )-on meetin" the
stateDs -roc)rement E)otas/0 at other times tolerate*, As foo*
shorta"es +ecame ac)te0 off>ration -rices in this limite* free mar8et
+ecame e@cee*in"l hi"h0 varin" "reatl from -lace to -lace
+eca)se of the elimination of a .le"al/ -rofessional tra*in" class0
an* shorta"es of trans-ort, The inval)a+le Malafeev has "iven )s
im-ortant *ata on this -erio*0 an* the ne@t -a"es are +ase* lar"el
on his evi*ence .he E)ote* li+erall from archive material which
was not otherwise accessi+le/,
*rices" 'aAes and *urchasin& *ower
:e have alrea* note* that + #$($ a wi*e "a- ha* o-ene* +etween
official -rices an* those char"e* + -rivate tra*ers, It sho)l* +e
a**e* that )ntil #$&& at least coo-eratives in fact were a+le to eva*e
-rice control0 an* even state enter-rises fo)n* that the co)l* ma8e
)- for some of their e@cess wa"es +ills + overchar"in",
In earl #$($ +rea* rationin" ha* +een intro*)ce*0 an* + #$&(
<5 million -ersons were s)--lie* with +rea* from DcentraliFe*
so)rcesD0 another #5 million were ratione* o)t of local reso)rces,
Rationin" s-rea* + the en* of #$($ to almost all foo*st)ffs0 an*
then "ra*)all to the ra-i*l *isa--earin" man)fact)re* cons)mersD
"oo*s, On ## Octo+er #$&# a -rice committee attache* to STO .on #
A-ril #$&( rename* Dcommittee for commo*it f)n*s an* the
re")lation of tra*eD/ was to liE)i*ate the remnants of D-rivate tra*ersD
s-ec)lationD an* fi@ -rices in the state an* coo-erative sector0
Daimin" at a "ra*)al -rice re*)ctionD,
4
So the mth of fallin" -rices
was still alive0 an* in fact a few -rices of ratione* or scarce
commo*ities were c)t on #% Fe+r)ar #$&5, 6)t -rices "enerall
ha* alrea* then +e")n to rise0 an* the stateDs )r"ent nee* for
reven)e le*0 on ( Se-tem+er #$&50 to the a*o-tion of a *ecree on ta@
reform, T)rnover ta@ came into o-eration on # Octo+er of that ear0
re-lacin" a m)ltit)*e of e@cise an* ad hoc ta@es, Price increases
thereafter were to a "reat
,-1 "ndustry/ 6a+our and Finance
e@tent a f)nction of increases in this ta@ .of which more will +e sai*
later on/, It +ecame a maCor means of mo--in" )- s)r-l)s
-)rchasin" -ower0 arisin" o)t of the lar"e increase in incomes an*
the conseE)ences of hi"h investment e@-en*it)re an* the *isasters
of a"ric)lt)re, T)rnover ta@ was incl)*e* in the s)--l -rice
4ot#%s1naya tsena5 at which state in*)str Drelease*D -ro*)cts to
non>official cons)mers,
However0 the "overnment at first trie* to c)shion the shoc80 an*
so ration -rices were hel* at low levels for a time, 6 the mi**le of
#$&#0 the res)ltant ac)te shorta"es even of ratione* commo*ities le*
to the s)--l of some "oo*s + ordery .a)thoriFation/, The s-rea*
of rationin" an* a*ministrative allocation .even of tro)sers to state*
in*ivi*)als/ le*0 as in the -erio* of war comm)nism0 to the s-rea*
of what Malafeev calls iiE)i*ationist attit)*es to tra*e0 mone0 an*
finance , ,, There arose the a+s)r* an* harmf)l theor of the nee* to
a+olish mone an* to shift to *irect -ro*)cts e@chan"e, The
s)--orters of this theor consi*ere* that o)r mone is alrea* close
to +ecomin" wor8 to8ens an* reall has +ecome a merel nominal
)nit of acco)nt0 that within the socialiFe* sector it is alrea* not
mone0 while within the -rivate sector it C)st Kseems to +e moneK,D
There were cases of )nofficial e@chan"e of -ro*)cts0 as when a
Moscow factor De@chan"e* iron an* wire for clothin" an* f)rnit)reD
with other enter-rises,
'
It is worth +riefl *wellin" on this o** res)r"ence of e@treme
leftism which swe-t the co)ntr *)rin" the "reat lea- forwar*, It
affecte* m)ch more than monetar theor, It le* to a ne"lect of cost
consi*erations "enerall0 an* to i*ealiFation of comm)nal livin"
even when0 as so often ha--ene*0 this was the inevita+le
conseE)ence of overcrow*in", These attit)*es affecte* the view
ta8en of economics in "eneral0 an* even of statistics, After all0
statistics is the st)* of ran*om0 )n-lanne*0 )ncontrolle* ma"ni>
t)*es, S)ch a wor*0 so it was hel*0 was )ns)ita+le for the new
circ)mstances of all>ro)n*0 all>incl)sive -lannin", So the central
statistical a*ministration was -lace* )n*er !os-lan in #$&50 an* in
3ecem+er #$&# solemnl rename* the DCentral a*ministration of
national>economic acco)ntin"D .TSUN7HU was the a++reviation in
common )se/, Note the stress on acco)ntin"0 in line with
Prices/ Taxes and Purchasin) Po$er ,-*
9eninDs tho)"hts of #$#4 vinta"e, It was not rename* DstatisticalD
)ntil #$<#, In line with the same -hiloso-h0 when the Commis>
sariat of Tra*e was *ivi*e* in #$&5 its internal activities were
-lace* )n*er a Commissariat of DS)--liesD0 avoi*in" the tainte*
wor* Dtra*eD,
$
To ret)rn to tra*e an* -rices0 the "overnment0 in an* after #$&#0
+e"an to ta8e stron" meas)res a"ainst evasion of -rice controls an*
a"ainst )nofficial -ro*)ct e@chan"e0 insistin" on its own -owers
over reso)rce allocation, On #5 Ma #$&# the cessation of rationin"
of man)fact)re* cons)mersD "oo*s was *ecree*0 with0 however0 the
contin)e* )se of ordery .a)thoriFations/ for clothin" an* footwear,
6 A-ril #$&( foo* rationin" was confine* to +rea*0 "rains0 meat0
herrin"s0 s)"ar0 an* fats, The share of state as *istinct from
coo-erative tra*e rose shar-l,
The -ractice of sellin" some state "oo*s at hi"h -rices0 which
was ori"inall )na)thoriFe* or ille"al0 +ecame a means of increas>
in" the stateDs own reven)e, :hile the -ractice "rew -artic)larl
ra-i*l in #$&# an* #$&(0 it +e"an as earl as #$($0 the first
instance +ein" the sale at hi"h -rices of #% tons of s)"ar in 2)l an*
Octo+er #$($,
#5
S)ch sales +ecame 8nown as DcommercialD0 an* in
the ne@t few ears the "rew0to s)+stantial *imensions, S-ecial
DcommercialD sho-s were o-ene* on a lar"e scale in #$&(0 an* these
sol* ratione* an* scarce )nratione* "oo*s of man 8in*s at -rices
far a+ove official -rices0 the *ifference "oin" to the +)*"et in the
form of a s-ecial D+)*"etar a**itionD over an* a+ove t)rnover ta@,
There were then a n)m+er of *ifferent -rices in e@istence for the
same commo*ities0 to wit?
46 Retail -rices of the Dnormal )r+an f)n*D of "oo*s mainl sol*
on ration co)-ons,
47 Prices of the Dcommercial f)n*D0 s)--ose*l freel sol* to all
+)ers0 m)ch hi"her than the DnormalD, These in t)rn were *ivi*e*
into Davera"e commercialD an* Dhi"her commercialD, The were
s)--ose* to +e availa+le to an +)er who co)l* affor* them0
witho)t co)-ons0 +)t Din #$&5>&( ,,, some of the scarcest
commo*ities which were availa+le for sale at commercial -rices
were freE)entl sol* onl on s-ecial a)thoriFations .or*er/0 th)s
+ecomin" in effect ratione*, In the case of s)ch e@ce-tionall
,-% "ndustry' 6a+our and Finance
scarce items as "oo*>E)alit cotton an* wool fa+rics0 footwear0 etc,
cons)mers em-loe* + vario)s enter-rises were tem-oraril
attache* to -artic)lar commercial sho-s0 an* the were iss)e* with
a 8in* of entr -ermit into this sho-0 with a limit on -)rchases,D
##
This refers to Dclose*D sho-s0 availa+le onl to s-eciall favo)re*
"ro)-s of the -o-)lation, S)ch "ro)-s incl)*e* wor8ers of factories
*eeme* to +e im-ortant for the econom, So>calle* Dclose* wor8ersD
coo-erativesD were set )- to s)--l them0 an* a contem-orar writer
em-hasiFe* the *esira+ilit of lin8in" s)--lies + this ro)te with the
f)lfilment of -ro*)ction -lans an* Dthe str)""le a"ainst a+senteeism
an* flittin"D,
#(
48 There were also sales of +oth foo*st)ffs an* man)fact)re*
"oo*s Din wor8in">class areasD at what were *escri+e* as Davera"e
increase* -ricesD 4sredne#ovyshenye tseny5, +elow commercial an*
a+ove ration -rices, .One can ima"ine the len"th of the E)e)esH/
49 From #$&& there were also Dmo*el "eneral storesD 4%niver!
magi5, with -rices hi"her than commercial -rices,
50 Torgsin sho-s sol* "oo*s onl for -recio)s metals an*
forei"n c)rrenc0 +oth )r"entl nee*e* for +alance>of>-aments
reasons,
51 Free>mar8et -rices0 either E)asi>le"al .o-en +aFaars for
-easant foo*st)ffs/ or semi>ille"al or +lac8>mar8et, The 8ol8hoF
mar8ets were at first .#$&#/ s)--ose* to o+serve Dthe Soviet -rice
-olicD0 +)t this attem-t to control -rices *i* not wor80 an* was
a+an*one* in #$&(,
AH these cate"ories ha* local variations0 since0 as can well +e
ima"ine*0 *istri+)tion was -oorl or"aniFe*,
Prices rose ra-i*l in DcommercialD tra*e0 more ra-i*l still in the
free mar8et, It was not )ntil (4 2an)ar #$&( that there was a .ver
shar-/ "eneral increase in retail -rices of all .incl)*in" ratione*/
"oo*s, 6)t the "overnment0 in its an@iet to a--ease the wor8ers
an* in its evi*ent in*ifference to -easant interests0 fi@e* most -rices
in r)ral areas at DcommercialD levels, Th)s at the +e"innin" of #$&(0
i,e, +efore the +i" rise *ecree* in 2an)ar0 official retail -rices ha*
risen + 41 -er cent in towns0 <( -er cent in the co)ntr0 since
#$(',
#&
6 the first half of #$&( the -rices char"e* in state an*
coo-eratives ha* reache* a level 4% -er cent a+ove #$(4>' levels0
while D-rivate mar8etD -rices were 4%$ -er cent of
Prices/ Taxes and Purchasin) Po$er ,-5
#$(4>' an* risin" ver ra-i*l0 -artic)larl for foo*st)ffs0 reflectin"
the "eneral scarcit of -racticall everthin", In the three months
March to 2)ne #$&( re flo)r increase* in -rice + <1,4 -er cent0
re +rea* + &1 -er cent0 meat + #(1 -er cent0 -otatoes + %%,4 -er
cent, The followin" ta+le shows the "eneral rise?
#<
#$&(
Private mar8et -rices Official -rice Free -rice
#$(' #$($ #$&5 #$&# 2)ne #$&( 41o#e1s #er 1ilogram5
Re flo)r #55 ((1 &15 1(1 (0&5& #(,% '$,1
Potatoes #55 #%5 ('5 1(5 #011( R R
6eef #55 #(1 &1$ %%& #0(%< in <#<
6)tter #55 (5# %5( $4$ #054' 15( #0#<%
E""s #55 #&< &&5 14( '%' R R
Re +rea* R R R R R #5,1 m,o
In #$&& matters "rew worse, DNormal>f)n*D .i,e, ration/ -rices
were shar-l increase* a"ain on # 2an)ar0 an* in man instances
the rise a"ain hit the villa"es har*est .e,", 8erosene0 which in #$&(
cost #' 8o-e8s a litre in towns an* &5 8o-e8s in villa"es0 was
f)rther increase* in -rice + (4 -er cent0 for villa"es onl/,
#1
Amon"
the lar"est -rice increases were ##% -er cent for ve"eta+le oil .1#
-er cent in r)ral areas/0 $1 -er cent for s)"ar .#%& -er cent in r)ral
areas/0 (5 -er cent for +rea*0 an* so on, There were increases also in
state DcommercialD -rices0 an* -artic)larl severe increases in those
-rices of man)fact)re* "oo*s sol* in r)ral areas0 which ha* fallen
+ehin* the rise in commercial -rices .e,", wool cloth + 44 -er cent0
threa* + (#5 -er cent/, There were f)rther s)+stantial increases in
official -rices of foo*st)ffs in #$&&? +rea* + '5 -er cent .less in
r)ral areas/0 +)tter + 11 -er cent0 e""s + '5 -er cent0 etc, Also the
"eneral cost of livin" rose +eca)se of an increase* share
ofDcommercialD tra*e0 at hi"her -rices0 in the total0 from #(,$ -er
cent of the total D-lanne* commo*itiesD in #$&( to (%,$ -er cent in
#$&<, In #$&& a n)m+er of +asic foo*st)ffs were sol* at "reatl
increase* DcommercialD -rices0 at which s)--l an* *eman* *i*
+alance, In Ma #$&& the DcommercialD -rice of re +rea* was (5
times a+ove the official ration -rice0 an* was th)s close to the real
free>mar8et -rice, This was the so>calle* Df)n* of free salesD0 i,e,
,o& "ndustry' 6a+our and Finance
sales )nenc)m+ere* + informal rationin" restrictions, At the same
*ate0 the commercial -rice of s)"ar was % times the ration -rice0
s)nflower oil #< times,
#%
Free>mar8et -rices contin)e* to rise0 an* in #$&& were <',( -er
cent a+ove the avera"e of #$&( .+rea* an* "rains0 -otatoes an*
ve"eta+les + over %5 -er cent/,
#4
6)t the ver s)+stantial increases
in #$&& in -rices of ratione* an* other scarce commo*ities0 a -olic
contin)e* in #$&< when the re +rea* -rice was *o)+le*0 re*)ce*
the "a- +etween the vario)s -rice cate"ories an* so -re-are* the
wa for the )ltimate a+olition of rationin" an* of the en*lessl
conf)sin" m)lti>-rice sstem,
The -ro-er assessment of livin" stan*ar*s at this time is ren*ere*
almost im-ossi+le not onl + the e@istence of rationin"0 -rice
*ifferences0 an* shorta"es0 +)t also of E)e)es0 *ecline in E)alit0
ne"lect of cons)mer reE)irements? DIt is well 8nown that the close*
sho- sstem an* rationin" was freE)entl associate* with a mar8e*
worsenin" in service to cons)mers0 the wi*es-rea* ten*enc to
im-ose Kcom-)lsorK -ro*)cts0 etc, The attit)*e of the sales staff,,,
to the c)stomer co)l* +e characteriFe* + the slo"an Kta8e what o)
are "iven0 *o not hol* )- others in the E)e)e0 *o not -revaricate an*
f)ssK,D
#'
Therefore an fi")res com-arin" wa"es an* -rices are +o)n*
"reatl to )n*erstate the *ecline in livin" stan*ar*s, The -artDs
official histor -refers to overloo8 an *ecline0 an* for the
statisticall worst ear0 #$&&><0
one
loo8s in vain for an overall
-rice in*e@ in an Soviet so)rce, Malafeev was allowe* to -)+lish
onl certain facts, He *i* calc)late an in*e@ for #$&(0 for state an*
coo-erative tra*e onl, This came to (11 .#$(' M #55/0 while
avera"e wa"es rose to ((%, Th)s the real wa"e in*e@ +ase* on the
a+ove wo)l* come to '',%,
#$
6)t in #$&(0 as we have seen0 free>
mar8et -rices ha* risen ver m)ch more ra-i*l, The correct real
wa"e in*e@0 if we onl 8new it0 wo)l* therefore +e well +elow '',%,
Malafeev here face* a -ro+lem with which one can sm-athiFe,
On the one han*0 there is a clear in*ication that real wa"es ha*
fallen0 an* this calle* for e@-lanation0 which he *)l "ave? DThis is
)n*erstan*a+le, In the -erio* of in*)strialiFation of o)r co)ntr ,, ,
the wor8in" class0 the entire Soviet -eo-le0 s-are* neither effort nor
reso)rces0 an* conscio)sl ma*e sacri>
Prices' Taxes and Purchasin) Po$er ,-
flees0 to *ra" the co)ntr o)t of its +ac8war*ness,D
(5
On the other
han*0 he felt com-elle* to assert that there were no sacrifices0 since
Din the -erio* #$('>&( national income rose + '( -er cent0 an* the
cons)m-tion f)n* in #$('>&# rose + 41,1 -er centD, This0 it seems0
-roves the D+aselessnessD of the assertion Dthat socialist
in*)strialiFation s)+or*inates cons)m-tion to investment0 or that
Othe -artP a--lie* in -ractice the Trots8ist slo"an of -rimitive
socialist acc)m)lation which it reCecte* in theorD,
(#
Of co)rse0
Malafeev0 for whose -ioneerin" wor8 on -rices we m)st +e
"ratef)l0 was well aware that the fi")res C)st E)ote* were totall
mislea*in"0 +)t co)l* not sa so, .More will +e sai* in the a--en*i@
a+o)t recent recom-)tations0 e,", + !, 7hanin,/
In or*er to facilitate the mo+iliFation of the wor8in" class for the
D"reat tas8s of +)il*in" socialismD0 an* so as to avoi* an or"aniFe*
-rotest a+o)t livin" stan*ar*s or wor8in" con*itions0 the tra*e
)nions were t)rne* Dface to -ro*)ctionD0 i,e, were instr)cte* to act
-rimaril as or"aniFers an* mo+iliFers in the interests of -lan
f)lfilment, Their ol* lea*ers0 Toms8 an* his frien*s0 were
*ismisse* as Dri"ht>win" *eviationistsD, The -rotective role of the
)nions was "reatl re*)ce*, If their face was to -ro*)ction0 their
+ac8 was to their mem+ers, For man ears there was not even the
-retence of elections0 an* the all>)nion Tra*es Union Con"ress
faile* to meet at all in the -erio* #$&(><$, :hen0 with the
*isa--earance of )nem-loment0 it was *eci*e* to win* )- the
Peo-leDs Commissariat of 9a+o)r .in #$&</ the tra*e )nion centre
too8 over some of its f)nctions an* a*ministere* social ins)rance, It
th)s +ecame for all -ractical -)r-oses a +ranch of "overnment, :e
shall see that not )ntil after StalinDs *eath was there a revival of its
more re-resentative an* -rotective f)nctions, In the thirties the
nominal -owers of the )nions to enforce -rotective le"islation were
little )se*,
:hat was the contem-orar reaction to the harsh con*itions of
the timeG The -ress an* s-eeches ma*e virt)all i"nore* them
alto"ether, Stalin0 s-ea8in" in 2an)ar #$&&0 calml claime* that
.mone/ wa"es ha* risen + %4 -er cent since #$('0 omitte* all
mention of -rices0 an* asserte*? D6)t we have )nE)estiona+l
,io "ndustry/ 6a+our and Finance
attaine* a -osition where the material con*itions of the wor8ers an*
-easants are im-rovin" from ear to ear, The onl ones who can
have *o)+ts on this score are the sworn enemies of the Soviet
re"ime,D
((
To -)t it mil*l0 s)ch lan")a"e *i* not enco)ra"e
in*e-en*ent research on stan*ar*s of livin"H
The incl)sion in the -ict)re of the -easants wo)l* certainl ma8e
it worse0 in -artic)lar in the -erio* #$('>&<, Nothin" can +etter
ill)strate the meanin"lessness0 in an real terms0 of the claim to an
increase in the Dcons)m-tion f)n*D + 41 an* more -er cent,
A*mitte*l0 correction m)st +e ma*e for the elimination of
)nem-loment0 an* for the fact that man of the -oorer -easants
were earnin" more as )ns8ille* wor8ers than the ha* as -easants0
so that a fallin" real wa"e>level *oes not necessaril im-l that all
wa"e>earners were earnin" less than +efore, Social services *i*
"row0 too, Factor canteens -rovi*e* ine@-ensive meals on a lar"e
scale, There was a +i" e@-ansion of -rivate c)ltivation on the
o)ts8irts of towns, Rents stae* ver low, 6)t man corrections
reE)ire to +e ma*e in the o--osite *irection also, The fact still seems
to +e clear? #$&& was the c)lmination of the most -reci-ito)s
-eacetime *ecline in livin" stan*ar*s 8nown in recor*e* histor,
Mass miser an* h)n"er reache* *imensions whose *emo"ra-hic
conseE)ences have alrea* +een remar8e* )-on,
A"ric)lt)ral -roc)rement -rices remaine* ver low, Th)s -rices
-ai* + the state for wheat in the U8raine reache* ',51 ro)+les -er
E)intal .#55 8ilo"rams/ in #$('>$ an* remaine* )nchan"e* thro)"h
to #$&<, In #$&1 there was a #5 -er cent increase, Prices -ai* for
+eef in #$&#R( were act)all +elow the #$('>$ level0 -or8 -rices
were a little a+ove, Yet all "oo*s -)rchase* + -easants ha* their
-rices ver "reatl increase*, However0 some -easants were a+le to
+enefit from ver hi"h free>mar8et -rices, This was in*ee*
D-rimitive socialist acc)m)lationD, In #$&<0 however0 a nota+l
*ifferent -olic for in*)strial cro-s was intro*)ce*? th)s cotton
-rices were raise* from &5 to ##1 ro)+les -er centner, This was
*o)+tless a necessar conseE)ence of the rise in foo* -rices0 since
the Central Asian -easants co)l* not +e e@-ecte* to s-ecialiFe on
cotton )nless the co)l* eat,
Incentives and Ine@ualit- 211
Incentives and Ine@ualit-
To "et res)lts a settle* la+o)r force was in*is-ensa+le, A cam-ai"n
was la)nche* to -enaliFe materiall DflittersD an* a+sentees,
A series of r)les an* *ecrees +etween #$&5 an* #$&& -)nishe*
a+senteeism .common eno)"h as a res)lt of the ha+it of *rin8/ +
*ismissal0 eviction from factor ho)sin" an* loss of vario)s
+enefits, This le* to a mar8e* *ecline in a+senteeism,
(&
In #$&#
Stalin ma*e his famo)s critiE)e of De"alitarianismD 4%ravnilov1a5 in
wa"es, The o+Cect was to rewar* those who chose to sta -)t an*
acE)ire s8ills, The res)lt was a new wa"e>scale which ma*e the
*ifference in tariff rates +etween least s8ille* an* hi"hl s8ille*
wor8ers as hi"h as &,4?#, This ha* some economic C)stification at a
time when s8ille* la+o)r was e@cee*in"l scarce, Stalin also
enco)ra"e* a -olic of hi"her -a an* -rivile"es for in*)strial
ca*res0 an* a+an*one* the ol* r)le0 esta+lishe* + 9enin0 that -art
mem+ers sho)l* not earn more than a s8ille* wor8er *i*, S)ccess
wo)l* +e achieve*0 in his view0 + m)ch "reater material incentives,
This wo)l* +rin" nearer the *a of comm)nist a+)n*ance, Until
then0 the slo"an of e"alitarianism was0 in his view0 D-ett>+o)r"eoisD,
6)t non>material incentives were nee*e* too, So there was
"reater em-hasis than ever +efore on Dshoc8 wor8ersD0 Dshoc8
+ri"a*esD0 the Re* 6anner0 hono)rs0 Dsocialist em)lationD, Th)s0 for
e@am-le0 on (' A-ril #$&5 there was a -art *eclaration on Dshoc8
wor8ersD0 a--rovin" the Dshoc8D 4%darnyi5 movement0 +)t warnin"
a"ainst the ten*enc0 which -rove* chronic0 to D+)rea)>cratiFeD the
movement + s)ch thin"s as Dchasin" the formal f)lfilment of -lan
fi")res0 *eclarator showmanshi-D0 an* so on,
(<
:or8ers an*
factories were th)s )r"e* ever onwar*s to new efforts0 an* rewar*e*
+oth financiall an* morall,
Privile"es0 whether for selecte* cate"ories of wor8ers or for
officials0 ten*e* at this -erio* to ta8e the form of D-er8sD? access to
Dclose*D sho-s0 allocations of tolera+le ho)sin"0 a -ermit to +) a
"oo* s)it0 an* so forth, Un*er con*itions of )niversal shorta"es0
mone alone co)l* not *o m)ch0 witho)t that somethin" e@tra
which a)thorit co)l* -rovi*e or allow, In this sort of sit)ation
2i2 Industr-" 3a,our and %inance
a+)ses were E)ite )navoi*a+le0 an* the entire relationshi- +etween
official*om an* the citiFenr was a*versel affecte*, It was
therefore entirel ri"ht to en*eavo)r to a+olish rationin" an* to
+rin" -rices )- to a -ro-er s)--l>an*>*eman* +alancin" level0 as
was *one in #$&<>10
as
Z a-art from "reatl sim-lifin" tra*e an*
-rice control0 the o--ort)nities for rac8ets of all 8in*s "reatl
*iminishe* in sco-e, However0 as shorta"es of necessities an*
l)@)ries ali8e were ver severe0 -rices ha* to +e ver hi"h in relation
to the .inflate*/ wa"es, 6)t this will +e e@amine* in the ne@t cha-ter,
%inancin& o1 Growth
It is time to t)rn to finance, How was the vast investment -lan
finance*G In -art + the sales of +on*s0 which +ecame + this time
almost com-)lsor0 in that a recalcitrant citiFen who faile* to
vol)nteer to +) +on*s mi"ht well s)ffer )nfort)nate conseE)ences,
An* then there was the -rintin" -ress, Mone in circ)lation
increase* as follows?
#$(' #$($ #$&5 #$&# #$&( #$&& #$&<
4milliard ro%"les, i 8an%ary5
#,4 (,5 (,' <,& 1,4 ',< %,$
4So%rce: Malafeev $storiya tsenoo"ra2ovaniya v SSSR .Moscow0
#$%</0 -, <5<,/
The fall in #$&< is s)r-risin"0 an* receives no e@-lanation, The rise
was res)me* in s)+seE)ent ears,
9ast +)t not least0 there were ta@es, 9ittle was o+taine* in these
ears + *irect ta@ation of wor8ers an* em-loees0 an* while there
was some reven)e from -enal ta@es *esi"ne* to *rive in*ivi*)al
-easants into the 8ol8hoFes0 an* in*ivi*)al craftsmen into
coo-eratives0 once there the were ta@e* fairl li"htl, The +)l8 of
reven)e0 after the ta@ reform of #$&50 came from t)rnover ta@0 an*
to a lesser e@tent from the -rofits of state enter-rises,
DT)rnover ta@D is a term which covere* .an* covers/ some ver
*ifferent s-ecies of ta@ation0 incl)*in" in #$&5>&10 the followin"?
Financin) of #ro$th ,1!
52 Incresed e@cise duties, especill+ on :od,, =ut also on
salt0 matches0 etc,
53 Ta@es incl)*e* in the in*)strDs sellin" .*is-osal/ -rice0 on
wi*e ran"e of in*)strial cons)mersD "oo*s0 from te@tiles to sewin"
machines, These ta@es were -artic)larl hi"h in these ears on
"oo*s *estine* for DcommercialD sales, There were also D+)*"et
a**itionsD of vario)s cate"ories0 so>calle* natsen1i, which were
a**e* to the -rice of some "oo*s when allocate* for retail sales,
54 The ta@ which arose o)t of the *ifference +etween the low
-roc)rement -rice of a"ric)lt)ral -ro*)ce an* the m)ch hi"her -rice
at which raw or -rocesse* foo*st)ffs were )ltimatel sol* to the
cons)mers .after allowin"0 of co)rse0 for trans-ort an* han*lin"
char"es/, Th)s in #$&& the "rain -roc)rement or"aniFation
.;a"otFerno/ -ai* ro)"hl 1,45 ro)+les for a centner of re0 an* sol*
this re to state flo)r mills at ((,(5 ro)+les0 the +)*"et +enefitin"
from the *ifference, After a series of retail -rice increases the
sit)ation at the en* of #$&< was as follows? the ;a"otFerno Ksellin"
-rice of re was '< ro)+les -er centner0 of which %% ro)+les was
t)rnover ta@, The -rice cite* for wheat was #5< ro)+les0 with
t)rnover ta@ ta8in" an even hi"her -ro-ortion0 '$ ro)+les, The -rice
of coarse wheat flo)r was (#% ro)+les -er centner0 of which
t)rnover ta@ too8 #$1,15 ro)+les,
(1
Anti>Soviet -ro-a"an*ists have
ma*e m)ch of the ver hi"h -ercenta"e of the ta@ .Dta@ on
necessitiesD of astronomic *imensions/0 +)t this is to miss the -oint0
which is the ver low level of -aments to the -easant -ro*)cers,
The +)r*en of ta@ was -rimaril on them? com-)lsor -roc)rements
at low -rices containe* a s)+stantial element of ta@0 which showe*
)- in the +)*"et as -art of t)rnover ta@ reven)e, Its im-ortance ma
+e *emonstrate* + the fact that in #$&1 -roc)rement or"aniFations
contri+)te* (< milliar* ro)+les to the +)*"et0
(%
within a t)rnover ta@
iel* of 1(,( milliar*s0 o)t of a total reven)e in that ear of 41
milliar*s, A"ric)lt)re th)s ma*e a *ecisive contri+)tion to the
financin" of the -lan,
=er serio)s *iffic)lties face* the "overnment in fin*in" the
means to finance -)rchases from a+roa*, As alrea* mentione*0
terms of tra*e move* shar-l a"ainst the Soviet Union0 in common
with other -rimar -ro*)cin" co)ntries0 as the !reat 3e-ression
*evelo-e* in the :est, E@-orts of wheat were
2i9 Industr-" 3a,our and %inance
res)me*0 an* other foo*st)ffs were e@-orte*0 incl)*in" +)tter
.&#0555 tons in #$&(/0 *es-ite ac)te shorta"es at home, Acc)sations
of *)m-in"0 +ocotts0 -rotests a"ainst Soviet tim+er +eca)se of
force* la+o)r0 o+str)ction of Soviet oil sales0 all han*ica--e* the
efforts of Soviet salesmen, Ever attem-t was ma*e to o+tain cre*its
from a+roa*0 an*0 with the *e-ression in f)ll swin"0 R)ssian or*ers
were ver welcome, So a certain amo)nt of ai* was ren*ere* from
the Dca-italistD :est0 in the form of loan finance as well as 8now>
how0 tho)"h of co)rse ai* was not the motive of these transactions,
In his interview with :alter 3)rant0 Stalin state* that in #$&# total
Soviet in*e+te*ness on vario)s cre*it acco)nts amo)nte* to #0<55
million ro)+les, Ass)min" that this was e@-resse* in the then
official e@chan"e rate0 this amo)nte* to 4(# million *ollars, These
were short>term cre*its0 an* ever effort was ma*e to re-a them
E)ic8l, 6 the en* of #$&& the s)m of onl <15 million ro)+les was
o)tstan*in",
(4
6)t these re-aments reE)ire* sacrifices, A-art from
e@-ortin" essentials +a*l nee*e* within R)ssia0 it -rove* necessar
to sell art treas)res0 to enco)ra"e the -eo-le to *is"or"e an stoc8s
of "ol* an* forei"n c)rrenc .via the Torgsin sho-s0 see -, (5%/ an*
so on, In*ivi*)als s)s-ecte* of hoar*in" "ol* ere forced to
*is"or"e it + threats an* im-risonment,
(eor&ani8ation o1 *lannin&
It is now necessar to ta8e a +rief loo8 at the organi2ational
changes which accom-anie* the first five>ear -lan,
Firstl0 the nat)re an* sit)ation of the enter-rises were f)n*a>
mentall altere*, On 1 Se-tem+er #$($ the -rinci-le of one>man
mana"ement was asserte* in a *ecision of the central committee,
The factor -art or"aniFation was tol* not to interfere with the
*irectorDs res-onsi+ilit0 the tra*e )nions were to +e Dener"etic
or"aniFers of -ro*)ction activit an* of the initiative of the
la+o)rin" massesD0 even while )-hol*in" Dthe ever*a c)lt)ral0
amenit an* economic nee*s of the wor8ersD, The *irector was0 in
-rinci-le0 in sole char"e, On 1 3ecem+er #$($ a f)rther *ecision
.still + the central committee0 a de facto le"islator in
Reor)ani9ation of Plannin) ,1*
economic affairs0 now an* later/ lai* *own that the enter-rise was
to +e Dthe +asic )nit of a*ministerin" in*)strD0 an* the -rinci-le
of 1ho2raschyot .economic or commercial acco)ntin"/ was to +e
+ase* on the enter-rise0 which was to have a--ro-riate financial
a)tonom an* a le"al -ersonalit, This followe* the lo"ic of a
*ecision ta8en on ($ 2)ne #$(4 to increase the -owers of the
enter-rise0 a *ecision which was s)ccessf)ll resiste* + the
tr)sts, Now the tr)sts lost their *irect -owers over enter-rises0
an* were tol* to concentrate on Dtechnical *irection0 rational>
iFation an* reconstr)ctionD, =SN7HDS in*)strial "lav8i were
a+olishe*0 an* their f)nctions in controllin" in*)str were
transferre* to so>calle* o"yedineniya .associations/ which were
s)--ose* to +e +ase* on the wholesalin" Dsn*icatesD, A similar
chan"e ha* alrea* +een ma*e in the te@tile in*)str in #$(4
.see -, $1/,
In the ears that followe*0 the immense new +)r*en of wor8
which fell )-on the central -lannin" or"ans ca)se* re-eate*
f)rther reor"aniFation0 some Dle"alD0 some ad hoc- A ver lar"e
n)m+er of *ecisions emanate* from the central committee an* its
officials0 or were ta8en + its -leni-otentiaries on the s-ot,
Control over reso)rces allocation +ecame ever more com-licate*0
an* the nee* to sstematiFe it le* to a re>e@amination of the
relative f)nctions of =SN7H an* !os-lan, The latter was no
lon"er en"a"e* onl in -ro"nosis an* the *raftin" of Dcontrol
fi")resD0 since -lans ha* +ecome or*ers to act, On (& 2an)ar
#$&5 the central statistical a*ministration was -lace* )n*er
!os-lan, !os-lan came *irectl )n*er the Co)ncil of Peo-leDs
Commissars .not the STO/ + *ecree of & Fe+r)ar #$&#,
!os-lan increasin"l too8 over the f)nction of -lannin" from
=SN7H,
=SN7H meanwhile was )n*er"oin" a -ainf)l internal trans>
formation, The thirt>five associations set )- in 3ecem+er #$($
were s)--ose* to D-lan -ro*)ction0 -lan an* control investment0
technical -olic0 s)--lies an* *is-osals0 commercial an* financial
activities0 la+o)r0 trainin" an* *istri+)tion of ca*res0 a--ointment
an* *ismissals of mana"erial staffsD,
('
Some of these associations
ha* as their sole tas8 the f)ll control of enter-rises an* tr)sts of
all>)nion si"nificance0 +)t some of them controlle* enter-rises
,1% "ndustry/ 6a+our and Finance
which were within the com-etence of the re-)+lics or local Soviets,
Conf)sion arose over the E)estion of res-onsi+ilit of the
associations +oth with re"ar* to re-)+lican or"ans an* in res-ect of
the -resi*i)m of =SN7H itself0 which retaine* a wi*e ran"e of
-owers, It e@ercise* them with the a*vice of a reor"aniFe* an*
stren"thene* version of Prom-lan0 the cl)ms title of which was?
DCentral -lannin">technical>economic a*ministration,D As the e@tent
of the -lannin" "rew0 an* in*)str +ecame more com-le@ an*
*iffic)lties acc)m)late*0 this str)ct)re +ecame )nwor8a+le, Some of
the associations controlle* far too man enter-rises? th)s
Soy%2les#rom, the association res-onsi+le for tim+er0 ha* )n*er it
one tho)san* -ro*)ction )nits, So a -rocess of s)+*ivision starte*,
The n)m+er of associations "rew, =SN7HDS coor*inatin" an*
controllin" f)nction was ren*ere* ever more *iffic)lt, 6 the en* of
#$&5 the newl a--ointe* hea* of =SN7H0 Or*Fhoni>8i*Fe0 *eci*e*
to reor"aniFe it et a"ain, This time there "rew )- a series of
DsectorsD .e,", Metall)r"ical0 Chemical0 F)el0 etc,/0 within each of
which there were several associations, The DCentral -lannin">
technical>economic a*ministrationD was a+olishe*0 an* in its -lace
there were create* Df)nctional sectorsD? for -lans0 acco)ntin" an*
a)*itin"0 finance0 s)--lies an* *is-osals0 ca*res0 la+o)r0
investments, The f)nctional *e-artments interfere* *irectl with the
activities of enter-rises an* tr)sts0 there+ ca)sin" m)ch crossin" of
wiresI this was later *eno)nce* as the *isease of Df)nctionalismD
4f%n1tsional1a5- In #$&#0 in*)strial DsectorsD of =SN7H +e"an once
more to +e calle* "lav8i, 6)t all this rela+ellin" of the same officials
*i* not save =SN7H, On 1 2an)ar #$&( its wor8 was *ivi*e*, The
lar"est -art was to +e han*le* + the Peo-leDs Commissariat of
Heav In*)str, Other in*)strial commissariats too8 over li"ht
in*)str an* tim+er an* woo*wor8in", Foo* an* s)"ar -ro*)ction
ha* alrea* +een han*e* over to the Commissariat of Internal an*
E@ternal Tra*e on #4 2)ne #$&5,
($
6 #$&( this ha* +een s-lit0 an*
the foo* an* s)"ar in*)str fo)n* itself within the S)--lies
Commissariat .Nar8omsna+/0 which also ran internal tra*e, 9ater on
in the thirties0 as we shall see0 the n)m+er of these Peo-leDs
Commissariats "reatl increase* + s)+*ivision,
Chief *e-artments ."lav8i/ within the commissariats acE)ire*
Reor)ani9ation of Plannin) ,15
*irect -owers over -lannin" an* a*ministerin" DtheirD enter-rises0
either *irectl or thro)"h re-)+lican or"ans, 6 the en* of #$&( the
o"yedineniya .associations/ ha* +ecome s)-erfl)o)s an* ha* almost
wholl vanishe* from the scene, So was +orn the DministerialD
sstem of in*)strial a*ministration .Peo-leDs Commissariats were
rename* Ministries in #$<%/0 which s)rvive* with few chan"es0
other than "rowth + s)+*ivision0 )ntil #$14, As a res)lt of the fact
that no one +o* at this level now covere* all in*)str0 !os-lanDs
role as coor*inator nat)rall increase*0 an* +ecame the 8e element
in the -lannin" sstem )n*er the a)thorit of the -art an*
"overnment, A more *etaile* analsis of the -lannin" sstem in the
thirties m)st +e left to the ne@t cha-ter,
There was also a reform of cre*it an* +an8in", As we have seen0
in the NEP -erio* state tr)sts co)l* ma8e a"reements an* "rant
cre*its with one another on their own initiative, In #$&5>&& there
were cases of D-ro*)cts e@chan"eD +etween state enter-rises,
Evi*entl0 no effective control over the activities of s)+>)nits of the
state econom wo)l* +e -ossi+le so lon" as the co)l* o+tain an*
s-en* mone in )n-lanne* was, So on &5 2an)ar #$&5 a *ecree
intro*)ce* D*irect +an8 cre*itD thro)"h the State 6an80 an* a+olishe*
inter>enter-rise an* inter>tr)st cre*its, On (& Ma #$&5 came a
*ecree on Da )nifie* financial -lanD incor-oratin" the finances of Dall
financial reso)rces of the socialiFe* sector of the economD, On the
same *a it was *eci*e* that investment allocations from the state
+)*"et to socialiFe* enter-rises were to +e non>ret)rna+le0 these
+ein" *istin")ishe* from short>term cre*its "rante* + the 6an8 to
cover tem-orar nee*s for f)n*s .e,", to cover the "a- +etween
o)tlas an* recei-ts of -ament for "oo*s/, A series of f)rther
meas)res *)rin" #$&#
&5
ti"htene* )- control over +an8 cre*its0
lin8in" them more closel with +oth the o)t-)t -lan an* with
contracts si"ne* with the c)stomers *esi"nate* + the -lan, A more
thoro)"h *istinction was ma*e +etween DownD wor8in" ca-ital an*
that finance* + +an8 cre*its, This was Dcontrol + the ro)+leD0 +)t in
the -ec)liar circ)mstances of #$($>&&0 +oth the e@-ansion of short>
term cre*its an* +)*"etar "rants .in the form of s)+si*ies to cover
o-eratin" losses/ hel-e* to finance inflationar increases in wa"es,
,i& "ndustry' 6a+our and Finance
The Party's Rule and 4ethods
A wor* is necessar a+o)t the r)le of the -art0 its -leni-otentiaries0
its *irect interventions, An e@am-le ma +e ta8en from the railwas
an* a"ric)lt)re, Here0 for instance0 is Postshev at the seventeenth
-art con"ress?
Re-ressions were0 in these *ecisive ears0 the effective metho* of
Dlea*ershi-D in man -art or"aniFations of the U8raine, To characteriFe
these ,,, I will "ive the followin" e@am-le0 t-ical of ver man re"ions
of the U8raine, In the Novo"ra*>=olns8 re"ion0 as in other re"ions0
there was set )- the o-erational troi1a for sowin"0 consistin" of the
secretar of the re"ional O-artP committee0 the -leni-otentiar from the
central committee an* the hea* of the re"ional O!PU0 with the
-artici-ation at the troi8a meetin"s of the re"ional -roc)rator0 the hea*
of militia an* of the control commission, Here is an e@tract of the
min)tes of a meetin" of the troi8a? DRemove an* sen* for trial the
chairman of the retail coo-erative, 7on*ratiev to select a new chairman0
an* the militia comman*er to arran"e 3oformii
=
! in -ro-er formP for the
trial, 3ismiss the chairman of the villa"e soviet an* -)t him on trial,
Mem+ers of the villa"e soviet an* all r)ral or"aniFations to +e severel
re-riman*e* thro)"h the -ress, 3e-rive 7ol8hoF No, ( of all favo)ra+le
treatment, Remove the +)rea) of the O-artP cell,D ,,, This is the
)n*is")ise* ar+itrariness which in these *ecisive ears +ecame the
-re*ominant form ,, ,
&#
=oroshilov0 in his s-eech0 referre* to similar ar+itrariness + the
hea*s of the -olitical *e-artments 4#olitotdely5 on the railwas?
D:hen we rea* that Oa -olitot*el manP arrive* at the *e-ot0 sac8e*
some0 a--ointe* others0 move* wa"ons0 chase* o)t locomotives0 it
+ecomes +oth f)nn an* sa*, If this is to +e the normal wor8 of
-olitot*el0 if the will re-lace the men in char"e0 then we will not
-)t trans-ort ri"ht0 we will f)rther *isor"aniFe it,D
&(
An e@am-le of
the .-ositive/ effect of central committee intervention was
mentione* at the con"ress + ;imin? D6efore the *ecision of the
C,C,0,,, there were a mere fo)rteen en"ineers an* #<# technicians to
wor8 on re-airs to all the rail wa"ons of o)r co)ntr, After the C,C,
*ecisions there were thrown 4"rosheno5 there <15
The Party's Rule and 4ethods ,1
en"ineers an* #0115 technicians,D
&&
An* =oroshilov en*e* his
s-eech + *eclarin"? DSince Comra*e Stalin has now ta8en )-
trans-ort E)estions0 then0 comra*es0 Co8in" is s)-erfl)o)s,D
&<
No acco)nt of economic affairs in these ears wo)l* +e com-lete
witho)t a reference to the chan"e* DtoneD, The "eneral coarsenin"
of life went far +eon* merel +a* lan")a"e0 ta+le>th)m-in" +
+oorish commissars0 overcrow*e* comm)nal *wellin"s an* the
li8e, There was a *ecline not onl of livin" stan*ar*s +)t also in
stan*ar*s of *isc)ssion0 an* in the s)+stance as well as the form of
or*ers "iven, In the twenties too0 nee*less to sa0 -olitics an*
economics were interlin8e* an* stron" wor*s were )se* in ar")>
ment, 6)t + the earl thirties real ar")ment cease*0 to "ive wa
to a+)se, Th)s two )nfort)nates calle* =olDf an* 7ovars8i e@>
-resse* views in #$&& favo)rin" "reater a)tonom for farms0 th)s
D)n*erestimatin" the role of the -roletariat in collectiviFation an*
the lea*in" role of the state in 8ol8hoFesD, Perha-s the were
wron", 6)t in a lea*in" aca*emic Co)rnal the were acc)se* of
+ein" enem a"ents0 wrec8ers0 of Dinfectin" horses with menin>
"itisD,
&1
Another e@am-le is worth citin" at len"th, It concerns rail
trans-ort0 which0 as alrea* state*0 -rove* )na+le to co-e with the
vast increase in traffic0 in #$&& in -artic)lar, This le* to a maCor
reor"aniFation an* the a--ointment as commissar of 7a"anovich0
the ver em+o*iment of the Dtro)+le>shooterD0 an* DshooterD is to
+e ta8en literall in this instance, DPolitical *e-artmentsD were set
)- to D)nmas8 an* smash sa+ota"eD, The crisis on the railwas was
real eno)"h, In the first half of #$&& onl '1,1 -er cent of the
traffic -lan ha* +een f)lfille* an* the tonna"e carrie* ha* fallen
com-are* with the analo"o)s -erio* of #$&(, Oil an* coal co)l*
not +e move*0 contri+)tin" to an ac)te f)el crisis, Amon" the
ca)ses were shorta"es of s-are -arts0 lac8 of time for maintenance0
lac8 of s8ille* men,
&%
6)t a+ove all0 sa+ota"e was s)s-ecte*, The
trials in #$&5>&# of an alle"e* DIn*)strial -artD0 a DPeasant -artD0
a DMenshevi8 +)rea)D0 all s-rea* a feelin" of insec)rit an* fear0
-artic)larl of sa+ota"e0 an* -lace* almost all s-ecialists )n*er
s)s-icion, Stalin as8e* for the ra-i* trainin" of relia+le s-ecialists
of )nim-eacha+le ori"ins0 )r"e* comm)nists to Dmaster tech>
niE)eD, Meanwhile the followin" a--eare* in a lea*in" article in
the or"an of !os-lan > har*l a ra++le>ro)sin" -)+lication?
,,- "ndustry/ 6a+our and Finance
Until now Dman -art cells show class +lin*ness an* *o not )nmas8
class enemies who cree- into me railwas an* attem-t to wrec8 an*
*isr)-tD, As a res)lt0 class enemies0 white>")ar*ists0 8)la8s0 still have the
o--ort)nit here an* there on the railwas to cree- into Dmo*estD an*
Dinsi"nificantD Co+s0 li8e those of "reasers0 an*0 Dsilen* sa--in"D0 the
carr on their wrec8in"0 +ecomin" or"aniFers of crashes an* acci*ents0
*estroin" essential -arts of the railwa an* *isor"aniFin" its wor8,
Those who o-enl *isr)-t the carrin" thro)"h of essential -art an*
"overnment *ecisions are *irect colla+orators an* a"ents of the class
enem ,,, 3irect tric8er + sa+ote)rs of -art an* "overnment Omeas>
)resP reaches the -ro-ortions of a -illar of Herc)les0 as is E)ite clearl
shown + the case of *e"enerative an* criminal eewash + tra*e>)nion
falsifiers at the Osnova station of the So)thern railwa line0 who in one
ni"ht Owait for itHP fa+ricate* twent>fo)r false re-orts of wor8ersD
meetin"s0 s)--ose*l or"aniFe* to carr thro)"h the *ecisions Oof the
-artP on trans-ort, To raise the level of watchf)lness over the class
enem which has crawle* into trans-ort0 to show )- an* )nmas8 ever
8in* of o-en an* hi**en sa+ote)rs so that0 with ever availa+le means
which onl the -roletarian *ictatorshi- -ossesses0 their criminal activities
can +e en*e*0 that is the *)t of ever comm)nist ,,,K Oan* so on0 ad
na%seam:-
This -)r-le -assa"e is not re-ro*)ce* here as a -iece of anti>
comm)nist -ro-a"an*a0 or for a chea- la)"h, It was t-ical of the
time0 an* this -attern of tho)"ht an* action *ee-l affecte*
economic a*ministration at all levels, To omit this is to leave o)t a
si"nificant -art of histor0 an essential -art of the -olitical>
sociolo"ical +ac8"ro)n* to the "reat -)r"e,
The same lan")a"e e@ten*e* to economics0 an*0 as alrea*
-ointe* o)t0 meas)res a"ainst alle"e* sa+ote)rs e@ten*e* also to the
economists, The same iss)e of the Co)rnal from which the a+ove
-assa"e was E)ote* contains an a+)sive DreviewD of a wor8 +
Str)milin0 who was a lea*in" -art economist, He was acc)se*0
inter alia, of a-olo"etics for Trots8ism an* 6)8harinism0 an* it
seems l)c8 that he was not swe-t awa with so man others0 an*
ha* in fact live* to cele+rate in hono)r his ninetieth +irth*a in
#$%', The critics acc)se* him of Dfailin" to )nmas8 the +o)r"eois
wrec8in" nat)re of the Omo*estP first *rafts of the five>ear -lanD,
Return to So+er Plannin) ,,1
These were D*eli+erate minimalism of the wrec8er>-lannersD, That
the co)l* have ma*e honest mista8es is o)t of the E)estion? DThe
class nat)re an* tactics of the wrec8ers are analse* s)-erficiall +
the a)thor0 an* *o not in an wa arm the -art an* wor8ers in its
+attle a"ainst wrec8ers,D Even e@cee*in"l am+itio)s -lans were
*eli+erate wrec8in"0 accor*in" to the reviewer0 the o+Cect +ein" Dto
create *ee- an* artificial *is-ro-ortionsD, An* so on, Therefore0
since Str)milin allowe* for the -ossi+ilit of error an* real
*ifference of o-inion0 his +oo8 was Dharmf)l ,,, v)l"ar0 o--ort)nistic
from +e"innin" to en*D0 the a)thor is a D-)rveor of anti>Mar@ist
theoriesD0 etc,
&'
Man eminent an* less well>connecte* economists
fo)n* themselves -illorie* as enem a"ents an* were never seen
a"ain,
It is -erha-s clear + now that serio)s *isc)ssion was har*l
-ossi+le, :e have alrea* seen StalinDs own contri+)tion to its
s)--ression in his totall false statements on livin" stan*ar*s, He
too8 time off his n)mero)s *)ties in #$&# to write a slashin" attac8
on the Drotten li+eralismD of the e*itors of a lea*in" -art Co)rnal for
allowin" *isc)ssion of wron" an* harmf)l i*eas,
&$
The semi>literate
name>callers whom I have E)ote* were followin" the -art line to
the +est of their *o)+tless limite* a+ilit, As a -scholo"ical fact0
the lac8 of a+ilit e@-lains m)ch, After a c)lt)ral meetin" in
9enin"ra*0 in which a literar commissar .Aver+a8h/ ha* )se*
to)"h an* )ncom-romisin" lan")a"e0 the e@cellent h)morist
;oshchen8o sai* to the .then o)n"/ novelist 7averin? DS)ch
*evilish ener", If onl there was talentH 6)t there is no talent0 an*
hence the other E)alities,D
<5
Return to So+er Plannin)
In #$&( the s8 was still the limit, On &5 2an)ar the seventeenth
-art conference met0 an* a*o-te* 7)i+shevDs -ro-osals as a +asis
for a secon* five>ear -lan, The ta+le on -, ((( shows the tar"ets
for #$&40 with the act)al #$&4 fi")res in +rac8ets,
The secon* -lan0 when finall a*o-te*0 was more mo*est0 as we
shall see, 6 then the fever ha* a+ate*, The terri+le events of #$&&
ma have ha* their infl)ence0 + a 8in* of shoc8 thera-,
,,, "ndustry' 6a+our and Finance
Electricit+ !"illird ,-hs% ico !(4%
Pi$ iron !"illion tons% .. !7-/%
2ol !"illion tons% ./& !1.0%
Oil !"illion tons% 0&-9& !.0%
#$&& saw a shar- .)n-lanne*/ red%ction in investmentsI these were
#< -er cent +elow #$&( levels, The slo"an Dconsoli*ateD was
a*o-te*, Consoli*ate collective farms0 increase -ro*)ctivit an*
iel*s0 learn0 +ecome more efficient0 im-rove E)alit0 -)ll )- the
la""in" cons)mersD "oo*s in*)stries, DTechniE)e *eci*es ever>
thin",D The worst was over, In #$&< a"ric)lt)ral o)t-)t0 an* the
livestoc8 -o-)lation0 +e"an its -ainf)l clim+ )-war*s, Free>mar8et
-rices +e"an to fall from the astronomical hei"hts of #$&&0 an*
some state commercial -rices co)l* at last +e re*)ce*, In #$&1
rationin" of foo*st)ffs was a+olishe*0 + sta"es0 tho)"h the new
-rices were ver hi"h, Stalin la)nche* the slo"an? D9ife has +ecome
+etter0 comra*es0 life has +ecome more Coo)s,D
In 2an)ar #$&<
tne
seventeenth con"ress met0
<#
the so>calle*
Dcon"ress of victorsD, Over whom0 it ma +e as8e*G Over the
+o)r"eoisie0 -ett an* less -ett, The -easants were nearl all
collectiviFe*, A "reat new in*)str was +ein" +)ilt0 an* a--ro-riate
statistical -resentation em-hasiFe* the s)ccesses an* sl)rre* over
fail)res, 9ivestoc8 losses were a*mitte*0 +)t ascri+e* to 8)la8
ferocit, 9ivin" stan*ar*sG :ell0 -eo-le are livin" +etter, The
monolithic -art "reete* Comra*e Stalin an* his re-ort with
t)m)lt)o)s a--la)se, An* et R as is now +ecomin" clear > there
ma have +een a move to re*)ce StalinDs -owers0 to rela@ the terror0
to +rin" forwar* S, M, 7irov0 himself an earth an* to)"h -art
official0 as a sm+ol of a new moo*, To -rove this -oint is not -art
of an economic histor, 6)t the effect of the harsh ears seems to
have +een to -re*is-ose the -art0 while maintainin" a )nanimo)s
faca*e to the worl*0 to chan"e to a *ifferent "ear,
The seventeenth con"ress was nota+le for the a--earance of
mem+ers of vario)s o--ositions0 who were -enitent an* a--eale* to
everone to s)--ort the "reat Comra*e Stalin, Amon" them was
Preo+raFhens80 the -rinci-al theoretician of Trots8ism0 the
-o-)lariFer of the theor ofD-rimitive socialist acc)m)lationD,
Return to So+er Plannin) ,,!
After the com-)lsor -raises of Stalin an* criticisms of the
*efeate* o--ositionists0 he came to the 8e -oint of his s-eech?
Yo) 8now that m chief error consiste* in ,,, ela+oratin" the law of
-rimitive socialist acc)m)lation ,,, I tho)"ht that + e@-loitin" the
-easants0 + concentratin" reso)rces of the -easant econom in the
han*s of the state0 one co)l* +)il* a socialist in*)str an* *evelo-
in*)strialiFation, This was a cr)*e analo" with the e-och of -rimitive
ca-italist acc)m)lation ,,, Events totall *is-rove* m i*eas0 an* those
-ro"noses tri)m-he* which 9enin ma*e an* which the -art ma*e
realit )n*er the lea*ershi- of Comra*e Stalin, CollectiviFation0 that
was the -ointH 3i* I antici-ate collectiviFationG I *i* not,,, CollectiviFa>
tion of the -easants is the "reatest of o)r conE)ests ,,, Yo) 8now that
neither Mar@ nor En"els0 who wrote a "reat *eal a+o)t -ro+lems of
socialism in the villa"e0 ha* an *efinite i*ea how the transformation
wo)l* come a+o)t, Yo) 8now that En"els tho)"ht that this wo)l* +e a
fairl len"th evol)tionar -rocess, In this E)estion0 what was nee*e*
was the "reater far>si"hte*ness of Comra*e Stalin0 his "reat co)ra"e in
the form)lation of new tas8s0 the "reatest har*ness in carrin" them o)t0
the *ee-estD )n*erstan*in" of the e-och an* of the relationshi- of class
forces ,,, This was the "reatest of the overt)rns 4#erevorotov5 8nown to
histor,
<(
Preo+raFhens8 was s)rel e@-ectin" at least some of his
a)*ience to see the -oint, Stalin ha* De@-loite* the -easants +
acc)m)latin" the reso)rces of the -easant econom in the han*s of
the stateD, Of co)rse he ha*H 6)t Preo+raFhens8 ha* not seen forced
collectiviFation as a wa o)t, He *i*0 as is *oc)mente*0 a*vocate
collectiviFation0 +)t he too8 it for "rante*0 as En"els ha* *one0 that
it wo)l* +e Da fairl len"th evol)tionar -rocessDH
Toms80 s-ea8in" for the -enitents of the ri"ht o--osition0 ma*e
a vali* -oint with a certain amo)nt of *i"nit, D:e *i* not see that
the revol)tion sho)l* ta8e -lace other than on the +asis of NEP0 on
the +asis of concessions Oto 8)la8s0 etc,P0 on the +asis of mar8et
relations ,,, :e saw onl the assimilation0 an* ree*)cation of the
8)la80 i,e, that cr)*e +)t a-t -hrase which 6)8harin ha* )se*? the
"rowin" of the 8)la8 into socialism,D
<&
The maCorit of the con"ress +ooe* the e@>o--ositionists0 an*
affirme* their faith in the achievements of the -ast ears, The
,,1 "ndustry/ 6a+our and Finance
ma well have felt a "reat sense of relief that the *rea*f)l Co+ ha*
+een *one0 that now thin"s wo)l* have to "et +etter, 7irov in his
s-eech e@-resse* a moo* of "en)ine confi*ence an* e@)ltanc? DO)r
s)ccesses are reall immense, The *evil ta8e it0 to s-ea8 fran8l0
one so wants to live an* liveH After all0 loo8 an* see what is "oin"
on aro)n* )s, ItDs a factHDU
<
6efore the en* of the ear0 7irov was to +e assassinate*0 an* soon
the wave of terror wo)l* swee- over R)ssiaI it wo)l* en")lf most of
the *ele"ates to Dthe con"ress of victorsD,
Finall0 loo8in" +ac8 at the ears of the "reat lea-0 the followin"
are some o+servations,
The errors were vast0 the cost immense, Co)l* it have +een *one
otherwiseG In one sense0 the answer m)st +e DesD, No one can
serio)sl assert that all the mista8es0 crimes0 e@cesses of the -erio*
were inevita+le an* )navoi*a+le, 6)t0 so far as in*)strial -lannin" is
concerne*0 one co)l* with some reason res)rrect 9eninDs ar")ment
a+o)t DPort Arth)rD .see -a"e ##%/, Un*er StalinDs lea*ershi-0 an
assa)lt was la)nche* a"ainst the fortress0 *efen*e* + class enemies0
an* on o+Cective o+stacles to ra-i* in*)strial "rowth, The assa)lt
s)ccee*e* in -art0 faile* in some sectors0 +)t fail)res co)l* +e sai*
to +e inherent in the -rocess of learnin", The later im-rovements in
-lannin" techniE)e were +ase* on lessons learnt in the co)rse of
stormin" the heavens,
Stalin co)l* also +rin" )- in his own *efence the nee* to create
militar>in*)strial ca-acit as E)ic8l as -ossi+le, Th)s the Urals>
7)Fnets8 com+ine was ver e@-ensive0 an* reE)ire* a "reat *eal of
ca-ital0 +)t where wo)l* the R)ssian arm have +een in #$<(
witho)t a Urals>Si+erian metall)r"ical +aseG
However?
55 The attem-t to "o m)ch too fast went alto"ether too far, The
sacrifices im-ose* were on a scale )n-arallele* in histor in times
of -eace, The res)ltant +itterness0 *isloalt0 re-ression0 also
involve* a heav cost0 incl)*in" a militar cost, Some sol*iers ha*
no *iffic)lt in s)rren*erin"0 some villa"es "reete* the !ermans as
*eliverers from trann .)ntil the learnt +etter/,
56 The e@cesses in -olic an* in -lan were in lar"e -art *)e to
the *eli+erate s)--ression of all o--osition0 an* in -artic)lar the
stron" ten*enc to re"ar* warnin"s a"ainst over*oin" it0 whether
Return to So+er Plannin) ,,*
comin" from fellow>comm)nists or non>-art s-ecialists0 as ri"ht>
win" *eviation at +est0 or ma+e wrec8in" an* *iversionism, So)n*
a*vice from ima"inative economists an* other s-ecialists was
i"nore*0 the a*visers too often *ismisse* or im-risone*,
57 CollectiviFation ha* *isastro)s effects on a"ric)lt)re0 an* on
life "enerall in an* o)t of the villa"e0 from which recover was
slow an* -ainf)l, The *e-ortation of the +)l8 of s8ille* an*
am+itio)s -easants *i* "reat harm0 -erha-s never )n*one, No other
comm)nist co)ntr followe* this -ractice, 2)stifie* on the -lea of
*an"er from the terri+le 8)la8s0 the hostilit of the state ma*e the
8)la8s into enemies0 an* so this was a 8in* of self>f)lfillin"
-ro-hec, As 9ewin -)t it0 the 8)la8 who trie* to esca-e his fate +
mer"in" himself in the 8ol8hoF was Dnot an inveterate a"ent of
ca-italism0 +)t a fri"htene* *es-erate creat)reD, Treate* as -ariahs0
*e-orte*0 ro++e*0 their families left *estit)te when not *e-orte*
with them0 their chil*ren e@-elle* from school0 who sho)l* +e
s)r-rise* if some of them trie* to 8ill commissarsG .A collea")e
who visite* the U8raine as late as #$&% tol* me that he saw two
chil*ren starvin"0 a--arentl *in"0 in a villa"e, He as8e* a+o)t
this, D7)la8 chil*renD0 he was tol*0 in*ifferentl,/ It was an o** class
str)""le0 rather one>si*e*,
58 The a*ministrative metho*s which were *evise*0 in towns
an* co)ntr ali8e0 were +r)tal an* went han* in han* with
increasin" -olice terror,
Yet a "reat in*)str was +)ilt, It sho)l* +e a**e* that morale in
R)ssia itself0 an* the im-act of her achievements internationall0
were affecte* + the co>inci*ence of the !reat 3e-ression, R)ssia
was "rowin"0 the :estern ca-italist sstem was a--arentl
colla-sin"0 with massive )nem-loment an* social *isr)-tion0
c)lminatin" in America with the -aralsis of #$&(R&0 in !erman
with si@ million )nem-loe* an* the tri)m-h of Hitler, The worst
-erio* of R)ssiaDs own crisis coinci*e* with crashes an*
+an8r)-tcies in the Dca-italistD worl*0 an* at least R)ssiaDs tro)+les
co)l* +e seen as "rowin" -ains, It is as well to remem+er that the
:est was no sort of mo*el for R)ssia or anone else to follow in the
ears we have +een *escri+in" an* analsin",
From 6eap For$ard to .ar
'he +econd %ive->ear *lan
The -resent cha-ter covers the -erio* in which the DStalinD
economic mo*el esta+lishe* itself, The conv)lsions which charac>
teriFe* the ears of frantic in*)strialiFation an* collectiviFation
were re-lace* + more or*erl an* sstematic metho*s of -lan>
nin" an* a*ministration, S)fferin"s an* e@cesses were followe*
+ a more tolera+le life, Tr)e0 StalinDs slo"an0 D9ife has +ecome
+etter0 comra*es0 life has +ecome more Coo)sD0 +ecame an e@c)se
for eva*in" some *isa"reea+le realities0 since livin" stan*ar*s
were low in town an* co)ntr ali8e0 com-are* with #$(', None
the less0 a -erio* of rela@ation *i* )n*o)+te*l +e"in in #$&<0
an* a ra-i* im-rovement was maintaine*0 in o)t-)t of all 8in*s
of in*)strial "oo*s0 for three ears, Then came a shar- chec8 to
economic "rowth0 an* we will +e *isc)ssin" how far this can +e
attri+)te* to a shift of reso)rces into militar -re-aration an* to
the im-act of the -olice terror which reache* its a-o"ee in the
ears #$&4>',
6)t first we m)st ret)rn to the secon* five>ear -lan, In
Cha-ter ' it was shown that this -lan0 coverin" the -erio*
#$&&Q40 was ori"inall *rafte* *)rin" the -erio* of D"reat lea->
forwar*D -scholo"0 an* that the ori"inal tar"ets were wil* an*
)tterl )nrealistic, 6)t + the en* of #$&( it +ecame clear that the
econom was overstraine*, #$&& was a ear characteriFe* not
onl + famine +)t also + the trans-ort crisis0 an* + *iseE)i>
li+ria an* shorta"es so severe that it was necessar to call a halt,
:e saw that the vol)me of investment *ecline* + #<,& -er cent
in #$&&0 an* "ross in*)strial -ro*)ction0 which ha* risen .accor*>
in" to the official claims/ + an avera"e of close to (5 -er cent -er
The Second Fi0e=>ear Plan ,,5
ann)m in the ears #$($>&(0 increase* + onl 1 -er cent in #$&&,
Man 8e in*)stries ma*e no -ro"ress at all, It -lainl +ecame
essential to re*raft the five>ear -lan0 an* this was *one *)rin"
#$&&0 altho)"h this was s)--ose* to +e the first ear of the -lan
-erio*, The five>ear -lan was a*o-te* + the seventeenth -art
con"ress0 at its sessions in Fe+r)ar #$&<,
So #$&& was0 in an im-ortant sense0 the concl)*in" ear of a
-erio*0 or -erha-s a com-)lsor +reathin">s-ace occasione* +
Dlea->forwar*D overstrain, This is wh man as-ects of that ear
were consi*ere* in the -revio)s cha-ter0 *es-ite the fact that it was
the first ear of the secon* five>ear -lan,
The -lan as it finall emer"e* incl)*e* the tar"et fi")res shown
in the ta+le on -, ((' .the act)al #$&4 achievements are also "iven/,
Attention m)st at once +e *rawn to certain mislea*in" feat)res of
the ta+le, First of all0 the -lan f)lfilment fi")res are hi"hl s)s-ect
when the refer to an a""re"ate s)m in ro)+les, For reasons
alrea* mentione*0 these ten* to overstate realit, Therefore the
claim to have over>f)lfille* the in*)strial -lan in a""re"ate terms is
not to +e ta8en literall, How in*ee* can one reconcile it with the
)n*er>f)lfilment of the -lans for almost ever maCor item0 which
emer"es clearl from the ta+leG Even if one allows for the lar"e
increase in arms -ro*)ction0 an* the ver "oo* showin" of the
machiner sector0 somethin" seems awr,
Secon*l0 certain in*ivi*)al fi")res are mislea*in"l low0 others
hi"h, Th)s the tractor o)t-)t of #$&4 .%%0155 in #1 h,-, )nits/ was
ver far +elow that of #$&%, Pres)ma+l0 ha* there not +een a shift
towar*s tan8 -ro*)ction0 the ori"inal -lan estimate wo)l* have +een
s)+stantiall over>f)lfille*0 since the #$&% fi")re .#4&05550
e@-resse* in #1 h,-, )nits/ was act)all hi"her than ha* +een
inten*e* for #$&4, 6 contrast0 the "rain harvest in #$&4 was
a+normall hi"h0 *)e to ver favo)ra+le weather0 so in this instance
the )se of a sin"le earDs res)lts overstates act)al achievements,
6)t a+ove all0 the ta+le conceals a ver )neven -attern of "rowth,
#$&& was a +a* ear, This was followe* + three e@ce-tionall
favo)ra+le ears0 when all the evi*ence shows that there were "reat
achievements in in*)str0 constr)ction an* trans-ort0
,,& From 6eap For$ard to .ar
Ntionl Inco"e !19.4-N prices%
!"illion rou=les% Gross industril
production !19.4-1
prices% !"illion rou=les% o# 5hichG
ProducersC $oods 2onsu"ersC $oods
Electricit+ !"illird ,-hs% 2ol
!"illion tons% Oil !"illion tons% Pi$
iron !"illion tons% Steel !"illion
tons% )ollin$ "ill products !"illion
tons% >chine tools !thousnds%
2e"ent !"illion tons% 2otton
#=rics !"illion "etres% -ool
#=rics !"illion "etres% ;ether
#oot5er !"illion pirs% Su$r
!thousnd tons% 9rctors
!thousnds% !1/ h.p. units% 6ertiliEer
!"illion tons $ross% Gross
$riculturl production
!"illion rou=les% Grin hr:est
!"illion tons% E"plo+"ent, totl
!"illions%@ E"plo+"ent, industr+
!"illions% *:er$e "one+ 5$e
!rou=les per
nnu"%
/
)etil price index !19((
' 1&&% ?olu"e o# retil trde !19((
' 1&&%
1932 1937 1937
(actual) (plan) (actual)
45,S
100,200 96,300
43,300 92,712 95,500
23,100 45,528 55,200
20,200 47,184 40,300
13-4 38.0 36.2
04-3 152-5 128.0
22.3 46.8 28.5
6.2 16.0 14-5
5-9
17.0 17.7
4-3 130 130
150 40.0 45-5
3-5 7-5 5-5
2,720 5,100 3,448
94.6 226.6 108.3
82 180 183
828 2,500 2,421
51.6 166.7
66.5
0.9 9.0' 3-2
13,070 36,160 20,123
69.9
2
104.8 96.0
3
22.94 28.91 26.99
7-97 10.20 10.11
i,4!7 i,755 3,047"
100
65 i8"
100 250.7
'5o
59 Pln speci#ied ten-#old increse o:er 19(..
60 >ore pro==l+ /& !see p. 110, =o:e%.
61 9his 5s $i:en t the ti"e s 1.& "illion tons, nd "ended
do5n5rds in 19/0.
62 9otl e"plo+ed =+ stte institutions nd enterprises.
63 *:er$e p+ o# ll e"plo+ed persons.
(Sources: 6i:e-+er pln docu"ents, nd Promyshlennost' SSSR !>osco5,
19/1%. Ite"s "r,ed L #ro" >l#e+e:, /storiya tsenoobra(o'aniya ' SSSR
!>osco5, 1944%, pp. .&0,4&1.%
tho)"h a"ric)lt)ral recover was a*versel affecte* + +a*
weather in #$&%, In #$&4 +e"an a -erio* of relative sta"nation,
This is shown -artic)larl clearl in the 8e metall)r"ical sector,
The fi")res were as follows?
The Second Fi0e=>ear Plan ,,
19(. C9(( 19(4 19(/ R9(4 19(1 19(0 C9(9
Steel !"illion tons% /.9( 4.09 9.49 1../9 144& 11.1( 10.&4 11./1
Pi$ iron !"illion tons% 4.14 1.11 1&.4( 1..4(
I
44B C449 7-4/ 14-/.
However0 let )s loo8 at the secon* five>ear -lan first of all as a
statement of intent, It was a more f)ll wor8e*>o)t -lan than the
first0 coverin" "reater *etail + in*)str an* + re"ion0 an* the
*oc)ment incl)*es an im-ressive list of aca*emic an* other
cons)ltants involve*0 in #$&(>&0 in the wor8 of -re-aration, The
three ")i*in" -rinci-les were? firstl0 consolidation, or +rin"in" into
effective o-eration 4osvoeniye5B secon*l0 mastering techni0%e, an*
thir*l0 a s-ecial effort in the *irection of im#roving living
standards- The -lan envisa"e* a lar"er increase in o)t-)t of0 an*
investment in0 cons)mersD "oo*s rather than -ro*)cersD "oo*s,
:hatever ma have +een the rit)al -hrases a+o)t the "oo* life0
Stalin an* his collea")es m)st have )n*erstoo* an* a--reciate* the
)r"enc of reme*ial action, In the first -lan>-erio* -riorit went
almost e@cl)sivel to heav in*)str, Now somethin" wo)l* +e
*one to re*ress the +alance, CollectiviFation wo)l* +e com-lete*0
+)t the collectiviFe* -easants wo)l* live m)ch +etter0 with a ver
m)ch lar"er n)m+er of -rivate .as well as collective/ livestoc80 an*
)r+an real wa"es wo)l* *o)+le0 as a res)lt of an increase in mone
wa"es an* a sim)ltaneo)s fall in retail -rices0 as shown in the ta+le
a+ove, O-timistic ass)m-tions were ma*e a+o)t -ro*)ctivit? an
increase + %& -er cent in lar"e>scale in*)str, As mone wa"es
were to rise on avera"e + onl (& -er cent0 costs of -ro*)ction
were to fall + s)+stantial -ercenta"es, Ho)sin" con*itions wo)l*
im-rove thro)"h an a**ition of %< million sE)are metres of s-ace0
which wo)l* increase the total s-ace + a+o)t <5 -er cent,
Realit -rove* ver *ifferent, The -lan was0 evi*entl0 altere*
*rasticall as the ear went +0 with a shift a"ain towar*s heav
in*)str, The res)lt was that the cons)mersD "oo*s0 ho)sin" an* real
wa"es -lans were not f)lfille*,
The +asic reasons for this shift are not so eas to *etermine, The
o+vio)sl incl)*e0 as a maCor factor0 the rise of Hitler, In #$&& the
NaFis won in !erman an* ma*e no secret of their
,!- From 6eap For$ard to .ar
*etermination to ma8e war on the Soviet Union, The Soviet arme*
forces were still -oorl eE)i--e*0 an* the o)n" heav>in*)strial
sector ha* to +e switche* over to man)fact)re not onl arms +)t
also the means of ma8in" arms of all 8in*s, The increase in arms
e@-en*it)re is somewhat overstate* in the ta+le +elow0 in that -rices
were risin", However0 the "rowin" share of *efence in the +)*"et is
clear,
19(( 19(4 C9(/ 19(4
(millions of roubles)
9otl =ud$et expenditure 4.,&0& //,444 1(,/1@ 9.,40&
o# 5hichG Je#ence 1,4.1 /,&19 0,104 14,00(
per cent o# totl (.4 9.1 11.1 14.1
19(1 19(0 19(9 194&
(millions of roubles)
9otl =ud$et expenditure 1&4,.(0 1.4,&(0 1/(,.99 114,(/B
o# 5hichG Je#ence 11,401 .(,.&& (9,.&& /4,0&&
per cent o# totl 14./ 10.1 ./.4 (..4
(Source: Sotsialisticheskoe narodnoe kho(yaist'o ' 388,+! !>osco5, 194(%,
pp. 4&9-11 nd K. Plotni,o:, 9cherki istorii byud(heta so'etsko'o gosudarst'a
!>osco5, 19/4%, P- .//%
In the -erio* #$&&>'0 accor*in" to the a+ove so)rce0 the o)t-)t of
the *efence in*)str increase* + ('% -er cent0 an* in #$&<>$ the
arme* forces *o)+le* in siFe0 ta8in" awa man of the most
-ro*)ctive men an* machines,
However0 while acce-tin" this as a maCor ca)se of the recastin"
of the -lan0 one is force* to remem+er that this 8in* of revision
occ)rre* also in #$&50 when Hitler was still a -owerless ra++le>
ro)serI an* even )n*er 7hr)shchev0 man ears later0 one saw the
ten*enc to ta8e less serio)sl those -lan o+Cectives which concern
the nee*s of citiFens an* to "ive to- -riorit to heav in*)str, In so
far as the secon* five>ear -lan was over>san")ine in its forecasts0
-ro+a+l the cons)mersD "oo*s an* ho)sin" "oals wo)l* have +een
sacrifice* to some e@tent even if the NaFis ha* not come to -ower,
6e this as it ma0 the international sit)ation was certainl
Industrial Growth and *roductivit- 231
res-onsi+le in some consi*era+le -art for the fact0 to +e f)rther
investi"ate*0 that real wa"es rose + Dat least (5 -er centD
.Malafeev/ instea* of *o)+lin"I that onl fort>two0 not si@t>fo)r
million sE)are metres of ho)sin" was +)ilt0 an* so on, .9et it +e sai*
at once that real wa"es m)st in realit have risen + more than (5
-er cent0 since the in*e@ )se* + Malafeev *oes not allow
s)fficientl for shorta"es an* rationin" in #$&(,/
Industrial Growth and *roductivit-
:hatever the vali*it of certain official claims0 it remains tr)e
+eon* E)estion that the secon* five>ear -lan -erio* was one of
im-ressive achievement0 as is clear from the commo*it statistics in
the ta+le on -, ((', .It ma +e worth remin*in" rea*ers that *o)+ts
a+o)t officiall claime* "rowth rates are confine*0 in in*)str at
least0 to a""re"ate totals s)ch as national income or "ross in*)strial
o)t-)t,/ The e@cellent "rowth rates recor*e* in the ears #$&<>%
were in lar"e -art *)e to the com-letion of +i" -lants +e")n in the
har* ears of #$($R&&I for e@am-le0 the Ma"nito"ors80 7)Fnets80
;a-oroFhe0 DAFovstalK0 T)la an* 9i-ets8 metall)r"ical wor8s were
wholl or -artl +ro)"ht into o-eration *)rin" these ears,D There
was a most im-ressive lea- forwar*0 too0 in the machiner an*
metal>wor8in" sector0 which is ins)fficientl reflecte* in the a+ove
ta+le, 6oth in vol)me an* in *e"ree of so-histication the a*vances
recor*e* in these ears *i* hel- to transform the whole +alance of
in*)str an* to *iminish ver s)+stantiall the USSRDs *e-en*ence
on forei"n co)ntries for its ca-ital "oo*s, This *e-en*ence was ver
"reat in*ee* *)rin" the first five>ear -lan, In #$&(0 &&' million
ro)+lesD worth of machine tools were im-orte*0 an* this re-resente*
4' -er cent of all machine tools installe* in that ear,
(
In #$&% an*
#$&4 less than #5 -er cent of machine tools were im-orte*, Total
-)rchases of all 8in*s of machiner an* eE)i-ment fell s)+stantiall,
This "reatl relieve* the strain on the +alance of -aments0 an*
*e+ts inc)rre* in the -rece*in" -erio* were -ai* off, Of co)rse0 the
USSR contin)e* to im-ort machiner .an* still
,!, From 6eap For$ard to .ar
*oes so on a lar"e scale/, However0 s)ch im-orts co)l* +e
concentrate* on s-ecialiFe* eE)i-ment0 or on items which the USSR
ha* not et s)ccee*e* in *evelo-in", The +asic tools of
in*)strialiFation0 an* of arms -ro*)ction0 were0 + #$&40 ma*e in
the Soviet Union,
Other +ranches of in*)str also showe* ver si"nificant "ains0
tho)"h witho)t f)lfillin" the ver o-timistic forecasts of the
-lanners, Coal -ro*)ction increase* s)+stantiall in the 7)F+as
.Si+eria/0 in 7ara"an*a an* in the Urals0 an* mechaniFation an*
trainin" ena+le* -ro*)ctivit -er miner to rise from #%,( tons in
#$&( to (%,$ tons in #$&4,
&
A -rinci-al ca)se of the fail)re to f)lfil
the -lan was *ela in com-letin" new mines, Electricit "eneration
e@-an*e* -artic)larl ra-i*l in #$&<>%0 the avera"e "rowth rate
+ein" (% -er cent -er ann)m, However0 as also in metall)r" an* in
man other +ranches of in*)str0 there was a mar8e* slow*own in
an* after #$&4, The least satisfactor amon" the f)el in*)stries was
oil, The 6a8) fiel*s were )na+le to co-e with their -lans0 an* the
rich Urals>=ol"a oil area0 which ha* alrea* +een *iscovere*0 was
*evelo-e* m)ch too slowl0 owin" to Dthe wea8ness of the technical
eE)i-ment in the area0 a ver lar"e la+o)r t)rnover *)e to -oor
ho)sin" con*itions0 an* the +ac8war*ness of "eolo"ical s)rvein"
an* *rillin" wor8D,
<
Another e@tractive in*)str0 iron ore0 also la""e*
+ehin*0 an* this was one ca)se of the s)+seE)ent *iffic)lties in the
-ro*)ction of ferro)s metal,
In*)strialiFation le*0 as was e@-ecte*0 to a ver ra-i* e@-ansion
of *eman* for non>ferro)s metals0 an* -lans were ma*e accor*>
in"l, :hile -ro*)ction *i* increase0 *eman* "rew faster0 an*
im-orts contin)e*, Co--er -ro*)ction an* im-ort statistics were as
follows?
#$&( #$&4
Pro*)ction .tho)san* tons/ <1 $$
Im-orts .tho)san* tons/ #( %1
4So%rce: Sots- nar- 1ho2-, =>GG!@A, --, (#%0 %(%,/
6a+our ,!!
The s)--l of man non>ferro)s metals contin)e* to +e a +ottlenec8,
The chemical in*)str "rew0 +)t here a"ain the -lan was not
f)lfille*, 6ranches of s-ecial interest to armaments -ro*)ction0 an*
snthetic r)++er0 *i* a "reat *eal +etter than *i* mineral fertiliFer,
There were inevita+le *iffic)lties in e@-an*in" this ver +ac8war*
+ranch of in*)str? lac8 of e@-erience amon" mana"ement an*
la+o)r ali8e0 *elas in constr)ction0 an* so forth,
Cons)mersD "oo*s in*)stries also a*vance*0 tho)"h0 with the
e@ce-tion of footwear0 at a -ace well +elow -lan, 6)t the mo*ern>
iFation of some te@tile an* .es-eciall/ foo*>-rocessin" in*)stries
ma*e +i" a*vances, New +a8eries an* ice>cream an* meat>-ac8in"
-lants o-ene* in man areas, In com-arison with the har* ears of
the earl thirties m)ch more was availa+le, More co)l* +e s-ent on
im-orts of raw materials for the te@tile in*)str0 +)t still not eno)"h0
es-eciall in view of the *isastro)s losses of shee- in the USSR, This
e@-lains the ver "reat shortfall0 in relation to -lan0 of wool cloth
-ro*)ction, At this -erio*0 too0 a few cons)mer *)ra+les ma*e their
a--earance0 nota+l "ramo-hones an* +iccles,
The re"ional +alance was chan"in", The Urals>7)Fnets8 com+ine
has +een referre* to alrea*, Non>ferro)s metal minin" "rew ra-i*l
in Central Asia an* 7aFa8hstanI an in*)strial com-le@ was arisin"
+ase* on the 7ara"an*a coalfiel*I new factories a--eare* in 6a8)
an* a siFea+le mo*ern te@tile mill was +)ilt in Tash8ent, There was
a conscio)s effort to *evelo- the more +ac8war* national re-)+lics0
even where it was not economicall the most rational wa of )sin"
scarce reso)rces,
3a,our
Pro*)ctivit in the econom as a whole rose s)+stantiall in these
ears0 at least )- to #$&4, As the ta+le on -, ((' shows0 the n)m+er
of em-loe* -ersons in total0 an* also in in*)str0 was +elow -lan0
in stri8in" contrast to the sit)ation in the first five>ear -lan, :e
m)st now e@amine the reasons for this favo)ra+le *evelo-ment,
Firstl0 incentives were ma*e m)ch more effective0 + the
recastin" of the wa"e scales an* wi*enin" monetar *ifferentials0
,!1 froB 6eap For$ard to .ar
then + the "ra*)al a+olition of rationin" an* the "reater availa+ilit
of "oo*s to +) .see -, (#(/, The ver hi"h -rices of +asic
necessities0 in an* after #$&<0 stim)late* har*er wor8 on -iece>
rates0 so as to +e a+le to ma8e en*s meet, This same -ro+lem also
ca)se* man more wives to "o o)t to wor8,
Secon*l0 training schemes at all levels were "ra*)all transform>
in" the la+o)r force, In #$&5>&& )ns8ille* -easant la+o)r ca)se*
man +rea8*owns an* was e@cee*in"l inefficient0 as well as
)n-)nct)alI la+o)r t)rnover was ver hi"h, In #$&& a s)rve carrie*
o)t in Moscow showe* that onl #4 -er cent of those recr)ite* to
in*)str in that ear ha* an s8ill or E)alifications, Even in #$&10 %5
-er cent of wor8ers in the "reat Urals machiner factor were
)ns8ille*,
1
Trainin" schemes of man 8in*s were +ro)"ht into
+ein"? a--renticeshi- on the Co+0 co)rses r)n + enter-rises0
technical colle"es r)n + in*)stries0 the so>calle* F;U or factor
trainin" schools0 an* so on, Some errors were committe* +eca)se of
the "reat shorta"e of traine* instr)ctors0 an* some co)rses were so
accelerate* that the -ro*)ce* -oor>E)alit craftsmenI therefore
trainin" was len"thene*0 n)m+ers were c)t, In #$&' an* #$&$ F;U
schools traine* onl &(50555 s8ille* wor8ers0 tho)"h the -lan ha*
s-ecifie* #04550555,D This was -artl *)e to the ra-i* e@-ansion of
Daca*emicD secon*ar e*)cation, In #$<5 this le*0 as we shall see0 to
com-)lsor call>)- of o)th for trainin", 6)t whatever the errors
an* omissions0 a h)"e tas8 was -erforme* an* a more efficient
wor8in" class was create*, Similarl0 ver "reat stri*es were ma*e
in hi"her technolo"ical e*)cation0 with ever effort ma*e to e*)cate
the a+ler an* more ener"etic wor8ers, Since man of these ha* not
ha* a secon*ar e*)cation0 the res)lts were not alwas ha--0 +)t
+ #$&% an e@-an*e* secon*ar school sstem was a+le to -rovi*e
the recr)its to the )niversities an* technolo"ical instit)tes0 an* a
*ecree re")latin" entr an* *eman*in" a more effective sstem of
e*)cation *ates from (& 2)ne of that ear, StalinDs slo"an0 DCa*res
*eci*e everthin"D .s-eech of < Ma #$&1/0 was *esi"ne* to
em-hasiFe the )r"enc of the nee* for +etter>E)alifie* an* traine*
staffs, Their -a an* -rivile"es were enhance*, The followin"
fi")res show .in tho)san*s/ the e@tent of the increase in their
n)m+ers in the co)rse of twelve ears?
9a+o)r (&1
19.0 1941 !1 <nur+%
9otl $rdutes in the ntionl econo"+ .((.& 9&0.&
o# 5hichG En$ineers 41.& .09.9
9otl o#Csecondr+ specilistsC .00.& 149...
o# 5hichG 9echnicins /1.& (.&.1
6)t here too there was some re*)ction in entrants after a "reat
r)sh forwar* earlier in the *eca*e0 which ha* affecte* E)alit, The
n)m+er of st)*ents acce-te* for hi"her e*)cation was (<10555 in
#$&(0 an* onl #1'0&55 in #$&4,
4
Thir*l0 -rominent amon" the reasons for im-rove* -ro*)ctivit
was the so>calle* Sta8hanovite movement, This was a com-le@
-henomenon which *eserves caref)l attention, It emer"e* o)t of the
Dsocialist com-etitionD an* shoc8>+ri"a*e cam-ai"ns0 which "rew
ra-i*l in sco-e an* intensit *)rin" the first five>ear -lan -erio*,
The were lin8e* with efforts to enco)ra"e enter-rises to offer to
achieve more technical -ro"ress0 o)t-)t0 cost re*)ction an*
-ro*)ctivit than was ori"inall -ro-ose*, These were the so>calle*
co)nter>-lans 4vstrechnye te1h#romfin#lany5, an* ran8>an*>file
wor8ers were +ro)"ht into the tas8 of ens)rin" that ever enter-rise
an* wor8sho- )n*ertoo8 to "o well +eon* e@istin" norms, It was in
this conte@t that a coal miner0 Ale@ei Sta8hanov0 achieve* o)t-)t
fo)rteen times "reater than the norm0 in Se-tem+er #$&1, He *i* this
not C)st + wor8in" har*0 +)t also + intelli"ent )se of )ns8ille*
a)@iliaries, The -art too8 this )-0 an* DSta8hanovismD s-rea*
ra-i*l to other +ranches of the econom, The 3ecem+er #$&1
-len)m of the -artDs central committee *eci*e* to )r"e -lanners an*
mana"ers to revise )-war*s the e@istin" technolo"ical an* la+o)r
norms, Hi"her -ro*)ctivit Dwo)l* ma8e the USSR the most
-ros-ero)s co)ntr in the worl*D, The effect of all this was to )se
eE)i-ment more f)ll an* to intensif an* rationaliFe la+o)r, No one
can *o)+t that there was am-le sco-e for s)ch thin"s in #$&1,
Norms were low0 havin" +een +ase* on the inefficiencies of the
earl thirties, DSta8hanovismD was a means of *ramatiFin" an*
-)+liciFin" a necessar chan"e, Followin" a series of conferences
hel* earl in #$&% wor8 norms were ver shar-l raise*? + &5><5
-er cent in
,!% From 6eap For$ard to .ar
en"ineerin"0 &< -er cent in chemicals0 1# -er cent in electricit
"eneration0 (% -er cent in coal minin"0 (1>($ -er cent in the oil
in*)str0 an* so on,
'
3es-ite this0 an* some re*)ctions in -iece>
rates0 total earnin"s rose on +alance, No *o)+t the cam-ai"n ha* a
-ositive effect on -ro*)ctivit,
However0 some of the )n*erta8in"s ma*e were clearl e@cessive?
e,", to *o)+le the o)t-)t of s)l-h)ric aci* witho)t an new ca-ital
eE)i-ment or to D*o)+le or tre+le o)r so>calle* -roCecte* )tiliFation
of -ro*)ctive ca-acitD .this last was sai* + the o)n"
7hr)shchev/,
$
S-ee*>)- an* hi"her wor8 norms ca)se* m)ch strain
in sectors in which there was no eas wa of increasin" o)t-)t -er
man, Man a DSta8hanoviteD team was "iven favo)ra+le treatment +
mana"ers0 who e@-ecte* to +enefit from the -)+licit which
accom-anie* recor*>+rea8in"0 at the cost of ne"lectin" the interests
of the rest of the wor8ers, Nat)rall0 this was resente*0 an* some
DSta8hanovitesD were threatene* or even +eaten,
:or8 norms were f)rther increase*0 es-eciall in #$&' an* #$&$0
+)t in most cases the were still s)r-asse*0 + fairl lar"e
-ercenta"es,
3isci-line im-rove* thro)"ho)t the econom0 *)e -artl to
stron"er -enalties for a+senteeismI these were not et criminal
-enalties0 +)t too8 the form of a*ministrative fines0 threatene*
e@-)lsion from the )nion .an* therefore -artial loss of social
ins)rance +enefits/0 *ismissals with loss of ho)sin" s-ace, Even
fail)re to atten* trainin" co)rses o)tsi*e wor8in" ho)rs was hel* to
+e a+senteeism,
#5
A -artic)larl welcome im-rovement was recor*e* in the
+)il*in" in*)str, In the first five>ear -lan -erio* the +)l8 of the
la+o)r force was e@cee*in"l )ns8ille* an* footloose, There was a
stea* shift later in the *eca*e towar*s the creation of -ermanent0 as
a"ainst ad hoc, +)il*in" enter-rises0 an* this hel-e* to re*)ce la+o)r
t)rnover, This0 an* the intro*)ction of more la+o)r>savin"
eE)i-ment0 ma*e -ossi+le a s)+stantial re*)ction in n)m+ers
em-loe* on constr)ction an* installation? these fell from (0('$0555
in #$&( to #014%0555 in #$&40 et the val)e of wor8 rose + almost
<1 -er cent,K
Transport ,!5
Transport
Pro*)ctivit increase* im-ressivel in rail trans-ort0 which ha* +een
a ver wea8 s-ot in #$&& an* #$&<, 3)e to +etter or"aniFation an*
eE)i-ment .+i""er locomotives an* wa"ons0 +etter trac80 etc,/0 a
ver mar8e* im-rovement was achieve*0 from a total of (&$0<55 to
&1%0455 ton>8ilometre eE)ivalents -er railwa em-loee in the
-erio* #$&& to #$&4,
#(
Yet even as late as #$&% there was a la+o)r
t)rnover of #5&,' -er cent0 i,e, the avera"e wor8er left after less than
a ear,
The railwas ha* to +ear a -artic)larl heav +)r*en, Owin" to
lac8 of roa*s0 an* the fact that rivers froFe in winter0 -l)s the ver
"reat *istance over which it was necessar to carr s)ch +)l8 items
as coal an* ores0 the railwa sstem was the 8e to the entire -lan,
9ac8 of mo*ern rollin">stoc80 the -oor E)alit of rails0 ina*eE)ate
+allast0 ma*e thin"s ver *iffic)lt, In #$&( the avera"e s-ee* of
"oo*s trains was less than nine miles -er ho)r, The "reat efforts
ma*e *i* -ro*)ce some ver cre*ita+le res)lts, Res-onsi+ilit for
the frei"ht -lan was centraliFe* in #$&<0 in the>Peo-leDs
Commissariat of Trans-ort0 which im-ose* -riorities *etermine* +
the "overnment, Since ver few new lines were +)ilt in the ol*
in*)strial areas0 the e@istin" lines were overloa*e*0 an* it was
freE)entl necessar to re*)ce or cancel the movement of -assen"er
trains, The total of frei"ht an* -assen"ers carrie* in #$&$ was $#,'
-er cent hi"her than in #$&(, 6)t the most ra-i* rate of "rowth
en*e*0 here as elsewhere0 in #$&4,
In #$&' the -erformance of the trans-ort sstem was ver
)nsatisfactorI frei"ht carrie* + the railwas act)all fell, The
reason "iven? DThe maCorit of the railwa mana"ers an* hea*s of
-olitical *e-artments0 an* man of the lea*in" ca*res in the Peo-leDs
Commissariat of Trans-ort0 were *ismisse* an* arreste*,D There
were also f)el crises in the winters of #$&4R' an* #$&'>$0 which
le* to n)mero)s cancellations of trains, F)el shorta"es also hit roa*
trans-ort? shorta"e of oil le* to the conversion of man vehicles to
)se "as>"enerators,
#&
,!& From 6eap For$ard to .ar
The "ndustrial Slo$do$n and the Terror
:e m)st now ret)rn to the -ro+lem of the slow*own of #$&4, This
is not the same -ro+lem as that of the shift of reso)rces awa from
the cons)mersD "oo*s sector, :e have seen that the metall)r"
in*)str virt)all sto--e* "rowin"0 an* et iron an* steel was an
essential -art of the +)il*in" of Soviet militar ca-acit, :hat
ha--ene*G
In the case of iron an* steel0 -riorit was "iven0 *)rin" #$&<>%0 to
the com-letion of -lant alrea* starte*, 9ittle was *one to -ress on
with new constr)ction in these ears0 *)e to Dim-erfection in the
-lannin" of investment0 an* or"aniFation of f)lfilment of the -lanD0
-l)s Dlac8 of hi"hl E)alifie* constr)ction staffs0 an* +rea8*own in
s)--l of eE)i-ment an* +)il*in" materialsD,
#<
All these *eficiencies
serio)sl hel* +ac8 com-letion of -lant, F)rthermore0 in #$&% there
was &&1 -er cent re*)ction in investments in iron an* steel as
a"ainst #$&10 an* the lower #$&% level contin)e* thro)"h to #$&$,
#1
This was followe* in #$&4 + a *rastic c)t+ac8 in investments,
Accor*in" to an official Soviet recom-)tation e@-resse* in #$11
-rices0 the investment fi")res .e@cl)*in" 8ol8hoF/ were as
follows?
Investments
4millions of ro%"les, #rices ofigss5
64 2,350
65 i,943
66 2,552
67 2,984
68 4,070
69 3,621
70 3,807###############
4So%rce: Nar- 1ho2-, igDo, p. 590.)
There was a -artic)larl severe *ro- in #$&4 in constr)ction wor8,
One reason for the slow*own0 then0 was this fall in investments0
The "ndustrial Slo$do$n and the Terror ,!
occasione* -ro+a+l + a shift of reso)rces into the arms in*)str
an* the conseE)ent shorta"es of s8ills an* materials, 6)t Soviet
historians a*mit that another factor ha* an a*verse effect on o)t-)t
an* on -lannin" at this -erio*,
This factor was the "reat -)r"e, It swe-t awa a hi"h -ro-ortion
not onl of lea*in" -art ca*res0 +)t also of arm officers0 civil
servants0 mana"ers0 technicians0 statisticians0 -lanners0 even
foremen, Everwhere there were sai* to +e s-ies0 wrec8ers0
*iversionists, There was a "rave shorta"e of E)alifie* -ersonnel0 so
the *e-ortation of man tho)san*s of en"ineers an* technolo"ists to
*istant concentration cam-s re-resente* a severe loss, 6)t -erha-s
eE)all serio)s was the -scholo"ical effect of this terror on the
s)rvivors, :ith an error or acci*ent li8el to +e attri+)te* to
treasona+le activities0 the sim-lest thin" to *o was to avoi*
res-onsi+ilit0 to see8 a--roval from oneDs s)-eriors for an act0 to
o+e mechanicall an or*er receive*0 re"ar*less of local
con*itions,
Alrea* in Cha-ters 4 an* ' we have seen the s-rea* of this
hsteria into the a*ministration of the econom0 -artic)larl in
a"ric)lt)re an* the railwas, It s-rea* f)rther in the worst ears of
the -)r"e0 -aralsin" tho)"ht an* action, No one can tell how m)ch
economic *ama"e was *one + all this0 +)t we can s)rel a"ree with
those Soviet commentators who assert that the *ama"e was serio)s,
D6reaches of socialist le"alit0 mass re-ressions0 ca)se* an immense
loss of economic ca*res an* *isor"aniFe* the normal wor8 of
in*)str0D as an a)thoritative te@t+oo8 -)t it,
#%
7e -lanners were
amon" the victims0 incl)*in" the Commissar of Finance0 !rinD8o0
an* also Pata8ov0 *e-)t to Or*Fhoni8i*Fe0 the latter +ein" *riven
to s)ici*e,
It is no -art of the -resent wor8 to analse the ca)ses of the "reat
wave of terror0 a+o)t which historians will *o)+tless still +e ar")in"
an* *e+atin" well into the twent>first cent)r .if o)r worl*
s)rvives that lon"/, The terror has0 certainl0 a lar"el -olitical
e@-lanation0 connecte* with StalinDs *esire for a+sol)te -ower0 an*
other non>economic factors, It is s)fficient here to stress onl a few
of its as-ects, One0 alrea* mentione*0 was its a*verse economic
effect, Another was the -ro+a+le connection +etween the e@treme
harshness of the -olicies *escri+e* in the
,1- From 6eap For$ard to .ar
-revio)s two cha-ters an* the "rowth of -olice re-ression, O+vi>
o)sl0 the *rea*f)l str)""le with the -easantr0 an* the sacrifices an*
strains of the in*)strialiFation *rive0 co)l* not +)t "ive rise to
resentment an* +itterness0 not onl amon" or*inar fol8 +)t amon"
-art mem+ers too, :e saw in Cha-ter 4 that local -art officials
were *ismisse* for -ro>-easant .D-ro>8)la8D/ ten*encies, No *o)+t
the Stalin "ro)- also feare* the e@-loitation of *iscontent + former
o--ositionists0 which was wh the arreste* so man of them an*
com-elle* the lea*ers of the Dri"htsD an* the DleftsD to acc)se
themselves of treason an* wrec8in", Finall0 the trials -rovi*e*
sca-e"oats, Shorta"es of cons)mersD "oo*s0 +rea8*owns in s)--l0
errors in -lannin"0 co)l* +e attri+)te* to malevolent -lottin" +
enemies of the -eo-le0 in the -a of Hitler0 the Mi8a*o0 an* D2)*as>
Trots8D, The -)+lishe* re-orts of the trials a+o)n* in economic
self>acc)sation, Th)s the shorta"e of e""s was s)--ose*l *)e to the
efforts of wrec8ers0 who smashe* e""s in transit C)st to *e-rive the
Soviet -eo-le of the fr)its of their la+o)r an* to create -oliticall
e@-loita+le *iscontent, Or so the rea*ers of Pravda were s)--ose*
to +elieve, 6)8harinDs > an* other o--ositionistsD > *octrines wo)l*
+e -)+licl associate* with treason0 an* there+ -lace* o)tsi*e the
area of le"itimate *isc)ssion or comment,
A cens)s of -o-)lation was ta8en in 2an)ar #$&40 +)t it was
soon *eclare* invali* an* its -rinci-al a)thors shot, :e now 8now0
from n)mero)s e@tracts from archives .es-eciall those + Pola8ov
an* his associates
#4
/0 that the total came to C)st over #%( million0
altho)"h Stalin ha* anno)nce* a total of #%' million at the
seventeenth -art con"ress three ears earlier, The cens)s remaine*
)n-)+lishe* for over fift ears, Another cens)s was ta8en in #$&$,
Evi*ence -resente* + Pola8ov an* others stron"l s)""ests that
the -)+lishe* total .#45,1 million/ was *eli+eratel overstate* +
statisticians an@io)s to avoi* the fate of their -re*ecessors0 an* that
the real fi")re was of the or*er of #%4,1 million0 or at most #%'
million, On the other han*0 archival evi*ence on the n)m+ers in
-risons an* cam-s0 -resente* + a n)m+er of so)rces0
#'
shows it as
well +elow man :estern an* some Soviet -)+lishe* estimates? the
hi"hest total in an one ear is "iven as (,1 million0 +)t this
e@cl)*e* e@iles of several
A)riculture up to 1!5 ,11
cate"ories0 for whom there are not as et relia+le fi")res for -re>
war ears .these wo)l* incl)*e most of the *e-orte* 8)la8s/, The
total of s)r-l)s *eaths in the #$&5s0 *)e to famine0 *e-ortations0
shootin"s0 a--ears to have +een not far from ## million0 *rea*f)l
eno)"h0 even if lower than some -)+lishe* estimates, 6)t s)ch
an estimate is not an* cannot +e a final one,
The E)antit of -)+lishe* statistics +e"an to *ecline in the
mi**le thirties0 an* the material on the last ears of -eace is
mar8e*l *eficient com-are* with the earl ears of the *eca*e,
The thir* five>ear -lan -erio* +e"an in #$&'0 an* was inter>
r)-te* + the war, Its -attern an* -ro"ress will +e f)rther
*isc)sse* at the en* of this cha-ter,
A&riculture u! to 1937
In Cha-ter 4 it was *emonstrate* that a"ric)lt)re reache* a state
of ac)te crisis in the harvest ear #$&(>&, A slow recover +e"an
with the relativel +etter harvest of #$&&, The *rive to collectiviFe
the +)l8 of the remainin" in*ivi*)al -easants was la)nche* in
#$&< an* was -racticall com-lete* in #$&40 when almost $$ -er
cent of all c)ltivate* lan* was incl)*e* within collective or state
farms, The -ro-ortion of -easants collectiviFe* at this *ate was
sli"htl smaller .$& -er cent/0 +)t evi*entl the maCorit of the
s)rvivin" Din*ivi*)alistsD earne* a livin" other than + c)ltivatin"
the soil0 an* the cease* to -la an si"nificant role in a"ric)lt)re,
6 contrast0 the -rivate o-erations of collectiviFe* -easants "rew
in im-ortance0 -artic)larl in livestoc8, In*ee*0 the ra-i* recover
of the livestoc8 -o-)lation from the *isasters of #$&5>&& was in
-art *)e to the "overnmentDs willin"ness to tolerate an* even
enco)ra"e -rivate ownershi- of livestoc80 s)+Cect to ma@ima
.see -, (<1/, The act)al fi")res0 in millions of hea*s0 were as
shown in the ta+le on -, (<(,
:hile livestoc8 n)m+ers were still +elow the -re>
collectiviFation level0 the "reat increase *)rin" the -erio* #$&&>Q4
+enefite* everone? there was more meat an* mil8 in towns an*
villa"es0 an* reven)es of +oth the farms an* the -easants rose
from sales of livestoc8 -ro*)cts,
,1, From 6eap For$ard to .ar
<nur+ 19(4 <nur+ 19(0
Stte nd Pri:te Stte nd Pri:te
collecti:e collecti:e
2ttle, ll 1..( .1.. 10.& (..9
2o5s 4.4 14.4 /./ 11..
Sheep nd $ots 14.( .&.. .9.( (1.(
Pi$s 4.. /-( 0.0 14.9
(Source: SePskoe kho(yaist'o SSSR !i94&%, pp. .4(-4.% "ote:
So"e o# the pri:te li:estoc, 5s o5ned =+ 5or,ers.
!rain o)t-)t rose e@cee*in"l slowl0 tho)"h "oo* weather in W
#$&4 res)lte* in a recor* harvest, For man ears0 as we have seen0
statistics were "iven in terms of +iolo"ical iel*0 an* even these
estimates Dwere conscio)sl overstate* ,,, so as to incl)*e the 8ol8hoF
within a hi"her harvest cate"or so that it sho)l* -a more -ro*)ce
for the services of the MTSD,K This motive "rew in im-ortance
+eca)se these -aments in 8in* +ecame the lar"est sin"le so)rce of
"rain -roc)rements *)rin" this *eca*e0 an* the -aments were
relate* to the .nominal/ siFe of the harvest,
The avera"e "rain iel* for #$&&Q4 was sai* to have +een $,#
E)intals -er hectare0 a"ainst 4,1 in #$('>&(, 6)t revise* fi")res
-)+lishe* in i$%5 "ave the real fi")re for #$&&>4
as

on
l 4
#
> Q
n
other
wor*s0 the iel*s act)all fell, Onl one ear0 #$&%0 was
e@cee*in"l )nfavo)ra+le climaticall0 +)t this was +alance* + the
ver "oo* weather of #$&4, The revise* fi")res for total "rain
harvests are as follows?
19(( 19(4 R9(/ 19(4 19(1
>illions o# tons 40.4 41.4 1/.& /4.1 91.4
(Sources: >osh,o: !#or 19((-/%U "ar. kho(., 3#:, p. 410 !#or
19(1%. *:er$e #or 19((-1 $i:en in Sefskoe kho(yaist'o SSSR
!i94&%. 9he 19(4 #i$ure is deduced #ro" the =o:e.%
:hile harvests .e@ce-t in #$&4/ were +elow even the ina*eE)ate
levels of #$('>&(0 -roc)rements rose?
The Aol3ho9 Con)ress and 4odel Statute ,1!
State -roc)rements
4millions of tons5
1928-32 18.2
1933-7 27-5
In #$('R&5 some "rain was sol* + -easants thro)"h -rivate
tra*ers, None the less0 less "rain remaine* in the villa"es .e@ce-t in
#$&4/, The fall in the n)m+ers of livestoc80 es-eciall horses0
re*)ce* *eman* for "rain an* this relieve* -ress)re somewhat, .:e
shall see that after #$&4 the revival of the livestoc8 -o-)lation
+e"an to +e severel limite* + lac8 of fo**er s)--lies,/
Proc)rement E)otas were s)--ose* to +e +ase* on the area sown
or livestoc8 owne* + the "iven 8ol8hoF or -easant0 an* the
a)thorities were not s)--ose* to var these E)otasI +)t the *i* so
ar+itraril0 the nee*s of the state ta8in" -riorit over all other
consi*erations,
In #$&&>< one of the most severe -ro+lems was shorta"e of
ha)la"e -ower, In the five ears followin" #$($ a net total of #4>(
million horses were lostI the amo)nt of tractor horse-ower increase*
+ onl three million0 an* there were few lorries, Poor maintenance0
lac8 of s8ille* la+o)r an* of s-ares0 ens)re* freE)ent +rea8*own of
the tractors availa+le, However0 + #$&4 tractor n)m+ers ha*
s)+stantiall increase*0 an* there were more horses,
Therefore #$&4 was in man res-ects a "oo* ear, :e shall see
that -easant cons)m-tion0 of "rain in -artic)lar0 reache* the hi"hest
-oint of an ear in the -erio* #$&(><#,
'he 6ol0ho8 on&ress and 2odel +tatute
6 #$&1 the sha-e of the 8ol8hoF as an instit)tion was more or less
settle*0 an* a con"ress was calle* to a*o-t a Dmo*el stat)teD0 which
remaine* the +asis of 8ol8hoF or"aniFation )ntil well into the
si@ties,
The 8ol8hoF was *eclare* to +e a vol)ntar coo-erative0 whose
mem+ers ha* -oole* their means of -ro*)ction in or*er to -ro*)ce
in common, The mem+ers ran their own affairs0 an* electe* a
chairman an* a mana"ement committee res-onsi+le to a
,11 From 6eap For$ard to .ar
meetin" of all mem+ers, The 8ol8hoF was0 however0 +o)n* to
o+e instr)ctions from local state an* -art or"ans on matters of
a"ric)lt)ral -ro*)ction an* -roc)rements0 so in -ractice its o-era>
tional a)tonom was severel limite*, The raion .*istrict/ -art
or"aniFation0 the MTS0 the raion a"ric)lt)ral *e-artment0 iss)e*
n)mero)s or*ers to the chairman0 an* the -art secretar in
-artic)lar ha* the effective -ower of a--ointment an* *ismissal,
The -ament of mem+ers was -ro-ortionate to the tr)*o*ni
.wor8>*a )nits/ wor8e* + eachI all collective wor8 was meas)re*
in these )nits0 an* more hi"hl s8ille* occ)-ations were wortli
more tr)*o*ni than )ns8ille* ones, The amo)nt -ai* to a -easant0
in cash an* in 8in*0 in an "iven ear *e-en*e* on two thin"s?
the n)m+er of tr)*o*ni he earne*0 an* the worth of each
tr)*o*enD, The latter *e-en*e* on the cash an* -ro*)ce availa+le
for *istri+)tion, Mem+ers share* the cash an* -ro*)ce which
was left after other reE)irements ha* +een met, Cash reven)es
were s)+Cect to *e*)ctions for ta@es0 ins)rance0 the ca-ital .Din*i>
visi+leD/ f)n*0 a*ministrative an* c)lt)ral e@-enses an* -ro*)c>
tion costs .e,", -)rchase of fo**er0 see*0 f)el/, At the -erio* we
are *escri+in" this left0 on avera"e0 <5>15 -er cent of the "ross
cash reven)e for *istri+)tion to -easants, :e shall see that0
owin" ver lar"el to the low -rices -ai*0 the s)ms in E)estion
were ver small,
As for -ro*)ce0 -ament was "enerall confine* to "rain0
sometimes -otatoes0 often also ha .for -rivate livestoc8/, Com>
-)lsor *eliveries to the state0 -ament in 8in* for MTS ser>
vices0 see*0 fo**er0 relief for sic8 an* a"e* -eo-le0 all too8
-riorit, In s-ite of this0 at this -erio* ro)"hl a thir* of the
8ol8hoF "rain harvest was cons)me* + the -easants .or their
animals/,
The Dresi*)ar le"ateeD stat)s of the 8ol8hoF -easant0 the lac8
of an ")arantee* minim)m income0 inevita+l le* to ver "reat
variations +etween 8ol8hoFes, It ren*ere* im-ossi+le an calc)la>
tion of costs0 for what0 in s)ch circ)mstances0 is the cost of
la+o)rG In fact )ntil well after StalinDs *eath no s)ch calc)lations
were even attem-te*, 6)t the sstem of -ament ha* a lo"ic0
"iven the o+Cective of ta8in" o)t of a"ric)lt)re all -ossi+le
reso)rces for the -riorit nee*s of in*)strialiFation,
The Aol3ho9 Con)ress and 4odel Statute ,1*
The stat)te "ave formal reco"nition of the ri"ht of the 8ol8hoF
ho)sehol* to a -rivate -lot of lan*0 amo)ntin" to +etween 3 an* 3
hectare in most of the co)ntr .i,e, an acre or less/, Possession of
livestoc8 was limite* to one cow an* calves0 one sow an* -i"lets0
fo)r shee-0 an* an n)m+er of ra++its an* -o)ltr, 9ivestoc8 was
"enerall -ast)re* on collective lan*, This -rivate sector R which
Soviet statistics for some reason alwas treate* as -art of the
socialiFe* econom > lon" remaine* + far the most im-ortant
element of -rivate enter-rise in the Soviet Union, The -ro*)ce
+elon"e* to the -easants an*0 s)+Cect to com-)lsor *eliver
o+li"ations to the state0 the co)l* eat it0 or sell it in the le"al free
mar8et,
In #$&4 an* for man ears thereafter the collectives -ro*)ce*
"rain an* in*)strial cro-s .e,", cotton0 s)"ar>+eet0 fla@/, In other
-ro*)ce the -rivate sector was -re*ominant, :e have seen .on -,
(<(/ that it o)tn)m+ere* state farms an* collectives in all cate"ories
of -ro*)ctive livestoc80 an* therefore in the s)--l of meat an*
mil8, It was almost the sole -ro*)cer of e""s0 an* -rovi*e* most of
the -otatoes0 man of the ve"eta+les0 virt)all all the fr)it, The
-easant ho)sehol* )s)all relie* on its 8ol8hoF for +rea* "rains0
sometimes for -otatoes0 +)t the rest of the foo*0 an* the maCor -art
of the cash0 came from their -rivate hol*in", Th)s in #$&1 the
avera"e ho)sehol* receive* (<4 ro)+les a ear for collective wor8
.which wo)l* +) them one -air of shoes/0 +)t m)st have o+taine*
at least twice as m)ch from sales in the free mar8et,
Th)s a 8ol8hoF ho)sehol* *ivi*e* its time +etween collective
an* -rivate activities0 an* its income was a com+ination of cash an*
-ro*)ce -ai* for collective wor80 -l)s cons)m-tion of its own
-ro*)ce an* cash from sales in the mar8et an* to the state, As
-ament for collective wor8 was ver -oor0 -ress)re ha* to +e
e@ercise* to com-el wor8 to +e *one for the collective, This was
formaliFe* in #$&$ + le"islation reE)irin" a com-)lsor minim)m
n)m+er of tr)*o*ni of all a*)lt mem+ers,
Man 8ol8hoF mem+ers earne* e@tra mone from seasonal wor8
for state enter-rises0 incl)*in" state farms an* forestr,
At the +e"innin" of #$&4 there were nearl (<&0555 8ol8hoFes
,1% From 6eap For$ard to .ar
an* &0$$( state farms, The +)l8 of a"ric)lt)re was )n*erta8en + or
within 8ol8hoFes, Each avera"e* 4% ho)sehol*s0 <4% hectares of
sown area0 %5 cattle0 $< shee-0 an* (% -i"s, There were0 of co)rse0
+i" re"ional variations0 the farms +ein" lar"er in the so)th an* east,
One MTS serve* at this -erio* ro)"hl <5 8ol8hoFes on the avera"e0
)sin" 8ol8hoF la+o)r on a lar"e scale alon"si*e its own -ai*
s-ecialists,
There are other so)rces of a"ric)lt)ral -ro*)ce, There are
allotments c)ltivate* + state>em-loe* -ersons .state farm wor8>
ers0 railwamen0 r)ral officials0 *wellers in s)+)r+s of +i" cities0
etc,/ who own some livestoc8, There are also ver n)mero)s small
farms an* mar8et>"ar*ens o-erate* + non>a"ric)lt)ral state
enter-rises0 an* )se* to -rovi*e foo*st)ffs for the factor canteen or
the enter-riseDs sho- .ORS/,
A"ric)lt)ral -ro*)ction was *isco)ra"e* + the e@cee*in"l
)nfavo)ra+le -rice str)ct)re, :hile -rices of cotton an* some other
in*)strial cro-s were s)+stantiall raise* in #$&<0 -rices of livestoc8
-ro*)cts in #$&&>4 har*l *iffere* from those of #$('>$0 an* "rain
-rices were onl a little a+ove #$('>$ levels, Yet the -rices of
in*)strial "oo*s0 an* -artic)larl those -)rchase* + -easants0 rose
ver "reatl, Th)s for instance the -rice of cotton cloth 4sitets,
calico/ on # 2an)ar #$(' was &< 8o-e8s -er metre0 while on #
2an)ar #$&4 it was (,&5>&,(1 ro)+les0 i,e, it increase* seven to nine
times, Prices for soa- m)lti-lie* + five0 for s)"ar + si@0 etc,
(5
This
was the -rice DscissorsD with a ven"eance, It sho)l* +e a**e* that
a"ric)lt)re was ne"lecte* in other wasI even as late as #$<5 onl
<,( -er cent of 8ol8hoFes ha* an electricit,
(#
An availa+le mineral
fertiliFer was li8el to +e allocate* to in*)strial cro-s,
Not ver s)r-risin"l0 while cotton o)t-)t rose ver satisfactoril
> -ro*)ction *o)+le* *)rin" the *eca*e > -erformance was m)ch
less satisfactor elsewhere, :ith -rices at e@cee*in"l low levels
coercion +ecame an essential element in relations +etween state an*
collective farms, Since incentives were lac8in"0 Dthere *evelo-e*
e@cessive centralism in the -lannin" of 8ol8hoF -ro*)ction0
ar+itrariness 4administrirovaniye5 *evelo-e* in the control over
8ol8hoFes, This le* to a wea8enin" in the creative initiative of the
8ol8hoF mana"ement, Ar+itrar metho*s eliminate* econ>
The Aol3ho9 Con)ress and 4odel Statute ,15
omic motivation ,,, The -ro*)ction -lans of 8ol8hoFes freE)entl
+ecame a mechanical *ivi*in" +etween them 4ra2verst1a5 of *eliv>
er o+li"ations -asse* *own from the centre, The or"aniFation
of 8ol8hoF -ro*)ction0 from the first -rocesses of farm wor8
*own to the final *eliver of -ro*)ce to the state0 was strictl
re")late* an* centraliFe*,D The Soviet so)rce from which this is
E)ote* is in no *o)+t that s)ch -ractices were intimatel con>
necte* with the ver low -rices -ai*,
((
It sho)l* +e a**e* that0
for reasons of acco)ntanc0 state farms were0 at that -erio*0 -ai*
the same low -rices0 an* so reE)ire* lar"e s)+si*ies from the
state +)*"et,
State farms s)ffere* e@cee*in"l at first from D"i"antomaniaD0
the +elief that enormo)s D"rain factoriesD were con*)cive to
efficienc, Th)s in #$&# the D!i"antD state farm ha* an area of
(&$0555 hectaresH In #$&#>( harvests were )n+elieva+l low0
avera"in" on all state farms a mere &,% E)intals -er hectare0 when
in*ivi*)al -easants an* 8ol8hoFes were mana"in" 4>' E)intals,
(&
One reason was their narrow s-ecialiFation on "rain onl0 another
was total ne"lect of a"ronom,
From #$&& state farms0 as well as MTS0 were s)-ervise* +
D-olitical *e-artmentsD, These s)rvive* )ntil March #$<50
whereas0 as we have seen0 the MTS -olitical *e-artments were
a+olishe* in #$&<, The MTS an* 8ol8hoF sector was left to the
rai1otn .local -art/ committee an* to or"ans of the Peo-leDs
Commissariat of A"ric)lt)re0 while state farms came )n*er a
se-arate Commissariat of state farms .from #$&(/0 an* Dthe
rai8om *i* not interfere in the affairs of state farmsD,
(<
In the -erio* after #$&< man e@cessivel lar"e state farms
were *ivi*e* )-0 an* in some cases lan* was transferre* to
8ol8hoFes, As a res)lt of increase* investment an* +etter c)ltiva>
tion iel*s rose in #$&4 an* s)+seE)ent ears somewhat a+ove
8ol8hoF levels0 tho)"h witho)t si"nificantl e@cee*in" them,
!iven that state farms ten*e* to have more eE)i-ment an*
-ower than 8ol8hoFes0 as well as re")larl -ai* wa"e>earners0
their achievements m)st +e re"ar*e* as mo*erate0 the more so as
their raisin" of livestoc8 was most )ns)ccessf)l,
3es-ite all these *efects0 a"ric)lt)ral o)t-)t *i* recover from
the *e-ths to which it ha* fallen in #$&&,
,1& From 6eap For$ard to .ar
"ncomes and Social Ser0ices
4a5 Peasants
Since we have +een *isc)ssin" a"ric)lt)re it seems convenient to
+e"in + s)rvein" the chan"e in -easant incomes,
No com-lete set of fi")res e@ists in an -)+lishe* so)rce0 an*
some of the *ata that have a--eare* are not entirel consistent, Cash
-aments )n*o)+te*l increase*0 as the followin" fi")res show?
C9(( C9(/ C9(1
Per trudodenC !rou=les% &.4. &.4/ &.0/
Per household per nnu" !rou=les% 1&0 .41 (14
3istri+)tion of "rain varie* "reatl accor*in" to the harvest an*
-roc)rement -olicies?
19(. 19(( 19(4 19(s 19(4 19(1
Per trudodenC!,ilo$r"s% ..( ..9A(.1 ..0 ..4 !1.4% 4.&
Per household per nnu"
!Fuintls% 4 9.&A9.4 9.9 9.1 !4..% 11.&
(Sources: Sotsialisticheskoe narodnoe kho(yaist'o ' 388,+!, !>osco5, 194(%, p. (00U
nd I. Velenin, /storicheskie (apiski, No. 14, p. /9. 6i$ures di##er in the t5o sources
#or the +er 19((. 9he 19(4 #i$ures re rou$h esti"te onl+.%
The total n)m+er of tr)*o*ni wor8e* for the collective increase*0
hence the total income -er ho)sehol* rose faster than the -ament
-er tr)*o*enD, It m)st +e note* that -rices of man)fact)re*
cons)mersD "oo*s rose ver s)+stantiall in the -erio* #$&(R40 so
that real -)rchasin" -ower increase* relativel little0 tho)"h the
ran"e of "oo*s availa+le at official -rices was0 of co)rse0 m)ch the
"reater in #$&4,
The a+ove are avera"es, :hile in #$&( an avera"e of %55
8ilo"rams -er ho)sehol* re-resente* a "oo* *eal less than a -easant
familDs normal cons)m-tion of +rea*0 even this wo)l*
Inco$es and +ocial +ervices 299
not have re-resente* famine con*itions ha* it +een evenl *istri+>
)te*, Yet0 as we saw in Cha-ter 40 famine there certainl was > in
some areas, A fortiori, $55 8ilo"rams0 while not "oo*0 was tolera+le0
an* the #0455 8ilo"rams of #$&4 was ver satisfactor, 6)t whole
-rovinces were )na+le to allocate eno)"h +rea* "rains, Even in
#$&40 the +est ear of the *eca*e0 ('G -er cent of all 8ol8hoFes
*istri+)te* less than ( 8ilo"rams of "rain -er tr)*o*enD0 i,e, less than
half of the avera"e0 an* those ho)sehol*s were short of +rea* +
s-rin", Yet the harvests of #$&&>% ha* +een well +elow those of
#$&40 that of #$&% +ein" in fact *isastro)sl -oorI a hi"h -ro-ortion
of the -easant families m)st have +een serio)sl short of +rea*0
)n*er con*itions in which other so)rces of foo* were few an*
or*inar +a8e* +rea* was0 for the less favo)re* -easant0
-rohi+itivel e@-ensive, Th)s the retail -rice of +rea* in #$&1 was
one ro)+le -er 8ilo"ram0 which eE)alle* avera"e cash earnin"s from
one *aDs wor8 .in a t-ical *a0 a -easant co)l* earn a little more
than one wor8>*a )nit/,
At this same *ate one 8ilo"ram of ve"eta+le oil cost #,&5 ro)+les0
one 8ilo"ram of the chea-est re flo)r was #,%5 ro)+les0 wheat flo)r
cost <,%5 ro)+les0 "oo* leather shoes +etween <%% an* #0555
ro)+les,
(1
This was +a* eno)"h, 6)t even as late as #$&$0 #10455
8ol8hoFes .o)t of a total of a+o)t (<50555/ "ave their mem+ers no
cash at all for their wor80 an* <%0555 8ol8hoFes *istri+)te* a mere
(5 8o-e8s or less -er tr)*o*enD, The Soviet so)rce from which the
a+ove fi")res are ta8en remar8e* that low -ro*)ctivit was D*)e in
the main to the lac8 of material stim)li0 lac8 of -ersonal interest of
the mass of the 8ol8hoF -easants in their wor8 an* in the res)lts of
the collective economD,
(%
Yet the con*itions of life of the -easants )n*o)+te*l im-rove*
ver "reatl in the -erio* #$&&Q4 .e@ce-t in #$&%0 when the weather
was +a*/0 since their -rivate livestoc8 hol*in"s an* their income
from sales in the free mar8et rose s)+stantiall, 6)t the ver lar"e
amo)nt of "rain availa+le in #$&4 -rove* a flash in the -an, :e
shall see that it *ecline* shar-l in s)+seE)ent ears,
The rate of mi"ration from co)ntr to town *ecline* s)+stantiall
*)rin" the secon* five>ear -lan, It ma +e that this contri+)te* to
the mar8e* slow*own0 alrea* remar8e* )-on0 in
,*- From 6eap For$ard to .ar
in*)strial o)t-)t0 es-eciall constr)ction0 which +ecame a--arent in
#$&4, It is -ossi+le that one reason was that r)ral con*itions of life
im-rove*0 while overcrow*e* ho)sin" an* the low -a of )ns8ille*
la+o)r acte* as a *isincentive to -easants contem-latin" a move
townwar*s, A f)rther contri+)tor factor ma have +een the fact that
in #$&<>40 #,( million tractor>*rivers an* man other DmechaniFersD
were traine*0
(4
there+ -rovi*in" a r)ral o)tlet for the more
com-etent an* am+itio)s villa"e o)ths,
Technical trainin" for some0 +etter e*)cation for most0 the almost
total elimination of illiteracI these were si"nificant "ains0 which
o)"ht not to +e overloo8e*, The were "reater in the formerl
+ac8war* areas0 s)ch as Central Asia, There were also maCor
im-rovements in r)ral health services,
4"5 Wages, #rices, and living standards, %r"an sector
:e have seen that wa"es rose + m)ch more than ha* +een -lanne*,
Pres)ma+l at the time the -lan was *rafte* it ha* +een ho-e* to
re*)ce costs an* to fi@ retail -rices at levels not "reatl in e@cess of
the ration -rices of #$&(>&, :e have seen that -rices *i* in fact rise0
an* in #$&< an* #$&1 ver lar"e increases accom-anie* the
elimination of rationin", This ma*e it essential to increase wa"e
rates of those wor8ers an* em-loees left +ehin* in the co)rse of the
wa"e *rift which ha* alrea* *evelo-e* in the -revio)s
E)inE)enni)m an* which contin)e* thro)"ho)t the *eca*e .tho)"h
at a re*)ce* rate/, The "overnment so)"ht so to control wa"es as to
ens)re s-ecial a*vanta"es to -riorit in*)stries0 an* we have alrea*
note* that -iece>rates an* +on)s schemes0 incl)*in" the hi"h
incomes associate* with DSta8hanovismD0 were *esi"ne* to -rovi*e
an* *ramatiFe incentives for hi"her -ro*)ctivit, Mone wa"es in
fact increase* as follows?
#$&( #$&& #$&< #$&1 #$&4
4ro%"les #er ann%m5 iAIJ I,11
%
H,
'
1' (0(%$ &05<4
4So%rce: Tr%d v SSSR .#$&%/0 an* f)lfilment
re-ort on secon* five>ear -lan,/
Incomes an* Social Services (1#
6 #$&1 the effect of these wa"e increases was to ca)se heav
losses in0 an* s)+si*ies to0 +asic in*)stries0 whose sellin" -rices
were *eli+eratel 8e-t from risin", The followin" fi")res ill)strate
this?
Planne* costs Sellin" -rice
Coal .-er ton/ #$,#( $,%1
Iron ore .-er ton/ #5,(5 1,45
Steel .-er ton/ #(5,55 '&,55
Cement .-er ton/ <%,&#
(
4>D&
4So%rce: Sots- nar- 1ho2- v =>GG!@A, -, 41,/
In #$&% s)+stantial increases in factor wholesale -rices > coal
an* steel cost more than *o)+le > hel-e* to eliminate most of the
losses an* s)+si*ies,
A more *iffic)lt tas8 is to *escri+e the evol)tion of retail -rices
an* so of real incomes, The +asic -ro+lem is the e@istence of a
m)lti-le -rice sstem an* rationin" at the +e"innin" of the -erio*
we are *escri+in", In #$&& ration -rices were low0 DcommercialD
-rices for the same "oo*s e@cee*in"l hi"h .see -, (54/, 3)rin"
#$&< commercial -rices were re*)ce* .+rea* + &#,( -er cent
com-are* with the ver hi"h -rices of March #$&&/0 +)t Dnormal>
f)n*D -rices0 for "oo*s ratione* or otherwise s)+Cect to controlle*
*istri+)tion0 were increase*, There was a stron" case for the s-ee*
liE)i*ation of m)lti-le -rices an* of rationin", Firstl0 the sheer
com-le@it of the sstem was costl, Secon*l0 it "ave e@cellent
o--ort)nities for s-ec)lative resale0 an* there were man instances
of state enter-rises illicitl sellin" or resellin" in hi"her -rice
cate"ories to cover financial *eficiencies or C)st to ma8e mone,
Finall0 la+o)r incentives were ineffective )nless "oo*s co)l* +e
freel +o)"ht,
However0 "iven the shorta"e of "oo*s to +)0 )nifie* -rices
wo)l* have to +e s)+stantiall in e@cess of the so>calle* Dnormal>
f)n*D -rices,
So when +rea* rationin" was *eclare* a+olishe* as from #
2an)ar #$&10 the -rice was fi@e* at #,55 ro)+le for the chea-est re
loaf0 which was &4 -er cent +elow the e@istin" commercial
,*, From 6eap For$ard to .ar
-rice +)t ioo -er cent a+ove the ration -rice r)lin" in the secon* half
of #$&<0
an[
l I(C times the #$(' -rice, After the fairl "oo* harvest of
#$&10 an* followin" )-on the -artial recover of the livestoc8
sector0 on # Octo+er the rationin" of meat0 fats0 fish0 s)"ar0 an*
-otatoes was also a+an*one*0 an* +rea* an* flo)r -rices were
re*)ce*, Accor*in" to a s)rve of -rices in one in*)strial town0
E)ote* + Malafeev0 the net effect of the -rice chan"es intro*)ce*
on # Octo+er #$&1 was to re*)ce -rices of +rea* + #&,< -er cent0 of
flo)r an* -)lses + #5% -er cent0 of herrin"s + (# -er cent, 6
contrast0 meat -rices rose on avera"e + #5#>< P
er

cent
i +)tter + &&
-er cent0 mar"arine + 15 -er cent0 -otatoes + &$ -er cent0 these
+ein" the reflection of the shar- rise in -rices involve* in *e>
rationin",
('
In #$&% mil80 *air -ro*)ce0 salt an* ve"eta+le oils were
increase* in -rice0 contin)in" the -olic a*o-te* in Octo+er #$&1,
Price rises in #$&4 affecte* meat0 mil80 an* -otatoes0 +)t the effect
on the in*e@ of foo* -rices was onl # -er cent,
($
As for
man)fact)re* "oo*s0 their -rices ha* alrea* +een "reatl increase*
+ #$&&, 'e facto rationin" an* m)lti-le -rices contin)e*0 an* it
was not )ntil the en* of #$&1 that a series of "overnment *ecisions
narrowe* the *ifference +etween the levels of commercial -rices
an* those of the Dnormal f)n*D, Tho)"h this *ifference +ecame sli"ht0
Din the -erio* #$&%>' the retail -rices for non>foo* -ro*)cts were not
et in a f)ll sense )nifie*D,
&5
Commercial -rices were re*)ce* in
#$&10 +)t DnormalD -rices roseI the e@act fi")res are not availa+le, In
#$&4 the avera"e -rice of all non>foo* items fell + &,' -er cent,
Malafeev0 who )se* archive materials e@tensivel0 has calc)late*
that all state an* coo-erative -rices rose on avera"e from #$&( to
#$&4 + ##5,( -er cent, 3)rin" this -erio* free>mar8et -rices
+ehave* ver *ifferentl0 as the ta+le o--osite shows,
It sho)l* +e note* that the #$&( -rices were also ver hi"h .see
Cha-ter '/0 an* also that the free>mar8et t)rnover was small an*
onl semi>le"al in that ear, 6 contrast0 there was little *ifference
+etween official an* free -rices of most foo*st)ffs in
#$&4>
Ta8in" into acco)nt the lower mar8et -rices0 the retail -rice
in*e@ as a whole rose0 accor*in" to Malafeev0 not + ##5,( -er
"ncomes and Social Ser0ices ,*!
6ree-"r,et prices !19(. ' 1&&%
19(( 19(4 C9(/ 19(4 19(1
*7 $oods 140.. 9&.0 44.4 //.( 4..(
o# 5hichG Grins 14&./ 0&.( 44.1 .1.0 (4.4
Pottoes 144.& 11.9 /&.1 (&./ 4/..
>et 14&.& 1.4.& 94.4 1(.. 0(..
cent +)t + onl '5 -er cent in #$&(>4, Avera"e wa"es rose + ##&
-er cent, Pres)ma+l allowin" for services0 he reaches the
concl)sion that real wa"es rose in this -erio* + Dat least (5 -er
centD, This s)rel )n*erstates the im-rovement0 +eca)se of "reater
availa+ilit of "oo*s an* +etter tra*in" arran"ements, In an event0
the lowest -oint in terms of welfare was not in #$&( +)t in #$&&0 a
ear in which +oth official retail an* free>mar8et -rices rose ver
s)+stantiall in*ee* an* free>mar8et -rices reache* their -ea8,
There were also0 as we have seen0 ver lar"e DofficialD -rice increases
in #$&<0 affectin" -artic)larl Dnorme*D or ratione* -rices of
foo*st)ffs, These increases far o)tstri--e* the rise in wa"es0 so an
in*e@ of -)rchasin" -ower for these ears wo)l* loo8 e@ce-tionall
)nfavo)ra+le, This was followe* + three ver "oo* ears for the
cons)mer0 an* in #$&%>4 es-eciall the real>wa"e in*e@ ta8es a
s)+stantial lea- forwar*? in those two ears retail -rices fell sli"htl0
while wa"es rose + &5 -er cent,
Acce-tin" that in #$&4 real wa"es were0 sa0 &1 -er cent hi"her
than in #$&10 the were lower than in #$(', Malafeev clearl
im-lies thisI wa"es rose <,1 times0 official -rices 1,& times, After
correctin" for -rices of services0 which rose + less than this0 one
m)st concl)*e that there was a *ecline, 2anet Cha-man
&#
calc)late*
that real wa"es in #$&4 were '1 -er cent of #$(' if #$&4 -rices were
)se* as wei"hts0 +)t onl 1' -er cent of the #$(' -attern of
cons)m-tion, .The R)ssian emi"re e@-erts0 Pro8o-o>vich an* 2asn0
ha* come to similar concl)sions earlier0 )sin" ro)"her *ata,/ If #$&4
re-resente* -erha-s a &1 -er cent im-rovement on #$&10 it then
follows that #$&1 livin" stan*ar*s were ver "rim in*ee*, Yet0 since
real livin" stan*ar*s *e-en* in the last analsis on the "oo*s an*
services availa+le0 an* fewer were
,*1 froC
1
6eap For$ard to .ar
availa+le in #$&& an* #$&< than in #$&10 life was even har*er in
those ears, Of co)rse0 one m)st also ta8e into acco)nt the
im-rovement in social services0 the elimination of )nem-loment0
an* the )n*enia+le fact that man e@>-easants who move* into
in*)str were earnin" more than the wo)l* have earne* ha* the
remaine* on the farms, Finall0 those who ha* +een wor8ers in #$('
ha* ver "oo* o--ort)nities of -romotion0 an* the vast maCorit of
them were -ro+a+l ma8in" a "oo* *eal more in #$&4 than in #$(',
The avera"e is -)lle* *own + the *il)tion of the )r+an la+o)r force
+ )ns8ille* Dimmi"rantsD from the villa"es, A""re"ate cons)m-tion
went )-0 +eca)se #er ca#ita meas)ra+le cons)m-tion + -easants
was several times lower than that of the )r+an -o-)lation,
Ur+aniFation0 in all co)ntries0 ten*s to lea* to an overstatement0 in
welfare terms0 of the statistical e@-ression of total cons)m-tion an*
also of the total national income,
It is necessar to mention also that availa+ilit of ho)sin" s-ace
in )r+an areas contin)e* to *ecline, Stalin seeme* more concerne*
with -resti"e -roCects0 s)ch as the lavishl *ecorate* Moscow
)n*er"ro)n* railwa0 than with or*inar ho)se+)il*in" or the
maintenance an* re-air of e@istin" ho)ses, Con*itions in +i" cities
+ecame ver *iffic)lt0 an* Moscow was amon" the worst, The
followin" statistics relate to Dol* ho)sesD .i,e, nearl the whole of
Moscow/ an* to the ear #$&1, The come from the statistical
ann)al Tr%d v SSSR -)+lishe* in #$&% an* are )niE)e of their 8in*,
The "ive fi")res in terms of DrentersD 4syomshchi1i5, i,e, )nits which
were mostl families +)t in man cases also sin"le -ersons, At this
*ate % -er cent of DrentersD ha* more than one room0 <5 -er cent
live* in one room0 (&,% -er cent occ)-ie* a -art of a room0 1 -er
cent live* in 8itchens an* corri*ors0 (1 -er cent in *ormitories,
'rade
Retail tra*e was a ne"lecte* sector, :ith a "eneral shorta"e of
traine* -ersonnel little was availa+le for s)ch a non>-riorit activit,
The n)m+er of sho-s0 after the sE)eeFin" o)t of the -rivate tra*er0
increase* m)ch too slowl? th)s there were ##%0555
Trade ,**
sho-s in )r+an areas in #$&(0 an* onl #&&0555 in #$&4, J)e)es
were sometimes *)e to lac8 of retail o)tlets0 +)t also to -oor
*istri+)tion, Allocation of Df)n*sD of -lanne* commo*ities was +oth
centraliFe* an* cl)ms0 with cons)mer *eman* lar"el ne"lecte*,
DPartic)larl )nsatisfactor was service to c)stomers,D
&(
The
-scholo" of the sellerDs mar8et went *ee-,
It will +e recalle* that *)rin" the -erio* of the "reat lea- the
wor* Dtra*eD acE)ire* a somewhat ne"ative connotation0 as there was
a recr)*escence of ill)sions a+o)t Dcommo*it e@chan"eD an* the
witherin" awa of monetar relations, Tra*e was lin8e* with the
foo*>-rocessin" in*)str0 an* +oth were r)n + Nar8omsna+0 the
Peo-leDs Commissariat for S)--l, It was not )ntil #$&< that it was
*ivi*e* into the Peo-leDs Commissariats for the Foo* In*)str0 as
well as for Internal Tra*e, Un*er the latter were )nion>re-)+lican
commissariats an* local tra*e *e-artments, The transition to
)nratione* tra*e at )nifie* -rices was carrie* o)t + the new
Commissariat,
In #$&< retail tra*e was +ein" con*)cte* + +oth state an*
coo-erative sho-s0 in town an* co)ntr, Some of this tra*e was r)n
+ so>calle* ORSY0 D3e-artments of wor8ersD s)--lD0 set )- in
#$&(I these were sho-s r)n + enter-rises for their own em-loees0
an* s)ch sho-s contin)e to e@ist0 with their foo* s)--lies often
comin" from the enter-risesD own small farms,
On ($ Se-tem+er #$&1 it was *eci*e* to concentrate the
coo-eratives e@cl)sivel on tra*e in r)ral areas0 an* state sho-s
.-l)s ORSY/ s)--lie* the towns, The coo-eratives were also
res-onsi+le for sales to 8ol8hoFes of s)ch items as lorries0 +)il*in"
materials0 an* nails0 which the 8ol8hoFes ha* to -)rchase at retail
-rices0 which were m)ch hi"her than those char"e* for the same
"oo*s to state enter-rises,
The "overnment inten*e* "reatl to im-rove *istri+)tion0
es-eciall in r)ral areas0 an* retail t)rnover *i* increase, However0
Dthe "eneral level of tra*e t)rnover in villa"es was totall ina*eE)ate
,,, In man villa"e retail sho-s there were lac8in" even "oo*s which
were in s)fficient s)--l at wholesalersD stores0 incl)*in" s)ch
necessar commo*ities as salt0 matches0 8erosene0 etc,D
&&
3es-ite this
criticism0 an -ict)re of life in the -erio* #$&&R4 m)st stress the
"reat im-rovement which characteriFe* these ears,
25: %ro$ 3ea! %orward to .ar
One effect of the a+olition of rationin" was the shar- re*)ction in
Dcomm)nal fee*in"D0 i,e, -)+lic caterin", In the har* ears of the
earl thirties man )r+an citiFens relie* "reatl on factor an* office
canteens0 which were s)--lie* with ratione* foo*st)ffs at low
-rices, In #$&1 canteen -rices were ver "reatl increase*0 an*0 with
the en* of rationin"0 more foo* co)l* +e +o)"ht .if one ha* the
mone/ in the sho-s, ConseE)entl0 the n)m+er of meals .or more
strictl *ishes/ serve* + -)+lic caterin" enter-rises fell0 from a
-ea8 of ##0'55 million in #$&&0 to onl <0(55 million in #$&4, The
fact that this re-resente* an increase in ro)+les of close on #55 -er
cent "ives one some i*ea of the ma"nit)*e of the -rice increase,
&<
%inance
The -attern which *evelo-e* in the earl thirties was maintaine*
with little chan"e, T)rnover ta@ remaine* + far the lar"est item of
reven)e0 an* this was levie* lar"el +)t not e@cl)sivel on
cons)mersD "oo*s, .Heav in*)str -ai* ro)"hl a tenth of all
t)rnover ta@ in #$&1,/ A lar"e -ro-ortion of this ta@ arose o)t of the
wi*e *ifference +etween the low com-)lsor>-roc)rement -rices of
farm -ro*)cts an* the m)ch hi"her .an* increase*/ retail -rices, The
e@tent of this *ifference has alrea* +een ill)strate* .-, (#5/, In
#$&1 a"ric)lt)ral -roc)rements an* the foo* in*)str were
res-onsi+le for nearl %5 -er cent of all t)rnover ta@ recei-ts, The
rates of ta@ on most man)fact)re* cons)mersD "oo*s were
e@cee*in"l hi"h at this -erio*, Here are some e@am-les0 in which
the ta@ rate re-resents the -ercenta"e of the -rice incl%sive of ta@
.i,e, a ta@ of0 sa0 45 -er cent means that within a -rice of #55
ro)+les there is 45 ro)+les ta@, In 6ritain this wo)l* +e e@-resse* in
relation to the -rice +efore ta@0 an* the rate wo)l* then +e not 45 -er
cent +)t (&& -er cent,/ 6earin" this in min*0 the followin" rates were
a--lica+le in #$&1? 8erosene $5 -er cent0 nails (' -er cent0 li"ht
+)l+s #5 -er cent0 "aloshes 45 -er cent0 cotton cloth &1,% -er cent0
threa* &< -er cent0 salt '(,$ -er cent0 8itchen soa- <1>14 -er cent0
toilet soa- %$>4( -er cent0 ve"eta+le oil 4< -er cent0 s)"ar 44,( -er
cent in towns0 '%,( -er
Finance ,*5
cent in r)ral areas0 sa)sa"e 1<,$ -er cent, In a**ition there were a
variet of D+)*"etar a**itionsD char"e* at the retail sta"e? this
was &4 -er cent for leather shoes sol* in towns0 no less than #<(
-er cent in the co)ntr, 6 contrast0 -ro*)cersD "oo*s -ai* low
rates? th)s coal0 cement0 +ric8s0 an* steel -ai* ( -er cent, There
were vast n)m+ers of e@ce-tions an* local variations,
&1
All this
was ver com-le@0 with a "reat m)lti-licit of rates which varie*
+ re"ion an* sometimes even + factor0 as well as + mo*el or
t-e of -ro*)ct, In #$&$><5 the ta@ sstem was overha)le*, For
man m)lti>-ro*)ct in*)stries0 s)ch as te@tiles0 the ta@ was
henceforth calc)late* as the *ifference +etween the wholesale
-rice at which the enter-rise sol* the "iven commo*it .which
was relate* to -ro*)ction costs/ an* the retail -rice .less tra*e
mar"ins/, This ma*e for a more lo"ical str)ct)re of retail -rices0
as well as sim-lifin" the ta@, One effect of the revision of +oth
-rices an* ta@ rates was to increase enter-rise -rofits somewhat at
the e@-ense of t)rnover ta@0 an* the -ro-ortion of t)rnover ta@ in
total +)*"etar reven)e fell from 4&,# -er cent in #$&4 to 1$,&
-er cent in #$<50 while the stateDs reven)es from -rofits rose from
',$ -er cent in #$&4 to #(,& -er cent of the +)*"et in #$<5,
3irect ta@ation contin)e* to -la onl a minor roleI income ta@
an* local ta@ .Dc)lt)ral an* ho)sin" levD/ were at ver low rates0
the ma@im)m +ein" &,1 -er cent an* & -er cent res-ectivel,
These ta@es were com+ine* an* increase* in #$<50 so that the ta@
-ai* + a -ros-ero)s citiFen .earnin" &0555 ro)+les a month/ +
then amo)nte* to #(,<% -er cent, The a+ove rates relate to wa"es
an* salaries -ai* + state enter-rises an* instit)tions, The were
m)ch hi"her in the case of -rivate earnin"sI for instance0 in*i>
vi*)al craftsmen were char"e* a to- rate of 1(,& -er cent,
&%
Mo*est ta@es on +oth 8ol8hoFes an* collectiviFe* -easants .the
latter onl in res-ect of their -rivate activities/ were levie* in the
mi**le thirties0 +)t their im-act0 as we shall see0 +ecame m)ch
more severe *)rin" an* after the Secon* :orl* :ar,
P)rchases of +on*s +ecame virt)all com-)lsor an* most
em-loe* -ersons fo)n* themselves in effect contri+)tin" two
wee8sD wa"es0 these +ein" *e*)cte* over the whole ear, This
was a more im-ortant so)rce of reven)e than *irect ta@ation? in
#$&'0 for instance0 o)t of a total reven)e of #(4,< milliar* ro)+les
,*& From 6eap For$ard to .ar
all *irect ta@es came to 1 milliar*s0 loan s)+scri-tions to 4,%
milliar*s,
In the first ears of the first -lan +on* -)rchases were still
re"ar*e* as a vol)ntar act0 interest rates were hi"h .'>#( -er cent/
an* the re-ament -erio* was short, In #$&% the "overnment
converte* all +on*s -revio)sl sol* to the citiFens to the m)ch lower
rate of < -er cent interest0 for twent ears,
&4
In fact0 ,there were few
re-aments,
6)*"etar e@-en*it)re increase* with the e@-ansion of the
econom0 the more so as the -rinci-le was esta+lishe*0 in a
"overnment *ecision of $ March #$&<0 that ca-ital investments in
state enter-rises sho)l* +e finance* + o)tri"ht non>ret)rna+le
+)*"etar "rants .e@ce-t where the were finance* o)t of -rofits or
the *e-reciation f)n*/, Until the #$&% -rice reform0 s)+si*ies were a
serio)s +)*"etar +)r*en0 an* the ha* to +e res)me* at the en* of
the *eca*e as wa"es an* costs rose, 3efence e@-en*it)res0 as ha*
alrea* +een shown0 rose ver ra-i*l0 m)ch more ra-i*l than ha*
+een -lanne*, Since the state +)*"et0 on +oth its reven)e an* its
e@-en*it)re si*e0 is ver closel connecte* with the o-eration of the
econom0 it followe* that the financial an* economic -lans reE)ire*
revision to"ether, Th)s0 to ta8e an e@am-le0 if the -lanne* "rowth in
the o)t-)t of wool te@tiles was a+an*one* in favo)r of -ro*)cin"
")ns0 then0 ass)min" that investments were sim-l switche* from
one to the other0 e@-en*it)res wo)l* remain the same0 +)t reven)es
wo)l* +e a*versel affecte* + loss of t)rnover ta@0 which wo)l*
have +een -ai* on the wool te@tilesI there wo)l* also o-en )- a "a-
+etween the total income of the citiFens an* the "oo*s availa+le to
them at esta+lishe* -rices0 since wool te@tiles are cons)mersD "oo*s
an* ")ns are not, An increase of t)rnover ta@0 an* so of retail -rices0
wo)l* then sim)ltaneo)sl restore +)*"etar eE)ili+ri)m an* the
+alance +etween s)--l an* *eman* of cons)mersD "oo*s, An
alternative wo)l* +e to -ermit the im+alance to contin)e0 to +ri*"e
the "a- + increasin" the c)rrenc iss)e an* to allow the emer"ence
of E)e)es an* +lac8>mar8et -henomena, :e shall see that in fact
this is what ha--ene* in #$&$><5,
E@-en*it)re on social services increase* ra-i*l *)rin" these
ears, The e@act e@tent of the increases is har* to calc)late
The 6ast Pre=$ar >ears ,*
+eca)se of the im-act of -rice chan"es, The +i" e*)cational effort
has alrea* +een commente* )-on, Health statistics show a mar8e*
im-rovementI +etween #$(' an* #$<5 me*ical *octors increase*
from 450555 to #1105550 the n)m+er of hos-ital +e*s from (<40555
to 4$#0555, A lar"e -ro-ortion of the newl traine* *octors were
women, There was also a +i" rise in s-en*in" on social ins)rance
an* social sec)rit,
'he 3ast *re-war >ears
.a/ $nd%stry
The -erio* #$&'><#0 )ntil the !erman attac8 was la)nche* on ((
2)ne #$<#0 covers three an* a half ears of the thir* five>ear -lan,
This -lan0 -re-are* *)rin" #$&4>' an* a*o-te* formall + the
ei"hteenth -art con"ress in #$&$0 aime* at im-ressive increases
over the five ears? $( -er cent in in*)strial o)t-)t0 1' -er cent in
steel0 #($ -er cent in machiner an* en"ineerin"0 %& -er cent in
wool cloth0 an* so on, Amon" other o+Cectives0 it was inten*e* to
achieve )niversal secon*ar e*)cation in cities0 a minim)m of
seven>ear schoolin" in the co)ntrsi*e,
6)t the ever>increasin" *an"er of war le* to a *rastic recastin" of
the -ro*)ction -ro"ramme0 which to a lar"e e@tent e@-lains the
shortfalls which *evelo-e*0 -artic)larl in cons)mersD "oo*s, In
a**ition0 as alrea* -ointe* o)t0 the *isor"aniFin" effects of mass
arrests were also res-onsi+le for fail)re to carr o)t -lans, Another
*iffic)lt was shorta"e of la+o)r? accor*in" to official so)rces
in*)str0 constr)ction0 an* trans-ort were short of #,( million
recr)its in #$&40 #,& million in #$&'0 #,1 million in #$&$,
&'
A""re"ate in*)strial o)t-)t *i* rise a--recia+l0 + more than was
-lanne*0 accor*in" to official claims, 6)t -ro"ress was e@cee*in"l
)neven, Th)s in the three ears #$&'><5 the o)t-)t of machiner
an* en"ineerin" .which incl)*e arms/ was sai* to have reache* 1$
-er cent of the total -lanne* for five ears0 an* footwear -ro*)ction
even achieve* %5 -er cent, 6 contrast0 steel o)t-)t ha* increase*
insi"nificantl0 + onl 1,' -er cent of the five>ear -lan increase0
rolle* metal + a mere #,< -er cent0
,%- From 6eap For$ard to .ar
cement + &,% -er cent0 while o)t-)t of s)"ar0 which sho)l* have
risen + <5 -er cent0 *ecline*, O)t-)t of oil0 a vital an* strate"ic
item .one wo)l* have tho)"ht/0 e@-an*e* e@cee*in"l slowl0
contri+)tin" to a f)el crisis, It is *iffic)lt to fin* an a*eE)ate
e@-lanation for this -attern, It is not eno)"h to +lame the nee* for
militar -re-aration0 for the shortfalls incl)*e some commo*ities of
vital im-ortance militaril, It ma +e0 as alrea* s)""este*0 that the
effects of the -)r"es an* the strain *)e to the ra-i* switch into
armaments -ro*)ction com+ine* to *isor"aniFe the entire -lannin"
sstem, In the case of metall)r" a 8e -ro+lem was shorta"e of
iron ore an* co8e0 an* this in t)rn was *)e in -art to the effect of
Dmass re-ressionsD on mana"ement,
&$
The lar"e n)m+er of -ersons in
concentration cam-s incl)*e* man hi"hl E)alifie* mana"ers0
technicians0 officers, One cannot ima"ine that the were effectivel
)tiliFe*, One m)st also mention the im-act of the Finnish war of
#$&$><5, This *isr)-te* trans-ort0 an* in Fe+r)ar #$<5 man
9enin"ra* factories sto--e* -ro*)ction owin" to the non>arrival of
coal,
<5
3es-ite all errors an* waste0 the USSR *i* s)ccee*0 in the ten
ears +e"innin" in #$('0 in creatin" the in*)strial +ase for a
-owerf)l arms in*)str, 6)t this +ase was still too wea8 to ena+le
the civilian investment an* cons)mersD -ro"rammes to s)rvive the
effects of a re*o)+lin" of arms s-en*in",
The *evelo-ment of the armaments in*)str0 an* war -re-ara>
tions "enerall0 will +e *isc)sse* in the ne@t cha-ter,
In #$&$ the USSRDs -ro*)ctive ca-acit "rew si"nificantl + the
a+sor-tion of new territor? Estonia0 9atvia0 9ith)ania0 the eastern
-rovinces of Polan* .an* in 2)ne #$<50 also 6essara+ia/, This m)st
+e ta8en into acco)nt in inter-retin" statistics for #$<5, For
e@am-le0 there was a lar"e increase in the n)m+er of in*ivi*)al
-easantsI collectiviFation in the newl acE)ire* re"ions was not
com-lete* )ntil #$15,
4"5 Agric%lt%re
The a"ric)lt)ral -olicies of the -art )n*erwent a chan"e in #$&$,
The central committee -len)m which met in that ear *eci*e* to
re*)ce the siFe of -rivate -lots, It was fo)n* that
The 6ast Pre=$ar >ears ,%1
man families ha* Dtoo m)chD lan*0 an* a total of (,1 million
hectares was ta8en awa from the collectiviFe* -easants, It was har*
to ima"ine a less -o-)lar act, In the same ear stricter *isci-line was
intro*)ce*0 with com-)lsor minima of wor8>*a )nits -er a+le>
+o*ie* -easant, In the same ear a *ecree .of ' 2)l #$&$/ instr)cte*
8ol8hoFes "reatl to increase their livestoc8D hol*in"s, Owin" to
shorta"e of fo**er this le* to some fall in the alrea* low
-ro*)ctivit of collective livestoc8? th)s +oth mil8 iel*s an*
avera"e live wei"ht of animals *elivere* for meat *ecline* after
#$&',
<#
It ha* a f)rther conseE)ence? fo**er for -rivate livestoc8
+ecame *iffic)lt to o+tain0 an* there was a fall in their n)m+ers,
Another )n-o-)lar act was a mar8e* increase in com-)lsor
*eliver E)otas for livestoc8 -ro*)cts0 levie* on +oth farms an*
-easant -rivate hol*in"s, Peasants were )n*er -ress)re to sell for
meat .or to their 8ol8hoF/ animals which in man cases the co)l*
not fee*, There was also an increase in com-)lsor *eliver E)otas
for man cro-s0 an* the +asis of the E)ota was altere* from the area
sown with that cro- .or animals act)all owne*/ to the total ara+le
area, This was )se* f)rther to screw )- the *eliver E)otas0 an* the
com-)lsor -rinci-le was e@ten*e* to items hitherto not s)+Cect to
it0 incl)*in" man ve"eta+les an* even shee-Ds mil8 cheese, Private
livestoc8 ownershi- fell?
Animals -er #55 8ol8hoF ho)sehol*s #$&'
#$<5
Cattle #&' #5(
Pi"s 45 <%
Shee- an* "oats #%$ #%$
4So%rce: Sotsialistiches1oe narodnoe
1ho2yaistvo v igK!@A .Moscow0 #$%&/0 P>
&$5,/
There was an increase in the rate of -ament in 8in* for the wor8
of the MTS0 an* a *ecrease in the -ro-ortion of the "rain an* -otato
cro- sol* at the hi"her over>E)ota -rices0 an* this too a*versel
affecte* 8ol8hoF incomes, F)rthermore0 a *ecree of # A)")st #$<5
instr)cte* 8ol8hoFes0 after f)lfillin" their *eliver
,%, From 6eap For$ard to .ar
o+li"ations0 to set asi*e see*0 foo*0 an* fo**er reserves0 an* onl
thereafter to *istri+)te "rain to their mem+ers, Altho)"h re-orts on
the harvest are now 8nown to have +een e@a""erate*0 or*ers were
iss)e* Dto halt the anti>state attem-ts to )n*erstate the harvest iel*D,
The -ress re-orte* -rison sentences for 8ol8hoF chairmen who
D)n*erstate*D the harvest or hel* )- "rain *eliveries,
<(
:hile total
8ol8hoF cash reven)es rose from #< milliar* ro)+les in #$&4 to (5,4
milliar*s in #$<50 an increase was or*ere* in the allocation to the
Din*ivisi+leD .ca-ital/ f)n*0 as well as in ta@ation0 an* the avera"e
cash *istri+)tion -er tr)*o*enD .wor8*a )nit/ rose insi"nificantl0
from 5,'1 to 5,$( ro)+les0 certainl less than the increase in -rices,
Meanwhile the rise in state -roc)rements left m)ch less "rain in the
villa"es0 an* the "rain -ament -er tr)*o*enD fell from the recor*
fi")re of < 8ilo"rams in #$&4 to onl #,& 8ilo"rams in #$<5,
<&
It is evi*ent that0 at this -erio*0 the -easants ha* man
"rievances? less +rea*0 fewer -rivate animals0 too little cash0 a
c)t+ac8 in the siFe of their -lots, One mi"ht s)--ose that this was
no wa to ens)re loalt on the eve of war, Of co)rse0 hi"her "rain
-roc)rements *i* facilitate the +)il*in" )- of reserves, Incentive
schemes were intro*)ce* in 8ol8hoFes in #$&$><5I these -rovi*e*
+on)ses for 8ol8hoF -easants who carrie* o)t -lans0 +)t in an case
the -lans were often set )nrealisticall hi"h0 an* the relative *ecline
in cash an*0 es-eciall0 -ro*)ce availa+le for *istri+)tion acte* as a
co)nter>incentive, Yiel*s of man cro-s *ecline*? s)"ar>+eet0 fla@0
s)nflower0 an* -otatoes all *i* worse than +efore, An e@ce-tion was
cotton0 where -rices were m)ch more favo)ra+le, In #$&'><5 iel*s
of this cro- were &< -er cent )- on #$&&>40
ana
K almost reache* the
#$5$>#& avera"e0 on a ver m)ch "reater area of irri"ate* lan*,
<<
!rain iel*s were a little +etter +)t still ver mo*est0 avera"in" 4,4
E)intals -er hectare in #$&'><50 a"ainst 4,1 in #$('>&( an* 4,# in
#$&&Q4, Since the area sown with "rain increase* +etween #$&( an*
#$<5 + a mere # -er cent .on com-ara+le territor/ the increase
was E)ite ins)fficient to meet the "rowin" nee*s of the state an*
citiFens,
A "reat *eal of harm was *one at this -erio* + the im-osition +
the centre of its own -et i*eas0 re"ar*less of local a*vice or
The 6ast Pre=$ar >ears ,%!
circ)mstances, One s)ch was the so>calle* travo#olye cro- rotation
sstem0 which "reatl increase* the area )n*er "rasses0 with the
i*ea that this wo)l* increase soil fertilit witho)t )sin" fertiliFer, In
some areas this was nonsense, Another hare>+raine* scheme was the
m)ch -)+liciFe* intro*)ction of an alle"e* r)++er>+earin" -lant0
1o1!sagy2- Still another was the f)tile attem-t to "row )nirri"ate*
cotton in the U8raine, 9sen8o0 the -se)*o>scientist0 was +e"innin"
to infl)ence official *ecisions0 with -romises of instant res)lts at
low cost, A"ric)lt)re *oes not len* itself to +)rea)craticall
im-ose* innovation0 an* s)ch thin"s le* to )nnecessar losses,
4c5 Living standards and trade
The ears #$&'><# were0 no *o)+t )navoi*a+l0 a -erio* in which
the im-rovement of livin" stan*ar*s came to a halt, Yet the in*e@ of
real wa"es showe* )- well, The reason for this a--arent -ara*o@
was the -rice -olic followe* at this -erio*, :a"es rose from &05<4
ro)+les -er ann)m in #$&4 to <051< ro)+les in #$<50 or + &1 -er
cent, Official -rices rose + onl #$ -er cent accor*in" to
Malafeev .+)t + (%>&( -er cent accor*in" to 2anet Cha-man/,
However0 free>mar8et -rices rose + m)ch more than this0 reflectin"
the increasin" shorta"e of foo*st)ffs in state sho-s, Official an*
even )nofficial Soviet fi")res are few an* scattere*0 +)t one m)st
a"ree with 2anet Cha-man that free>mar8et -rices ro)"hl *o)+le*
+etween #$&4 an* #$<50 while s)--lies to this mar8et fell, Some
Soviet so)rces im-l that free>mar8et -rices were 41 -er cent a+ove
official -rices in #$<5, After allowin" for hi"her ta@es an* +on*
sales0 Cha-man arrives at a fall in real wa"es0 +etween #$&4 an*
#$<50 of #5 -er cent or so, The fall was most -rono)nce* in #$<5,
!oo*s of all 8in*s were m)ch more *iffic)lt to o+tain0 there were
more E)e)es0 there was )nofficial rationin" of foo*st)ffs0 an* a
res)m-tion of sales at Dcommercial -rices in s-ecial sho-sD, Retail
-rices were increase* in the co)rse of the ear +)t s)--l an*
*eman* remaine* well o)t of eE)ili+ri)m,
Forei"n tra*e ha* *iminishe* in vol)me in the mi**le thirties0 an*
the s)+stantial re*)ction in im-orts of machiner ma*e
,%1 From 6eap For$ard to .ar
-ossi+le the emer"ence of a +alance>of>-aments s)r-l)s0 which
ena+le* the Soviet "overnment to re-a *e+ts inc)rre* *)rin" the
first five>ear -lan -erio*, Tra*e with !erman fell to a ver low
level owin" to the anti>Soviet attit)*e of the NaFi re"ime, In
71 the o)t+rea8 of war c)t the USSR off from most of its
:estern tra*in" -artners0 +)t the NaFiRSoviet -act ca)se* a lar"e
increase in tra*e with .an* es-eciall e@-orts to/ !erman *)rin"
72 .an* in fact ri"ht )- to 2)ne #$<#/, The followin" fi")res
*emonstrate this?
Im-orts E@-orts
from !erman to !erman
4millions of ro%"les5
73 %4,( '1,$
74 s%>< %#,%
#$<5 <#$,#\\\\\\\\\\\4&%>1U
U So)rce mista8enl "ives this as 40&%1,5,
4So%rce: 6neshnyaya torgovlya igi?M@A, P>
(&/
4d5 La"o%r and social services
Ret)rnin" to *omestic affairs0 it is necessar to mention ver severe
meas)res *esi"ne* to stren"then la+o)r *isci-line0 incl)*in" not
onl a+senteeism +)t also )n-)nct)alit an* slac8ness at wor8, At
first these followe* -rece*ent + merel im-osin" a*ministrative
-enalties? fines0 *ismissals0 evictions0 re*)ction of social ins)rance
+enefits an* the li8e .*ecree of (' 3ecem+er #$&'/, In the same
month0 la+o)r +oo8s were iss)e* to all em-loe* -ersons0 an* these0
to"ether with the internal -ass-ort0 were inten*e* to control
movement an* to 8ee- a chec8 on *isci-line .it was a form of
in*)strial con*)ct sheet an* -erformance recor*/, 6)t this was not
eno)"h, The *ecrees of #$<5 .(% 2)ne0 ( Octo+er0 #$ Octo+er/ went
ver m)ch f)rther, Their essential feat)res were?
.#/ The im-osition of *irection of la+o)r on s-ecialists of man
The 6ast Pre=$ar >ears ,%*
8in*s .Den"ineers0 technicians0 foremen0 em-loees0 E)alifie*
wor8ersD/,
75 Com-)lsor call>)- of )- to one million o)n" school>leavers
for Dla+o)r reserve schoolsD for trainin", This was the conseE)ence of
the shortfall of trainees0 alrea* remar8e* )-on, This in t)rn was
attri+)te* to the ra-i* "rowth in the secon*ar school inta8e,
76 The a+sentee from wor8 was treate* as a criminal0 s)+Cect to
criminal law -enalties of )- to si@ monthsD Dforce* la+o)r at -lace of
em-lomentD .a 8in* of har* la+o)r on the Co+0 with )- to (1 -er
cent loss of wa"es/, Sometimes this meant a com-)lsor shift to
another Co+, Another s)ch offence DE)alifie*D the offen*er as a
DflitterD0 an* so for a man*ator Cail sentence0 if it occ)rre* within the
-erio* of the first sentence,
77 Anone more than twent min)tes late for wor8 was to +e
treate* as an a+sentee, This wo)l* incl)*e ret)rnin" late from l)nch
+rea8 or "oin" off earl, Two s)ch offences0 once a"ain0 meant
-rison as a DflitterD,
78 No one was to +e allowe* to leave his or her Co+ witho)t
-ermission, This was onl to +e "rante* in s-ecial circ)mstances0
some of which were liste* .e,", ol* a"e0 call>)- to the arm0 move
of h)s+an* to another town0 a*mission to hi"her e*)cational
esta+lishment0 etc,/, If anone *iso+ee* an* left wor8 he wo)l* +e
s)+Cect to criminal>law -enalties an* im-risone* as a DflitterD,
Sentences of fo)r months were E)ite common,
79 The wor8in" *a was len"thene* from seven ho)rs to ei"ht
ho)rs0 the wor8in" wee8 from five *as o)t of si@ to si@ *as o)t of
seven .S)n*a was to +e the normal *a of rest/0 witho)t a**itional
-a,
This *raconian le"islation was s)--ose*l intro*)ce* on re-re>
sentation from the tra*e )nionsH Altho)"h in retros-ect it seems
-ro-er to treat it as *)e to the imminence of war0 it was not C)stifie*
at the time + s)ch reasonin", It seeme* to fit a -attern of tho)"ht
+ase* on the -riorit of *isci-line .an* terror/, It was the *)t of the
citiFen to wor8 for the common "oo*0 an* the state 8new what the
common "oo* was, It wo)l* -)nish anone who so)"ht to
s)+stit)te his -ersonal -reference for his *)t to societ, The #$<5
*ecrees were not f)ll re-eale* )ntil #$1%0 altho)"h it seems that
the fell into *is)se in the earl fifties,
,%% From 6eap For$ard to .ar
The im-act of these *ecrees in #$<5 can +e st)*ie* in the le"al
-ress, A "oo* s)mmar of the evi*ence is "iven + S, SchwarF,
<1
Some of this evi*ence is almost +eon* +elief0 +)t sce-tics have
onl to rea* the files of the or"an of the Soviet -roc)rac for the
ear #$<50 from which all the instances cite* +elow are ta8en,
The i*ea of -)nishin" wor8ers as criminals in -eacetime for
offences a"ainst la+o)r *isci-line was so contrar to tra*ition that a
cam-ai"n ha* to +e la)nche* a"ainst Dcriminal inactivit0 *irect
coverin">)- , ,, slowness0 li+eralismD + the -rosec)tion officers
4#ro1%rory5, man of whom were *ismisse* an* themselves -ros>
ec)te*,
<%
2)*"es were acc)se* of Drotten li+eralismD0 re-riman*e*0
*ismisse*0 trie*0 an* sentence*0 for not r)thlessl im-lementin" the
*ecree,
<4
Mana"ers were -)nishe*0 sometimes ver severel0 for
Dcoverin">)-D .not re-ortin"/ lateness an* a+senteeism + their
staffs0 an* it was ma*e clear that s)ch DcrimesD were ver commonI
th)s si@t mana"ers were -)t on trial for this offence in the U8raine
within a co)-le of months of the -rom)l"ation of the *ecree,
<'
3octors were *eno)nce* for +ein" too Dli+eralD with me*ical
certificates for alle"e* malin"erers,
<$
DMil*D sentences were ma*e
more severe + the hi"her co)rts on the D-rotestD of -ro8)ror, The
co)rts0 com-elle* to *eal with cases within five *as0 were
overloa*e* with wor8, 6 *ecree of #5 A)")st #$<50 these trials
were to +e han*le* + one C)*"e .witho)t assessors/ an* with no
-reliminar investi"ation 4sledstvie5-
HA
Face* with s)ch -ress)res0 C)*"es an* -ro8)ror +e"an to over*o
thin"s0 as was onl to +e e@-ecte*0 an* mana"ers re-orte* for
-rosec)tion cases of a+sence or lateness which were E)ite evi*entl
le"itimate0 even )n*er this *ecree, Th)s one woman teacher was
-rosec)te* while she was act)all in a maternit homeI
1#
a woman
with a sic8 +reast>fe* +a+ at home0 an* five months -re"nant was
sentence* to fo)r monthsD im-risonment for leavin" wor80 an* this
sentence was act)all confirme* + the re-)+lican s)-reme co)rtIK
another woman with two o)n" chil*ren whose +a+>min*er left
was sentence* to two monthsDI
1&
still another one was "iven three
monthsD im-risonment for +ein" a+sent0 after -ro*)cin" a me*ical
certificate -rovin" an attac8 of malaria0
1<
an* so on0 an* so forth, 6
the en* of the ear0 in cases li8e these0 the chief -ro8)ror in
Moscow was intervenin" to
Plannin) and <r)ani9ation ,%5
set asi*e )nC)stifie* sentences, To e@-lain s)ch o)tra"es one m)st
remem+er that the "reat -)r"e0 with its e@cesses of terror0 was fresh
in everoneDs min*,
This le"islation was onl ver occasionall lin8e* with the
*an"er of war, In the main0 it was -resente* as lo"ical an* ri"ht in
itself0 C)stifie* + selecte* E)otations from 9enin an* Stalin, This
was the time of the NaFiRSoviet -act0 an* the citiFens were +ein"
tol* that the *an"er of war ha* rece*e*, These ver severe meas)res
seeme* to +e a +a* -scholo"ical -re-aration for the trials to come0
when -o-)lar s)--ort wo)l* -rove an in*is-ensa+le so)rce of
stren"th,
Other )n-o-)lar meas)res were ta8en in #$&'><5, Some social
ins)rance +enefits were c)t? th)s maternit leave ha* +een re*)ce*
from ##( *as to sevent *as alrea* in #$&', F)ll social ins)rance
+enefits0 )n*er the #$&' D*isci-lineD *ecree0 were -ai* onl to those
with a lon" -erio* of service in the same enter-rise, Finall0 fees
were intro*)ce* in #$<5 for )--er forms of secon*ar schools an*
in hi"her e*)cation0 *es-ite a -rovision of the #$&% Constit)tion
")aranteein" free e*)cation at all levels for all citiFens, .The
Constit)tion was amen*e*0 +)t not )ntil several ears later,/ This
meas)re0 clearl0 was lin8e* with the call>)- to la+o)r reserve
schools? the e@-ansion of aca*emic secon*ar e*)cation was havin"
an a*verse effect on recr)itment to the ran8s of s8ille* wor8ers,
Th)s in the last *as of -eace the lea*ershi- was en"a"e* in
retrenchment0 stren"thenin" *isci-line0 lain" in stoc8s,
*lannin& and =r&ani8ation
3)rin" the thirties there was *evelo-e* the sstem sometimes
8nown as the comman* econom0 or the Stalin -lannin" "odel,
+ase* on stern centraliFation, :e have note* its emer"ence .Cha-ter
'/, It is necessar +riefl to s8etch in its #urther *evelo-ment0
since0 a-art from minor chan"es -rinci-all o# *esi"nation0 the
sstem s)rvive* for several *eca*es,
Its essential feat)res were the followin"?
!1% State enter-rises !other thn those o# locl interest% 5ere
,%& From 6eap For$ard to .ar
-lace* )n*er the or*ers of the a--ro-riate Peo-leDs Commissariat
.Ministr/0 an* the *irector of each enter-rise was s)+Cect to or*ers
from his commissariat on all matters, Parts of the econom were
)n*er re-)+lican or local a)thorities0 +)t m)ch of their o)t-)t an*
activit too was "enerall allocate* an* re")late* + the centre0
*irectl or in*irectl,
80 Plans ha* the force of a +in*in" or*er "iven + a hierarchical
s)-erior, These -lan instr)ctions covere* s)ch E)estions as the
E)antit an* assortment of o)t-)t0 -)rchases of in-)ts .from whom0
an* in what E)antities/0 the *eliver o+li"ations of the enter-rise0
-rices0 wa"es0 staff esta+lishments0 costs0 an* m)ch else +esi*es0
*e-en*in" on the in*)str in E)estion, A--ro-riate o)t-)t -lans
were *evise* for enter-rises en"a"e* in retail or wholesale tra*e
.val)e of t)rnover/0 trans-ort .ton>8ilometres/0 an* so on, Ami* all
these -lanne* o+Cectives0 one was at this -erio* s)-reme? the "ross>
o)t-)t in*icator, In cases of conflict +etween vario)s "oals0 this was
)s)all the one to which -riorit was "iven,
81 Plans were *evise* + Peo-leDs Commissariats for their own
enter-rises0 s)+Cect to the a)thorit of the -art an* "overnment0
which lai* *own the "eneral -olic o+Cectives an* 8e tar"ets, The
coor*inatin" an* a*visor +o* with a 8e role in the -rocess was
!os-lan0 the state -lannin" commission0 which + the en* of the
*eca*e was hea*e* + an a+le o)n" man0 N, =oFnesens8, It
wor8e* o)t the lo"ical conseE)ences of -olicies0 reconcile* them
with -ro-osals an* re-resentations receive* from +elow0 an*
en*eavo)re* to achieve consistenc,
82 Its chief metho*olo"ical wea-on was the sstem of Dmaterial
+alancesD, For the -lan -erio* .in *etail for one ear0 in lesser *etail
for a five>ear -lan/0 !os-lan *rew )- a +alance sheet in
E)antitative terms? th)s0 so m)ch steel0 or cement0 or wool cloth0
wo)l* +e availa+le ne@t ear .-ro*)ction0 less e@-orts0 -l)s im-orts0
-l)s or min)s chan"es in stoc8s/, UtiliFation estimates wo)l* then
+e ma*e, If0 as often ha--ene*0 *eman* e@cee*e* s)--l0 )tiliFation
-lans co)l* +e c)t0 or en*eavo)rs ma*e to increase s)--l0 an*0 in a
lon">term -lan0 investment *ecisions wo)l* +e ma*e to increase
-ro*)ctive ca-acit, An chan"e in the -lan reE)ire* h)n*re*s0 even
tho)san*s0 of chan"es in mater>
*lannin& and =r&ani8ation 2:9
ial +alances, Th)s a *ecision to ma8e more tan8s calls for more
steelI more steel reE)ires more iron ore an* co8in" coal0 in
E)antities which can +e estimate* from technical norms an* -ast
e@-erienceI these in t)rn ma reE)ire more minin" o-erations an*
trans-ortI +)t these nee* more machiner0 -ower0 constr)ction0
wa"ons0 rails0 an* to -rovi*e them still more steel is nee*e*0 an*
man other thin"s too,
.1/ The overri*in" criterion at all levels was the -lan0 em+o*
in" the economic will of the -art an* "overnment0 an* +ase* not
on consi*erations of -rofit or loss +)t on -oliticall *etermine*
-riorities, Therefore in -ro*)ction an* investment *ecisions the
role of -rices was re*)ce* to a minim)m0 an* rate>of>ret)rn
consi*erations were i"nore*0 or confine* strictl to choice of
means to achieve "iven en*s .e,", electric as a"ainst steam trac
tion/0 tho)"h even in this narrow area the were lar"el *isre
"ar*e*, Prices were o)t of line with costs0 chan"e* at infreE)ent
intervals an* not even conce-t)all relate* to scarcities0 so the
-rofit motive0 ha* it +een allowe*0 wo)l* have o-erate* e@tremel
irrationall,
.%/ It is tr)e that )n*er the sstem of 8hoFraschot the
enter-rises ha* financial a)tonom0 were enco)ra"e* to 8ee-
*own costs an* to ma8e -rofits, However0 this was a means of
ens)rin" econom in the )se of reso)rces0 an* not a wa of
*eterminin" what sho)l* +e -ro*)ce*0 or even how .with what
materials/ it sho)l* +e -ro*)ce*0 for s)ch thin"s were s-ecifie*
in the -lan, Planners co)l* an* *i* ta8e awa an of the
enter-riseDs assets witho)t com-ensation if the so *esire*,
.4/ The +rea8*own of a""re"ate material +alances an* o)t-)t
tar"ets into an o-erational -lan reE)ire*0 in the last analsis0
*etaile* -ro*)ction an* *eliver -lans for ever maCor item of
o)t-)t an* in-)t0 for ever enter-rise, The o-erational -lan was
ma*e for a ear0 an* for shorter -erio*s, .The five>ear -lan was
not in this sense o-erational0 since it was not an or*er to anone
to *o anthin"0 tho)"h investment *ecisions were *erive* from
it,/ The most +)r*ensome tas8 was that of material allocation0 i,e,
the -lanne* *istri+)tion of all im-ortant o)t-)ts +etween the
enter-rises which reE)ire* them .i,e, * tons of sheet steel to -lant
A from -lant 6 *)rin" the thir* E)arter of #$&%/, For 8e items0
,5- From 6eap For$ard to .ar
the tas8 of allocation "enerall +elon"e* to a +ranch of !os-lan,
11
For less im-ortant items0 it was the Co+ of the *is-osals *e-artment
of the a--ro-riate Peo-leDs Commissariat,
The n)m+er of Peo-leDs Commissariats in the economic fiel*
"rew ra-i*l, At the en* of #$&< all man)fact)rin" an* minin" was
covere* + fo)r Commissariats? for heav in*)str0 li"ht in*)str0
tim+er an* foo*, The first>name*0 the lar"est0 was soon fo)n* to
reE)ire f)rther s)+*ivision, This co)l* +e *one + ta8in" one of the
chief *e-artments ."lav8i/ of which the Commissariat was
com-ose* an* -romotin" it to ministerial stat)s0 -lacin" the tas8 of
coor*ination )-on the sho)l*ers of !os-lan an* the Economic
Co)ncil 4E1onomsovet, the economic committee of the
"overnment/, S)+*ivision went f)rther an* f)rther, 6 #$&$ there
were no less than twent>one in*)strial Peo-leDs Commissariats0
with s)ch *esi"nations as Te@tiles0 M)nitions0 !eneral Machine>
+)il*in"0 Coal0 Chemicals0 Non>ferro)s Metall)r"0 etc, There was
f)rther s)+*ivision in #$<5><#,
As alrea* mentione*0 there was a close lin8 +etween the -lan
an* -)+lic finance, Since *irect ta@es were few it co)l* +e sai* that
the state ran itself0 an* -ai* for *efence0 investment0 s)+si*ies0
social services0 o)t of the -rocee*s of the sale of "oo*s ma*e + its
own enter-rises, These reache* the +)*"et mainl via t)rnover ta@
an* the +)l8 of the -rofits of the enter-rises, Investment controls
o-erate* in lar"e -art via the -rocess of financin" them, 3ecisions
on investment -riorities co)l* +e enforce* + reE)irin" s-ecific
a)thoriFations from the "overnment for an -roCect costin" a+ove a
relativel mo*est s)m,
The -art maintaine* a "ri- on the econom at all levels, Not
onl *i* it la *own +asic -olic -riorities0 +)t its -leni-otentiaries
were re-eate*l calle* )-on to ta8e *ecisions on who was to "et or
*o what0 i"norin" the formal a*ministrative str)ct)re, A--ointments
an* *ismissals of -lanners an* senior mana"ers were in -ractice
ma*e + the -artDs -ersonnel *e-artments, A senior -art lea*er in
char"e of an economic sector > 7a"anovich in trans-ort0
Or*Fhoni8i*Fe in heav in*)str0 to ta8e two e@am-les from the
first half of the *eca*e R iss)e* or*ers -ersonall on all sorts of
matters0 "reat an* small, It was sai* that Or*Fhoni>
Growth and <r,ani8ation 271
8i*Fe ha* a *irect tele-hone line to ever factor in his +ailiwic80
an* constantl )se* it ar+itraril to shift aro)n* -eo-le0 reso)rces0
eE)i-ment, The -artDs interference in ever*a o-erations was
-artic)larl sstematic in a"ric)lt)re0 +)t was freE)ent anwhere,
Es-eciall after #$&%0 officials of the N7=3 .Peo-leDs Commis>
sariat for Internal Affairs0 or -olice/ e@ercise* im-ortant s)-ervisor
f)nctions thro)"h the econom0 an* the also ran a +i" economic
em-ire )sin" force* la+o)r0 )ntil the +rea8>)- of this em-ire after
StalinDs *eath,
In the ever*a wor8in" of the sstem m)ch *e-en*e* on
)nofficial lin8s +etween -eo-le at all levels0 which hel-e* to
overcome man *eficiencies an* "a-s in the -lan, Sometimes these
were ille"alI often the ma*e -ossi+le the f)lfilment of the -lan +
im-rovisation of man 8in*s, The state trie* to -revent this +
threats of -)nishment > for instance0 for *irectors who sol* off
eE)i-ment the *i* not nee*, Man stories an* memoirs tell of
shar- -ractice an* +reach of r)les0 witho)t which it was im-ossi+le
to s)rvive, Penalties +eset the mana"ersI there was a *ecree .of #5
2)l #$<5/ ma8in" -oor E)alit -ro*)ction a criminal offence,
Persistent shorta"es of "oo*s inevita+l le* to intri")e an* strin">
-)llin"s *esi"ne* to -ers)a*e the allocation a)thorities that this or
that -roCect or enter-rise was *eservin" of official -riorit, Of
co)rse0 anthin" in which the central committee0 an* a+ove all
Stalin -ersonall0 too8 a *irect interest co)l* rel on "ettin" all that
it nee*e*, Others ha* to ma8e *o with what was left,
Growth and <r,ani8ation
3)rin" the whole -erio* #$('><5 a lar"e -art of Soviet "rowth was
a conseE)ence of the shift of la+o)r o)t of a"ric)lt)re to )r+an
in*)str an* constr)ction sites0 where0 *es-ite all the inefficiencies
of the -erio*0 their -ro*)ctivit was ver m)ch hi"her, It was hi"her
than it wo)l* have +een in the villa"e0 +)t of co)rse this la+o)r was
E)ite )nacc)stome* +oth to factor con*itions an* to )r+an livin"0
an* all this create* ac)te sociolo"ical -ro+lems of a*C)stment0
es-eciall in the overcrow*e* con*itions of the cities,
,5, From 6eap For$ard to .ar
The two cens)ses of #$(% an* #$&$ "ive some n)merical i*ea
of what occ)rre*?
Total -o-)lation Ur+an R)ral Per cent )r+an
4millions5
#$(% D<4>5 (%,& #(5,4 D'
#$&$ #45,%U 1%,# ##<,< &&
U Overstate* .see -, (<5/,
1- The #reat Patriotic .ar
*re!arations
6 the s-rin" of #$<# the Soviet Union was -re-arin" for war, Tr)e0
Stalin -lace* e@a""erate* ho-es on the NaFi>Soviet -act0 contin)e*
e@-ort *eliveries to !erman )ntil the eve of the attac80 faile* to
warn Soviet troo-s of its imminence, 6)t even he well )n*erstoo*
that a "reat trial of stren"th wo)l* come0 even if he was tra"icall
wron" as to its *ate,
!ermanDs economic -ower was "reater than R)ssiaDs an* she
ha* at her *is-osal the in*)stries of occ)-ie* E)ro-e, Her armies
were well eE)i--e*0 an* the eE)i-ment ha* +een teste* in the
+attlefiel*, 3es-ite the ver "reatest efforts an* sacrifices in the
-rece*in" *eca*e0 the Soviet Union fo)n* itself economicall as
well as militaril at a *isa*vanta"e,
The Soviet Union ha* vast mineral reso)rces0 an* even vaster
s-ace into which to retreat, However0 man of her reso)rces were
still )n*evelo-e*, 3es-ite the +i" "rowth in o)t-)t in the Urals0
Si+eria0 an* northern 7aFa8hstan0 8e in*)stries were still sit)ate*
in the v)lnera+le west, To cite a Soviet a)thor?
Enter-rises ma8in" hi"h>E)alit steels were mainl in the so)th0 in
militaril the most v)lnera+le areas0 while few *)-licate -lants were
+)ilt in the east, The eastern areas were )n*er*evelo-e* in*)striall ,,,
Ministries an* *e-artments0 concerne* with their own -artic)lar inter>
ests0 em-hasiFe* *evelo-ment of in*)str in the central areas, Th)s in
the three an* a half ears of the thir* five>ear -lan -erio* investments
in the economies of the Urals0 Si+eria0 an* the Far East com+ine* were
onl (& -er cent0 in the Central area #$,< -er cent0 of the total ,,, In
#$<5 the investments of state an* coo-erative or"aniFations .e@cl)*in"
,51 The #reat Patriotic .ar
8ol8hoFes/ in the Central area were (,$ times "reater than those of the
Urals0 4,4 times those of :est Si+eria0 4,( times those of East Si+eria,
There was a severe )n*er>*evelo-ment of ener" reso)rces in the
east,
#
In a sense these Soviet criticisms *o not *o C)stice to the
achievements, It is tr)e that there was a ten*enc on the -art of
officials in -lannin" offices to set )- new enter-rises in alrea*>
*evelo-e* areas of the centre an* so)th0 +eca)se the were )n*er
heav -ress)re to achieve res)lts with limite* reso)rces0 an* the
easiest wa to *o this was to save on Dsocial overhea* ca-italD +
)tiliFin" alrea*>e@istin" towns0 railwas0 -)+lic )tilities, However0
the -lans *i* incl)*e s)+stantial *evelo-ments in the east0 of which
the UralsR7)Fnets8 com+ine was onl the most s-ectac)lar, More0
no *o)+t0 wo)l* have +een *one ha* it +een -ossi+le to foresee the
e@tent of the retreat of the Soviet armies, One co)l* har*l +ase an
economic -lan on the ass)m-tion that there wo)l* +e hostile armies
on the =ol"a an* in the North Ca)cas)s,
M)ch more serio)s was the effect of the -)r"es on the militar>
in*)strial com-le@, First>rate "enerals0 staff officers0 *esi"ners0
mana"ers0 were im-risone* or e@ec)te*, Man of their re-lacements
were secon*>rate0 an* *ecisions on technical matters were too often
slow an* wron">hea*e*, It was a tra"e* that the 8e 3efence
Commissariat was hea*e* + the colo)rf)l +)t incom-etent cron of
StalinDs0 =oroshilov0 an* even more tra"ic that his three *e-)ties
were i"norant nonentities? 7)li80 Me8hlis an* Shcha*en8o, The
res)lt was that the a*o-tion of mo*ern wea-ons was so *elae* that
"oo*>E)alit tan8s an* aircraft0 which were a real match for the
!ermansD0 were not et f)ll in mass -ro*)ction when the war
+e"an, This a--lie* to the 7= an* T>&< tan8s0 to the Ya8>i0 Mi! &0
9a!!>& fi"hters0 the Ya8>( Dstormovi8D fi"hter>+om+er0 an* the Pe>(
+om+er0 which were all to show their hi"h militar worth as the war
-rocee*e*, In 2)ne #$<# few sol*iers or airmen were as et traine*
in the )se of this mo*ern eE)i-ment, The stan*ar* R)ssian fi"hter0
the I>#%0 well 8nown in the S-anish civil war0 was act)all a "oo*
*eal slower than even the 2)>'' !erman +om+er,
(
The R)ssian T6>&
+om+er was so slow an* -oorl arme* that its crews stoo* no
Industr- and 'rans!ort 275
chance0 an* m)ch the same was tr)e of the crews of the o+solete
R)ssian tan8s, There was a "rave shorta"e of a)tomatic wea-ons
an* anti>tan8 ")ns, In the circ)mstances0 "iven the wea8ness of the
lea*ershi- .other than Stalin himself/ in *ecision>ma8in"0 an*
freE)ent shorta"es of necessar materials an* com-onents0 the
*efence in*)str commissariats an* act)al -lant mana"ers
-erforme* well +efore the war +e"an0
&
e@traor*inaril well when
war was ra"in", 6)t the Soviet arm was serio)sl )n*er>eE)i--e*
for its tas80 in terms of E)alit at least0 when the !ermans str)c8,
There was not s)fficient )r"enc in the last few months of -eace0
+eca)se neither Stalin nor his imme*iate collea")es +elieve* that
action was *es-eratel nee*e*,
The co)rse of the war0 an* the ca)ses of the initial *isasters0 are
not in themselves o)r -rimar concern, 6)t their conseE)ences0 as
mi"ht +e e@-ecte*0 ha* the most -rofo)n* im-act )-on the
econom,
Industr- and 'rans!ort
6 the en* of Novem+er #$<# the Soviets in their retreat ha* lost
vast territories0 which containe* %& -er cent of all coal -ro*)ction0
%' -er cent of -i" iron0 1' -er cent of steel0 %5 -er cent of
al)mini)m0 <# -er cent of railwa lines0 '< -er cent of s)"ar0 &' -er
cent of "rain0 %5 -er cent of -i"s,
<
Other maCor centres0 nota+l
9enin"ra*0 were effectivel isolate*, This was a sta""erin" +low,
Not onl was there a shorta"e of +asic materials0 +)t in*is-ensa+le
s)--lies of com-onents0 s-ecial steels0 eE)i-ment0 s-are -arts0 were
s)**enl c)t off, The Ni8o-olD man"anese *e-osits were another
serio)s loss, 6i" efforts were ma*e to *ismantle an* remove
enter-rises an* wor8ers eastwar*s, However0 a-art from the fact that
mineral *e-osits cannot +e move*0 the sheer s-ee* of the !erman
a*vance ma*e evac)ation im-ossi+le in man cases, None the less0
in the -erio* 2)l to Novem+er #$<#0 there were evac)ate* from the
threatene* re"ions no fewer than #01(& in*)strial enter-rises0 of
which #0&%5 are *escri+e* as lar"e>scale,
1
Everthin" -ossi+le was
*one to sen* eastwar*s tr)c8loa*s of f)el0 eE)i-ment0 "rain0 cattle0
ami* tremen*o)s
27: 'he Great *atriotic .ar
*iffic)lties an* inevita+le har*shi-, This entire o-eration was
con*)cte* in the face of *a)ntin" o+stacles, The tas8 was s)-er>
vise* + the Committee on Evac)ation0 set )- as earl as (< 2)ne
#$<# + the central committee an* the "overnment, The wor8 ha*
to +e carrie* on in the ver "reatest haste0 *a an* ni"ht, Th)s Din
onl nineteen *as0 from #$ A)")st to 1 Se-tem+er #$<#0 there
were remove* from the <a#oro2hstaP steelwor8s #%0555 wa"ons of
vital machiner0 incl)*in" e@ce-tionall val)a+le sheet>steel
rollin">mill eE)i-ment ,,, The "enerator of the lar"e t)r+ine of the
;)evo -ower station ,,, was *ismantle* an* loa*e* in ei"ht ho)rs,D
Trainloa*s of eE)i-ment an* staff were sometimes mis>ro)te*I there
was some inevita+le conf)sion0 +)t on the whole the tas8 was
accom-lishe* with remar8a+l few errors, The eE)i-ment was re>
erecte* with s-ee*0 *es-ite the "reatest *iffic)lties an* har*shi-s,
Th)s the so)rce re-orts that Dthe last train carrin" the eE)i-ment
arrive* Oin a =ol"a townP on (% Novem+er #$<#0 an* in two wee8sD
time0 #5 3ecem+er0 the first Mi! -lane was assem+le* ,,, 6 the
en* of 3ecem+er the factor ha* alrea* -ro*)ce* thirt Mi!
-lanes an* three I9>( stormovi8s,D
%
The evac)ate* wor8ers live* in
over>crow*e* -remises0 an* s)ffere* from shorta"es of ever 8in*,
The eE)i-ment was re>erecte* in an availa+le s-ace0 +)t it often
-rove* necessar to +)il* tem-orar factories )n*er the most
a*verse con*itions at the +e"innin" of winter, The man stories tol*
of the "reat evac)ation reflect "reat cre*it on those concerne*, Ten
million -ersons were move* eastwar*s, Nothin" on this scale ha*
ever ha--ene* +efore, Evac)ate* -lants were "ra*)all re>
esta+lishe* in the east0 es-eciall in the Urals .%%4 enter-rises/0
:est Si+eria .(<</0 Central Asia an* 7aFa8hstan .&5'/, Event)all
the were a+le to contri+)te to the war effort, To s)--l them0 an*
to re-lace other so)rces0 it was necessar "reatl to e@-an* coal
minin" in Si+eria0 the Urals0 the Pechora +asin in the north0 the
Moscow +asin0 an* so on,
However0 this too8 time0 an* meanwhile the Soviet econom
s)ffere* terri+le +lows, 6 Novem+er #$<# over three h)n*re*
armament factories were in occ)-ie* areas,
4
The Soviet troo-s
a+an*one* m)ch eE)i-ment in their retreatI o)t-)t fell, In
Novem+er #$<# in*)strial -ro*)ction totalle* onl 1#4 -er cent
"ndustry and Transport ,55
of the o)t-)t of Novem+er #$<5, Onl + March #$<( *i* the
-ro*)ction c)rve show a stea* )-war* tren*, Matters were to
im-rove ver "reatl thereafter,
Some of the losses in -ro*)ction were *)e0 as mi"ht +e e@-ecte*0
to the in*irect conseE)ences of enem occ)-ation0 s)ch as the lac8
of essential materials an* com-onents0 +)t also to *isr)-tion of rail
trans-ort0 ac)te shorta"e of f)el0 the call>)- of some of the s8ille*
la+o)r,
In #$<( the !ermans occ)-ie* the North Ca)cas)s an* the 3on
area0 an* emer"e* on the =ol"a + Stalin"ra*, This cost the
econom the +est of the remainin" "rain lan*s an* the Mai8o-
oilfiel*0 an* for a time the trans-ort of 6a8) oil was halte*, This
was a f)rther severe +low,
:ar in*)str was reor"aniFe* )n*er the a)thorit of the State
Committee of 3efence0 of which Stalin was chairman, This
committee acte* thro)"ho)t the war as s)-reme a)thorit on all
matters0 re-lacin" .to all intents an* -)r-oses/ the Co)ncil of
Peo-leDs Commissars0 an* its mem+ers or -leni-otentiaries were
re-eate*l sent to 8e sectors to im-ose or*er an* esta+lish
-riorities, The vario)s in*)strial Commissariats contin)e* to
f)nction0 e@ec)tin" the or*ers of the State Committee of 3efence,
The most vi"oro)s efforts were ma*e to create or a*a-t -ro*)ctive
ca-acit in the )nocc)-ie* re"ions0 -artic)larl in the Urals an*
:est Si+eria, The res)lt was as follows0 in terms of calen*ar ears
.the -ro*)ction fi")res were at their worst0 of co)rse0 in the winter
of #$<#>(/?
!194& ' 1&&%
1941 194N 194( 1944
Ntionl inco"e 9. 44 14 00
Gross industril output 90 11 9& 1&4
o# 5hichG *r"s industries 14& 104 ..4 ./1
6uel industries 94 /( /9 1/
Gross $riculturl output 4. (0 (1 /4
(Source: /storiya -elikoi otechest'ennoi 'oiny, 3+,#, ?ol. ?I,
P-4/-%
The followin" ta+le shows how o)t-)t fell in the first -erio* of
the war?
194& 194.
Pi$ iron !"illion tons% 14.9 4.0
Steel !"illion tons% 10.( 0.1
)ollin$-"ill products !"illion tons% 1(.1 /.4
2ol !"illion tons% 14/.9 1/-/
Oil !"illion tons% (1.1 ...&
Electricit+ !"illird ,-hs% 40.( .9.1
(Source: E. ;o,shin, Promyshlennost' SSSR, )+!,%8
!>osco5, 1944%, p. /..%
DThe -ro*)ction of rolle* non>ferro)s metals fell + the en* of #$<#
almost to Fero0 an* that of +all>+earin"s0 so vital for the -ro*)ction
of aircraft0 tan8s an* artiller0 *iminishe* (# times,D
'
One can
ima"ine the "i"antic -ro+lems which were face* in reconstr)ctin"
the Soviet econom on to an effective war footin", Yet + re>
*e-loment an* im-rovisation0 an* the im-osition of r)thless
-riorities0 even in #$<( the arms in*)str mana"e* to -ro*)ce
(10<&% aircraft0 %5 -er cent more than in #$<#0 an* (<0%'' tan8s0 or
&,4 times more than in #$<#,
$
Mo+iliFation for war was e@tremel
thoro)"h, Control over all reso)rces was ver strictl centraliFe*0
an* +oth materials an* la+o)r were *irecte* to serve the war effort0
to a *e"ree )n8nown elsewhere, In #$<50 #1 -er cent of the national
income was *evote* to Dmilitar -)r-osesD, In #$<( the fi")re ha*
risen to 11 -er cent0
#5
-erha-s the hi"hest ever reache* anwhere,
No *o)+t the e@-erience of centraliFe* -lannin" in the -revio)s ten
ears was a "reat hel-, In the -rocess of ti"htenin" control over
reso)rces the "overnment resorte* to E)arterl an* even monthl
-lans0 in far "reater *etail than in -eacetime, The -ractice of
material +alances was )se* s)ccessf)ll to allocate the materials an*
f)el availa+le +etween alternative )ses in accor*ance with the
*ecisions of the all>-owerf)l State Committee on 3efence, .It is
worth notin" that so man of its mem+ers > Molotov0 Malen8ov0
6eria0 =oroshilov >+ecame -oliticall *iscre*ite* in later ears that
few Soviet histories mention names,/ An emer"enc war -lan was
a*o-te* in A)")st #$<#0 coverin" the rest of that ear an* #$<(,
There were
"ndustry and Transport ,5
ann)al economic>militar -lans thereafter0 as well as some lon"er>
term -lans0 incl)*in" one for the Urals re"ion coverin" the ears
#$<&>4, Nee*less to sa0 wartime -lannin" involve* man errors0
some of them Dto a consi*era+le e@tent *)e to the -ersonalit c)lt of
StalinD, However0 as in other warrin" co)ntries0 centraliFation was
essential to mo+iliFe reso)rces0 an* the USSR0 after s)fferin" what
co)l* have +een cri--lin" losses in the first months of war0 carrie*
o)t centraliFation ver effectivel,
##
Recover in the secon* half of #$<( was the res)lt of *es-erate
efforts in the mi*st of contin)in" militar *efeats an* retreats, At
the en* of the ear the militar ti*e t)rne*0 +)t little of the "reat
im-rovement which occ)rre* in #$<& was *)e to the reocc)-ation
of territor, The !ermans were so thoro)"h in their wrec8in" that in
#$<& the "ross o)t-)t of in*)str in the .Soviet/ U8raine was a
mere #,( -er cent of the total of #$<50 tho)"h + the secon* half of
that ear Soviet troo-s ha* occ)-ie* 7har8ov an* + Novem+er
ha* also ca-t)re* 7iev,
A -artic)larl nota+le achievement was the e@-ansion of -ro*)c>
tion in the Urals area, 6 #$<1 well over half the metall)r"ical
o)t-)t of the Soviet Union was -ro*)ce* there .as a"ainst one fifth
in #$<5/, Steel -ro*)ction in that area rose from (,4 to 1,# million
tons in this -erio*0 coal from #( to (14 million tons0 electricit
"eneration *o)+le*,
#(
Alto"ether &0155 new in*)strial enter-rises
were +)ilt *)rin" the war0 an* 40155 *ama"e* ones restore*,K There
were some remar8a+le e@am-les of im-rovisation, Most of the f)el
)se* was woo*0 which was availa+le locall0 as coal0 an* the means
of trans-ortin" it0 were e@tremel scarce, Com-onents an* s-are
-arts were ma*e locall in an -remises an* + whatever means
were availa+le0 since it was im-ossi+le to rel on lon">*istance
*eliveries, :hole new re"ional com-le@es came into e@istence,
Accor*in" to the official histor0 Soviet in*)str -ro*)ce* the
followin" *)rin" the war?
409,9&& $uns
1(4,0&& plnes
1&.,/&& tn,s nd sel#-propelled $uns
,&- The #reat Patriotic .ar
as well as vast E)antities of amm)nition of all 8in*s, The histor
-oints o)t that the followin" were im-orte* from the Unite* States
an* !reat 6ritain?
9,4&& $uns 10,1&& plnes 1&,0&& tn,s
!so"e o# the" o=solete%C
4
It is tr)e that the USSR -ro*)ce* the +)l8 of what was )se*,
F)rthermore0 to the "reat cre*it of *esi"ners an* everone res-on>
si+le for man)fact)rin"0 the E)alit of a "reat *eal of Soviet
eE)i-ment was ver "oo*0 the tan8s +ein" es-eciall effective,
Tr)e0 the Re* Arm was somewhat +ac8war* in si"nallin" eE)i->
ment0 an* the air force was )n*er>s)--lie* with +om+ers, 6)t it is
E)ite +eon* *is-)te that the vast maCorit of the +est aircraft0 tan8s
an* ")ns were of Soviet man)fact)re, It is therefore not onl a
matter of .)n*erstan*a+le/ national -ri*e0 +)t also of fact0 that
:estern ai* s)--lie* com-arativel few of R)ssiaDs armaments,
The :est contri+)te* m)ch more to roa* trans-ort, One of the
wea8nesses of the -re>war Soviet econom was in the -ro*)ction of
vehicles, In #$(' har*l an were -ro*)ce*0 an* several new
factories ha* to +e +)ilt in the thirties, However0 the nee*s of mo+ile
warfare co)l* not +e met + Soviet -ro*)ctive ca-acit, A lar"e -art
of the "rowth in the n)m+er of motor vehicles in the arme* forces0
from (4(0555 at the o)t+rea8 of war to %%10555 at the en*0 came
from US len*>lease,
#1
Rail trans-ort0 however0 remaine* the 8e0 an* -erforme*
remar8a+l well in the face of tr)l formi*a+le han*ica-s0 not least
of which were )ncertain f)el s)--lies an* inevita+le overloa*in"
an* )n*er>maintenance, The c)ttin" of *irect comm)nications +
the !ermans -lace* "reat a**itional +)r*ens on the railwas, Th)s
in the winter of #$<(>& it was necessar to trans-ort 6a8) oil to
Central R)ssia via 7aFa8hstan an* Si+eria + rail0 since +oth the
=ol"a water ro)te an* the North Ca)cas)s -i-e>line were c)t, Coal
also ha* to +e trans-orte* for lon"er *istances0 )ntil the 3onets
mines co)l* +e reactivate*, Then the
A)riculture ,&1
fact that arms an* eE)i-ment ha* to +e trans-orte* from *istant
in*)strial centres in the Urals an* Si+eria was a f)rther so)rce of
"reat strain, Finall0 as the Soviet armies a*vance* the ha* to
restore lines an* +ri*"es wrec8e* + the !ermans in their retreat,
9en*>lease an* other im-orts -rovi*e* a si"nificant n)m+er of
machine>tools .<<0%55/0 locomotives .#0'%5/0 non>ferro)s metals
.1#40155 tons/0 ca+le an* wire .#4(0#55 tons/I these *eliveries
certainl hel-e* to overcome some +ottlenec8s in in*)str0 trans-ort
an* comm)nications,
#%
The sternest -riorities were im-ose*0 an* the slo"an DEverthin"
for the frontD was never more meanin"f)l, :ith even 8e sectors of
heav in*)str han*ica--e* + shorta"e of f)el0 s8ille* la+o)r an*
materials0 it was nat)ral that cons)mersD "oo*s in*)stries sho)l* +e
e@tremel har* hit0 an* the fact that the !ermans occ)-ie* the
-rinci-al foo*>-ro*)cin" areas ca)se* a ver shar- fall in the o)t-)t
of a"ric)lt)re .in #$<( an* #$<& it was )n*er &' -er cent of the
level %f #$<5/0 an* the o)t-)t of the foo* in*)str fell stee-l0 as *i*
s)--lies of a"ric)lt)ral raw materials, It was har* eno)"h to fee*
an* clothe the arm, Civilians ha* an e@cee*in"l to)"h time, In
#$<( te@tile -ro*)ction fell to a thir* of the #$<5 level0 meat an*
*air -ro*)ce to half0 s)"ar to a mere 1 -er cent,
A&riculture
As alrea* shown0 losses were e@cee*in"l severe, The -rinci-al
so)rce of ve"eta+le oil .s)nflower see*/ was in occ)-ie* re"ions0
an* the -otato cro- *iminishe* to a thir* of -re>war levels, The
-easants who formerl "rew in*)strial cro-s ha* to switch to foo*>
"rowin" in or*er to s)rvive0 an* the cotton cro- in Central Asia fell
ra-i*l to &' -er cent of its #$<5 level, !rain harvests were
a*versel affecte* + loss of the most fertile lan*s0 + shorta"es of
ever 8in* of la+o)r0 of ha)la"e -ower .tractors an* horses ali8e
were mo+iliFe*/0 of fertiliFer0 of f)el0 of s-ares an* eE)i-ment of
ever 8in*, The followin" statistics reE)ire no comment?
2;2 'he Great *atriotic .ar
!rain
194& 1941 194. D$<& #$<< I$<S
Area sown .million hectares/ 11&./ '#,' %4,< 1&.1 '#,' '1,#
Yiel* -er hectare ',% %>$ <><
4.. 4.&
1>%
Total harvest $11 1%&
(&.& (&.&
<',4 <%,' .<4>
&/
State -roc)rements &%><
.4.4 1..4 1..4 .1-/ .&.&
4So%rce: htoriya, ig@iMs, --, %4>$, Some fi")res calc)late* from in*e@
n)m+ers, Several fi")res e@ist for #$<1,/
Of co)rse0 these fi")res reflect the loss an* reocc)-ation of
territor, The e@cl)*e the areas )n*er enem occ)-ation,
In the circ)mstances the re*)ce* la+o)r force in the villa"es
-erforme* its tas8 ver cre*ita+l, Since0 as will +e shown0 the
+lac8>mar8et or free>mar8et -rices of -ro*)ce were e@cee*in"l
hi"h0 the tem-tation to -ilfer0 or wor8 on oneDs own acco)nt0 was
ver "reat, There was an increase in #$<( in the com-)lsor
minim)m of tr)*o*ni to +e wor8e* for the collective0 from $5 to
#55>#(5 tr)*o*ni -er ann)m in most areas .15 tr)*o*ni for
C)veniles +etween #( an* #%/, However0 the avera"e wor8e* was
well in e@cess of thisI with ever famil havin" sons an* h)s+an*s
in the arm0 the sense of civic *)t ha* its effect, A *ecree of #&
A-ril #$<( mo+iliFe* non>a"ric)lt)ral la+o)r to hel- +rin" in the
harvest, Here a"ain0 an immense Co+ of reconstr)ction ha* to +e
)n*erta8en in reocc)-ie* areas in an* after #$<&,
9ivestoc8 n)m+ers fell ra-i*l at first, Partic)larl severe were
the losses in horses an* -i"s, The sit)ation was as follows?
#$<5 #$<( #$<& I$<S
4million heads, end of year5
Cows (4,' #&,$ #%,< ((,$
Horses (#,5 ',( 4,' #5,4
Pi"s (4,1 %,# 1,1 #5,%
4So%rces: $storiya, =>@=!H, -, %'I Sels1oe
1ho2yaistvo SSSR 4i>DA5, -, (%&,/
A"ric)lt)re ('&
There is a first>rate an* well>*oc)mente* acco)nt of the -osition
of the -easantr *)rin" the war + the Soviet historian Y), 6,
Ar)t)nan,K :ith men mo+iliFe* an* few tractors an* ins)fficient
horses0 the +)r*en an* the har*shi-s were +orne in the main +
women, There were0 -erha-s inevita+l0 errors of -lannin"0 as when
or*ers were iss)e* to increase sown area even when the means to
harvest it were lac8in", E@cessive -roc)rement E)otas were
sometimes enforce* + harsh meas)res? D.in*ivi*)als/ who ha* no
"rain were com-elle* to sell their ho)se0 their +elon"in"s0 their
livestoc8D0 while -art an* farm officials who faile* to meet *eliver
E)otas were *ismisse* an* trie* as sa+ote)rs,
#'
Pa -er tr)*o*enD
.wor8>*a )nit/ fell0 in +oth cash an* 8in*0 to e@tremel low levels?
Avera"e *istri+)tion -er wor8>*a )nit USSR
#$<5 #$<# #$<( #$<& #$<< #$<1
!rain .8"/ #,%5 #,<5 5,'5 5,%& n,a, 5,45
Potatoes .8"/ 5,$' 5,&& 5,(& 5,<5 n,a, 5,(%
Cash .ro)+les/ 5,$' #,54 #,5& #,(< #,#( 5,'1
4So%rce: Ar)t)nan0 -, &&$0 citin" archival materials,/
The mone meant little0 as there was har*l anthin" to +), DThe
-easant receive* from the 8ol8hoF less than (55 "rams a *a of
"rain an* a+o)t #55 "rams of -otatoesD .-er mo)th to fee*/, These
avera"es incl)*e tractor an* com+ine o-erators0 who receive* m)ch
more than the ran8 an* file? Din #$<1 the tractorists receive* (,'
8ilo"rams of "rain on avera"e0 while 8ol8hoF mem+ers "ot 5,%
8ilo"ramsD,
#
D No %ravnilov1a .e"alitarianism/0 even in the war earsH
Private -lots were essential for -hsical s)rvival,
The lea*ershi- *eci*e*0 in Novem+er #$<#0 as an Demer"enc
meas)reD0 to reintro*)ce -olitical *e-artments .-olitot*el/ in state
farms an* MTS,
(5
The a*ministration of a"ric)lt)re in occ)-ie* R)ssia is a maCor
E)estion of its own0 an* cannot +e "one into here, S)fficient to sa
that man -easants ho-e* that the !erman occ)-ation wo)l*
,&1 The #reat Patriotic .ar
lea* to the a+olition of 8ol8hoFes an* the ret)rn of -rivate -easant
c)ltivation, The were *isa--ointe*, 3es-ite the a*vice of !erman
e@-erts0 the occ)-ation a)thorities -referre* to )tiliFe the 8ol8hoF
sstem to or"aniFe com-)lsor -roc)rements of -ro*)ce for the
!ermans, This0 an* the rev)lsion of feelin" *)e to the +r)talities of
the occ)-in" troo-s0 le* some -easants who at first met the
!ermans with in*ifference0 or even welcome* them0 to ta8e to the
forests an* Coin the -artisans, It was onl well after the Stalin"ra*
*isaster that the !ermans *eci*e* to +i* for s)--ort + -romisin" to
a+olish 8ol8hoFes, It was too late,
(#
3a,our" .a&es
The *isci-linar meas)res of #$<5 were f)rther reinforce*, :or8ers
in in*)stries connecte* with the war effort were mo+iliFe* an* then
-lace* )n*er militar *isci-line, So were trans-ort wor8ers,
Holi*as were s)s-en*e*, 6 *ecree of (% 2)ne #$<# there was
monetar com-ensation for holi*as lost0 +)t on $ A-ril #$<( this
-ament was cancelle*, Overtime was com-)lsor, No one was
allowe* to leave his Co+ of his own volition, Anone not act)all
Den"a"e* in social wor8D was lia+le to mo+iliFation? DIn #$<& alone
la+o)r mo+iliFation -rovi*e* 40%5$0555 -ersons? #0&(50555 for
in*)str an* constr)ction0 &0&'50555 for a"ric)lt)re an* #0($10555
for tim+er,D
((
Pensioners0 C)veniles an* other normall inactive
-ersons vol)nteere* or were *rafte*, 6 a *ecree of (' 2)l #$<#
-ensioners were allowe* to retain their entire -ension in a**ition to
their wa"e,
As in other warrin" co)ntries0 lar"e n)m+ers of women too8 over
in*)strial tas8s normall -erforme* + men, Retrainin" was
)n*erta8en on an immense scale0 )s)all on the Co+, :hile
com-)lsion was )se*0 an* +reaches of *isci-line were severel
-)nishe*0 the achievements of those en"a"e* in the war econom
m)st receive the hi"hest -ossi+le -raise, The wor8e* )n*er
e@tremel )nfavo)ra+le material con*itions, Foo* was short0
Dho)sin"D ma have consiste* of a corner of a room or a +)n8+e* in
an overcrow*e* hostel, Th)s the avera"e Dho)sin"D -er wor8er
3a,our" .a&es 2;5
in the coal in*)str fell to #,& sE)are metres -er hea*0 or #& sE)are
feetH
(&
Clothin" was often )no+taina+le0 an* footwear was
irre-lacea+le if it wore o)t, The arm nat)rall too8 -riorit, In
#$<&0 as a"ainst #$<50 there was availa+le for sale? #< -er cent of
the E)antit of cloth0 #5 -er cent of clothin"0 #% -er cent of
8nitwear0 4 -er cent of footwear,
(<
Heatin" in winter was sometimes
a*eE)ate0 sometimes not, There were lon" E)e)es0 an* the rations
were sometimes )navaila+le, The wor* Dhar*shi-D har*l conves
how -eo-le live* in these terri+le ears, 6)t this0 of co)rse0 was
E)ite *ifferent from the +a* ears of the earl thirties0 which were
the res)lt of *omestic -olicies, The sacrifices were +orne to save
R)ssia from a *ea*l enem,
There was a ver s)+stantial e@-ansion in small>scale mar8et>
"ar*enin" on allotments on the o)ts8irts of towns0 an* factor
canteens -rovi*e* ine@-ensive meals, This was essential0 since0 as
we shall see0 an foo* in e@cess of the mo*est ration was e@tremel
e@-ensive,
:a"es were 8e-t in chec8 fairl effectivel0 an* in some sectors
of the econom .a*ministration0 me*ical an* health services0 etc,/
there seems to have +een ver little increase, :a"es *i* rise in
in*)str? DMonthl avera"e -a of wor8ers in all>)nion in*)str rose
from &41 ro)+les in #$<5 to 14& ro)+les in #$<<0 i,e, + 1& -er
cent,,, The -a of en"ineer>technical staffs in all>)nion in*)str rose
from 4%' ro)+les a month in #$<5 to #0(5$ ro)+les in I$<<,D
(S
.6)t
there co)l* have +een little increase in -a -er ho)r,/ 7e in*)stries
fare* +est, Statistics of avera"e -a for all cate"ories of wor8ers an*
em-loees which have recentl +een -)+lishe*0 which are not
strictl com-ara+le with earlier *ata0 "ive a fi")re of <&< ro)+les
-er month0 10(5' a ear for
I$<1>
(%
Pro*)ctivit was a*versel affecte* + call>)- of s8ille* la+o)r0
an* all the other tro)+les of wartime0 -artic)larl in s)ch +ranches
as minin" an* te@tiles, 6)t -ro*)ctivit in the arms in*)str rose
ra-i*l as mass -ro*)ction metho*s were a--lie* to the new t-es
of wea-ons an* to amm)nition, For e@am-le0 a T>&< tan8 reE)ire*
'0555 man>ho)rs to -ro*)ce in #$<#0 +)t onl &0455 in #$<&>
(4
('% The !reat Patriotic :ar
'rade" *rices
Ration car*s were intro*)ce* in Moscow an* 9enin"ra* in 2)l
#$<#, In s)+seE)ent months all towns were ratione* for foo* as well
as for man)fact)re* "oo*s, Some r)ral resi*ents .over (1 million in
#$<</ receive* a +rea* ration, S)--l of the few man)fact)re*
"oo*s to -easants was lin8e* with the f)lfilment or over>f)lfilment
of *eliver E)otas, The ORSY .3e-artments of wor8ersD s)--l0 see
-, (11/ were ver "reatl e@-an*e*0 as were their mar8et>"ar*enin"
activities, As in the har* *as of the earl thirties0 the si"nificance
of caterin" esta+lishments increase* "reatl0 es-eciall in factories
an* other instit)tions,
Rationin" was *ifferentiate* + cate"ories0 with -rivile"es for
those en"a"e* in im-ortant sectors an* on heav wor8, 6on)ses
sometimes too8 the form of an e@tra meal in the factor canteen, A
si"nificant contri+)tion from America was tinne* meat0 sales of
which in #$<1 were fort>si@ times a+ove the levels of #$<50 *)e
-artl to increase* im-orts,
('
The act)al rations in 3ecem+er #$<& in Moscow were as
follows0 accor*in" to US official so)rces E)ote* + S, SchwarF .in
his val)a+le st)* to which several references have alrea* +een
ma*e/I all fi")res are in "rams?
>et nd Su$r
2te$or+ Bred Grots@ 6ish 6ts !per
!per d+%
4/&
!per "or
.,&&&
ith%
!per "onth%
.,.&&
!per "onth%
0&&
"onth%
I
/&&
II /SO
.,&&& .,.&& 0&& /&&
III 4/& 1,/&& 1,.&&
4&& (&&
I?
(&& 1,&&& 4&& .&& .&&
?
(&&
1,.&& 4&&
4&& (&&
@ e.$. ot"el, =rle+, etc.
!I ' he:+ 5or,ersU II ' ordinr+ 5or,ersU III ' o##ice st##sU
I? ' dependentsU ? ' children under 1..%
=o*8a -rices were increase* five>fol* soon after the war +e"an,
There were onl minor increases in -rices of +asic foo*st)ffs0
amo)ntin" + the en* of #$<( to ##,% -er cent, Prices of
Tra*e0 Prices ('4
man)fact)re* "oo*s in state sho-s .when o+taina+le/ rose + (%,<
-er cent, :hile not ne"li"i+le0 the rise in -rices was 8e-t relativel
small .vo*8a a-art/, None the less0 *)e to the heav increase of
vo*8a -rices0 the retail -rice in*e@ for official tra*e rose in #$<( to
#1% -er cent of 2)ne #$<#,
($
DCommercialD stores0 sellin" ratione*
"oo*s at ver hi"h -rices0 were o-ene* in #$<<, 6 #$<1 the overall
official -rice in*e@ was ((5 .#$<5 M #55/I + then theDcommercialD
-rices were somewhat lower than in #$<<0 tho)"h man times a+ove
the ratione* -rice .e@am-les will +e cite* in Cha-ter n/,
Since the vol)me of "oo*s availa+le *ecline*0 so *i* the t)rnover
of state an* coo-erative tra*e .incl)*in" caterin"/0 as the followin"
fi")res show?
#$<5 #$<# #$<( #$<& #$<< #$<1
4millions of ro%"les5
#41,# #1(,' 44,' '<,5 ##$& #%5,#
4So%rce: Malafeev0 $storiya tsenoo"ra2ovaniya v
SSSR .Moscow0 #$%</0 -, (((,/
N)m+ers em-loe* *ecline* too0 owin" to militar call>)- an*
enem occ)-ationI th)s in #$<( the n)m+ers were 1$ -er cent of
#$<50 risin" a"ain to '4 -er cent in #$<1,
&5
It is evi*ent that total
incomes "rew m)ch more ra-i*l than the vol)me of "oo*s
availa+le in sho-s, The e@tra -)rchasin" -ower force* )- -rices in
the limite* free mar8et,
Prices there show the ac)te shorta"es an* har*shi- of the -erio*,
The all>)nion avera"e fi")res were as follows .an* it sho)l* +e
note* that free>mar8et -rices in +oth #$<5 an* #$<# were -erha-s
41>#55 -er cent a+ove official -rices/?
Free>mar8et -rices
2)l #$<# 2)l #$<( 2)l #$<&
!rain an* -ro*)cts #55 $(# (0&(#
Potatoes #55 #0#(# (0%<5
=e"eta+les ioo 4## (0#&'
Meat #55 4%$ #0(4'
3air -ro*)ce #55 #0#%5 #,'41
4So%rce: Malafeev0 o- cit,0 -, (&5,/
,&& The #reat Patriotic .ar
6)t these in*ices conceal immense re"ional an* seasonal variations0
ren*ere* inevita+le + the e@treme shorta"e of trans-ort, Even in
-eacetime the variations were .an* are/ s)+stantial in the free
mar8et, 6)t in wartime the +ecame e@ce-tionall lar"e, The
followin" -rices0 in ro)+les0 were re"istere* on #1 2)l #$<&?
9owest Hi"hest
-rice -rice
Re flo)r .8ilo"rams/ <1,5 &55,5
Potatoes .8ilo"rams/ #<,5 &55,5 .9/
6eef .8ilo"rams/ <5,5 <%4,5 .M/
Mil8 .litre/ 4,5 #%(,5 .9/
.9/ M 9enin"ra*0 .M/ M Moscow, The lowest
-rices were all in Central Asia,
4So%rce: Malafeev0 o-, cit,0 -, (&(0 citin"
archives,/
The ver hi"hest of the -rices E)ote* for mil8 an* -otatoes0 in
9enin"ra*0 were -erha-s e@ce-tional0 in that the cit was still
-artiall +loc8e* + the enem .tho)"h no lon"er s)fferin" the
a--allin" con*itions of the winter of #$<#>(0 when over %&50555
civilians starve* or froFe to *eath/, 6)t in Central R)ssia the in*e@
for all -ro*)cts in #$<& was (0#(5 .#$<# M #55/0 while in
7aFa8hstan0 Central Asia an* Transca)casia it was +etween #0(51
an* #0&((, The average -rice in the free mar8et in Central R)ssia of
a 8ilo"ram of re flo)r in that ear co)l* har*l have +een lower
than #15 ro)+les0 at a time when most citiFens earne* less than this
in a mee1- This is a meas)re of the *e"ree of s)--resse* inflation0 of
the shorta"e of "oo*s in "eneral0 an* of the relativel restricte* siFe
of the free mar8et,
Those -easants who were a+le to sell at these hi"h -rices +ecame
rich, Man hel* on to their "ains0 waitin" for the *a when there
wo)l* +e somethin" to +) with their ro)+les, In Cha-ter ## it will
+e shown how the were -revente* from )tiliFin" their "ains,
As territories were reocc)-ie* an* a"ric)lt)re an* trans-ort
"ra*)all restore*0 con*itions +ecame somewhat easier, Reflectin"
this0 free>mar8et -rices +e"an to fall0 after reachin" a .seasonall
Finance ,&
infl)ence*/ -ea8 in A-ril #$<&0 when the were #0%5( .#$<5 M
#55/ for the co)ntr as a whole, In Octo+er #$<&0 after the
harvest0 the fell to #05440 which was0 however0 hi"her than the
fi")re for Octo+er #$<(, 6)t in A-ril #$<< -rices rose onl to
#0<''0 an* there was a ra-i* fall to 41' in Octo+er #$<<, In A-ril
#$<1 the in*e@ fell to 4&4,
&#
Evi*entl life was +ecomin" +eara+le,
The share of the free mar8et in total t)rnover rose "reatlI <% -er
cent of the total val%e of all -)rchases in #$<1 were in this
mar8et,
&(
MalafeevDs calc)lations le* him to the concl)sion that real
wa"es in #$<1 were ro)"hl <5 -er cent of their #$<5 level0
&&
after allowin" for the low ration -rices0 hi"h state DcommercialD
off>ration -rices an* the free mar8et, It is clear that0 "iven the
ac)te shorta"es0 an s)ch fi")res are necessaril e@tremel ro)"h,
Costs of -ro*)ction in in*)str rose0 -artic)larl in la+o)r>
intensive in*)stries0 in which the im-act of increase* wa"es was
com+ine* with that of "reater inefficienc0 *)e to )ntraine*
la+o)r0 s)--l +rea8*owns an* other *iffic)lties, This contraste*
with the lar"e increase in -ro*)ctivit .an* therefore re*)ce*
costs/ in the armaments in*)stries0 which ena+le* s)+stantial
c)ts to +e ma*e in -rices of tan8s0 ")ns an* aircraft, Prices of
+asic materials an* f)els were )nchan"e*0 *es-ite the fact that it
was necessar to s)+si*iFe them o)t of the +)*"et, Frei"ht
char"es were also )naltere* an* also calle* for s)+si*ies,
A"ric)lt)ral -roc)rement -rices were )nchan"e* thro)"ho)t
the war,
%inance
:artime +)*"ets were as follows?
1941 194. 194( 1944 194/
(milliards of roubles)
)e:enue 111-& 14/.& .&4.4 .40.1 (&..&
Expenditure 191.4 10..0 .1&.& .44.& .90.4
(Source: >l#e+e:, op. cit., p. .(4.%
,- The #reat Patriotic .ar
It can +e seen that there was a *eficit in the first three ears0 which
contri+)te* to inflationar -ress)re, Reven)es were a*versel
affecte* + the fall in t)rnover ta@ iel*0 owin" to the *rastic fall in
cons)mersD "oo*s o)t-)t, It -ro*)ce* onl %% milliar* ro)+les in
#$<(0 a"ainst #5< milliar* in #$<5,
&<
There was little chance to
reco)- this + -rice increases0 since0 with the im-ortant e@ce-tion of
vo*8a0 the increases were small0 )ntil the intro*)ction of
DcommercialD sho-s in #$<<0 which contri+)te* to an increase in
reven)es of #1 milliar*s, Alto"ether 45 -er cent of all reven)es
*)rin" the war were raise* from Dthe national economD0 in the form
of t)rnover ta@es an* -rofits in the main, There were also lar"e
increases in -ersonal ta@ation an* in +on* sales0 an* the share of
these in the +)*"et was far hi"her than in -eacetime,
Th)s a *ecree of & 2)l #$<# a**e* amo)nts ran"in" from 15 -er
cent to (55 -er cent to e@istin" income ta@es an* a"ric)lt)ral ta@0
with some e@ce-tions for families of servin" sol*iers, This was
re-lace* on ($ 3ecem+er #$<# + a s-ecial war ta@I 8ol8hoF
mem+ers -ai* a ta@ which varie* from #15 to %55 ro)+les a ear -er
mem+er of ho)sehol*0 an* increase* ta@es on a sli*in" scale were
im-ose* on wor8ers an* em-loees, Revise* rates were intro*)ce*
on &5 A-ril #$<&, On (# Novem+er #$<#0 +achelors an* chil*less
-ersons were s)+Cecte* to a s-ecial ta@, 9ocal ta@es .on +)il*in"s0
lan*0 carts0 livestoc80 mar8ets/ were intro*)ce* or consoli*ate* on
#5 A-ril #$<(, However0 man of these local ta@es were -ai* +
instit)tions .e,", +)il*in"s ta@ + tra*e enter-rises/,
The followin" ta+le shows the -attern of reven)e an* the "rowth
of ta@es an* +on* sales *)rin" the war?
194& #$<( #$<& #$<< #$<1
4mil
,Hards of ro%"les5
(5<,< (%',4
9O9*; )E?ENUE 10&
14/.& (&..&
of which? T)rnover ta@
1&4
%%,<
11.&
$<>$
1.(.1
Profits *e*)ctions
..
#1>&
.&.1 .1.4
,%,$
Ta@es on citiFens $ .1.4 (',% &4>5 &$>'
6on* sales
11
#1>& (1>1 &(,% .9.&
4So%rce: &inansy SSR .Moscow0 #$1%/0 -, #(&,/
9osses ($#
Several iss)es of war loans were floate*, Th)s on #& A-ril #$<( a
#5 milliar* ro)+le local iss)e was E)ic8l over>s)+scri+e*? a #(
milliar* ro)+le iss)e in 2)ne #$<& in fact -ro*)ce* (5,& milliar*sI
in Ma #$<< +on*s worth (',# milliar*s were sol* in si@ *as,
&1
Pres)ma+l there was a mi@t)re here of enth)siasm0 -ers)asion an*
semi>com-)lsion, A"ric)lt)ral ta@es were also raise*, Peasants were
assesse* in #$&$ on a sli*in" scale relate* to estimate* incomes
+ase* on the -ossession of a cow or other animals0 an* for ever
#B#55 hectare sown to a -artic)lar cro-, Th)s0 for instance0 a cow
was *eeme* to +e DworthD an income of &0155 ro)+les in #$<&,
&%
:e
will have occasion to e@amine this s-ecies of ta@ more closel in
Cha-ter ##, There were lotteries0 collections of val)a+les0
mo+iliFation of cash reserves +elon"in" to state enter-rises, Also
the -rintin" -ress was )se*0 an* the total c)rrenc circ)lation
increase* + &>',
&4
Social services were ra-i*l restore*, 9ar"e s)ms ha* to +e -ai*
o)t to invali*s an* or-hans0 an* in #$<<0 no *o)+t infl)ence* + the
vast losses of man-ower0 "enero)s allowances .an* me*als/ were
intro*)ce* for mothers of man chil*ren, Those with ten chil*ren
+ecame 8nown as Dmother heroinesD,
3osses
After *eca*es of silence0 it is now -ossi+le to cite fairl relia+le
estimates of h)man losses0 which vastl e@cee*e* those of :orl*
:ar I, Close to ' million were 8ille*0 over 1 million ca-t)re* + the
enem0 man of whom *ie* in -risoner>of>war cam-s, Alto"ether0
the evi*ence -oints to *emo"ra-hic losses of a+o)t (4 million
-eo-le0
&'
that is to sa the -o-)lation at the en* of #$<1 was (4
million lower .on com-ara+le territor/ than it was in 2)ne #$<#0
+)t this incl)*es civilian losses .a million in the sie"e of 9enin"ra*
alone0 an* over a million 2ews sla)"htere* + the !ermans/0 an*
also emi"ration an* the *emo"ra-hic conseE)ences of a ver low
wartime +irth>rate, There was a "reat *is-arit +etween the n)m+er
of men an* women in the a"e>"ro)- affecte* + militar service0
which ha* -rofo)n* effects on life an* wor8 in the -ost>war
*eca*es,
,, The #reat Patriotic .ar
There are statistics of material *ama"e, Of the ##,% million horses
in occ)-ie* territor0 4 million were 8ille* or ta8en awa0 as were
(5 o)t of (& million -i"s, #&40555 tractors0 <$0555 "rain com+ines
an* lar"e n)m+ers of cowshe*s an* other farm +)il*in"s were
*estroe*, Trans-ort was hit + the *estr)ction of %10555 8ilometres
of railwa trac80 loss of or *ama"e to #10'55 locomotives0 <('0555
"oo*s wa"ons0 <0('5 river +oats0 an* half of all the railwa +ri*"es
in occ)-ie* territor, Almost 15 -er cent of all )r+an livin" s-ace in
this territor0 #,( million ho)ses0 was *estroe*0 as well as &,1
million ho)ses in r)ral areas,
&$
Man towns la in r)ins, Tho)san*s of villa"es were smashe*,
Peo-le live* in holes in the "ro)n*, A "reat man factories0 *ams0
+ri*"es0 which ha* +een -)t )- with so m)ch sacrifice in the first
five>ear -lan -erio*0 now ha* to +e re+)ilt, A *a)ntin" tas8
awaite* the s)rvivors0 once the victor cele+rations were over,
In*ee*0 the wor8 of reconstr)ction was +e")n lon" +efore0 tho)"h at
first with few reso)rces an* fewer men,
The followin" is an e@am-le of wartime reconstr)ction0 an* of
the means a*o-te* to achieve it,
On the *ecision of the 9enin"ra* cit soviet an* the gor1om O-artP
+)rea) it was state* that the entire a+le>+o*ie* -o-)lation of 9enin"ra*0
7ol-ino0 Petro*vorets0 P)sh8ino an* 7ronsta*t was to wor8 on recon>
str)ction0 with the followin" wor8 -erio*s? for wor8ers an* em-loees
with an '>ho)r wor8in" *a an* those em-loe* + militar )nits? &5
ho)rs a monthI for wor8ers an* em-loees with a lon"er wor8in" *a0
an* for st)*ents an* schoolchil*ren? #5 ho)rs a monthI for citiFens not
wor8in" ,,, %5 ho)rs a month, :or8ers an* em-loees are to wor8
o)tsi*e their )s)al wor8in" ho)rs,
<5
No *o)+t man other local a)thorities too8 similar meas)res,
Pro+a+l a "reat man citiFens vol)nteere*, Certainl this ha* +een
so when the s)rvivors of 9enin"ra*Ds *rea*f)l winter of #$<#>( set
a+o)t cleanin" )- their cit in the s-rin", 6)t there was also la+o)r
conscri-tion an* com-)lsor )n-ai* wor8,
In man cases0 a remar8a+le Co+ was *one0 an* E)ic8l, Priorit
was "iven to the reactivation of 8e in*)strial -lant an* mines0 an*
-ress re-orts in #$<< are f)ll of references to the
9osses ($&
restartin" of -ro*)ction0 es-eciall in the in*)strial areas of the
U8raine,
On $ Ma #$<1 fi"htin" with !erman was over0 an* the Re*
fla" ha* +een flin" over the Reichsta" in 6erlin for a wee8, It is
im-ossi+le to overstate the effect of this *earl +o)"ht victor on
the morale an* conscio)sness of the R)ssian -eo-le, Stalin was now
the "reat war lea*er0 who ha* le* them to victor,
:ere his -olicies therefore -rove* ri"ht + historG Some wo)l*
ar")e so, A collea")e once sai*? DThe res)lt of the +attle of
Stalin"ra* showe* that StalinDs +asic line ha* +een correct,D An
)nsm-athetic critic retorte*? DPerha-s0 if a *ifferent -olic ha* +een
followe*0 the !ermans wo)l* not have "ot as far as Stalin"ra*,D
There can +e no wa of C)*"in" +etween these two views, :e
8now onl that0 in the en*0 StalinDs sstem stoo* )- to the test of
+attle0 tho)"h after heav losses0 losses for which man Soviet -ities
+lame Stalin? for his error in 2)ne #$<#0 for sla)"hterin" so man
e@-erience* officers on the eve of the war0 an* for or*erin" attac8s
re"ar*less of h)man cost, The assa)lt on 6erlin0 when the war was
clearl won0 is sai* to have cost #550555 cas)alties,
<#
11 Reco0ery and Reaction
This cha-ter *eals with the last ears of StalinDs life, It is an o**l
sha-eless -erio*, On the -)rel -ractical si*e0 it was of co)rse
*ominate* + reconstr)ction an* re+)il*in"0 with the -riorities
affecte* increasin"l + the im-act of the col* war an* the res)ltant
arms race, However0 economic -olic0 or"aniFation0 i*eas0 ra-i*l
+ecame froFen into their -re>war mo)l*, Stalin s-o8e sel*om0 -art
con"resses were not calle*0 even centrat committee meetin"s were
rare .an* virt)all )nre-orte*/ occasions, An o--ressive censorshi-
ma*e -)+lic *isc)ssion of serio)s matters im-ossi+le, N)mero)s0
)s)all )ne@-laine*0 reor"aniFations of the ministerial str)ct)re
ma*e little *ifference to the act)al f)nctionin" of the sstem, Central
control was maintaine*0 so was the -olic of im-osin"
*is-ro-ortionate +)r*ens on the -easants0 +)t the iss)es involve* in
s)ch -olicies were s)+mer"e* +eneath evasive form)lae or self>
con"rat)lator cliches, At no time0 +efore or since0 were Soviet
-)+lications more em-t of real matter, This somewhat *rear
intellect)al scene contraste* with some remar8a+le achievements in
re+)il*in" an* re>eE)i--in" the econom,
'he )cono$- in 1995? 'he %ourth %ive->ear *lan
The Soviet state emer"e* in tri)m-h from the trials an* tri+)lations
of war, The econom0 tho)"h it ha* recovere* from the low -oint of
#$<(0 was serio)sl *ama"e* + the war0 an* the -eo-le were
e@ha)ste*, The tas8 of reconversion an* reconstr)ction la ahea*,
The Economy in 11*? The Fourth Fi0e=>ear Plan ,*
The western half of E)ro-ean R)ssia an* virt)all all the U8raine
an* 6elor)ssia were wrec8e*, (1 million -eo-le were homeless0
#04#5 towns an* 450555 villa"es were classe* as D*estroe*D,
#
Comm)nications were *isr)-te*, Plo)"hin" ha* to +e )n*erta8en
with cows or an other ha)la"e>-ower that co)l* +e fo)n* or
im-rovise*, Millions of sol*iers ret)rne* to the tas8 of re+)il*in"
their homes with their own han*s, Millions0 of co)rse0 never came
+ac8 at all0 an* "reat n)m+ers of wi*ows an* or-hans0 es-eciall in
villa"es0 ha* to re+)il* their lives as +est the co)l* alone, Man
-easant sol*iers ha* acE)ire* new s8ills in the arme* forces an*
went to wor8 in in*)str, Shorta"e of men in the villa"es was a
maCor social an* economic -ro+lem,
The State Committee of 3efence remaine* in f)ll comman* as
the all>-owerf)l war ca+inet0 )ntil it was a+olishe*0 an* the re")lar
"overnmental or"ans restore*0 on < Se-tem+er #$<1, It iss)e* or*ers
for the ra-i* reconversion of war factories to civilian -ro*)ctionI
enter-rises an* the a--ro-riate Peo-leDs Commissariats were
instr)cte* to s)+mit -ro-osals as to what "oo*s the sho)l* +e
-ro*)cin", On #$ A)")st #$<10 while the Soviet arm was
com-letin" its a*vance in Manch)ria a"ainst the 2a-anese in that
+rief cam-ai"n0 !os-lan was instr)cte* to *raft a five>ear -lan
coverin" the -erio* #$<%>15, Its ")i*in" li"ht? to e@cee* -re>war
o)t-)t + #$15,
=ario)s wartime meas)res were +ein" rela@e*, Th)s on &5 2)ne
#$<1 the "rantin" of vacations was res)me*0 on &# 3ecem+er the
s-ecial war ta@es were a+an*one*,
Reconstr)ction was hit + the -reci-itate cessation of len*>lease
in A)")st #$<1, Not onl was there m)ch to re-air0 +)t the Soviet
.li8e the 6ritish/ +alance of -aments was in ac)te *isarra as a
res)lt of the war, The im-ortance of ai* in #$<1 can +e meas)re* +
citin" the forei"n tra*e fi")res of that ear .see -, ($%/,
For most of #$<10 therefore0 American *eliveries were still ver
si"nificant, There was also ai* for *evastate* re"ions )n*er the
a)s-ices of UNRRA0 an* a senior American ai* official0 Marshall
Mac3)ffie0 has left )s a vivi* acco)nt of con*itions in the U8raine0
where he ha* freE)ent *ealin"s with the -artDs first secretar there0
N, S, 7hr)shchev,
(
($% Recover an* Reaction
#$<1 4millions of ro%"les5
E@-orts #0<&&
Im-orts #<0'51
4So%rce: E1onomisches1aya 2hi2n
SSSR, -, <&',/
Note: J)ite *ifferent fi")res are cite* in
forei"n tra*e han*+oo8I -res)ma+l
the e@cl)*e len*>lease,
Imme*iate action was ta8en to insist on re-arations from e@>
enem co)ntries0 whether or not these now ha* -ro>Soviet or even
comm)nist>le* "overnments, H)n"ar0 6)l"aria0 Romania0 an*
es-eciall !erman0 were ma*e to *eliver all 8in*s of eE)i-ment
an* materials, S)ch !erman factories as the ;eiss wor8s in 2ena
were *ismantle* an* ta8en awa to R)ssia0 an* some of the wor8ers
too0 to train R)ssians in their hi"hl s-ecialiFe* tra*es, Rails were
ta8en )- an* )se* to re+)il* R)ssian railwas, At first these claims
for re-arations were reco"niFe* as a--lin" to all of !erman0 an*
some factories in the R)hr0 an* other areas occ)-ie* + American
an* 6ritish forces0 were *ismantle* also, However0 with the "rowin"
tension of the col* war0 *irect re-arations in !erman were lar"el
concentrate*0 after #$<10 in areas )n*er R)ssian militar control,
Even in Manch)ria0 the incomin" Chinese fo)n* that man factories
ha* +een ta8en awa,
There have +een controversies a+o)t the e@tent of re-aration
*eliveries to the Soviet Union, Some :estern analsts name h)"e
s)ms0 an* claim that the s)ccess of Soviet reconstr)ction at this
-erio* owes m)ch to this ca)se, There is no Soviet official total
fi")re0 an* there seems little -oint in enterin" into ar")ments a+o)t
C)st how m)ch the *i* receive0 es-eciall as some of the "ains too8
the form of half>shares in Coint com-anies0 the val)e of which .)ntil
the -ractice of s)ch Coint com-anies was a+an*one* ten ears later/
is *iffic)lt to com-)te, Similarl0 we can onl note0 +)t cannot
meas)re0 the "ain to the USSR from tra*e treaties which wor8e* o)t
to the Soviet a*vanta"e to an )nreasona+le e@tent, 6)t allowin" for
all this0 s)rel the evi*ence is
The Economy in 11*? The Fourth Fi0e=>ear Plan ,5
overwhelmin" that the achievement of reconstr)ction was *)e
a+ove all to the efforts of the Soviet -eo-le0 tho)"h no one wo)l*
*en that re-arations *eliveries hel-e*, .More will +e sai* in the
ne@t cha-ter a+o)t tra*e relations with other co)ntries,/
On $ Fe+r)ar #$<% Stalin ma*e his well>8nown election
s-eech in Moscow, He e@tolle* the achievements of the Soviet
Union *)rin" the trials of war0 cite* man fi")res on the achieve>
ment of the armaments in*)str, He then loo8e* forwar* to a
lon">term -ers-ective in which in*)strial o)t-)t wo)l* event)all
+e tre+le that of -re>war, He s-o8e of achievin"0 in the co)rse of
a+o)t three five>ear -erio*s0 an ann)al -ro*)ction of %5 million
tons of steel0 155 million tons of coal0 %5 million tons of oil,
&
If
these co)l* +e re"ar*e* as tar"ets for the ear i$%50 then his
-ro"nostications were on the mo*est si*e0 +)t at the time the
seeme* over>o-timistic?
194/ i94& i94&
!esti"ted% !ctul%
Steel !"illion tons% 1.../ BB B/
2ol !"illion tons% 149.( /
&&
S
r
(
Oil !"illion tons% 19.4 4& 140
The imme*iate tas8s were ver lar"el reconstr)ction an* recon>
version, In #$<1 the o)t-)t of in*)stries in the areas at one time
occ)-ie* + the enem > an* this incl)*e* most of the *evelo-e*
E)ro-ean territories of the Union > was onl &5 -er cent of -re>
war, Stalin lai* "reat stress0 as he alrea* ha* +efore the war0 on
the sinews of national -owerI to E)ote a Soviet te@t+oo8 on the
-erio*0 Dsince the -ossi+ilities of financin" an* s)--lin" ca-ital
constr)ction at this -erio* were limite*0 the maCor -art of re>
so)rces were concentrate* on the most im-ortant sectors of the
national econom > on the restoration an* *evelo-ment of heav
in*)str an* rail trans-ortD, '4,$ -er cent of in*)strial investments
in #$<1>15 were *irecte* to the -ro*)cersD "oo*s sectors0 onl
#(,# -er cent to the li"ht an* foo* in*)stries,U Tho)"h m)ch
was0 of co)rse0 *one to re+)il* the wrec8e* cities0 on the whole
factories too8 -riorit over *wellin">ho)ses0 an* there was also a
,& Reco0ery and Reaction
-riorit scheme in re+)il*in"0 some historic cities an* -rovincial
ca-itals +ein" "iven first attention, Th)s when I was in the U8raine
in #$1% 7iev ha* +een wholl0 Poltava almost wholl0 re+)ilt, 6)t
7remench)"0 a siFea+le town on the 3nie-er0 was still mostl a
hea- of r)ins, 3o)+tless the +)il*ers "ot aro)n* to 7remench)" in
#$14, These remar8s are not in the least inten*e* to *ecr the
efforts ma*e to ma8e life +eara+le >after so m)ch s)fferin" an*
*estr)ction,
The fo)rth five>ear -lan -rovi*e* for the followin"?
194& 194/ 19/& 19/&
0(
!pln%
1(0
!ctul%
Ntionl inco"e !index%
1&& 144
Gross industril production
1&&
9. 140 11(
ProducersC $oods
1&& 11.
R
.&/
2onsu"ersC $oods
1&&
/9
R
1.(
Gross $riculturl production
1&& 4& 1.1
99
-or,ers nd e"plo+ees !"illions%
(1.. .1-(
((-/ (9-.
*:er$e 5$es !per nnu"% 4.&/4
/,&&& 4,&&&
1,41&
)il5+ $oods tr##ic !"illird tons
,"s% 41/ (7
/(. 4&..(
2ol !"illion tons% 14/.9 79-(
./& .41.1
Electricit+ !"illird ,-hs% 40.(
4(-. 0. 91..
Oil !"illion tons%
(Ci 19.4
(/-4 (1-9
Pi$ iron !"illion tons%
14.9
0.0
19-/ 19..
Steel !"illion tons%
10.( 1..( ./-4 .1-(
9rctors !thousnds%@ 44.. 7-1
11.
.4.-/
2e"ent !"illion tons% /-1 1.0 1&./ 1&..
2otton #=rics !"illion "etres%
&]$No
1,411 4,404 (,099
-ool #=rics !"illion "etres% 119.1 /(-4 1/9 1//-.
;ether #oot5er !"illion pirs% .11.& 4( .4& .&(.4
Su$r !"illion tons%
...
&.44 ..4
,
(S
Grin hr:est !"illion tons% !=rn% A 9/-4 WR9 41-(
R
A 01..
Wl.&
!C=iolo$iclC%
R
1.1
U #1 h,-, )nits,
4So%rces: E1- <h, --, <&40<<#0 --, 15(>&I E, 9o8shin0 Promyshlennost, SSSR,
=>@A!DG .Moscow0 #$%</0 -, #15I Pravda, #% March #$<%I Nar- 1ho2-, =>DH, -,
1%40 -, <%#0 -, &##I Nar- 1ho2-, =>DG, -, 15#,/
Yet a"ain it is necessar to *raw attention to the inflate* nat)re of
the total o)t-)t in*ices for national income an* "ross in*)strial
-ro*)ction, The DinflationD is -artic)larl "reat in the -erio* #$<%>15
+eca)se of the contin)e* )se of a com-letel o+solete set of
'he )cono$- in 1995? 'he %ourth %ive->ear *lan 299
-rice relationshi-s0 s)--ose*l still +ase* on #$(%>Q4 -rices0 which
"reatl overwei"hte* the ra-i*l>"rowin" machiner an* en"ineer>
in" sector, There were other reasons, This was the a-o"ee of the
Stalin *es-otism an* of statistical s)--ression .ver few of the
fi")res cite* in this +oo8 for this -erio* were -)+lishe* )ntil well
after StalinDs *eath/, One cannot ima"ine an Soviet statistician
*arin" to challen"e in*e@ n)m+ers as +ein" too hi"hI + contrast0
the -hsical o)t-)t fi")res were act)all )se* in -lannin" an*0 with
one cons-ic)o)s e@ce-tion0 have +een re"ar*e* as relia+le +
virt)all all scholars, The e@ce-tion0 of co)rse0 is "rain0 an* a
"lance at the a+ove ta+le will show how ver "reat was the
*is-arit, .It is ver m)ch to the cre*it of the late 3r N, 2asn that0
wor8in" alone in America0 he not onl correctl estimate* the e@tent
to which the #$&4 cro- was e@a""erate*0 +)t also *e*)ce* the fact
that the -ost>war harvest fi")res were even more e@a""erate*0
tho)"h even he )n*erstate* the e@tent of the DinflationD,/
6)t while one has to ta8e with a -inch of salt certain of the
in*ices0 a "lance at the relia+le o)t-)t *ata shows that ver ra-i*
-ro"ress was ma*e,
The first f)ll -eacetime ear0 #$<%0 -rove* a ver *iffic)lt one,
There was a severe *ro)"ht0 which .as will +e shown/ hin*ere*
recover in a n)m+er of res-ects, The -rocess of reconstr)ction
enco)ntere* man -ro+lems, Pro*)ctivit was a*versel infl)ence*
+ a "eneral feelin" of rela@ation after the stern *isci-line an*
-rivation of wartime, It was affecte* too + the nee* to retrain the
la+o)r force0 which ha* +ecome acc)stome* to -ro*)cin" tan8s an*
")ns0 to -ro*)ce other "oo*s, Man wor8ers were on the move0
+ac8 to their ol* homes0 once the wartime conscri-tion of la+o)r
was rela@e*, 3emo+iliFe* sol*iers > & million or so ret)rne* to
civilian em-loment in the first ear of the -lan
1
>reE)ire* time to
settle *own an* learn their new occ)-ations, Some a"e* -ersons
an* others who ha* +een mo+iliFe* or vol)nteere* for wartime
wor8 left their em-loment, Con*itions of wor8 were often still
ver har*0 an* the or"aniFational -ro+lems of reconversion ta@e*
the in"en)it of the -lanners an* mana"ers, In the circ)mstances it
is har*l s)r-risin" that the in*)strial o)t-)t -lan for #$<% was not
f)lfille*, Civilian o)t-)t rose + (5 -er cent .steel + $ -er cent0
coal an* electricit + #5 -er cent0
!-- Reco0ery and Reaction
mineral fertiliFer + no less than 15 -er cent/, However0 this *i*
not o)twei"h the fall in armaments -ro*)ction0 so total in*)strial
o)t-)t fell0 accor*in" to the official *ata0 + almost #4 -er cent
com-are* with #$<1,
%
After #$<% in*)strial o)t-)t increase* + ver hi"h -ercent>
a"es, This was the conseE)ence of s)ccessf)l reconversion0 re>
trainin"0 the +rin"in" into o-eration of *ama"e* mines an*
factories an* ver consi*era+le new investments, Man metall)r>
"ical -lants an* heav en"ineerin" wor8s in -artic)lar were
mo*erniFe* in the co)rse of their reconstr)ction,
The investment -lan for #$<%>15 was re-orte* to have +een
s)r-asse* + (( -er cent,
4
Investments were *irecte* a+ove all to
the formerl occ)-ie* re"ions0 an* the tem-os of reactivation of
*ama"e* mines an* -lant were most im-ressive, Th)s *es-ite
the floo*in" an* wrec8in" of mines + the !ermans0 the 3onets
+asin mana"e* + #$15 to e@cee* its #$<5 o)t-)t0 as the followin"
fi")res show?,
194& 94.( "illion tons
C94/ (04 "illion tons
19/& 94.4 "illion tons
The U8raineDs metall)r"ical o)t-)t also reache*0 or a--roache*0
its #$<5 level + #$15, Since the ca-acit of the Urals an*
Si+eria0 e@-an*e* in wartime + new constr)ction an* the movin"
of -lant from the west0 contin)e* to "row0 the net res)lt was that
the five>ear -lan was over>f)lfille* in these sectors an* the #$<5
level far s)r-asse*, The "reat 3nie-er *am was re+)ilt an*
+e"an to "enerate electricit as earl as March #$<4, In the
U8raine electricit "eneration in #$15 also e@cee*e* that of #$<5,
All this reE)ire* ver har* wor80 )n*er a*verse circ)mstances,
The revival of cons)mersD "oo*s in*)stries from the e@cee*>
in"l low levels of #$<1 was ra-i* in all -arts of the USSR, 6
#$<' the wool in*)str s)r-asse* its #$<5 levelsI cotton fa+rics
an* s)"ar achieve* this in #$150 an* footwear in #$1#,
'
None the
less0 the te@tiles an* footwear -lan was not f)lfille*0 as the ta+le
on -a"e ($' shows,
han&es in Ad$inistration and *lannin& 301
In #$15 -lanners ha* ever "ro)n* for satisfaction, Errors an*
*iffic)lties there were in -lent0 +)t achievements co)l* +e sai* to
+e "reat, The USSR co)l* face the arms race0 which in #$15 was
a"ain +e"innin"0 with a stron"er in*)strial str)ct)re than +efore the
war,
han&es in Ad$inistration and *lannin&
The en* of the war saw the liE)i*ation of some of the -eo-leDs
commissariats which ha* +een res-onsi+le for armaments in*)stries
.e,", for tan8 -ro*)ction/0 an* the creation of new ones for civilian
o)t-)t .for trans-ort eE)i-ment0 a"ric)lt)ral machiner0
constr)ction an* roa*>+)il*in" machiner0 etc,/, There was a"ain a
"reat wave0 in #$<% es-eciall0 of creatin" new -eo-leDs commis>
sariats + s)+*ivision, On #1 March #$<% the *esi"nation DministrD
was s)+stit)te* for D-eo-leDs commissariatD0 +)t this ha* no
si"nificance +eon* restorin" a wor* formerl re"ar*e* as +o)r>
"eois, For a while s)+*ivision contin)e*, Some maCor economic
ministries were *ivi*e* "eo"ra-hicall? there was one for the coal
in*)str of the western re"ions of the USSR an* another for the coal
in*)str of the eastern re"ions of the USSR, The ministries for the
oil in*)str an* for fisheries were also *ivi*e* into two on
"eo"ra-hical -rinci-les, The Ministr of 9i"ht In*)str0 on the other
han*0 was *ivi*e* into 9i"ht In*)str an* Te@tile In*)str, There
were also create* at this time a n)m+er of se-arate ministries for
constr)ction0 to a*minister the "rowin" n)m+er of s-ecialiFe* an*
-ermanent +)il*in" enter-rises, In #$<%R4 the n)m+er of in*)strial
an* constr)ction ministries alone reache* thirt>three0 a"ainst
twent>one in #$&$, The n)m+er of other economic ministries
increase* mar8e*l in these ears, The Ministr of A"ric)lt)re0 for
instance0 was *ivi*e*I the *e-artment of la+o)r reserves was t)rne*
into a ministr an* so forth,
To some e@tent0 as alrea* in*icate*0 it was a matter of chan"in"
la+els0 of -romotin" to ministerial stat)s former *e-)t ministers in
char"e of "lav8i0 the "lav8 +ecomin" a ministr, The -rocess of
increasin" the n)m+er of ministries0 which ha* alrea* +e")n +efore
the war0 was associate* with the a--ointment of
!-, Reco0ery and Reaction
-art lea*ers of -olit+)rea) stat)s as Doverlor*sD0 in char"e of a
sector within which there was a "ro)- of ministries, No lon"er0 as in
the *as of Or*Fhoni8i*Fe when he was Commissar of Heav
In*)str0 was the -art lea*er *irectl .an* colo)rf)ll/ in char"e of
o-erations, Now the ministers were in realit non>-olitical s-ecialist
hea*s of nationaliFe* in*)stries0 with a -art lea*er s)-ervisin"
them from the 7remlin, No *o)+t this chan"e was *)e in -art to the
"rowin" com-le@it an* siFe of the econom0 as well as to the fact
that the *as of tro)+le>shootin" commissars0 in in*)str at least0
were lar"el over, Ar+itrar intervention0 es-eciall at StalinDs
whim0 was common eno)"h0 +)t it seeme* sensi+le to leave *a>to>
*a a*ministration to the s-ecialist ministers,
The )nion re-)+lics never ha* so few -owers over their own
economies as at this -erio*, In*ee*0 if oil in the so)th>east was
a*ministere* + a se-arate ministr in Moscow0 what f)nction was
left to the AFer+ai*Fhan a)thorities in 6a8)G
However0 the -rocess of s)+*ivision evi*entl went too far0 an*
in #$<4R' there were man re)nifications of ministries0 tho)"h
sometimes with altere* names an* res-onsi+ilities, Th)s on ('
3ecem+er #$<' the two coal ministries +ecame one0 the two oil
ministries -l)s the oil s)--lies *e-artment were )nite* in one
Ministr of Oil In*)str0 an* so forth, Man ministers now +ecame
*e-)t>ministers, Chan"es occ)rre* also in *ie other *irection? th)s
the Ministr of Metall)r" was *ivi*e*0 in 3ecem+er #$150 into two
*e-artments0 to *eal with ferro)s an* non>ferro)s metals,
The fo)rth -lan an* its im-lementation was )n*erta8en )n*er the
a)thorit of =oFnesens80 whose ten)re of office as chief of the
-lanners was lin8e* with mem+ershi- of the -olit+)rea), 6)t o**
an* still )ne@-laine* *evelo-ments affecte* +oth !os-lan an*
=oFnesens8, In 3ecem+er #$<4 !os-lan was rename*? instea* of
+ein" the State Plannin" Commission it +ecame a Committee an*
limite* to -lannin", Its s)--l f)nctions were transferre* to a
se-arate or"aniFation0 !ossna+ .State S)--lies Committee/0 an* its
res-onsi+ilities on technical -ro"ress to (oste1hni1a .State
Committee on the intro*)ction of new techniE)es into the national
econom of the USSR/,
$
Then on
A)ricultural Policies? E0er=ti)hter Controls !-!
#5 A)")st #$<' the Central Statistical Office was ta8en o)t of
!os-lan an* -)t )n*er the Co)ncil of Ministers, =oFnesens8
himself was *ismisse* in March #$<$0 an* later shot, He was
re-lace* + one of his *e-)ties0 Sa+)rov, It is -ossi+le that there
was a *is-)te involvin" him over economic -olic or -ricesI we
shall see that maCor -rice chan"es anno)nce* in #$<' were -artiall
reverse* in #$15, 6)t it seems C)st as li8el that the shootin" was
connecte* with an intri")e a"ainst some 9enin"ra*>+ase* -art
officials0 an* ha* nothin" to *o with economic affairs, An* in*ee*
recent evi*ence a+o)t the D9enin"ra* affairD0 in -)ttin" the +lame for
the intri")e on 6eria an* Malen8ov0 ma*e the chief victim o)t to +e
not =oFnesens8 +)t A, A, 7)Fnetsov0 who ha* +een ;h*anovDs
s)ccessor as -art secretar in 9enin"ra*, H)n*re*s of officials with
9enin"ra* connections were shot0 an* this incl)*e* =oFnesens8,
The sit)ation of enter-rises vis!a!vis the ever>chan"in" *esi"na>
tions of -lannin" offices an* ministries *i* not )n*er"o an
si"nificant chan"e in these ears,
A&ricultural *olicies? )ver-ti&hter ontrols
#$<% was a ver *iffic)lt ear for a"ric)lt)re, Shorta"e of man>
-ower0 tractors0 horses0 f)el0 see*s0 trans-ort .an*0 in areas affecte*
+ war0 of ho)ses/ initiall *elae* recover, In #$<% the total area
of lan* sown was onl 4% -er cent of that of #$<5 .41 -er cent in
#$<1/, As if all this was not eno)"h0 a severe *ro)"ht hit man
areas, Accor*in" to recentl -)+lishe* statistics the "rain harvest of
#$<1 was <4,& million tons, In #$<% it was onl &$,% million,
#5
Man went ver short of foo*I 7hr)shchev later claime* that Stalin
or*ere* "rain to +e e@-orte* when -eo-le were starvin",K Serio)s
*e-letion of reserves of foo* ca)se* *ela in a+olishin" rationin",
3)rin" the war0 s)-ervision over the o-eration of 8ol8hoFes ha*
+een somewhat rela@e*, Mem+ers were allowe* in some cases to
sow cro-s on collective lan*0 an* 8ol8hoF a)tonom increase*?
-art an* "overnment officials were otherwise en"a"e*0 an* it was
o+vio)s that 8ol8hoFes ha* to +e allowe* to C)*"e for
!-1 Reco0ery and Reaction
themselves what was -ossi+le ami* )niversal shorta"e of ever>
thin", The "overnmental an* -art a"encies therefore confine* their
efforts to -roc)rements0 an* win8e* at +reaches of r)les in other
res-ects, It was in fact wi*el r)mo)re* that -easant>sol*iers were
tol* that the 8ol8hoF sstem wo)l* +e rela@e* or even a+olishe* as
a rewar* for victor,
Alas0 Stalin too8 an earl o--ort)nit to reassert control, On #$
Se-tem+er #$<% there was a*o-te* the *ecree DOn meas)res to
liE)i*ate +reaches of the O8ol8hoFP stat)teD, All lan*s acE)ire* +
-rivate -ersons or instit)tions ha* to +e ret)rne* to the 8ol8hoF,
=iolations of internal *emocrac within a 8ol8hoF were not to +e
tolerate* .the were0 of co)rseH/, F)rther *ecrees reasserte* the
-rimar *)t of com-)lsor *eliveries to the state0 an* the -ower of
the -roc)rement or"ans, To enforce central control over a"ric)lt)re
there then too8 -lace a tr)l e@traor*inar a*ministrative mish>
mash, Followin" the *ecree of #$<%0 a Co)ncil of 7ol8hoF Affairs
was set )- to -revent +reaches of the 8ol8hoF stat)te0 an* to e@ercise
"eneral s)-ervision over 8ol8hoFes an* MTS, An*reev0 a mem+er
of the -olit+)rea)0 was its chairman0 an* at this -erio* he was
a"ric)lt)ral Doverlor*D for the -art, Earlier in #$<% the Ministr of
A"ric)lt)re ha* +een *ivi*e* into three -arts? for Foo* Cro-s
42emledeliye5, In*)strial Cro-s an* 9ivestoc8, It ma +e sai* that
this was a mere e@tension into the Ministr of A"ric)lt)re of the
*isease of s)+>*ivision0 ram-ant at the time an* alrea* note* in
in*)str, 6)t there is a clear *ifference? in in*)str an enter-rise
was s)+Cect to onl one ministr at an one time0 whereas virt)all
all 8ol8hoFes ha* some livestoc80 some in*)strial cro- .s)"ar>+eet0
cotton0 fla@0 s)nflower0 etc,/0 an* a foo* cro-0 an* so were )n*er
*ifferent ministries in res-ect of each0 as well as o+ein" the
Co)ncil for 7ol8hoF Affairs0 not to s-ea8 of the -roc)rement
a"encies an* the local -art committee, This +)rea)cratic tan"le was
en*e* in Fe+r)ar #$<4 with the re>creation of a sin"le Ministr of
A"ric)lt)re Din or*er to eliminate or"aniFational im-erfections an*
-arallelismD,
#(
The Co)ncil for 7ol8hoF Affairs withere* awa,
However0 central interference was not re*)ce*0 +)t rather
stren"thene*, The Fe+r)ar #$<4 -len)m of the central commit>
A)ricultural Policies? E0er=ti)hter Controls !-*
tee *eci*e* that the m)ch>nee*e* e@-ansion of a"ric)lt)ral o)t-)t
was to +e ver caref)ll re")late*0 an* ever 8ol8hoF was to have
sowin" -lans lai* *own not onl for cate"ories of cro-s0 s)ch as
"rain0 +)t even for each 8in* of "rain, The same -len)m reasserte*
the *)t of enforcin" the 8ol8hoF stat)te an* the a+sol)te -riorit of
state -roc)rements, Proc)rement E)otas co)l* now +e varie* within
each re"ion in the li"ht of circ)mstances0 a -rovision which in effect
le"aliFe* local ar+itrariness in ma8in" *eliver *eman*s on
8ol8hoFes, The s)-ervisor role of the MTS was to +e stren"thene*
+ the a--ointin" of a D*e-)t *irector0 -oliticalD to each MTS,
At this -erio* the travo-ole ."rass rotation/ sstem was tho)"ht
to +e a -anacea0 an* farms were instr)cte* to em-lo cro- rotation
schemes incor-oratin" "rasses0 re"ar*less of local con*itions0
res)min" the -olicies interr)-te* + the war, Stalin was convince*
+ some a*viser in #$<%>4 that s-rin" wheat was s)-erior to winter
wheat0 an* 7hr)shchev later on tol* how he resiste* + vario)s
e@-e*ients or*ers to e@-an* s-rin" wheat sowin"s in the U8raine0
where winter>sown wheat "ives a m)ch hi"her iel*, Then in #$<'
9sen8o tri)m-he* over all critics0 with the hel- of the -art
machine0 an* his i*eas were -resse* )-on the farms0 while real
"eneticists were *ismisse*, .9sen8o was one of a s-ecies of -se)*o>
scientific charlatan0 whose i*eas ha* for man ears a "reat a--eal to
-art officials0 see8in" a chea- wa o)t of a"ric)lt)ral *iffic)lties,/
The financial con*ition of 8ol8hoFes was *e-lora+leI the amo)nt
availa+le to -a mem+ers was e@cee*in"l low, Yet not onl *i* the
"overnment not increase a"ric)lt)ral -roc)rement -rices0 +)t it -)t
a**itional +)r*ens on the 8ol8hoFes? instea* of +ein" a+le to o+tain
see*s from the Ministr of Proc)rements0 the ha* to maintain their
own see* reserves .*ecree of (' 2)l #$<40 re-eate* on ($ 2)ne
#$15/0 ta@es on 8ol8hoFes were increase* .## A)")st #$<'/0 an*
the ha* to set asi*e a "reater amo)nt for ca-ital investment .#%
Fe+r)ar #$1(/, Since ta@es on -rivate -lots were also increase*
.see +elow/0 it is as if Stalin was *etermine* to ma8e the -easants
-a for the necessar -ost>war reconstr)ction, A )sef)l concessionU
+eneficial to 8ol8hoF finance0 was that retail coo-eratives were
allowe* to sell at or near free>mar8et -rices an* to set )- stalls in
towns for the -)r-ose,
#&
!-% Reco0ery and Reaction
The +o)"ht -ro*)ce from 8ol8hoFes at hi"her -rices, However0
this was sto--e* in #$<' an* res)me* )n*er 7hr)shchev,
The +)r*ens on 8ol8hoFes were increase* in Octo+er #$<' + the
a*o-tion of a "reat DStalin -lan for the transformation of nat)reD0
which lai* )-on the farms in the ste--e areas the *)t of -lantin"
vast forest shelter>+elts > at their own e@-ense0 of co)rse0 as well as
-rovi*in" for canals an* irri"ation, It later +ecame clear that the
efforts were waste*I the trees ref)se* to o+e Stalin an* *i* not
"rowI ver few canals were +)ilt, Then in A-ril #$<$ there was
a*o-te* a *ecree on a three>ear -lan for livestoc80 *eman*in" a
"reat e@-ansion of livestoc8 hol*in"s an* a 15 -er cent increase in the
o)t-)t of mil80 *air -ro*)ce0 e""s0 etc, Proc)rement E)otas were
corres-on*in"l raise*, Yet -rices remaine* so low that this f)rther
im-overishe* the 8ol8hoFes an* their -easants, The -lan was0 of
co)rse0 not f)lfille*>0 +)t -roc)rements were consi*era+l increase*,
To- -riorit was "iven to in*)str0 an* the villa"es were left
witho)t +)il*in" materials or electric -ower, It m)st have +een a
so)rce of wr .+)t secret/ h)mo)r to o+serve the inn)mera+le
-ortraits in oils of Stalin "aFin" )-on electric tractors .in fact there
ere no electric tractors/ at a time when it was for+i**en for
8ol8hoFes to o+tain electricit from the stateDs -ower stations,
The one +ri"ht s-ot was the ra-i* recover of tractor an* com+ine
-ro*)ction0 which ena+le* the MTS to *o their wor8 +etter,
Instea* of offerin" hi"her -rices the a)thorities offere* me*als,
There was a stream of or*ers concernin" the awar* of honorific
titles to heroes of la+o)r in the villa"es,
On (# Ma #$<4 the *ecision was ta8en to collectiviFe a"ric)lt)re
in the 6altic states0
#<
an* similar meas)res were ta8en in other DnewD
territories, This too8 three ears, Material recentl -)+lishe* in the
6altic re-)+lics -rovi*es m)ch evi*ence of *e-ortation of
recalcitrant -easants an* man other )n-leasant forms of coercion,
A)ricultural Prices and Peasant "ncomes
:e have note* the )nfavo)ra+le terms of tra*e im-ose* on the
villa"es + the -ractice of com-)lsor -roc)rements at low -rices,
If0 as seems to +e the case0 there was no increase at all in
A)ricultural Prices and Peasant "ncomes !-5
-roc)rement -rices +etween #$<5 an* #$<40 then at that *ate the
*is-arit +etween retail an* -roc)rement -rices reache* its hi"hest
-oint, The retail -rice in*e@0 as we shall see0 reache* (05<1 .#$(' M
#55/ in #$<4, In #$1( the avera"es for "rain0 +eef0 an* -i"s were
act)all lower than in #$<5,K The -rice -ai* for com-)lsoril>
*elivere* -otatoes was less than the cost of trans-ortin" them to the
collectin" -oint0 an* this cost ha* to +e +orne + the 8ol8hoFes0 who
th)s in effect "ot less than nothin"H It is tr)e that retail -rices fell
after #$<40 an* in the earl fifties -rices of in*)strial cro-s were
increase*, 6)t a"ainst this m)st +e set not onl the e@tra +)r*ens
mentione* .--, &51>%/ +)t also the s)+stantial rise in the -rices of
f)el an* +)il*in" materials,
To "ive some i*ea of the effect of these -rices on net reven)es of
8ol8hoFes we can cite costs in state farms, The avera"e -roc)rement
-rice for "rain in #$<5 was ',%& ro)+les -er E)intal0 state>farm costs
were ($,45 ro)+les, In #$1( the -roc)rement -rice -ai* to
8ol8hoFes was ',(1 ro)+les0 an* state>farm costs were %( ro)+lesH
Yet state farms were a+le to o+tain their in-)ts at state wholesale
-rices0 while 8ol8hoFes ha* to -a the m)ch hi"her retail -rices,
ConseE)entl real costs in 8ol8hoFes were hi"her0 or rather wo)l*
have +een hi"her ha* state>farm wa"es +een -ai* to the -easant
mem+ers,
The latter +ore the +r)nt of the loss, In #$1(0 a +etter ear than
#$150 their incomes from collective wor8 were as follows?
2sh pid to
pesnts )ou=les per nnu" per
)ou=les per trudodenC (millions of roubles) household (cash)
1.4& 1..4 4.(
(Source: N. Khrushche:, Pra'da, ./ <nur+ 19/0.%
At this -erio* -aments in 8in* were of m)ch "reater im-ortance
than cash -aments0 +)t even so these are e@cee*in"l low fi")res0
in real terms somewhat +elow a "oo* -re>war ear, It sho)l* +e
note* that "ross incomes of 8ol8hoFes increase* "reatl0 from #%,'
milliar* ro)+les in #$&4 to <(,' milliar*s in #$1(0 +)t whereas in
#$&4 almost half of this was -ai* o)t to the -easants0
!-& Reco0ery and Reaction
the -ro-ortion in #$1( was )n*er ($ -er cent0 reflectin" the m)ch
hi"her -rices of in-)ts0 hi"her investment e@-en*it)re0 ta@es0 etc,
In #$<'>15 cash incomes m)st have +een m)ch lower0 -erha-s
one ro)+le -er tr)*o*enD .these0 it m)st +e em-hasiFe*0 are old
ro)+les0 ten -resent>*a 8o-e8s/, At that time0 therefore0 the
average cash income from collective wor8 was s)ch that twent>
ei"ht tr)*o*ni .sa twent *asD wor8/ was nee*e* to +) a +ottle of
vo*8aI a 8ilo"ram of +)tter eE)alle* si@t tr)*o*ni0 a -oor>E)alit
s)it reE)ire* well over a earDs avera"e collective Dwa"eD,K
The sstem of assessin" tr)*o*ni was altere*0 + increasin" wor8
norms an* *evisin" com-le@ +on)s sstems for overf)lfilment of
-lans, However0 this in no wa affecte* the 8e -ro+lem0 that of
-rovi*in" a s)fficient amo)nt with which to -a the -easants, 9ac8
of effective incentive0 *)e to )n*er-ament0 contri+)te*
si"nificantl to the *iffic)lties of a"ric)lt)re in these ears,
The -easants were a+le to s)rvive +eca)se of their -rivate -lots
an* animals, 6)t in the a+sence of s)fficient incentives for
collective wor8 these were seen as )n*esira+le *istractions, The
heav ta@es levie* *)rin" the war on -rivate c)ltivation an* animals
were retaine*, It will +e recalle* that the ta@es were +ase* on a
nominal Dratea+le val)ationD, In #$<&0 for instance0 a cow was
*eeme* to +rin" in an income of &0155 ro)+les -er ann)m0 an* at
this *ate the ta@ ran"e* from ' -er cent to &5 -er cent, The
val)ations were somewhat re*)ce* after the war, Th)s a cow
+ecame s)--ose*l worth onl (01<5 ro)+les0 a -i" '55 ro)+les of
income .a"ainst #0155 in #$<&/0 -otatoes #'5 ro)+les -er h)n*re*th
of a hectare .a"ainst &15/I orchar*s stae* at #%5 ro)+les, 6)t free>
mar8et -rices fell to a m)ch "reater e@tent than this0 an* the ta@ rate
char"e* on this nominal val)ation was several times increase*0
event)all reachin" #( -er cent to <' -er cent, :hereas in #$<& the
ta@ on an income assessment of 10555 ro)+les was 1<5 ro)+les0 +
#$1# it ha* risen to '(5 ro)+les,K The hi"h ta@es le* to -easants
re*)cin" their c)ltivation an* livestoc8, :hen 7hr)shchev
remonstrate* with Stalin0 an* sai* that -easants were cho--in"
*own fr)it trees to avoi* the ver
A)ricultural Prices and Peasant "ncomes !-
heav ta@ on them0 Stalin re-lie* .or so 7hr)shchev sai* in later
ears/ that 7hr)shchev was ")ilt of a D-o-)listD 4narodni15
*eviation in his attit)*e to -easants,
#'
The "rowth of livestoc8
n)m+ers slowe* *own0 an* n)m+ers of cows remaine* static0 or
fell0 after #$<$0 -artl +eca)se of lac8 of fo**er for collective
livestoc80 +)t es-eciall owin" to the fall in -rivate livestoc8
ownershi- *)e to ta@es an* also to centrall im-ose* limitation on
-ast)re facilities, N)m+ers of -rivate livestoc8 in #$1( were far
+elow -re>war levels0 as the followin" ta+le shows?
;i:estoc, o5ned =+ ,ol,hoE pesnts
!per 1&& households%
194& 19/@
2ttle 1&& 04
!co5s% !44% !//%
Sheep nd $ots 144 00
Pi$s 4/ .1
(Source: 2ommunist, No. 1, 19/4.%
6etween 2an)ar #$15 an* 2an)ar #$1( the n)m+er of cattle in
-rivate ownershi- fell from ($,5 to (&,( million .incl)*in" those
owne* + -ersons other than 8ol8hoF -easants/,
6)t -easants who sol* their cows or -i"s0 or eliminate* -otato
-lantin"s0 face* other severe tro)+les, For their *)t to ma8e
com-)lsor *eliveries to the state on acco)nt of their -rivate
hol*in"s was not *e-en*ent on the -ossession of livestoc8 or the
c)ltivation of the cro- in E)estion0 an* these o+li"ations were
-artic)larl onero)s in these ears, Th)s ever ho)sehol* ha* to
*eliver0 on avera"e0 (#5>(15 litres of mil8 a earK .also meat0
ve"eta+les0 e""s0 wool0 etc,/, The ha* to +e"0 +orrow0 or +) this
mil8 if the ha* no cow, Onl C)st over half of 8ol8hoF ho)sehol*s
ha* cows,
7ol8hoF mar8et sales were still at a hi"h level0 *es-ite the fall in
-rices in the -erio* #$<1>150 as the followin" fi")res show .the
#$<%>$ fi")res *o not seem to +e availa+le/?
3io (ecover- and (eaction
7ol8hoF mar8et t)rnover 4milliard old ro%"les5
#$<5 ($,#U
83 <$,(
84 15,'
85 1&>4
U Earlier so)rces "ave this fi")re as <#,(,
4So%rce: Sovets1aya torgovlya .Moscow0
#$1%/0 -, #$,/
Since total cash income for collective wor8 even in #$1( was onl
#(H milliar* ro)+les it is o+vio)s that at this *ate the s)+si*iar
-rivate economies of the -easants s)--lie* the lar"er -art of their
incomes,
However0 it m)st never +e for"otten that there were "reat re"ional
variations, Some 8ol8hoFes +enefite* from hi"her -rices for
in*)strial cro-s? for instance in the cotton>"rowin" farms in Central
Asia, Others ha--ene* to +e locate* within eas reach of a +i" cit
an* ma*e most of their mone .as *i* -easants too/ o)t of sales in
the free mar8et, 6)t 8ol8hoFes locate* far from cities an* com-elle*
to s-ecialiFe in foo* cro-s an* livestoc8 were in a state a--roachin"
+e""ar, Man -easants fle*, The -o-)lation of s)ch r)ral areas
*ecline* ra-i*l, To cite 7hr)shchev a"ain? DOne wo)l* "o thro)"h
a villa"e an* loo8 aro)n*0 an* have the im-ression that Mamai an*
his OTartarP hor*es ha* -asse* that wa, Not onl was there no new
constr)ction0 +)t ol* str)ct)res were not re-aire*,D
(5
+o$e *roduction #ata
It is har*l s)r-risin" that0 after recoverin" from war *ama"e0 Soviet
a"ric)lt)re remaine* in a ver wea8 state )ntil a *rastic chan"e of
-olic occ)rre* after StalinDs *eath, There is no esca-in" the
concl)sion that he *elae* lon">necessar chan"es of -olic + his
o+stinatel hostile attit)*e to the -easantr,
In Octo+er #$1(0 a ear of fairl "oo* weather0 Malen8ov .Stalin
was sittin" alon"si*e him/ anno)nce* that the "rain -ro+lem ha*
+een solve*0 with a harvest of over ' milliar* #oods,
"nternal Reor)ani9ations !11
i.e. 1(& "illion tons. )elit+ 5s :er+ di##erent. 7ere re the
rele:nt statistics !o"ittin$ the =d +ers 194/-4, lred+ re#erred
to%G
194& 1941 1940 1949 19/& 19/1 19/.
(million tons)
Grin hr:est, cli"ed
!=iolo$icl% 119 3 11/ 1.4 1.4 1.1 1(&
Grin hr:est, rel 9/.4 4/.9 41.. 1&.. 01.. 10.1 9...
Pottoes 14.1 14./ 9/.& 09.4 00.4 /0.1 49..
2otton ... 1.1 ... ../ (./ (.1 (.0
(million head)
2o5s .0.& .(.& .(.0 .4.. .4.4 .4.( .4.9
(Source: "ar. kho(., 3%#, p. (1&U Pra'da, .& <nur+ 1949, 10 <nur+. 19/&,
.4 <nur+ 19/1,.9 <nur+ 19/..%
The m)ch +etter -erformance of cotton is0 of co)rse0 *irectl to +e
lin8e* with the hi"her -rices an* "reater incentives,
"nternal Reor)ani9ations
In Fe+r)ar #$15 it was *eclare* that the 2veno .Dlin8D/ sstem of
or"aniFin" farm la+o)r was +ein" over>)se*0 an* that the D+ri"a*eD
sho)l* +e the fo)n*ation of wor8 in the fiel*s, This seems to have
+een -art of a move to -)sh An*reev0 an ol* Stalinist stalwart0 o)t
of his -osition as the senior -art official in char"e of a"ric)lt)re,
The -oint of the controvers was a--arentl as follows .Da--arentlD
+eca)se this was not a -erio* in which real ar")ment was hear* or
*e+ates were -ossi+le/, The Fveno was a small "ro)- of -easants0
-ro+a+l +etween si@ an* ten -ersons0 who were "iven a -artic)lar
area of lan* to c)ltivate or a -artic)lar Co+ to *o, An*reev favo)re*
this +eca)se it was a wa of avoi*in" Dlac8 of -ersonal
res-onsi+ilitD 4o"e2lic"1a5 an* facilitate* -ament + res)lts, A
+ri"a*e was m)ch lar"er0 often )- to #55 stron"0 )n*er a D+ri"a*ierD,
The tro)+le seems to have +een *)e to e@cessive s)+*ivision of
tas8s an* lan*0 which ma have im-e*e* the o-eration of lar"e>scale
mechaniFation0 in "rain
3i2 (ecover- and (eaction
fannin" es-eciall0 an* also to the fact that ver small "ro)-s co)l*
+e mem+ers of one famil an* so acE)ire a -ro-rietar feelin" to
the +it of lan* allocate* to them, 6ri"a*es were henceforth to +e the
+asis of o-erations an* of -ament + res)lts too0 tho)"h the Fveno
as a )nit within the +ri"a*e contin)e* to e@ist, An*reev a-olo"iFe*
for his errors,
Shortl afterwar*s there was another an* m)ch lar"er sha8e>)-, It
was *eci*e* that the 8ol8hoFes were too small, In 2an)ar #$15
there were over (150555 of them, 7hr)shchev0 who ha* recentl
move* to Moscow from the U8raine0 a--ears to have +e")n a
cam-ai"n of amal"amations, 6 the en* of the ear the n)m+er of
8ol8hoFes was halve*, The -rocess contin)e* in s)+seE)ent ears,
:h amal"amateG Two reasons seem to have +een -re*ominant,
One was the )n*o)+te* fact that in the northern half of R)ssia the
avera"e siFe of 8ol8hoFes was small0 m)ch too small to -ermit the
intro*)ction of the then fashiona+le travo-ole cro- rotation
scheme, The secon* was lac8 of control, It was not so *iffic)lt to
fin* relia+le 8ol8hoF chairmen if there were to +e fewer of them0
local -art secretaries ha* their tas8 sim-lifie*0 the MTS ha* fewer
8ol8hoF a*ministrations to *eal with0 a m)ch hi"her -ro-ortion of
8ol8hoFes co)l* have -art "ro)-s, A *ecision on amal"amations0
ta8en + the central committee on
86 Ma #$150 em-hasiFe*0 as is c)stomar in s)ch cases0 that the
-rocess m)st +e Dvol)ntarD, As )s)al0 it was not, In*ee*0 on
87 2)l #$15 the central committee ha* to *eman* meas)res a"ainst
the sla)"hter of livestoc8 which accom-anie* Dthe wor8 of enlar"in"
small 8ol8hoFesD,
(#
These amal"amations were )n*o)+te*l lin8e* in 7hr)shchevDs
min* with the conce-t of Da"ro>townsD0 or new lar"e )r+an
settlements to which -easants wo)l* move from their ol*>fashione*
villa"es an* hamlets, After some -re-arator -)+licit for the i*ea
7hr)shchev wrote an article in Pravda -raisin" a"ro>towns, The
ne@t *a the article was *isowne* + the *evice of an e*itorial note
to the effect that it was for *isc)ssion onl,
((
Shortl afterwar*s
minor officials criticiFe* the -ro-osals for their Dcons)mer>
orientate*D a--roach0 at a time when more -ro*)ction was nee*e*,
9ater the Da"ro>townD was attac8e* + Malen8ov0
Prices and .a)es !1!
s-ea8in" to the nineteenth -art con"ress in Octo+er #$1(, There
were some "ro)n*s for his criticisms, Con*itions in #$15>1( were
not s)ch that one co)l* contem-late )-rootin" the -easantr an*
+)il*in" tho)san*s of mo*ern )r+an>t-e settlements for them to
live in, The -ro-osal remin*s one of meas)res to resettle -easants
ta8en + Cea)sesc) in Romania .an* also of the movin">o)t of
-easants from small hamlets in the USSR )n*er 6reFhnev/, In
-ractice nothin" ha--ene*0 an* -easants went on livin" in their
somewhat -rimitive villa"es, 6)t the effect of amal"amations was
to ma8e 8ol8hoF mana"ement more remote0 +oth fi")rativel an*
-hsicall0 an* to com-licate trans-ort an* or"aniFation on the
lar"er farms,
Th)s the a"ric)lt)ral sit)ation in StalinDs last ears was e@acer>
+ate* + ill>C)*"e* interventions of a)thorit0 e@cessive centraliFa>
tion of *ecisions0 e@tremel low -rices0 ins)fficient investment
an* lac8 of a*eE)ate incentives, Hi"h ta@ation0 levie* on -rivate
c)ltivation0 *i* f)rther *ama"e, These concl)sions are now ac>
ce-te* + ever Soviet scholar, A fo" of inflate* statistics an*
misinformation .or censorshi-/ hi* the tr)e state of affairs at the
time from all +)t the ac)test o+servers,
*rices and .a&es
There is a remar8a+le -arallel +etween the co)rse of -rices in
#$&(>% an* in #$<1>$, IU
#
+oth cases incomes e@cee*e* -lan0
costs rose0 wholesale -rices of +asic in*)strial -ro*)cts were hel*
*own an* lar"e s)+si*ies -ai*, Meanwhile rationin" of cons)mersD
"oo*s was accom-anie* + the emer"ence of ver hi"h Dcommer>
cialD -rices0 an* the a+olition of rationin" was -rece*e* + lar"e
increases in the ration -rice0 c)lminatin" in the fi@in" of )nifie*
-rices0 somewhat +elow the hi"h DcommercialD levels, A ear or
two later an in*)strial -rice reform so)"ht to eliminate s)+si*ies
+ means of a ver lar"e increase in -rices of +asic in*)strial
materials an* f)els, Precisel this ha--ene* in the first -ost>war
ears0 as in the aftermath of the "reat lea- forwar*,
To *eal first with in*)strial wholesale -rices, Costs rose ra->
i*l0 an* s)+si*ies +ecame intolera+l hi"h0 since man -rices
!11 Reco0ery and Reaction
.for instance0 for coal0 tim+er0 metals/ were half or even +elow half
of the cost of -ro*)ction, The followin" fi")res s-ea8 for
themselves?
Su=sidies to industr+
(milliards of roubles)
194/ 1(-9
1944 ./.0
C941 (4-1
1940
41..
1949
..9
4So%rce: Malafeev0 htoriya
tsenoo"ra2ovaniya v SSSR
.Moscow0 #$%</0 --, (<%0(1(,/
From # 2an)ar #$<$ in*)strial wholesale -rices were increase*
+ an avera"e of %5 -er cent0 +)t tim+er0 coal0 iron an* steel -rices
ha* to +e raise* + & to < times, Frei"ht char"es were also raise*,
One effect0 as we shall note when we *isc)ss finance0 was to
increase -rofits as a so)rce of reven)e an* *iminish the share of
t)rnover ta@0 which was also +ein" c)t +ac8 as a res)lt of re*)ctions
in retail -rices, T)rnover ta@ on -ro*)cersD "oo*s was a+olishe*0
e@ce-t on oil an* electricit,
In #$15 two -rice re*)ctions were *ecree*0 an* avera"e in*)s>
trial -rices fell + (5,& -er cent,
(&
F)rther c)ts in #$1( +ro)"ht
wholesale -rices &5 -er cent +elow #$<$ levels, These c)ts co)l*
have +een a reaction to the arrest of =oFnesens80 who ha* +een
res-onsi+le for the increases, Malafeev ar")e* that the #$<$
increases were Dclearl e@cessiveD0 an* another Soviet analst0
7on*rashev0 attache* some wei"ht to the efforts of ministries to "et
hi"her -rices acce-te*0 to D")arantee for themselves )n-lanne*
acc)m)lationsD,
(<
None the less0 some of the re*)ctions were -lainl
)nso)n*, Th)s a (1 -er cent c)t in the -rice of sawn tim+er in #$150
when even in #$<$ the tim+er in*)str still reE)ire* a s)+si*0 can
har*l +e *escri+e* as reasona+le,
The -ict)re is ver *ifferent in*ee* re"ar*in" retail -rices, :e
have seen that in #$<< the *)al -rice sstem was intro*)ce*, As
Prices an* :a"es &#1
in #$&(><0 there was a low DrationD .or DnormalD/ -rice0 an* a ver
m)ch hi"her DcommercialD -rice0 which was close to the free>
mar8et -rice, No Soviet so)rce has +een fo)n* which cites the
commercial -rices at this -erio*0 an* Malafeev0 on whom we
*rew co-io)sl for evi*ence on the -rices of the earl thirties0
*evotes e@actl one line to the fact that commercial -rices were
intro*)ce* in #$<<0 an* *oes not E)ote a sin"le instance, It is
therefore necessar to refer to evi*ence collecte* + the US
Em+ass in Moscow0 an* -)+lishe* in the Monthly La"or Revie
in 2)l #$<4, In 2)l #$<<0 accor*in" to this so)rce0 the ration
-rice of +eef was #< ro)+les -er 8ilo0 the commercial -rice &(5
ro)+les .three wee8sD wa"es for an avera"e wor8erH/, The ver
scarce s)"ar was 1,15 ro)+les on the ration0 415 ro)+les in
commercial stores,
The sstem contin)e* thro)"h #$<10 tho)"h the commercial
-rices were re*)ce*, In #$<% it was inten*e* to eliminate m)lti-le
-ricin" an* to a+olish rationin", However0 this -rove* im-ossi+le
+eca)se of the e@tremel -oor harvest of that ear an* it was
anno)nce* on (' A)")st #$<% that *e>rationin" wo)l* +e -ost>
-one* for a ear, It was anno)nce* in Se-tem+er #$<% that as a
first sta"e ration -rices wo)l* +e s)+stantiall increase*0 an*
commercial -rices c)t, This *iminishe*0 +)t *i* not come near
a+olishin"0 the *ifference +etween them, Accor*in" to the a+ove
so)rce0 ration -rices rose as follows?
)tion prices Ne5 rtion
up to Septe"=er prices
1944
(roubles per kilogram)
)+e =red 1.&& (.4&
Bee# 14.&& (&.&&
Su$r /./& 1/.&&
Butter .0.&& 44.&&
>il, ../& 0.&&
Commercial -rices were m)ch lower com-are* with #$<1? th)s
+eef cost $5 ro)+les .a"ainst #<5/0 s)"ar 45 .#15/0 still well a+ove
the ration -rice +)t no lon"er astronomicall so, There was a
similar -attern for man)fact)re* cons)mersD "oo*s,
31: (ecover- and (eaction
In com-ensation for the ver lar"e increase in the -rices of
ratione* commo*ities0 on which the lower>-ai* wor8ers ha* almost
totall to rel0 there was the so>calle* D+rea* s)--lementD wa"e
increase, The ma@im)m increase0 no ro)+les a month0 went to the
lower>-ai*, The mi**le>"ra*e wor8ers "aine* $5 ro)+les, Those
earnin" over $55 ro)+les -er month receive* nothin" e@tra, Perha-s
it was s)rmise* that the +etter>-ai* "ro)-s +enefite* from the fall in
DcommercialD -rices0 which the alone co)l* affor*, Retail -rices at
this -erio*0 reflectin" the ac)te shorta"es .of everthin"/0 were
e@cee*in"l har* on the lower>-ai*, Even incl)*in" the increase0
man of the less>s8ille* wor8ers were earnin" )n*er &55 ro)+les a
month .as is evi*ent from the n)m+er of those who +enefite* from
minim)m>wa"e le"islation ten ears later when the minim)m was
fi@e* at &55/, For them life was harsh in*ee*,
Hi"h commercial -rices s)rvive*0 +eca)se there was an e@cess
amo)nt of mone in circ)lation0 m)ch of it a -ro*)ct of wartime
inflation0 an* the "overnment *eci*e* that the a+olition of rationin"
ha* to coinci*e with a c)rrenc reform, A c)rrenc reform was *)l
*ecree* on #< 3ecem+er #$<4, All cash in the -ossession of
in*ivi*)als was e@chan"e* in the ratio of #?#50 so that cash hoar*s
lost the +)l8 of their val)e0 an* man a -easant fo)n* his wartime
savin"s wi-e* o)t, However0 all hol*in"s in savin"s +an8s +elow
&0555 ro)+les were e@chan"e* at face val)e0 #?#0 with lower ratios
for lar"er s)ms, .The -easants sel*om )se* savin"s +an8s,/ All state
+on*s were converte* at the ratio of #?&0 i,e, +ecame worth a thir* of
their val)e .an* were converte* into +on*s carrin" a lower rate of
interest0 ( -er cent/, This reform m)st not +e conf)se* with the Dnew
ro)+leD .or Dnew francD/ reforms of s)+seE)ent ears0 which
increase* the val%e of the ro)+le ten>fol* .or the franc #55>fol*/,
Incomes remaine* )nchan"e*? a salar of #0555 ro)+les in
Novem+er #$<4 was still #0555 ro)+les in 2an)ar #$<', So the
o-eration eliminate* the +)l8 of cash hol*in"s0 an* "reatl re*)ce*
+on* *e+ts, Sim)ltaneo)sl rationin" was en*e*, The state ha*
acc)m)late* eno)"h material reserves to a+olish DcommercialD -rices
an* in some cases to fi@ the "eneral level of )nifie* retail -rices a
little +elow the
Prices and .a)es !15
"reatl increase* ration -rices, Re +rea*0 so vital to the -oorer
strata0 was re*)ce* to &,55 ro)+les -er 8ilo0 from &,<5 ro)+les, The
net effect was an overall re*)ction of #4 -er cent in state retail
-rices,
(1
The new -rices were realistic0 on the whole0 as is shown +
the fact that free>mar8et -rices in #$<' were at or sometimes even
+elow those r)lin" for foo*st)ffs in state sho-s,
Th)s the Soviet lea*ershi- ha* the co)ra"e .or the nerve/ to
im-ose -rices which f)ll reflecte* the "reat all>ro)n* shorta"es
which characteriFe* the first -ost>war ears, The net effect on real
incomes ma +e calc)late* + reference to Malafeev? his -rice
in*e@ for #$<4 was &(# .#$<5 M ioo/,
(%
The #$<% avera"e is now
8nown to have +een <41 ro)+les -er month, Allowin" for the
increase in the thir* E)arter of #$<% this s)""ests a #$<4 avera"e of
-erha-s 115 -er month0 or %0%55 -er ann)m, This "ives a wa"e
in*e@ of a+o)t #%10 an* a real wa"e in*e@ for the ear of onl 1#, .It
is tr)e that -rices of services increase* + less than those of "oo*s0
+)t0 if acco)nt is ta8en of the man shorta"es which are not
reflecte* in -rice in*ices0 con*itions were f)ll as +a* as is in*icate*
+ the in*e@,/ 6)t from 3ecem+er #$<4 con*itions im-rove*,
The -ractice of virt)all com-)lsor +on* s)+scri-tions contin>
)e* in these ears0 re-resentin" a f)rther +)r*en of three to fo)r
wee8sD wa"es0 when it was ver har* to ma8e en*s meet,
However0 as the flow of cons)mersD "oo*s increase* faster than
the rise in wa"es0 the Soviet a)thorities were a+le to re*)ce -rices in
s)+seE)ent ears, Prices were c)t ever s-rin" from #$<' to #$1<,
6 March #$15 the avera"e re*)ction in retail -rices was <5 -er
cent0 com-are* with the last E)arter of #$<4, The -rice of re +rea*0
which ha* +een &,55 ro)+les in 3ecem+er #$<40 was re*)ce* to
#,<5 ro)+les + #$15, :a"es rose0 to an avera"e of 40%%' ro)+les
-er ann)m in #$150 re-resentin" an increase of ro)"hl #% -er cent
over #$<40
(4
an* there was in*ee* a shar- an* stri8in" recover in
livin" stan*ar*s, However0 e@a""erate* claims have +een ma*e +
Soviet statisticians, Th)s incomes of Dwor8ers an* -easantsD in #$15
were re-eate*l alle"e*0 to have +een %( -er cent a+ove #$<5, Yet0
as we have seen0 the -easantsD incomes were a*versel affecte* +
"overnment -olicies0 while
!1& Reco0ery and Reaction
real wa"es ha* +arel reache* #$<5 levels .the wa"e in*e@ stoo* at
#$#0 the -rice in*e@ at #'%0 accor*in" to Malafeev/, One m)st
allow for social an* other services0 +)t even so an increase of %( -er
cent is -lainl o)t of the E)estion,
After #$15 the -ict)re is com-licate* + a "rowin" *is-arit
+etween state an* free>mar8et -rices0 *)e to the fact that official
-rice c)ts were +eon* the economicall C)stifie*, Th)s + #$1&
free>mar8et -rices were ro)"hl &5 -er cent a+ove official retail
levels, :a"es contin)e* to increase0 an* m)st have reache* '0#55
ro)+les -er ann)m0 while the official retail -rice in*e@ fell to #<%,
Ta8in" into acco)nt the ver hi"h free>mar8et -rices of #$<5 .the
were then 41 -er cent a+ove official -rices/ an* the relativel sta+le
-rices of services .rents0 etc,/0 Soviet official so)rces claime* a cost>
of>livin" in*e@ of #(( .#$<5 M #55/ an* that real wa"es in #$1&
were %1 -er cent a+ove #$<5, This was -lainl a s)+stantial
e@a""eration0 o)t of line with the -)+lishe* vol)me of retail sales
an* of the o)t-)t of cons)mersD "oo*s, However0 there certainl was
an im-rovement in real wa"es0 tho)"h over ver low levels, These
"ains were ver )nevenl *istri+)te*, :hile0 as we have seen0 the
#$<% wa"e increase ha* the effect of re*)cin" *ifferentials +etween
low>-ai* an* hi"h>-ai*0 there was no sstematic revision of wa"e
rates0 an* *rift an* inter>ministerial com-etition for la+o)r le* to the
emer"ence of ver mar8e* *iscre-ancies an* illo"icalities0 which0 in
the a+sence of a Ministr of 9a+o)r0 was no oneDs res-onsi+ilit to
correct, Not )ntil #$1% was there a move to +rin" or*er into the
wa"es str)ct)re,
To some e@tent this was facilitate* + the severe +)r*ens -lace*
on the -easants, One m)st also ma8e allowance for the ver "reat
shorta"e of ho)sin"0 which the mo*est +)il*in" -ro"rammes of
these ears *i* nothin" to reme*, Stalin was at this sta"e fon* of
enco)ra"in" the erection of new s8scra-ers with *ecorate* towers0
while maintenance of e@istin" ho)ses was *is"racef)ll ne"lecte*, It
was E)ite normal for a fo)r>room flat to +e occ)-ie* + fo)r
families0 one in each room0 sharin" 8itchen an* +athroom .if an/,
Rents were low0 it is tr)e0 +)t the -ersistence of s)ch con*itions for
a "eneration an* more *i* m)ch to ca)se )nha--iness an* to
coarsen life,
The avera"e #$15 wa"e0 40%%' ro)+les0 was m)ch hi"her than
%inance 319
the %0555 envisa"e* in the five>ear -lan, 6)t the latter was
*rafte* +efore the s)+stantial increases in retail -rices *ecree* in
#$<%0 an* the wa"e increases which accom-anie* them, In the
same wa0 retail tra*e t)rnover for #$15 was -lanne* on the
ass)m-tion of m)ch lower -rices than in fact r)le*, So the
ori"inal -lan was 8noc8e* si*ewas,
A so)rce of -ress)re on "oo*s an* services was the lar"er
n)m+er of Dwor8ers an* em-loeesD in the state sector? &$,(
instea* of the -lanne* &&,1 million, This ca)se* some )n-lanne*
increase in total *is-osa+le incomes0 as well as an e@tra strain on
the ina*eE)ate ho)sin" in towns,
No *o)+t this also contri+)te* to a constant -ress)re on the
-oorl *evelo-e* tra*e networ8, J)e)es were the r)le rather
than the e@ce-tion, StalinDs rationaliFation of "oo*s shorta"es was
freE)entl E)ote* at this time? DThe increase of mass cons)m-tion
O-)rchasin" -owerP constantl o)tstri-s the "rowth of -ro*)ction
an* -)shes it forwar*,D
('
J)e)es therefore co)l* +e ma*e to
seem a -ro"ressive feat)re of a socialist econom,
%inance
3)rin" the war e@tra *irect ta@es re-lace* -art of the t)rnover
ta@es which were lost thro)"h the re*)ction in t)rnover, :e have
seen that these a**itional ta@es were a+olishe* at the en* of #$<1,
Thereafter0 t)rnover ta@ +ecame once a"ain the *ominant so)rce
of reven)e0 -artic)larl after the ver s)+stantial retail -rice
increases of #$<%, Profits were low )ntil after the -rice reform of
#$<$0 which eliminate* the +)l8 of the s)+si*ies an* "reatl
increase* +)*"etar reven)e from -rofits, This is reflecte* in the
fi")res in the ta+le on -, &(5,
It is noteworth that t)rnover ta@ reven)e was more or less sta+le
after #$<'0 while sales of cons)mersD "oo*s rose ver s)+stantiall
in*ee* .retail tra*e t)rnover in #$1( was &$&,% million ro)+les0
#$ -er cent a+ove #$<4 + val)e0 +)t #&1 -er cent a+ove it in
vol)me/,
($
The -rice re*)ctions of those ears were lar"el ma*e
-ossi+le + re*)ctions in rates of ta@ while t)rnover ta@ reven)es
were maintaine* + the increase* vol)me, J)ite clearl0 the ta@
!,- Reco0ery and Reaction
Reven)e
Total
of which? T)rnover ta@
Profits ta@
3irect ta@es
9oan reven)es
1941 1&40 K949 19/B 19/1 19/.
41&./(milliard roubles) 41&-(
(04.. 4(1.& 4...0 499-9
.(9-9 .41-( .4/-/ .(4.1 .41.0 .44.9
...4 .1.. 4... 4&.4 40.& /0./
.0.& ((P ((-1 (/-0 4.9 41-4
./.1 .(-9 .1.4 (1.& (4-/ (/-1
4So%rce: 7, N, Plotni8ov0 Ncher1i istorii "y%d2heta Sovets1ovo (os%davstva
.Moscow0 #$1</0 --, &4$0<%%,/
+)r*en on cons)mersD "oo*s was m)ch lower in #$1( than in #$<4,
The increase in iel* of *irect ta@es was *)e -artl to the im-act
of )nchan"e* income ta@ rates on increase* incomes0 -artl to the
)-war* revision in the Da"ric)lt)ral ta@D levie* on -easant -rivate
-lots .see -, &5'/, 6on* sales were maintaine* at a hi"h level,
This was a -erio* of ma@im)m centraliFation, The +)l8 of state
investments were finance* o)t of the +)*"et, The re-)+licsD -owers
over the financin" of enter-rises create* within their +or*ers were
minimal,
Transport
The reconstr)ction of the railwas after war *ama"e was a "reat
achievement, As statistics cite* .-a"e ($'/ have shown0 the railwas
s)r-asse* their frei"ht -lan, This reE)ire* "reat efforts0 an* in
Se-tem+er #$<' -olitical *e-artments were re>create* on the
railwas,
It m)st +e +orne in min* that over>f)lfilment of trans-ort -lans is
not alwas a si"n of health? it mi"ht mean )nnecessar crossha)ls0
or mista8es in the -lannin" of in*)strial location, In more recent
ears the a)thorities have ri"htl realiFe* this, However0 in the first
-ost>war ears the vol)me of frei"ht carrie* *i* re-resent some
ro)"h in*e@ of recover of the sstem,
Frei"ht was "iven -riorit0 an* -assen"ers witho)t official
reasons for travellin" often face* lon" *elas an* E)e)es, .In fact as
late as #$1%0 when travellin" in the U8raine0 I met -easants
Forei)n Trade? Comecon !,1
who ha* waite* fort>ei"ht ho)rs for a train0 an* then co)l* travel
onl after -ain" a Dsoft>classD s)--lement,/
The eE)i-ment of the railwas ha* +een vastl im-rove* in the
thirties, 6)t the intro*)ction of new i*eas slowe* *own0 -ossi+l
reflectin" the increasin" a"e of 8e -art fi")res0 nota+l
7a"anovich0 who retaine* a 8in* of overlor*shi- with re"ar* to
trans-ort, He a--arentl e@-resse* a -reference for steam traction0
or so his enemies later alle"e*0 an* *iesel an* electrification
*evelo-ments were *elae*,
9ar"e>scale canal constr)ction was )n*erta8en in StalinDs last
ears, The =ol"a>3on canal was one of man s)ch -roCects, It is
*o)+tf)l whether their economic val)e re-ai* the heav e@-en*it)re
involve*,
%orei&n 'rade? o$econ
The Soviet Union emer"e* from the war no lon"er isolate*0 no
lon"er the worl*Ds onl comm)nist>r)le* state, :e have seen how0
in the ver har* first ears of -eace0 the -olic was to *ismantle an*
acE)ire + wa of re-arations anthin" that co)l* +e ta8en from an
e@>enem state0 even if it ha* now +ecome allie* with the Soviet
Union,
Meanwhile0 the col* war was *evelo-in"0 an* this affecte* the
tra*e +ehavio)r of +oth si*es in the conflict, The Marshall Plan
-ro-osals were -)t to a conference in Paris on (4 2)ne>( 2)l #$<4,
Molotov re-resente* the Soviet Union0 which t)rne* *own the
-ro-osals an* e@erte* -ress)re to ens)re that their allies *i*
li8ewise, In retros-ect0 we co)l* sa that the Marshall Plan co)l*
scarcel have +een acce-te* + Con"ress ha* the American
"overnment not -resente* it as a meas)re to com+at comm)nism,
This s)""ests that Molotov co)l* have ca)se* tactical em+arrass>
ment to :ashin"ton + a"reein" to the -lan0 +)t ai* wo)l* not
necessaril have +een "rante* to the USSR if he ha* *one so,
Moscow reacte* to this an* other elements of the col*>war
sit)ation + ti"htenin" its "ri- on the -olitical sstems of the
co)ntries that were now fast +ecomin" its satellites,
!,, Reco0ery and Reaction
As these co)ntries sli* f)rther into a con*ition of -olitical
s)+servience the +ecame s)+Cect to StalinDs will in matters of
tra*in" relations with the Soviet Union, Since there was no
-rece*ent for a theor coverin" tra*e -olic +etween socialist
co)ntries0 an* since the -riorit of the Soviet UnionDs interest ha*
+ecome an article of faith amon" comm)nists at this time0 there
were )neE)al tra*e treaties from which the USSR +enefite*
somewhat one>si*e*l, The e@tent of s)ch +enefits has +een
e@a""erate* + -ro-a"an*ists0 an* cannot +e -recisel meas)re*,
Th)s Polan* s)--lie* the USSR with coal at e@tremel low -rices0
+)t a"ainst this it is necessar to set the fact that the Soviet Union
also s)--lie* Polan* with materials +elow worl* mar8et -rices,
None the less0 the fact that two ministers of forei"n tra*e .in
6)l"aria an* CFechoslova8ia/ were e@ec)te* E)ite s-ecificall for
+ar"ainin" too har* with the Soviet Union s)""ests that +ar"ainin"
was not reall eE)al,
&5
After Y)"oslaviaDs *efection .#$<'/0 Stalin
+ecame *ee-l s)s-icio)s of nationalist *eviations0 an* a "reat
man comm)nists in all East E)ro-ean co)ntries were shot or
im-risone* for "ivin" too "reat wei"ht to their co)ntriesD national
interests,
6)t some sort of answer was nee*e* to the Marshall Plan, The
Soviet Union ma*e a series of "est)res? cre*it a"reements were
ne"otiate* with Y)"oslavia .(1 2)l #$<4/0 6)l"aria .$ A)")st
#$<'/0 CFechoslova8ia .4 3ecem+er #$<'/, Half of the Romanian
an* H)n"arian re-arations *e+ts were written off .$ 2)ne #$<'/,
East !erman re-aration *e+ts were not halve* )ntil Ma #$15, An*
finall the Co)ncil of M)t)al Economic Assistance .Comecon/ was
set )- in Moscow in 2an)ar #$<$,
&#
Y)"oslavia was + then
e@cl)*e* > an* s)+Cect to total tra*e em+ar"o >followin" the Stalin>
Tito +rea8 in #$<',
Comecon in fact le* a slee- an* inactive e@istence )ntil well
after StalinDs *eath0 an* the USSRDs relations with its satellites were
con*)cte*0 at this -erio*0 almost e@cl)sivel on a +ilateral +asis,
Tra*e relations with the :est were meanwhile +ecomin" in>
creasin"l affecte* + the -revailin" -olitical tension, This
c)lminate* in the 7orean war0 an* the im-osition + the :est of
far>reachin" restrictions on tra*e with comm)nist co)ntries, This
Forei)n Trade? Comecon !,!
com-elle* them all to tra*e to an increasin" e@tent with each
other, East !erman an* CFechoslova8ia in -artic)lar ha* hi"hl
*evelo-e* in*)stries0 an* the +ecame maCor s)--liers of machin>
er an* eE)i-ment to the USSR,
The tri)m-h of the comm)nists in China in #$<$ was followe*
+ the "rantin" of s)+stantial cre*its + the Soviet UnionI th)s
on #< Fe+r)ar #$15 the USSR "rante* China a cre*it of ^&55
million at # -er cent interest, These an* other economic ai*
a"reements were accom-anie*0 *)rin" the 7orean war0 +
militar ai* -ro"rammes *esi"ne* to hel- China an* North
7orea,
No ai* a"reements involvin" co)ntries o)tsi*e the Soviet
s-here of infl)ence were ne"otiate* )ntil after StalinDs *eath,
The *ictator too8 the view that the -rocess of *ecoloniFation
was in some sense a fra)*0 that Nehr) was -ro+a+l a :estern
a"ent,
One o** feat)re of the ear #$15 was the *ecision to increase
the nominal "ol* an* forei"n e@chan"e val)e of the alrea*
"reatl overval)e* ro)+le0 from 1,&5 to <,55 ro)+les to the US
*ollar, This ma*e all Soviet -rices m)ch too hi"h, However0
tra*e with :estern co)ntries was con*)cte* in :estern c)rren>
cies0 an* there was no connection at all +etween internal -rices0
forei"n tra*e *ecisions an* the official e@chan"e rate, Or rather
the connection was -)rel one of statistics an* acco)ntanc, The
rate was )se* to convert forei"n c)rrenc into ro)+les0 an* th)s
Soviet e@-ortin" cor-orations0 )n*er the Ministr of Forei"n
Tra*e0 ten*e* to ma8e lar"e losses0 which ha* to +e ma*e "oo*
o)t of the +)*"et0 while im-ortin" cor-orations ma*e lar"e
-rofits0 which were transferre* mostl to the +)*"et, It was0 of
co)rse0 E)ite im-ossi+le to )se the e@chan"e rate as a +asis for
economic calc)lation,
!,1 Reco0ery and Reaction
'he At$os!here o1 3ate-+talinis$? +cience and
*rolitics
A Soviet commentator wrote?
The c)lt of StalinDs -ersonalit ha* a ne"ative effect on the economic
*evelo-ment of the co)ntr, The fact that Stalin *eci*e* all im-ortant
E)estions himself le* to errors in -lans an* the lessenin" of the creative
activit of -art0 -lannin" an* mana"erial or"ansI man E)estions were
*eci*e* witho)t s)fficientl wi*e *isc)ssion amon" the wor8ers0
en"ineer>technicians an* scientists, In -lannin" an* *irection of the
econom over>centraliFation was *ominant, Ins)fficient ste-s were ta8en
to com+at technolo"ical 8now>alls an* conservatism0 which infecte* -art
of the lea*in" ca*res of the -art an* hi"her mana"ement,
&(
:hat -recisel *i* the Soviet critic have in min*G After all0
statistics of "rowth were most satisfactor,
The E)antitative "ains were in*ee* im-ressive, 6)t E)alit an*
technical -ro"ress +oth s)ffere*, Everone was rewar*e* a+ove all
for f)lfillin" o)t-)t -lans0 an* the -lanners0 )n*er -ress)re to
e@-an* -ro*)ction0 -rocee*e* on what has +een calle* Dthe ratchet
-rinci-leD? that more sho)l* +e ma*e of everthin", This le* to
several *efects, Firstl0 the sim-lest wa to -ro*)ce more is to "o on
ma8in" the same *esi"ns, Therefore0 )nless the -artic)lar item was
"iven *etaile* attention at the ver to-0 there was a mar8e* ten*enc
to "o on ma8in" o+solete eE)i-ment, Secon*l0 the #attern of
-ro*)ction was to a "reat e@tent froFen? th)s the o)t-)t of coal0 oil
an* electric c)rrent was increase* in li8e -ro-ortions0 whereas in
America non>soli* f)els were ma8in" s-ectac)lar relative "ains,
New -ro*)cts0 s)ch as -lastics an* snthetics0 or a new an* hi"hl
economical f)el0 nat)ral "as0 were ne"lecte*, S)ch *efects ha* other
contri+)tor ca)ses, Th)s -lannin" + Dmaterial +alancesD0 li8e the
)se of in-)t>o)t-)t ta+les0 is of its nat)re +ase* on -ast e@-erience
an* is th)s DconservativeD, Also the ministerial sstem of a*ministra>
tion le* to com-etition +etween ministries for investment reso)rces0
an* in the a+sence of an )sa+le or reco"niFe* economic criteria of
choice0 investments often went to in*)stries with most
The Atmosphere of 6ate=Stalinism !,*
-olitical -)ll0 or at +est were sim-l *istri+)te* -ro-ortionatel, A
wea8 in*)str0 s)ch as chemicals0 was -ro+a+l +eca)se of its ver
wea8ness lac8in" in wei"ht in the str)""le for a share in investment
allocations0 an* so0 while in the :est chemicals were +o)n*in"
ahea*0 this sector remaine* )n*er*evelo-e* in the USSR, Matters
were not hel-e* + the Danti>cosmo-olitanD cam-ai"n0 which le* to
the claims that everthin" ha* +een invente* in R)ssia an* that
there was nothin" to +e learnt in the *eca*ent :est,
A chan"e of -olic reE)ire* *ecisions to +e ta8en at the to-, The
matter co)l* +e E)ite small an* technical, Th)s0 I accom-anie* a
Soviet a"ric)lt)ral *ele"ation in En"lan* in #$110 when StalinDs
-atholo"ical anti>:esternism was over, The saw n)mero)s small
wheele* tractors an* their man attachments an* )ses, Yet0 +eca)se
the c)rrent -art line favo)re* lar"e cater-illar tractors0 the sim-l
*i* not *are to *isc)ss or envisa"e their intro*)ction in R)ssia0
where the were in fact +a*l nee*e*, .A few ears later the were
in mass -ro*)ction in the Soviet Union0 +)t + then 7hr)shchev ha*
+ro)"ht his -ersonal infl)ence to +ear,/ Even ministers at this time
co)l* e@ercise few *ecisionma8in" -owers0 C)*"in" from severe
criticisms which accom-anie* the e@tension of these -owers in #$1&
.see ne@t cha-ter/, 6)t the Dto-D .Stalin an* his imme*iate ento)ra"e/
co)l* ta8e co"niFance of onl a fraction of -ro+lems that arose0 an*
)s)all the co)l* +e -revaile* )-on to ta8e a *ecision on a matter
onl if it ha* "ot +a*l o)t of han*, An* the to- menDs +ehavio)r
was now ver *ifferent from the lea->forwar* -erio*, Stalin himself
was more ar+itrar an* )n-re*icta+le than ever, His closest colla+or>
ators were no lon"er ra++le>ro)sin" innovators of the t-e of
Or*Fhoni8i*Fe0 who co)l* ta8e an* "ive res-onsi+ilit, Stalin stae*
in the 7remlinI his imme*iate s)+or*inates +ecame acc)stome* to a
se*entar life, Even 7a"anovich sat in his office0 an* we have
alrea* seen that he was +lame* for technical conservatism in
matters of rail trans-ort, After the fall of =oFnesens80 the to-
-lanners were mainl rather l)streless +)rea)crats, Tho)"h the mass
-)r"es were not re-eate*0 a "reat man -eo-le remaine* in cam-s0
arrests were still a common occ)rrence0 fear of res-onsi+ilit was
still a "reat ca)se of waste, So was a
!,% Reco0ery and Reaction
ten*enc to D-lease the +ossD + a*o-tin" s-ectac)lar rather than
economicall sensi+le metho*s, So initiative at lower levels was
st)ltifie*0 or *istorte*, Th)s o)t-)t rose0 +)t the -attern an* E)alit
of -ro*)cts0 an* investment -olic too0 no lon"er meas)re* )- to
the nee*s of a + now *evelo-e* in*)strial econom, :hole areas
of +ac8war*ness -ersiste*,
In these ears the -olitical lea*ers so)"ht to esta+lish Dlittle
StalinsD at the hea* of each +ranch of science an* the arts, It is in
this conte@t that 9sen8o was allowe* or enco)ra"e* to *estro
"enetics, Contacts with worl* science were sstematicall +ro8en
off, Even EinsteinDs theories were attac8e*0 +)t in most of the
nat)ral sciences an* in mathematics the to- scientists .who were of
e@cee*in"l hi"h E)alit/ s)ccee*e* in -reservin" their *isci-lines
from serio)s *ama"e,
It was not so with economics, The s)+Cect was alto"ether too
close to -olitics0 an* an serio)s *isc)ssion of economic iss)es or of
o+Cective criteria was inconsistent with the -olitical ar+itrariness
which reache* its -ea8 in the -erio* #$<4>1&, It is tr)e that there
was a +rief false s-rin" in the first -ost>war ear, NovoFhilov
-)+lishe* some ori"inal tho)"hts which foresha*owe* his later
*octrines .of which more in Cha-ter #(/0 an* =ar"a0 a lea*in"
international economist of H)n"arian ori"in0 -ro*)ce* an analsis
of :estern ca-italism which challen"e* tra*itional *o"mas, 6oth
were severel casti"ate* in #$<4>'0 an* =ar"aDs Instit)te of :orl*
Economics was close* *own .+)t neither was arreste*/, Unofficial
*isc)ssion of economic iss)es was f)rther o+str)cte* + an almost
total close>*own on -)+lication of statistics, Incomes0 o)t-)ts0
la+o)r0 even the siFe of -o-)lation0 were hi**en + a )niE)el ti"ht
censorshi-,
In #$1( StalinDs last -)+lishe* wor8 a--eare*, It was entitle*
DEconomic -ro+lems of socialism in the USSRD0 an* was a collection
of his writin"s in connection with the -re-aration of a te@t+oo8 on
-olitical econom, .It ma seem s)r-risin" that Stalin ha* time for
s)ch e@ercises0 +)t it m)st +e recalle* that he as-ire* to the stat)s of
-hiloso-her>8in" an* therefore ha* to -ro*)ce o"iter dicta on a
variet of iss)es, In #$15 it was on lin")istics, No one else was
allowe* an intellect)al innovation,/
In his last wor8 Stalin e@-resse* a n)m+er of tho)"hts which
Stalin's 6ast >ears? The 8ineteenth Con)ress !,5
nee* not *etain )s in the -resent conte@t, However0 three -oints are
*irectl relevant to o)r theme, One was his warnin" to official*om
that the m)st ta8e economic laws into acco)nt >tho)"h he *i* not
clarif how economic laws were to +e i*entifie*, His assertion that
transfer -rices within the state sector were o)tsi*e the am+it of the
Dlaw of val)eD o+sc)re* the iss)e of rational -rices, The secon* was
his or*er to economists to 8ee- o)t of -ractical affairs? DThe rational
or"aniFation of the -ro*)ction forces0 economic -lannin"0 etc,0 are
not -ro+lems of -olitical econom0 +)t of the economic -olic of the
*irectin" +o*ies, The are two -rovinces which m)st not +e
conf)se*,D
&&
Thir*l0 he e@-resse* his +elief in the nee* D"ra*)all to
raise 8ol8hoF -ro-ert to the stat)s of state -ro-ertD an* Dto re-lace
commo*it circ)lation Oi,e, sales an* -)rchases + 8ol8hoFesP + a
sstem of -ro*)cts e@chan"eD,
&<
This is an interestin" throw>+ac8 to
the i*eas of #$(5 an* #$&50 an* ma hel- to e@-lain StalinDs
rel)ctance to consi*er -ro-osals to increase a"ric)lt)ral
-roc)rement -rices .tho)"h he *i* nothin" in his last ears to
convert 8ol8hoFes into state farms/, In the name of the same
-rinci-le he reCecte* s)""estions + the a"ric)lt)ral economists
=enFher an* Sanina to sell or transfer the machiner of the MTS to
the 8ol8hoFes? this wo)l* +e *is-osin" of state -ro-ert to an
inferior0 merel coo-erative "ro)- of enter-rises0 an* f)rthermore it
wo)l* res)lt in increasin" the role of mone an* tra*e0 since the
-ro*)ce han*e* over in -ament for MTS services wo)l* now +e
sol*, He wo)l* have none of it, .The MTS were liE)i*ate* in #$1',/
+talin4s 3ast >ears? 'he Nineteenth on&ress and the %i1th
%ive--ear *lan
Economic -olic in #$1# an* #$1( followe*0 with few e@ce-tions0
the lines alrea* in*icate*, State retail -rices were c)t in March in
+oth ears0 + a total of a+o)t #< -er cent, Yet alrea* in #$15 free>
mar8et -rices were #5 -er cent a+ove official -rices, The *is-arit
increase* stea*il? it was #4 -er cent in #$1#0 (5 -er cent in #$1(,
&1
Evi*entl the increase in real income in these ears cannot +e
acc)ratel +ase* on the )ncorrecte* )se of the
!,& Reco0ery and Reaction
official in*e@ of retail -rices, Price c)ts ha* +ecome a -olitical
ha+it,
The increase* strain in retail tra*e0 an* in the s)--l of some
materials0 was no *o)+t contri+)te* to + the effect of the col* war
on arms e@-en*it)re an* on man-ower, The total stren"th of the
arme* forces increase* from (0'4< million in #$<' to 104%& million
in #$110
&%
an* -res)ma+l m)ch of the increase ha* alrea*
occ)rre* + #$1(, Militar +)*"ets rose ear + ear?
19/& 19/1 19/.
(milliard old roubles)
9O9*;EXPENJI9U)E 4.1.9 4/1./ 414.9
o# 5hichG >ilitr+ 19.4 94.4 11(.0
(Source: *nnul =ud$et reports in ;k. (k%
In real terms the increase was "reater0 since -rices were fallin",
No *o)+t for this reason the o)t-)t of some -ro*)cts which )se*
-otentiall militar -ro*)ctive ca-acit fell in these ears, Th)s
tractor -ro*)ction reache* ##%0455 in #$150 +)t fell to $&0#55 an*
$'0$55 in #$1# an* #$1(0 an* was onl ###0&55 in #$1&, 6)t the
econom was now stron"er than in the late thirties0 an* there was
m)ch less *isr)-tion of civilian -ro*)ction this time,
The new five>ear -lan was s)--ose* to +e"in in #$1#0 +)t no
anno)ncement was ma*e, Thro)"h most of #$1( not even a *raft
five>ear -lan was referre* to, Finall0 a -lan coverin" the five ears
#$1#>1 was -resente* to the nineteenth -art con"ress in Octo+er
#$1( an* a--rove* )nanimo)sl, :e *o not 8now whether an
)n-)+lishe* lon">term -lan e@iste* in #$1#>(0 or whether the
worsenin" of the international sit)ation le* to a -ost-onement in the
*raftin" of s)ch a -lan,
In*)strial o)t-)t was *)e to increase + 45 -er cent in the five
ears0 which re-resente* a slow*own com-are* with the rate of
"rowth claime* for the -revio)s E)inE)enni)m0 +)t this co)l* +e
rea*il e@-laine* + the "ra*)al en* of -ost>war reactivation of
*ama"e* enter-rises, .This was still a si"nificant factor even as
Stalin's 6ast >ears? The 8ineteenth Con)ress !,
late as #$1&0 as is shown + the fact that five factories +e")n or
com-lete* +efore the war an* im-ortant eno)"h to +e mentione* +
name in a Dcatalo")eD of economic events coverin" the -erio* #$#4>
1$ starte* -ro*)ction onl in the first E)arter of #$1&,/
&4
National
income was to rise + %5 -er cent0 real wa"es + &1 -er cent0
-easant incomes + <5 -er cent, A"ric)lt)ral -ro*)ction was to
increase + lar"e -ercenta"es? the "rain cro- + <5>15 -er cent0
meat -ro*)ction + '5>$5 -er cent0 mil8 + <1>15 -er cent, .3etails
of -lan tar"ets an* f)lfilment will +e "iven in Cha-ter 1..%
Yet0 )ntil after StalinDs *eath0 nothin" was *one to increase the
misera+l ina*eE)ate income of the 8ol8hoF -easantr, In*ee*0 the
ta@ screw was act)all ti"htene*0 an* the final twist was "iven in
2an)ar #$1&0 with a *eman* that the Da"ric)lt)ral ta@D .on -rivate
-lots/ +e -ai* earlier in the ear than )s)al,
&'
The livestoc8
-o-)lation +e"an to show a *ownwar* tren*, One is at a loss to
e@-lain s)ch actionsI *i* none of his comra*es *are to tell Stalin
what con*itions were li8e in the villa"esG
6)t there is some evi*ence of the +e"innin" of rethin8in",
Certain -rices > for mil8 an* fla@0 for instance > were increase* in
#$1(0 tho)"h with so little -)+licit that it was necessar to search
for references to an s)ch *ecisionsI
&$
an* -)+lication was allowe*
of ver severe criticisms of the ar+itrar an* inefficient r)ral
-lannin" metho*sI this was i"nore* + the nineteenth -art con"ress
which met in the same month,
<5
There were relativel few or"aniFational chan"es in StalinDs last
two ears, MaCor chan"es ha* to wait )ntil after the *eath of the
"reat *ictator, On 1 March #$1& his henchmen fo)n* themselves
s)ccessors to his herita"e0 a "reat co)ntr0 the secon* militar an*
in*)strial -ower0 et one with man wea8nesses0 )nevenl
*evelo-e*, !reat scientific achievements ha* +een ma*e +)t the
ho)sin" sit)ation was still a--allin"0 cons)mersD "oo*s of -oor
E)alit0 the villa"es -rimitive, Even within a sin"le sector0 "rain
c)ltivation for instance0 lar"e mo*ern com+ine>harvesters were )se*
alon"si*e totall )nmechaniFe* han* o-erations in the -rocess of
cleanin"0 *rin"0 loa*in", :hat was to +e *one a+o)t over>
centraliFation0 lac8 of acce-ta+le .or acce-te*/ investment criteria0
a"ric)lt)ral -rices0 the *efiencies of the tra*in" networ80
!!- Reco0ery and Reaction
the +rea8*owns in material s)--liesG How co)l* it +e tolerate*
that a co)ntr ca-a+le of ma8in" an A>+om+ co)l* not s)--l its
citiFens with e""sG How co)l* necessar initiative +e enco)ra"e*
)n*er con*itions of terrorG
On the morrow of StalinDs *eath his s)ccessors calle* for the
avoi*ance of D-anic an* *isarraD, How the face* the -ro+lems
which the inherite* is the s)+Cect of the ne@t cha-ter .while the
whole E)estion of the Stalin e-och an* its si"nificance is left to
+e *isc)sse* in a concl)*in" assessment/,
1, The Ahrushche0 Era
'he 2alen0ov Interre&nu$
Malen8ov ha* -resente* the -rinci-al re-ort at the nineteenth
-art con"ress0 in Octo+er #$1(, He0 with Molotov an* the
sec)rit chief0 6eria0 forme* a tri)mvirate when Stalin *ie*, The
means + which Malen8ov0 who seeme* to +e the a--ointe* heir0
was manoe)vre* o)t of this -osition +elon" strictl to the realm
of -olitics, 7hr)shchev ha* alrea* +ecome in March #$1& the
senior of the -art secretaries, This0 -l)s the fact that 7hr)sh>
chevDs e@-erience incline* him to wor8 in an* thro)"h the -art
machine0 )n*o)+te*l affecte* economic a*ministration0 an* the
relation +etween "overnmental an* -art or"ans at all levels in
the ears that followe*,
Malen8ov hel* on to the chairmanshi- of the Co)ncil of
Ministers0 an* at first e@ercise* a lea*in" role in economic -olic0
e@ce-t -erha-s for a"ric)lt)re0 where his -artic)lar contri+)tion
to the reforms of #$1& is still o+sc)re0 for reasons to +e note*,
6efore *isc)ssin" Malen8ovDs -olicies0 we m)st note +riefl a
s)**en +)t short>term chan"e in the ministerial str)ct)re0 affect>
in" the econom an* all other +ranches of a*ministration, It
seems that0 in the aftermath of the *ictatorDs *eath0 the -olit>
+)rea) mem+ers *eci*e* to a--oint 8e -art lea*ers to hea*
ministries0 an* for this -)r-ose amal"amate* the ministries,
Th)s the Ministries of A"ric)lt)re0 State Farms0 Cotton>"rowin"
.s)ch a ministr was set )- in #$15/0 Proc)rements an* Forestr
were com+ine*, So were the Ministries of 9i"ht0 Fish0 Foo* an*
Meat an* 3air In*)stries, So were those res-onsi+le for Ferro)s
an* Non>ferro)s Metals, The man ministries in the machiner
an* en"ineerin" sector .other than arms/ were com+ine* into
!!, The Ahrushche0 Era
onl two0 an* so on,
#
This arran"ement *i* not last lon", The
n)m+er of economic ministries +e"an to "row a"ain within si@
months0 -ro+a+l )n*er the com+ine* -ress)re of +)siness an* of
7hr)shchevDs interest in wea8enin" *ecision>ma8in" thro)"h
ministries0 tho)"h their e@act n)m+er an* covera"e chan"e* in the
co)rse of their *isa""re"ation, One chan"e -rove* more *)ra+le? the
transfer +ac8 to !os-lan of the material>s)--l f)nction .carrie* o)t
since the en* of #$<4 + !ossna+ for in*)strial materials0 an* since
#$1# + !os-ro*sna+ in res-ect of cons)mersD "oo*s/, :e shall see
that !os-lanDs 8e role involve* so "reat a +)r*en of res-onsi+ilit
that it was later a"ain *ivi*e* an* re>*ivi*e*0 +)t not )ntil #$%1 was
somethin" ver li8e !ossna+ re>create*0 )n*er ver *ifferent
con*itions,
On ## A-ril #$1& a *ecree of the Co)ncil of Ministers increase*
the -ower of *ecision>ma8in" of ministries .an* of "lav8i hea*s/,
The co)l*0 within state* limits0 alter staff esta+lishment of their
own enter-rises0 re*istri+)te eE)i-ment0 materials an* reso)rces0
a--rove -lans for small> an* me*i)m>scale investment0 an* so on,
Rea*ers of the *ecree were -erha-s s)r-rise* how few of s)ch
*ecisions were within the com-etence of ministries +efore this *ate,
No *o)+t the *ecree was -artl *)e to the fact that senior -art
lea*ers were now ministers0 an* man e@>ministers were now hea*s
of "lav8i, However0 these -owers were somewhat enlar"e* after
#$1<0 an* it ma +e that this ca)se* a wea8ness in coor*ination
which le* to the *rastic reforms of #$14,
The collective lea*ershi- E)ic8l came to the concl)sion that the
E)alit an* E)antit of cons)mersD "oo*s0 of ho)sin"0 of services0
the *e-resse* state of the villa"es an* of a"ric)lt)re0 insistentl
calle* for reme*, F)rthermore0 it was essential to show the -eo-le
that this was in*ee* their intention, Political>str)""le consi*erations
-lae* their role, Th)s Malen8ov came to +e i*entifie* in the -)+lic
min* with a cons)mer>orientate* -olic0 no *o)+t *eli+eratel,
However0 even 6eria0 the "rim -olice chief0 was sai* to have
a*vocate* a Dcons)merD -olic0 in the few months +efore his
comra*es ha* him arreste* an* shot .for E)ite other reasons/, The
win* of chan"e was +lowin" -owerf)ll,
6)t material concessions reE)ire material means to im-lement
The 4alen3o0 "nterre)num !!!
them, One cannot increase cons)m-tion witho)t -rovi*in" more
"oo*s an* services, The first ste-s of Malen8ov s)""este* that he
was willin" to i"nore this sim-le tr)th, Retail -rice c)ts were
anno)nce* on # A-ril #$1&0 an* the far e@cee*e* the C)stifia+le,
On avera"e0 retail -rices fell + #5 -er cent0 +)t man items were
re*)ce* + m)ch more than this0 witho)t "oo* reason, A #1 -er
cent c)t in meat -rices0 for instance0 ma*e no sense when meat
was short, Even more a+s)r* was a 15 -er cent re*)ction in
-rices of -otatoes an* ve"eta+les, The res)lt0 as mi"ht have +een
foreseen0 was E)e)es for man "oo*s0 an* an increasin" "a-
+etween official an* free>mar8et -rices0 a *is-arit which reache*
&< -er cent on avera"e in #$1<0
(
an* which was #55>#15 -er cent
for -otatoes an* ve"eta+les .in #$11 their -rices were increase* to
more reasona+le *imensions/, A retail -rice -olic which0 in the
interests of -)+licit0 i"nore* s)--l>an*>*eman* consi*erations
so com-letel was +o)n* to increase the alrea* "reat *eficiencies
of the tra*e networ8,
Another D-o-)larD act of Malen8ov ma*e matters worse, The
Dcom-)lsor>vol)ntarD +on* sales were shar-l re*)ce*0 from
&1,4 milliar*s in #$1( to #1,& milliar*s in #$1&, This0 to"ether
with a & -er cent rise in avera"e wa"es in that ear0 le* to an
increase in ta8e>home -a of no less than ' -er cent an* so
contri+)te* to the "a- +etween -)rchasin" -ower an* "oo*s
availa+le at esta+lishe* -rices,
&
The +)*"et for #$1& was a*o-te* )n)s)all late0 on ' A)")st,
Its o**ities m)st +e +riefl note*, It incl)*e* an item of e*#endi!
t%re, <&,( milliar*s0 +ein" the DcostD of retail -rice c)ts0 an*
another #&,% milliar*s re-resentin" the DcostD of hi"her a"ric)lt)ral
-roc)rement -rices an* of a"ric)lt)ral ta@ c)ts0 a+o)t to +e
anno)nce*, Never +efore ha* *ecisions lea*in" to loss of reven)e
> for all the a+ove items re-resent reven)e fore"one > a--eare*
in the +)*"et as items of e@-en*it)re, Similar items a--eare* in
the #$1< +)*"et0 +)t never a"ain after Malen8ovDs fall,
Malen8ov it was who anno)nce*0 in his s-eech to the +)*"et
session of the S)-reme Soviet in A)")st0 not onl a re*)ction in
a"ric)lt)ral ta@ +)t also the *ecision to raise -roc)rement -rices
an* to ma8e swee-in" chan"es in a"ric)lt)ral -olic0 *etails of
which were to +e anno)nce* + 7hr)shchev at the -len)m of the
!!1 The Ahrushche0 Era
central committee of the -art in the followin" month .an* which
will +e analse* at len"th when we *isc)ss a"ric)lt)re/, :hen
Malen8ov resi"ne*0 it was state* that he was not the initiator of
a"ric)lt)ral reforms0 in*ee* that he ha* res-onsi+ilit for the +a*
-olicies of the -ast, 6)t + then he was in no -osition to *efen*
himself0 so we cannot 8now the tr)th, His views *)rin" StalinDs
lifetime ma sim-l have +een a reflection of his s)-eriorDs, :hat is
one to ma8e of Malen8ovDs anno)ncement0 in Octo+er #$1(0 that the
"rain -ro+lem was finall solve* with a harvest of #&5 million tons0
when in A)")st #$1& he state* that harvests ha* +een "reatl
e@a""erate* + the D+iolo"ical iel*D statisticsG 3i* he not 8now in
#$1( that his fi")res were E)ite mislea*in"G
Malen8ov -ro-o)n*e* a new in*)strial -olic, He hel* that0
+ase* on the s)ccessf)l creation of a -owerf)l heav in*)str0 it
now was +oth -ossi+le an* *esira+le to s-ee* the "rowth in the
o)t-)t of cons)mersD "oo*s, It was to e@-an* even faster than that of
-ro*)cersD "oo*s, On (' Octo+er #$1& Pravda anno)nce* new
accelerate* -lans for e@-an*in" the o)t-)t of the cons)mersD "oo*s
in*)stries0 over an* a+ove the -rovisions of the five>ear -lan0 an*
am+itio)s tar"ets were anno)nce* for #$1< an* #$110 coverin" a
wi*e ran"e of "oo*s, The ta+le o--osite ill)strates the scale of the
-ro-ose* increases0 an* the e@tent to which the e@cee*e* realit,
Investments in in*)strial cons)mersD "oo*s -ro*)ction in #$1<
were -lanne* at 1,'1 milliar* ro)+les0 a"ainst onl &,#< milliar*
in #$1&>
To meet the increase* *eman*0 ever effort was ma*e to achieve
an imme*iate rise in cons)ma+le o)t-)t, In #$1& cons)mersD "oo*s
-ro*)ction increase* faster than that of -ro*)cersD "oo*s .#& -er
cent a"ainst #( -er cent0 accor*in" to the official statistics/, Total
investment rose ver little0 + onl < -er cent0 as the econom
a*C)ste* itself to new -olicies, In A-ril #$1< there was a f)rther
re*)ction in retail -rices, However0 followin" the me*iocre harvest
of #$1&0 the re*)ctions were almost wholl confine* to
man)fact)re* "oo*s .e,", cotton fa+rics + almost #1 -er cent/, The
one si"nificant c)t in foo*st)ffs affecte* +rea*0 which0 at #,#(
ro)+les0 was now a thir* of the -rice>r)lin" in #$<4, This f)rther
over>stim)late* *eman* for all "oo*s,
The 4alen3o0 "nterre)num !!*
2otton textiles !"illion "etres% -ool
textiles !"illion "etres% Sil, textiles
!"illion "etres% ;inen textiles !"illion
"etres% Knitted under5er !"illion
units% Knitted outer5er !"illion
units% 7osier+ !"illion pirs% ;ether
#oot5er !"illion pirs% Se5in$
"chines !thousnd units% Bic+cles
!thousnd units% >otorc+cles !thousnd
units% -tches nd cloc,s !thousnd
units% )dios nd 9?s !thousnd units%
Jo"estic re#ri$ertors !thousnd units%
6urniture !"illion rou=les%
1952 '955 1955
(actual) ($al%n&') (actual)
5.044 6,267 5,905
190.5 271 252-3
224.6 573 525-8
256-5 406 305-5
234-9 382 3465
635 88 85.1
584-9 777 772.2
237-7 3i8 274-3
804.5 2,615
1,610.9
1,650.4 3,445 2,883.8
104.4 225 244-5
10,486
22,000
19,705
i,33i-9 4,527 4,024.6
33 (5$
2,883) 6,958) 4,911)
@ 19/. nd 19// !ctul% re in 1 <ul+ 19// enterprise 5holesle prices. 9he 19//
plnned #i$ure 5s presu"=l+ in pre-19// prices.
(Sources: Pra'da, .0 Octo=er 19/(U Protnyshlennost' SSSR !19/4%, pp. (.0, (4(,
(/1,(4.,(4(U Protnyshlennost' SSSR !1944%, pp. 4(,411.%
The increase* -lans for cons)mersD "oo*s were over>am+itio)s
an* were a+an*one* E)ic8l after Malen8ovDs fall,
One sim-le +)t -o-)lar reform was anno)nce* on ($ A)")st
#$1&, It lai* *own normal wor8in" ho)rs in all offices0 es-eciall
"overnment offices, Stalin wor8e* at ni"ht0 an* in conseE)ence
officials ha* to a*C)st their ho)rs0 so that man har*l ever saw their
families0 since the ha* to sta at their *es8s in case the +oss or one
of his )n*erlin"s ma*e an inE)ir, At lon" last0 this *istortion was
over,
StalinDs s)ccessors also *eclare* an amnest, The +i" releases of
-olitical -risoners *i* not occ)r )ntil #$110 +)t the *ismissal an*
*eath of 6eria was followe* + a *rastic c)rtailment of -olice
-owers an* the liE)i*ation of the sec)rit a)thoritiesD economic
em-ire,
6efore attem-tin" an assessment of the Malen8ov -erio*0 we
m)st loo8 at the far>reachin" a"ric)lt)ral reforms la)nche* in #$1&>
<0 the first instalment of a series of chan"es,
!!% The Ahrushche0 Era
A&riculture 1953-9? 6hrushchev4s )$er&ence
The chan"es foresha*owe* + Malen8ovDs s-eech at the S)-reme
Soviet were anno)nce* + 7hr)shchev in a s-eech which showe*
him to +e a 8e fi")re in the -ost>Stalin -olitical arena, The central
committee which hear* him an* a--rove* his -ro-osals also "ave
him the formal ran8 of first secretar .later First secretar0 the
ca-ital letter +ein"0 as the sa0 Dnot acci*entalD/,
He +e"an + ma8in" the first fran8 statement since collectiviFa>
tion concernin" the state of Soviet farmin", Pro*)ctivit .-er
hectare0 -er cow0 -er -easant/ was m)ch too low, 9ivestoc8 her*s
com-are* ver )nfavo)ra+l with #$(' an* even #$#%, The tr)th
was hi**en + statistical *istortions0 s)ch as +iolo"ical iel*
.tho)"h correcte* fi")res were not then -)+lishe*I in the -erio*
#$1& to #$1$ "rain statistics were 8e-t secret/, Peasants were -ai*
too little0 an* investments + farms were ina*eE)ate, This was *)e
to the fact that -roc)rement -rices were far too low, Ta@es on
-rivate -lots were havin" the effect of *isco)ra"in" -ro*)ction an*
harmin" -easant interests, A"ric)lt)ral -lannin" was *efective an*
+)rea)cratic0 -roc)rement E)otas were ar+itraril altere* + local
officials, These an* other *efects were to +e -)t ri"ht Din the ne@t (>
& earsD .7hr)shchev was alwas to +e in a hurr+%.
There followe* a stream of meas)res *esi"ne* to transform the
sit)ation, These can +e classifie* )n*er the followin" hea*s?
.a/ Prices
There were ver mar8e* increases in com-)lsor>-roc)rement
-rices an* over>E)ota *eliver -rices for "rain0 -otatoes an*
ve"eta+les0 meat0 *air -ro*)ce0 s)nflower see*I smaller increases
affecte* e""s an* DcontractD -rices for fla@, At the same time the
-roc)rement E)otas were re*)ce* in a n)m+er of cases0 so that a
lar"er -ro-ortion of sales to the state too8 -lace at the hi"her over>
E)ota *eliver -rices, In the f)ll ear #$1< the avera"e -rices -ai*
+ the state for -ro*)ce were as follows?
A)riculture 1*!=D1? Ahrushche0's Emer)ence !!5
!19/. ' 1&&%TTTTTTTTTTTTTTTTTTTTTTTTTTT 19/4
*ll $rins !:er$e% 1(9
6lx #i=re 144
Sun#lo5er 4.4
Pottoes (49
>et, ll t+pes !:er$e% /19
Jir+ produce !:er$e, "il, eFui:lent% .09
)5 cotton 1&.
(Source: >l#e+e:, /storiya tsenoobra(o'aniya '
SSSR !>osco5, 1944%, pp. 41.-1(.%
The effect of all this on the net reven)e of 8ol8hoFes reE)ires
caref)l assessment, Th)s at least half of all "rain *eliveries were in
-ament for MTS services an* so ha* no -rice at all, Increases in
total state -)rchases0 al+eit at hi"her -rices0 sometimes c)t *own
the amo)nt availa+le for sale in the free mar8et at still hi"her -rices,
None the less0 it is E)ite )n*enia+le that the net effect was -ositive
an* a--recia+le,
It will +e note* that commo*ities -revio)sl well treate*0 s)ch as
cotton0 *i* not +enefit from -rice increases, So heav was their
Dwei"htD in total -roc)rements that the avera"e -rice -ai* for all
-ro*)cts in #$1< was onl C)st over *o)+le that of #$1(,
These -rices were somewhat mo*ifie* in #$11>%0 the avera"e
+ein" re*)ce* somewhat for "rain0 "reatl increase* for -otatoes0
ve"eta+les0 s)"ar>+eet, The avera"e -roc)rement -rices for all
-ro*)cts rose from (54 in #$1< .#$1( M #55/ to (1# in #$1%,
<
4"5 Nther material concessions to 1ol1ho2es
The state was now to -a most or all of the trans-ort costs involve*
in *eliverin" -ro*)ce to collectin" -oints, Mar8et char"es were
re*)ce*, Past *e+ts in cash or -ro*)ce of 8ol8hoFes to the state
were written off, Paments for the wor8 of the MTS were to +e
+ase* on re"ionall *ifferentiate* fi@e* amo)nts0 an* no lon"er on
-ercenta"es of the .)s)all e@a""erate*/ harvest, 7ol8hoFes were0
+ the *ecree of (1 A)")st #$1&0 to +e increasin"l lin8e* with the
-)+lic electricit "eneration sstem,
!!& The Ahrushche0 Era
4c/ Ne #olicy toards #rivate #lots
Ta@ was not onl re*)ce* s)+stantiall0 so that its iel* in #$1< was
%5 -er cent +elow the level of #$1(0 +)t its +asis was altere*, No
lon"er *i* -ossession of an animal or the sowin" of a -artic)lar cro-
attract ta@ on the theoretical income *eeme* to arise from them, The
ta@ was levie* henceforth on the area of the -lot0 *ifferentiate* +
re"ion, .It is noteworth that the rate was lower0 )s)all half of the
)s)al rate0 in the case of all territories anne@e* + the USSR in
#$&$><50 in which collectiviFation was com-lete* in #$15,/
Peasants were enco)ra"e* to acE)ire livestoc80 -romise* +etter
-ast)re facilities, Peasant families witho)t livestoc8 were free*
from com-)lsor *eliveries of meat0 an* all s)ch *eliveries +
-easants were re*)ce*, Of co)rse0 the -easants +enefite* alon" with
8ol8hoFes from the hi"her -rices -ai* + the state0 +)t more
im-ortant was their free*om to eat more of their own -ro*)ce or to
ta8e it to mar8et .in which mar8et *)es were c)t/,
4d5 $ncreased in#%ts and investments
A lar"e increase was anno)nce* in the -lanne* o)t-)t of tractors
an* other farm machiner0 also in fertiliFer, It wo)l* +e necessar to
-rovi*e more +)il*in" materials to ma8e a realit of an e@-an*e*
investment -ro"ramme on the farms,
4e5 'isci#line
So as to have the necessar la+o)r availa+le for hi"her o)t-)t an*
investment0 *es-ite the co)nter>attraction of the -rivate -lot0 the
-ower of farms to com-el their mem+ers to -erform their *)ties was
enhance*0 )ntil in March #$1% the -rinci-le of centrall *etermine*
com-)lsor minima of collective wor8 was *ro--e* alto"ether0 an*
8ol8hoF mana"ements were em-owere* to fi@ the wor8 minima
reE)ire* to f)lfil -lans for collective -ro*)ction, Penalties co)l*
incl)*e a re*)ction in the area of the -rivate -lot,
A)riculture 1*!=1? Ahrushche0's Emer)ence !!
4f5 Planning, #ersonnel and the role of the MTS
There were inC)nctions to officials to ta8e local con*itions into
acco)nt0 to cons)lt the 8ol8hoF mana"ement, Man E)alifie*
a"ronomists0 a*ministrators an* other s-ecialists were enco)ra"e*
or *irecte* into a"ric)lt)re, The MTS -ermanent staff was
"reatl stren"thene* in E)alit an* n)m+ers0 an* man of the
-art>time em-loees hitherto +orrowe* for -artic)lar tas8s from
8ol8hoFes were to +e em-loe* -ermanentl, The MTS *vCJL7
was to have im-ortant .+)t )nfort)natel ill>*efine*/ s)-ervisor
-owers over the 8ol8hoFes serve* + him0 an* the -art in r)ral
areas was reor"aniFe* so that it e@ercise* its "reat -owers of
control thro)"h Dsecretaries for the MTS FoneDI that is to sa0 a
f)ll>time -art secretar0 )n*er the first secretar of the raion
.*istrict/0 was +ase* on the MTS an* was res-onsi+le for the
-artDs control over 8ol8hoFes within that MTSDs service area0
alon" with the 8ol8hoF -art "ro)-s, The *e-)t>*irector0 -oliti>
cal0 of the MTS was therefore s)-erse*e* or re-lace* + this
new sstem, At the same time the Ministr of A"ric)lt)re
contin)e* for several ears to +e in char"e of a"ric)lt)ral -lan>
nin"0 thro)"h re-)+lican0 o"last, .-rovincial/ an* raion a"ric)l>
t)ral a*ministrations, .This -arallelism le*0 as we shall see0 to
several more reor"aniFations,/
The net effect of these meas)res on incentives an* on invest>
ment was -ositive, :e shall +e assessin" the first five ears of
7hr)shchevDs a"ric)lt)ral -olicies later in this cha-ter, The
meas)res were accom-anie* + am+itio)s new -ro*)ction tar"ets
an* -lans for increasin" livestoc8 n)m+ers,
1
However0 these E)ic8l ran into *iffic)ltiesI there was too little
fo**er0 an*0 -artic)larl0 far too little fo**er "rain, A -len)m of
the central committee was *evote* to this s)+Cect at the en* of
Fe+r)ar #$1<, .Note how a"ric)lt)ral *ecisions ten*e* to +e
ma*e at -art -len)ms,/ 7hr)shchev ma*e another +i" s-eech,
It was *eci*e* to increase state -roc)rements of "rain thro)"h all
channels0 + &1><5 -er cent, Everthin" was to +e concentrate*
on "ettin" E)ic8 res)ltsI the -hrase Din the ne@t (>& earsD occ)rs
re-eate*l in the resol)tion of the -len)m, Meas)res to increase
iel*s ta8e time0 the +)il*in" of man new fertiliFer factories is a
!1- The Ahrushche0 Era
slow +)siness, The alternative? a s-ectac)lar e@-ansion of sown
area, This le* 7hr)shchev to revive an* then e@-an* a -lan which
ha* alrea* +een a*o-te* .+)t not -)t into effect/ in #$<5?D to +rin"
)n*er c)ltivation at least #& million hectares of vir"in an* fallow
lan* locate* on the so)thern frin"es of the area of a*eE)ate rainfall0
in northern 7aFa8hstan0 the so)thern -arts of Si+eria0 the so)th>east
of E)ro-ean R)ssia, This *ecision was followe* + another *ecree
*evote* solel to this theme,
4
It so ha--ene* that #$1< was a "oo*
ear climaticall in the re"ions concerne*0 the harvest was "oo* on
the relativel small area which co)l* +e sown that ear0 so the -lan
was more than *o)+le*0 to ('>&5 million hectares,
'
This +ecame a "reat cam-ai"n, The o)n" comm)nist or"aniFa>
tion 4;omsomol5 was mo+iliFe* to enco)ra"e o)n" -ersons to "o
east, Some vol)nteere*0 others went after it ha* +een anno)nce*
that this Dvital tas8 set + the -art an* "overnmentD was Dan
im-ortant -atriotic *)tD, Man went for two months to co-e with
the harvest -ea8? (550555 were to "o in #$1%,
$
M)ch of the new
c)ltivation was )n*erta8en + state farms0 since it was har*l
realistic to e@-ect -eo-le to "o to wor8 in a new an* lar"el em-t
area0 with a hi"h *ro)"ht ris80 witho)t an ass)re* income an*
consi*era+le state>finance* investments, .7ol8hoFes alrea*
e@istin" in the area of the cam-ai"n "reatl e@-an*e* sowin" +)t
few new ones were erecte*,/ 6etween #$1& an* #$1% the amo)nt of
c)ltivate* lan* was increase* + &1,$ million hectares0 an area
eE)ivalent to the total c)ltivate* lan* of Cana*a, :orl* histor
8nows nothin" li8e it,
The n)m+er of mi"rants to the newl c)ltivate* areas cannot +e
-recisel *etermine* .an* some ret)rne*/0 +)t -erha-s as man as
&550555 -ersons move* -ermanentl, At first con*itions were
-rimitive0 an* for man ears the -ress -rinte* com-laints a+o)t
lac8 of ho)sin"0 sho-s0 amenities, The cam-ai"n also reE)ire* the
transfer of tractors0 com+ine>harvesters an* other machines0 since
the +i" new farms ha* to +e hi"hl mechaniFe* if the Co+ was to +e
*one with the minim)m of la+o)r, It was also necessar to +)il*
new railwa lines, All this nat)rall reE)ire* reso)rces of which the
ol*>esta+lishe* re"ions were *e-rive*,
The ear #$11 was one of *ro)"ht, I visite* northern 7aFa8h>
The Fall of 4alen3o0 !11
stan in that ear an* saw some of the new farms )n*er )nfavo)ra+le
con*itions, However0 #$1% -ro*)ce* "oo* weather an* an e@cellent
harvest, The area is hi"hl v)lnera+le to *ro)"ht0 an* s)ffers from a
short "rowin" season0 an* the winter snow cover is ins)fficient to
-ermit a)t)mn sowin" as frost wo)l* 8ill the -lants, So there is a
"reat r)sh to sow in the s-rin"0 soon eno)"h to ena+le the "rain to
ri-en, The aim was to "row "rain0 an* almost all the lan* was sown
with s-rin" wheat, 6eca)se it was a -art cam-ai"n0 local officials
vie* with one another to -lo)"h )- most lan*0 an* some E)ite
)ns)ita+le soils were +ro)"ht )n*er c)ltivation, :e shall see that
*an"ers of monoc)lt)re an* soil erosion were i"nore* for too lon",
The a**ition of so m)ch new lan* sown to wheat le* 7hr)shchev
to the secon* sta"e of his "rain cam-ai"n? to -rovi*e fo**er "rain
an* concentrates in the -rinci-al livestoc8 areas0 i,e, in E)ro-ean
territories of the USSR, The cro- he -referre* was maiFe, So the
central committee -len)m of 2an)ar #$11 acce-te* 7hr)shchevDs
-ro-osals to increase the area )n*er maiFe Din the ne@t (>& earsD
from &,1 to no less than (' million hectares, More foo* "rains for
h)man cons)m-tion from the vir"in lan*s wo)l* leave sco-e for the
)se of more lan* in E)ro-ean territories of the USSR for the fo**er
"rain which -romise* the hi"hest iel*s -er hectare0 maiFe .i,e,
corn/,
The maiFe cam-ai"n0 with which 7hr)shchevDs name was
-artic)larl closel associate*0 will receive f)rther analsis later in
this cha-ter,
'he %all o1 2alen0ov
The -olicies o)tline* in the -rece*in" -a"es were +o)n* to lea* to
overstrain, Hi"her incomes in town an* co)ntr0 hi"her -ro*)ction
an* investment -lans for cons)mersD "oo*s0 lar"e a"ric)lt)ral
-ro"rammes0 an e@-ansion of ho)se>+)il*in" an* other cons)mer
services0 an* sim)ltaneo)sl the contin)e* "rowth of +asic in*)str
an* the insistence of the militar that the "reat US s)-eriorit in
aircraft an* in +om+s reE)ire* rectifin"0 this was too vast a
-ro"ramme to s)stain, Malen8ovDs re"ime0 sa--e* -oliticall +
!1, The Ahrushche0 Era
7hr)shchev0 fell +eca)se he was never stron" eno)"h to a*C)*icate
+etween conflictin" claimants on reso)rces, E@actl what finall
*eci*e* the maCorit of the lea*ershi- to "et ri* of Malen8ov is still
not clear0 since no sort of o-en *isc)ssion too8 -lace,
:e 8now0 however0 that the occasion of his *is"race was the
alle"e*l incorrect views he hel* concernin" the -riorit .or rather0
lac8 of -riorit/ of heav in*)str0 of -ro*)cersD "oo*s as a"ainst
cons)mersD "oo*s, This was a -rinci-al acc)sation a"ainst him on
the occasion of his resi"nation in Fe+r)ar #$11, Coinci*entall0
6o#rosy e1onomi1i -)+lishe*0 in its 2an)ar n)m+er0 a slashin"
attac8 on these Dwoe>+e"one economistsD who ha* ma*e the error of
clim+in" on to the +an*wa"on an* who ha* -ro*)ce* ar")ments in
favo)r of the more ra-i* "rowth of cons)mersD "oo*s o)t-)t,
It wo)l* +e E)ite mislea*in" to concl)*e that 7hr)shchev was
a"ainst cons)mersD "oo*s0 since his ver am+itio)s an* e@-ensive
a"ric)lt)ral -ro"rammes wo)l*0 if s)ccessf)l0 -rovi*e foo*0 which
is a cons)mersD -ro*)ct #ar e*cellence- 7hr)shchev allie* himself
with those -lanners an* militar men who consi*ere* that Malen8ov
was )n+alancin" the econom + an over>concentration on in*)s>
trial cons)mersD "oo*s0 an* thereafter he -rocee*e* to em-hasiFe the
citiFenDs material interestsI this was a -olitical necessit after StalinDs
*eath, It is also -erha-s worth sain" that no one0 not even Stalin0
was a"ainst a hi"her stan*ar* of livin", All wo)l* welcome it0 +)t
for lon" -erio*s other -reocc)-ations too8 -riorit,
Malen8ov was s)ccee*e* as -rime minister + 6)l"anin,
7hr)shchev was *ominant in his -osition as First secretar0 +)t0
tho)"h )ntil his fall he too8 -racticall ever maCor -olic
initiative0 he never achieve* .if in*ee* he so)"ht/ the total
*ominance of a Stalin0 an* a n)m+er of ste-s ta8en in the -erio*
#$11>%< are e@-lica+le onl + the fact that he co)l* not alwas
ri*e ro)"h>sho* over the o-inions of his collea")es,
%urther A&ricultural (e1or$s and +uccesses
7hr)shchev )se* his enhance* -olitical -owers to -ress ahea* with
his a"ric)lt)ral -olicies0 an* it m)st +e a*mitte* that )ntil
*$riculture 19/(-0
Stte
Production procure"ent
19/( Y9/4 19// 19/4 19/1 19/0 19/( 19/0
(million tons)
9otl $rin hr:est
?ir$in lnd res
Pottoes Sun#lo5er
0../
.4.9
1..4
..4
0/.4
(1-.
1/-&
CQ9
1&(1
.1.1
11.0
(-0
1./.&
4(-( 94.&
(-9
1&..4
(0.
01.0
..0
<
(4-1
/0.4
04./
4.4
(i-Z
1&.0
S-4 1.0
/4.9
(..0
1-&
..4
6lx &.14 &... &.(0 &./. o-44 &-44 &.1/ &-(9
2otton
>et
>il,
(-9
/-0
(4./
4..
4-(
(0.1
(-9
4-(
4(-Z
4-(
4.4
49.1
4..
1-4 /4-0
4-4
1-1
/0.9
(-9
(-4
1&.4
4-4
/-1
...1
2o5s .4-( ./.. .4.4 .1-1 .9.& (1-4
3 3
Pi$s
Sheep
Gross $riculturl production
.0./ 94-
(
((-( 99-
0
(&-9
99.&
(4-& 1&(-
(
4&.0
1&0..
44-(
1.&..
3 3
!19/( ' 1&&% too 1&/ P1 1(. 1(4 1/1
3 3
(Sources: Sefskoe kho(yaist'o SSSR !>osco5, i94&%, pp. 9&-91, ..4-1, ..0-9U "ar. kho(, 194/, pp. ./9, (./, ((&.
((..((4.(41U "ar. kho(, 19/0, p. 1&1,41&.%
!11 The Ahrushche0 Era
#$1' o)t-)t *i* rise s)+stantiall, Man analsts have e@-resse*
some s)s-icion a+o)t the statistics, The inflate* fi")res of the -ast0
es-eciall the most recent -ast0 ma have +een too *rasticall scale*
*own, The -ress)re on local -art secretaries to re-ort s)ccess ma
have le* to e@a""erations in re-ortin", E@am-les of s)ch
e@a""erations have +een re-orte* from time to time0 s)ch as +)in"
+)tter or meat in sho-s to *eliver it to the state as new -ro*)ction0 or
incl)*in" in "rain o)t-)t what 7hr)shchev himself once *escri+e*
as Dm)*0 ice0 snow an* )nthreshe* stal8sD0
#5
an* other -lan>f)lfilment
re-ortin" *evices of varin" *e"rees of in"en)it, :hile on
occasion there is clearl a case for a**in" a -inch of salt to official
claims0 no one *o)+ts that +oth -ro*)ction an* -roc)rements *i*
rise in the -erio*0 allowin" for the inevita+le ear>+>ear variations
*)e to weather,
In March #$11 a *ecree ostensi+l enlar"e* the *ecisionma8in"
-owers of the 8ol8hoFes, Plans henceforth wo)l* s-ecif *eliver
o+li"ations0 not -ro*)ctionI the e@tent of sown areas an* livestoc8
n)m+ers were to +e a matter for 8ol8hoFes to *eci*e, An en* m)st
+e -)t to centraliFe* *ecisions a+o)t what each 8ol8hoF sho)l* *o,
The Co+ of assessin" an* reconcilin" *raft -lans receive* from
+elow was "iven to !os-lan, This was the first of man +lows to the
-owers of the Ministr of A"ric)lt)re, In -ractice0 as later evi*ence
shows0 *etaile* re")lation from a+ove contin)e*0 +)t -rimaril via
local -art or"ans, As we shall see0 most of the interference with
8ol8hoFes was *)e to cam-ai"ns initiate* + 7hr)shchev himself,
S)-ervision within 8ol8hoFes was facilitate* + a cam-ai"n0 +e")n
in March #$1'0 to sen* to the villa"es0 as 8ol8hoF chairmen0 relia+le
-art men from the towns, These were + no means necessaril
s-ecialists in a"ric)lt)re0 +)t the were "iven Da three wee8sD initial
co)rse an* two monthsD trainin" on the Co+ 4sta2hirov1a53
n
The twentieth -art con"ress a--rove*0 in Fe+r)ar #$1%0 the
si@th five>ear -lan0 an* one of its o+Cectives for i$%5 was a "rain
harvest of #'5 million tons0 an* more maiFe, This was +)t one more
of the over>am+itio)s o+Cectives set +efore a"ric)lt)re, In #$14 the
cam-ai"n +e"an to catch )- the Unite* States in the -ro*)ction of
meat0 mil8 an* +)tter, In the case of meat this wo)l* mean at least
tre+lin" Soviet o)t-)t, :e shall +e e@aminin"
Further A)ricultural Reforms and Successes !1*
the harm *one + en*eavo)rs to f)lfil s)ch im-ossi+le -lans as these
an* to im-ose them on the farms, 7hr)shchev himself to)re* the
co)ntr0 tal8in" to officials an* -easants0 caColin"0 haran")in"0
sometimes *ismissin", Th)s on ' March #$14 he was in 7rasno*ar0
on #5 March at a meetin" at Rostov0 at the en* of the month he was
a**ressin" officials of the central re"ion in Moscow, On ( A-ril he
was in =oroneFh0 s)--ortin" the -romise of a 8ol8hoF chairman to
increase s-ectac)larl o)t-)t of meat an* mil8 -er #55 hectares
.with e@traor*inar in*ifference to consi*erations of cost0 -rices0
la+o)r in-)ts/, Five *as later 7hr)shchev was in !or8 on the
meat an* mil8 cam-ai"n, Yet at this ver time0 as we shall see0
7hr)shchev was en"a"e* not onl in -)shin" thro)"h an immense
in*)strial>-lannin" reform0 +)t was also )n*er heav attac8 from his
-olitical enemies, This0 with all its *efects0 was a form of lea*ershi-
ver )nli8e StalinDs,
An im-ortant *evelo-ment +e"an to "ather s-ee* *)rin" #$14?
this was the transformation .Dvol)ntarD0 of co)rse0 e@ce-t that it was
-art>*irecte*/ of 8ol8hoFes into state farms, In some cases it was a
conseE)ence of efforts to create ve"eta+le>an*>*air state farms
aro)n* +i" cities, In others economicall wea8 an* *e-resse*
8ol8hoFes were ma*e into state farms, In still others0 local -art
secretaries -resse* ahea* with conversions0 either +eca)se the
+elieve* it to +e -art -olic0 or +eca)se it was easier to o+tain
financial hel- from Moscow for state farms, The statistics of chan"e
are as follows .the increase +etween #$1&>% +ein" -rinci-all in the
vir"in lan*s/?
State farmsU\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\\
#$1& #$1% #$%1
Total area sown .million ha,/ #',( &1,& $4><&
Total la+o)r em-loe* .millions/ (,%(,$ ',%
9oss to collective farms .million ha,/
.#$1%>%1/ R R .<4,H/t
9oss to collective farms .million
ho)sehol*s/ .#$1%>%1/ R R .<,1/H
U Incl)*in" other forms of state enter-rise0 t These fi")res "ive the
*ecline in the -erio*0 re"ar*less of ca)se, 4So%rces: Nar- 1ho2-, #$%10 --,
(''0<11I Se&s1oe 1ho2yaistvo .i$%5/0 -, <%,/
!1% The Ahrushche0 Era
7ol8hoF amal"amations were +ein" -resse* at the same time, After
the first wave of amal"amations at the en* of #$15 there were
#(10555, In #$1' n)m+ers of 8ol8hoFes fell to %$0#55 an*
contin)e* to *ecline0 an* their siFe to increase0 *es-ite some
criticism of )nmana"ea+ilit of +i" farms in areas of scattere* small
villa"es, 6 #$'5 there were &%0555,
How *i* all these chan"es affect the incomes of 8ol8hoF
-easantsG Cash *istri+)tions rose from a total #(,< to <4,' milliar*
ro)+les0 or from #,<5 to <,55 ro)+les -er tr)*o*enD0 from #$1( to
#$14,
#(
The -ractice of ma8in" Da*vancesD0 i,e, re")lar -aments at
freE)ent intervals .ever month or ever E)arter/ in a*vance an* on
acco)nt of the en*>ear *istri+)tion0 +ecame the -ractice in the
maCorit of 8ol8hoFes, Paments in 8in*0 on the other han*0
increase* little if at all0 +eca)se of the -ress)re to *eliver -ro*)ce to
the state0 a -ress)re which0 *es-ite re-eate* -romises an*
inC)nctions to the contrar0 was still ar+itraril increase* + local
officials whenever the -roc)rement -lan for the area was
en*an"ere*, In*ee*0 all too freE)entl -art secretaries )n*ertoo8 to
increase the -lanne* *eliveries an* all too often one rea* that
Dover-lan *eliveries are contin)in"D0 as if this sho)l* have +een a
so)rce of -ri*e > which it co)l* have +een0 ha* the *eliveries +een
vol)ntar an* ha* there +een eno)"h left for the nee*s of the
villa"e,
The com+ine* income in cash an* 8in* from collective wor8 rose
from <4,1 milliar*s in #$1( to '&,' milliar*s in #$140K or ro)"hl
from 1,<5 to 4,11 ro)+les -er tr)*o*enD Cold ro)+les/,
Peasant cons)m-tion of their own -ro*)ce certainl rose, Private
livestoc8 hol*in"s increase*0 an* so -rivate o)t-)t of meat in #$1'
was &1 -er cent hi"her than in #$1&0 mil8 over (1 -er cent hi"her,
From # 2an)ar #$1' -rivate -lots were free* of all com-)lsor
*eliver o+li"ations, Sales in the free mar8et fell from 1&,4 to &$,%
milliar* ro)+les +etween #$1( an* #$140 -erha-s +eca)se of lac8 of
time to "et to mar8et as a res)lt of ti"hter control over mem+ersD
time, It is tr)e that there *evelo-e* a new facilit? Dcommission
tra*in"D + coo-eratives0 sellin" -easantsD .an* 8ol8hoFesD/ s)r-l)s
on their +ehalf in the mar8et0 )s)all at -rices a little +elow those
r)lin" in the free mar8et, 6)t
Further A)ricultural Reforms and Successes !15
this sensi+le i*ea ma*e onl slow -ro"ress0 *)e -artl to lac8 of
enter-rise + the coo-eratives an* -artl to -easant *istr)st, It
sho)l* +e mentione* that for the -easant a Co)rne to town meant an
o--ort)nit to +) man)fact)re* "oo*s which were not availa+le in
the r)ral tra*in" networ8, So the ver s)+stantial increase in cash
-aments for collective wor80 an* of cons)m-tion + -easants of
their own -ro*)ce0 was to some e@tent +alance* + insi"nificant
increases in -aments>in>8in* an* a *ecline in the val)e of mar8et
sales,
The effect on incomes of a transfer to state>farm stat)s *e-en*e*
"reatl on the circ)mstances, It will +e recalle* that 8ol8hoF
incomes varie* ver wi*el0 as *i* o--ort)nities to earn e@tra +
free>mar8et sales, In "eneral an avera"e state>farm wa"e of 1&#
.ol*/ ro)+les -er month in #$1'0
#<
-l)s social sec)rit +enefits to
which 8ol8hoF -easants were not entitle*0 was certainl a means of
+etterin" oneDs lot, However0 some relativel -ros-ero)s 8ol8hoFes
were forci+l converte*0 to their mem+ersD cha"rin0 an* once the
ha* +ecome state>farm wor8ers the -easants E)ic8l fo)n* that their
-rivate -lots an* animals were s)+Cect to severe limitations,
In fact0 alrea* in #$1% there ha* a--eare* the first si"n tht the
*evelo-ment of the -rivate sector was worrin" the a)thorities? on
(4 A)")st all towns-eo-le .other than 8ol8hoF mem+ers/ were
s)+Cect to ta@ on an livestoc8 the owne*I this hit s)+)r+an
*wellers, On the same *a -easants were strictl for+i**en to +)
+rea*0 -otatoes an* other foo*st)ffs in state stores to fee* to their
livestoc8,
#1
The *i* this +eca)se of lac8 of other fo**er0 an* also
+eca)se the -rice of +rea* in -artic)lar was low in relation to the
free>mar8et -rice of meat,
Price relativities were in*ee* wron", So0 it +ecame increasin"l
a--arent0 was the -rinci-le of -)rchasin" -ro*)cts at two *ifferent
-rices, For instance0 in #$14 the avera"e E)ota -rice for "rain was
(1 ro)+les -er E)intal0 the over>E)ota -rice '5 ro)+les, In -ractice0
sales at +oth -rices were com-)lsor0 so it was not a matter of
enco)ra"in" vol)ntar a**itional sales, The res)lt of this was that
-oorer farms0 with little to sell over the +asic *eliver E)ota0 were in
effect -ai* less -er )nit than the more s)ccessf)l farms, Over the
co)ntr as a whole -rices -er ton in a
!1& The Ahrushche0 Era
"oo* harvest ear were hi"her than in time of scarcit0 which *i*
not ma8e an 8in* of economic sense, Therefore the creation of a
)nifie* -rice .with Fonal variations/ was *eci*e*,
This *ecision was lin8e* with another0 which concerne* the
MTS, For a lon" time the *)al -osition of the MTS0 as hirin"
a"enc an* a means of -art>state control0 "ave rise to friction, The
MTS were "iven -lans0 in terms of vol)me of wor8 .Dsoft -lo)"hin"
eE)ivalentsD/0 an* the an* the 8ol8hoFes were often at o**sI the
8ol8hoFes wante* a "oo* harvest with a minim)m of -aments in
8in* for the MTS0 the latter trie* to ma@imiFe the o-erations of the
machiner0 since the wo)l* not onl f)lfil the -lan +)t o+tain more
-aments in 8in* an* so increase state -roc)rements, There were
Dtwo masters in the fiel*D0 not infreE)entl at o**s with one another,
7hr)shchev saw sense in the s)""estion0 reCecte* + Stalin in #$1(
.see -, &(4/0 that the MTS +e a+olishe* an* their eE)i-ment sol* to
the 8ol8hoFes .the state farms o-erate* their own machiner from
the +e"innin"/,
The -rice reform an* the win*in" )- of the MTS were *ecree*
to"ether0 followin" the resol)tion of the Fe+r)ar #$1' central
committee -len)m, Prices ha* to +e a*C)ste* to the fact that the
8ol8hoFes were now to sell to the state the "rain .an* some other
cro-s/ formerl han*e* over in -ament for MTS servicesI on the
other han* the 8ol8hoFes ha* to -)rchase machiner an* then
maintain it an* +) re-lacements0 s-are -arts0 f)el0 an* to -a the
em-loees of the MTS0 who ha* receive* state wa"es in whole or in
-art0 an* who were to +e "iven -rivile"e* stat)s within the
8ol8hoFes which the were now to Coin, Re-air Technical Stations
.RTS/ were to )n*erta8e maCor technical tas8s0 on -ament,
The -len)m also *eci*e* to call a 7ol8hoF Con"ress to revise the
8ol8hoF stat)tes0 +)t it *i* not in fact meet )ntil m)ch later,
The res)lts of this reform were0 in retros-ect0 e@tremel *isa->
-ointin", 6)t +efore e@aminin" the reason for this an* the other
)nfavo)ra+le *evelo-ments in a"ric)lt)re after #$1'0 it is necessar
to loo8 at other +ranches of the econom,
Industr-? *lan %ul1il$ent and the New B+iAthC %ive->ear *lan 399
Industr-? *lan %ul1il$ent and the New B+iAthC %ive->ear *lan
#$11 was the last ear of the fifth five>ear -lan0 which ha* +een
a*o-te* with Stalin ver m)ch in char"e, :e have seen that its
in*)strial com-onents were amen*e* + Malen8ov0 +)t these
amen*ments were for"otten after his fall, The 8e in*icators of the
-lan were f)lfille* as follows .with the ne@t five>ear -lan tar"ets
"iven in the last col)mn/?
19/&
K$11 I$1S i$%5
.-lan/ .act)al/ .-lan/
National income .#$15 M #55/
1&& 14& 111
i%of
!ross in*)strial -ro*)ction
1&& 11&
#'1 i%1t
Pro*)cersD "oo*s
1&& 10& 191
i4of
Cons)mersD "oo*s
1&&
D%1 #4% i%ot
Coal .million tons/
.41.1
&4&< &'$$
/9.
Oil .million tons/ &4>$
1&.9
45,'
1(/
Electricit .milliar* 8:hs/
91.. 144.. 11&.. (.&
Pi" iron .million tons/
19..
&&>' &&>& 1&
Steel .million tons/
.1-( 44..
<1>& %',&
Tractors .#1 h,-, )nits/
.44.1 .9..9 (14&
R
Mineral fertiliFer .million tons/ 1>1 1&.( $>4
.&
Cement .million tons/ 1&.. ...4 .../ 11
Commercial tim+er .million
c)+ic metres/ 141.& ./1.. .1..1
(&1
Cotton fa+rics .million metres/ &0'$$ %0(44 10$51
R
:ool fa+rics .million metres/
1//-. .(9.& ./..(
R
9eather footwear .million -airs/
.&(
&_1
.11
R
S)"ar .tho)san* tons/
.,/.(
<0<$i &0<_$
R
Fish .tho)san* tons/ i0411
.,11( .,1(1
R
Total wor8ers an* em-loees
.millions/
4&.4
<%>1 1N>&
R
Ho)sin" .million sE)are metres/
1..4@ 1&/@ 11..9@ .&/@
Retail tra*e t)rnover .in*e@/
1&& 11&
#'$
i1Nt
U In the five ears en*in" in #$150 #$11 an* #$%5 res-ectivel,
##$11 M #55,
4So%rces: Nar- 1ho2-, #$%10 --, #&5>&$0 114I Promyshlennost, SSSR .#$14/0 -,
<&I 'ire1tivy .$. S,e2da Partii #o #yalletnem% #lan% ra2vitiya SSSR na B51#>
Sgody, .#$1(/0 --, &><0 (1I 'ire1tivy .. S,e2da ;PSS #o Shestom%
#yalletnem% #lan% ra2vitiya narodnogo 1ho2yaistva SSSR na =OHD!!DA ggB ..
S,e2da ;PSSstenotchet, =ol, II .#$1%/,/
Note: I am aware that0 since 45 -er cent of in*)strial o)t-)t consiste* of
-ro*)cersD "oo*s0 the i$%5 -lan in*ices for "ross in*)strial -ro*)ction are
inconsistent, 6)t that is how the a--eare* in the -lan,
!*- The Ahrushche0 Era
It is )nnecessar to re-eat et a"ain the ca)tionar wor*s with
re"ar* to a""re"ate in*ices of "rowth, 6)t it is clear that this was a
reasona+l s)ccessf)l E)inE)enni)m0 in E)antitative terms, !rowth
was ra-i*0 -artic)larl in a"ric)lt)ral machiner0 which contin)e*
.)ntil #$1'/ to receive -riorit attention, Total investments
e@cee*e* the -revio)s E)inE)enni)m + $& -er cent0 an* the -lan
+ over & -er cent,
The -re-aration of the si@th -lan was -artic)larl thoro)"h,
Attention was *rawn to the erroneo)s -ractice of confinin" -lan>
*raftin" to a small "ro)- of senior officials, 3)rin" #$11 the nee*
was re-eate*l stresse* to incor-orate the latest technical i*eas0 to
st)* forei"n achievements, Th)s there was an all>)nion conference
of in*)strial staffs in Moscow on #%>#' Ma0 a *ecree on technical
-ro"ress a*o-te* on (' Ma settin" )- the State Committee on New
TechniE)e .!oste8hni8a/I a central committee -len)m of <>#( 2)l
was *evote* to this theme0 an* so on, In the same ear the -owers
of )nion re-)+lics over the economic enter-rises within their
+or*ers0 over the allocation of materials an* over a ran"e of
investment *ecisions were increase* .*ecree of < Ma/, A *ecree of
$ A)")st enlar"e* the -owers of *irectors of enter-rises .in -ractice
there was little chan"e/, 3irectors0 local officials an* even tra*e>
)nion +ranches were to +e +ro)"ht into thoro)"h *isc)ssion of *raft
-ro-osals for the ne@t five>ear -lan, After f)ll cons)ltation !os-lan
was to s)+mit to the central committee 4sic5 its *raft of the five>ear
-lan + # Novem+er
I$11>
#%
Meanwhile0 !os-lan was *ivi*e*0 in 2)ne #$110 +etween the
State Committee on lon">term 4#ers#e1tivnom%5 -lannin"0 still
calle* !os-lan0 an* the State Economic Commission for c)rrent
-lannin"0 8nown as (ose1onom1omissiya-/ No *o)+t these tas8s
were *istinct as well as vast0 +)t this rearran"ement in no wa
hel-e* to ens)re consistenc +etween the lon">term an* c)rrent
-lans0 which is essential if an investment -ro"ramme is to +e
im-lemente*, To carr o)t the "rowin" constr)ction -ro"ramme
more e@-e*itio)sl there were maCor *evelo-ments towar*s in*)s>
trial metho*s an* -refa+rication in +)il*in", S-ecialiFe* constr)c>
tion ministries were create*0 s)-ervise* + the State Committee
'he )cono$ic-*olitical risis B#ece$,er 195:-2a- 1957C 351
on Constr)ction0 whose hea*0 7)cheren8o0 was a *e-)t -remier,
The twentieth -art con"ress *)l a*o-te* the si@th five>ear
-lanI the 8e tar"et fi")res a--ear in the a+ove ta+le, Amon" its
most im-ortant elements was the *ecision to create what was calle*
the thir* metall)r"ical +ase0 in 7aFa8hstan an* Si+eria0 which
wo)l* -ro*)ce #1>(5 million tons of -i" iron a ear, The *ele"ates
also hear* 7hr)shchevDs famo)s Dsecret s-eechD *eno)ncin" Stalin,
Amon" his man o+Cectives one was *o)+tless to +rea8 +)rea)cratic
an* -ett>a)thoritarian ha+its of the Stalin era0 ha+its which still
affecte* the a*ministration of the econom, =ario)s *ecrees were
iss)e* at this -erio* see8in" to com+at +)rea)crac an* overstaffin"
of "overnment offices,
However0 the si@th -lan was the one Soviet lon">term -lan which
was e@-licitl a+an*one* in -eacetime, :ithin a ear of its
a*o-tion it was *eci*e* to revise it0 an* then it never came to life
a"ain,
'he )cono$ic-*olitical risis B#ece$,er 195:-2a-
1957C? +ovnar0ho8-
A -len)m of the central committee met on (5 3ecem+er #$1%, It
emer"e*0 C)*"in" from its resol)tion0 that the -lan was o)t of
+alance0 that there was De@cessive ta)tnessD0 that there were *efects
in -lannin", A -am-hlet -)+lishe* later
#'
+lame* the ministries for
com-etin" with each other for investment reso)rces0 an* in effect
trin" to +ite off more than the co)l* chew, The investment
-ro"ramme reE)ire* + the -lan was im-ossi+le0 in the sense that
the material means of carrin" it o)t in time were not -resent, This
s)""este* lac8 of a*eE)ate coor*inatin" -owers, .It is onl fair to
a** that a fairl senior Soviet economist once tol* me0 )nofficiall0
that the si@th -lan was E)ite "oo*0 an* the o+Cections to it were
-olitical,/ Anhow0 it was *eci*e* that the -lan +e revise* an* re>
s)+mitte*,
To ens)re that the ministries wo)l* -)ll to"ether0 it was -ro-ose*
that !ose8onom8omissia0 hea*e* + M, Perv)8hin0
!*, The Ahrushche0 Era
sho)l* +ecome a 8in* of s)-er>ministr with -owers to iss)e or*ers
to all the economic ministries .in the first version of the -ro-osals0
even to the Ministr of A"ric)lt)re/, Since this was a moment at
which 7hr)shchevDs -olitical stan*in" was wea8ene* + the
H)n"arian an* Polish events0 for which his D*e>StaliniFationD
activities co)l* +e +lame*0 it is more than -ro+a+le that this
-ro-osal0 while a reaction to "en)ine economic>or"aniFational
-ro+lems0 was -oliticall ins-ire*, 7hr)shchevDs -owers of inter>
ference on economic affairs were to +e *rasticall c)rtaile* + the
a--ointment of another man as overlor*, 2)*"in" + s)+seE)ent
events0 this was an alliance a"ainst him of the ol* ")ar* .Molotov0
Malen8ov0 7a"anovich/ an* the -rofessional -lanners .hea*e* +
Sa+)rov0 chairman of !os-lan0 an* Perv)8hin/,
6 a--ro-riate -olitical manoe)vrin" 7hr)shchev hit +ac80
s)ccessf)ll -revente* these arran"ements from materialiFin"0 an*
ha* alrea* + Fe+r)ar #$14 -)t )- for D*isc)ssionD totall
*ifferent -ro-osals, These0 after several amen*ments0 serve* as a
+asis for le"islation a*o-te* .with its )s)al )nanimit/ + the
S)-reme Soviet in Ma, The i*ea was to co-e with the -ro+lem of
ministerial em-ire>+)il*in" an* ins)fficient coor*ination + the
*rastic e@-e*ient of a+olishin" the in*)strial ministries alto"ether0
an* s)+stit)tin" a re"ional str)ct)re coor*inate* + !os-lan,
7hr)shchev was res-on*in" to a ver real -ro+lem0 +)t *oin" so in
a manner calc)late* to harm his -olitical o--onents0 an* to wea8en
the state>ministerial hierarch,
Several reasons were a*vance* for the nee* for s)ch a chan"e?
there was *)-lication of s)--l arran"ements an* com-onents
man)fact)re +etween ministries0 res)ltin" in )nnecessar cross>
ha)ls, A steamer +elon"in" to one ministr wo)l* -rocee* )- the
river 9ena f)ll an* ret)rn em-t0 while another steamer0 trans-ortin"
"oo*s for a *ifferent ministr0 went *own>river f)ll an* )->river
em-t, 9ocal coor*ination an* re"ional -lannin" were im-e*e* +
the fact that all enter-rises of all>)nion interest ha* lines of
s)+or*ination to Moscow0 an* too man minor *ecisions reE)ire*
the assent of remote ministries, All these -oints *i* have some
vali*it, Ministerial Dem-ire>+)il*in"D in -artic)lar *i* lea* to waste,
This was *)e not so m)ch to +)rea)cratic>-ersonal am+itions as to
)ncertaint over s)--lies? one ma*e or -roc)re*
The Economic=Political Crisis E(ecem+er 1*%=4ay 1*5F !*!
oneDs own com-onents an* materials in case the were otherwise
)no+taina+le, Ever enter-rise ten*e* to *o this too,
The tro)+le0 as we shall see0 was that the c)re was worse than
the *isease, In an case it is in the nat)re of all>ro)n* -lannin"
that an or"aniFational sol)tion carries with it certain *is>
a*vanta"es,
There are common -ro+lems of an in*)str0 or a re"ion0 or
matters transcen*in" +oth a "iven in*)str an* a "iven re"ion
s)ch as la+o)r0 investment -olic0 finance, Arran"ements +est
s)ite* for consi*erin" one of these matters sel*om s)it others, It
is li8e writin" an economic histor? a strictl chronolo"ical acco)nt
conf)ses the rea*er + fra"mentin" the *isc)ssion of0 sa0 in*)s>
trial reform or a"ric)lt)ral -rices, 6)t an arran"ement +ase* on
s)+Cect ma well conf)se the chronolo"0 an* there is no -erfect
sol)tion,
Un*er the reform0 civilian in*)strial an* +)il*in" enter-rises
of other than -)rel local si"nificance were -lace* )n*er re"ional
economic co)ncils 4sovnar1ho2y, res)rrectin" the name *evise* in
the war>comm)nism -erio* for re"ional s)+>*ivisions of
=SN7H/, There were to +e #51 of them0 of which0 initiall0
sevent wo)l* +e in the RSFSR .there were minor chan"es in
n)m+ers in #$14>$/, Of the other re-)+lics0 onl 7aFa8hstan .$
re"ions/0 the U8raine .##/ an* UF+e8istan .</ were *ivi*e*, The
other eleven re-)+lics were each co>e@tensive with a sovn>
ar8hoF,K At first the ministries concerne* with armaments
-ro*)ction0 chemicals an* electricit were left in +ein", Each
sovnar8hoF was in "eneral comman* of its enter-rises, The
sovnar8hoF were to +e a--ointe* + an* res-onsi+le to the
re-)+lican Co)ncils of Ministers0 with the re-)+lican !os-lans
actin" as coor*inators in the fo)r m)lti>sovnar8hoF re-)+lics,
The all>)nion !os-lan was to +e res-onsi+le for "eneral -lannin"0
the coor*ination of -lans0 the allocation +etween re-)+lics of 8e
commo*ities0 tho)"h witho)t e@ec)tive a)thorit0 which resi*e*
formall in the all>)nion Co)ncil of Ministers, !ose8onom>
8omissia was a+olishe*,
7hr)shchevDs s)ccess in -)shin" thro)"h these -ro-osals was
followe* in the ne@t month + the effort of the so>calle* Danti>
-art "ro)-D to )nseat him, This en*e* the -olitical careers of
!*1 The Ahrushche0 Era
man ol* lea*ers, 6)l"anin0 the -remier0 remaine* )ntil the
followin" ear0 tho)"h he too ha* o--ose* 7hr)shchev, On ('
March #$1' 7hr)shchev com+ine* in himself the first secretarshi-
an* the -remiershi-,
3a,our" .a&es" *rices" +ocial +ervices B1955-;C
Malen8ovDs fall ha* +een *)e0 inter alia, to alle"e* softness towar*s
the cons)mer, The imme*iate res-onse was to with*raw -)rchasin"
-ower + *o)+lin" the level of the virt)all com-)lsor +on* sales,
The effect was0 accor*in" to a well>informe* Soviet analst0 that
wor8ersD ta8e>home -a in #$11 was #' -er cent +elow #$1<
levels,
(5
6)t after this the a*vance was res)me*, Avera"e wa"es
rose from 4#1 ro)+les a month in #$11 to 44' ro)+les in #$1',
(#
As
for com-)lsor +on* sales0 these were a+an*one* alto"ether from
#$1'0 + *ecree of #$ A-ril #$140 +)t sim)ltaneo)sl a moratori)m
.Dfor twent earsD/ was *eclare* in res-ect of re-ament of
-rinci-al an* of interest .in the form0 mainl0 of lotter winnin"s/
on -ast +on*s of this t-e, It was e@-laine* that the +)*"et co)l*
not affor* sim-l to a+an*on the +on* sales while contin)in"
re-aments an* interest,
It was clearl a matter of concern to the a)thorities that the retail
-rice level sho)l* sta stea*, S)ch increases as occ)rre* .the
*o)+lin"0 for "oo* reason0 of -otato an* ve"eta+le -rices0 a shar-
increase in the -rice of vo*8a0 etc,/ were +alance* + c)ts0 nota+l
in -rices of those man)fact)re* "oo*s which were relativel
a+)n*ant .watches0 sewin" machines0 certain te@tiles0 etc,/, The
official retail -rice in*e@ showe* no a--recia+le chan"e from #$1<
)ntil #$'50 +)t this was -lainl *)e to its fail)re to reflect *is")ise*
-rice increases .see A--en*i@/, 7ol8hoF mar8et -rices remaine*0 on
avera"e0 &1 -er cent to <1 -er cent a+ove official -rices0 in*icatin" a
ten*enc to )n*er-rice foo*st)ffs,
The wa"es str)ct)re was in a tan"le, There ha* +een no
sstematic overha)l of wa"es since lon" +efore the war, The
-revalence of -iece>rates an* +on)s schemes ena+le* some enter>
-rises an* some ministries to increase -a0 while others0 es-eciall
3a,our" .a&esD *ricesD +ocial +ervices B1955-;C 355
those on time>rates an* fi@e* salaries0 ha* +een less l)c8, 3ifferent
ministries a*o-te* *ifferent wa"e>Fones, Pa of -ersons of similar
s8ills an* even i*entical occ)-ations0 in *ifferent ministries0 varie*
witho)t reason, Norms were overf)lfille* on avera"e + %5 -er cent
to 45 -er cent, The )ns8ille* "ra*es in man in*)stries were
virt)all )nstaffe*I the least E)alifie* wor8ers were "ra*e* as semi>
s8ille*0 so as to -a them somethin" nearer to a livin" wa"e,
DPro"ressiveD -iece>rates le* to man a+)ses, Reform was essential0
+)t was also e@cee*in"l *iffic)lt,
((
This sit)ation le* to the settin" )-0 on (< Ma #$110 of the State
Committee on 9a+o)r an* :a"es, Its first hea* was 9, 7a"anovich,
It -rove* to +e his last Co+ +efore his fall, A sstematic
rearran"ement of the wa"es str)ct)re followe*, 3ifferentials were
re*)ce*0 stan*ar* -a scales intro*)ce* for occ)-ations re"ar*less
of *e-artmental s)+or*ination0 vario)s anomalies irone* o)t, The
o+session with in*ivi*)al -iece>rates which characteriFe* the Stalin
-erio* was mo*ifie*, E@treme incentive schemes > s)ch as
-aments at tre+le>rates for o)t-)t over the norm in the coal
in*)str > were eliminate*, AH this too8 man ears, In*ee*0 the
tas8 co)l* +e sai* to have +een com-lete* onl in #$%10 when
im-rove* -a rates came into o-eration for most of the service
sectors,
Re*)ction of *ifferentials was s-ee*e* + the intro*)ction of a
minim)m wa"e of &55 ro)+les -er month in towns + a *ecree of '
Se-tem+er #$1% .(45 ro)+les in r)ral areas/0 a minim)m
s)+seE)entl raise*, It is some reflection on the n)m+er of -ersons
whose +asic -a was lower than these e@cee*in"l mo*est s)ms
that0 so we are tol*0 the low>-ai* wor8er "aine* an avera"e of && -er
cent,
(&
At a reasona+le conversion rate > remem+erin" these are ol*
ro)+les > &55 ro)+les eE)alle* Pg, or ^(1 -er month .in #$1%
-rices/, 7hr)shchev also too8 some ste-s a"ainst ver hi"h salaries?
I was tol* that -rofessorsD +asic -a went *own from %0555 to 10555
ro)+les -er month0 for instance,
This was -art of a wave of social le"islation, Shorter ho)rs for
C)veniles witho)t loss of -aI a minim)m of a monthDs holi*a for
those )n*er #'I
(<
the re*)ction of the wor8in" wee8 + two ho)rs0
with more c)ts to come0
(1
a 4>ho)r *a .% ho)rs on
&1% The 7hr)shchev Era
Sat)r*as/ +ein" intro*)ce* + sta"esI the len"thenin" of -ai*
maternit>leave to ##( *as0
(%
the re-eal of the criminal>law lia+ilit
for leavin" wor8 witho)t -ermission an* for a+senteeism0
(4
the
a+olition of t)ition fees in secon*ar an* hi"her e*)cation0
('
an*0
most im-ortant0 "reat im-rovements in -ension an* *isa+ilit
+enefits0 these +ein" now calc)late* in relation to act)al earnin"s0
with a minim)m ol*>a"e -ension of &55 ro)+les -er month .an* an
overall ma@im)m of #0(55 ro)+les/,
($
Until this *ate all +)t the
s-eciall favo)re* sectors were s)+Cect to a ma@im)m rec8ona+le
earnin"s r)le which re*)ce* -ensions to low an* sometimes
*erisor levels, The effect of this law was to increase the avera"e
-ension + '# -er cent0 +)t the )n*er-rivile"e* "aine* m)ch more
than this, Finall0 income ta@ e@em-tions on low incomes were
e@ten*e*,
&5
A +i" increase in the rate of ho)se constr)ction +e"an in #$1%0
an* -rivate ho)se>+)il*in" receive* rather more financial an*
material s)--ort?
Ur+an Ho)sin"
4million s0%are metres total s#ace, ne
constr%ction5
State an*
coo-erative Private
195s 25.0 8-4
1956 295 u-5
1957
&',1
13-5
1958 46.7 24.5
1959 535 27.2
4So%rces: Nar- 1ho2-, #$%&0 -, 1#<I Nar-
1ho2-,i0sD,#- #4%,/
It will +e note* that the lower>-ai* were the -rinci-al +enefi >
ciaries of most of these reforms0 which reverse* m)ch of StalinDs
reactionar le"islation of the #$&'><5 -erio*,
:or8ers were now free to leave their Co+s0 tho)"h s)+Cect to
some limitations on movement owin" to the -ass-ort sstemI th)s it
was still ver har* to o+tain -ermission to live in Moscow an* some
other +i" cities, None the less0 "reater )n-lanne*
9a+o)r0 :a"es0 Prices0 Social Services .#$11>'/ &14
la+o)r mo+ilit was a fact0 an* this0 -l)s the a+olition of most of the
force*>la+o)r cam-s0 com-licate* the -rocess of -lannin" an* ma*e
wa"e relativities of ever "reater economic si"nificance,
Tra*e>)nion activit was increase*I their fail)re to re-resent an*
*efen* the wor8ers was criticiFe*0 es-eciall at the central
committee -len)m *evote* to this s)+Cect hel* in 3ecem+er #$14,
The -owers of the factor tra*e>)nion committees were *efine* an*
e@ten*e* + a new set of r)les -rom)l"ate* on #1 2)l #$1' + the
S)-reme Soviet -resi*i)m,
:holesale -rices of in*)str were lowere* in 2)l #$110 follow>
in" some re*)ction in costs, Th)s coal -rices were c)t + 1 -er cent0
oil an* "as + #5 -er cent0 iron an* steel + #5 -er cent0 electricit
+ #& -er cent0 rail frei"ht rates + #5,1 -er cent0 an* so on,
&#
The
-rocess of -rice fi@in" was not si"nificantl altere*, Tho)"h some
anomalies were remove*0 there was still ins)fficient in*)cement to
-ro*)ce "oo*s in *eman* or of hi"h E)alit0 or mo*ern t-es of
machiner, Tim+er -rices were ins)fficient to cover costs0 an* the
ha* to +e increase* several times in the followin" ears, Coal was
also -ro*)ce* at an increasin" loss,
This was the last sstematic -rice review im-lemente* +efore
#$%4,
In #$%#0 -ossi+l ins-ire* + *e !a)lleDs Dheav francD0 the Soviet
"overnment *eci*e* to m)lti-l the internal val)e of the ro)+le +
ten, No -)rchasin" -ower was with*rawn from circ)lation > this
was not a re-eat of #$<4, New notes were e@chan"e* on a #?#5
+asis0 +)t all -rices an* wa"es were altere* -ro-ortionatel? #0555
ol* ro)+les +ecame #55 new ro)+les, The o--ort)nit was ta8en to
*eval)e the e@ternal val)e of the ro)+le while seemin" to increase
it? the rate of < ro)+les M ^# was altere* to 5,$5 ro)+le M ^#0 i,e, +
m)ch less than internal incomes an* -rices,
The share of t)rnover ta@ an* -rofits in the +)*"et remaine*
m)ch as +efore0 with a contin)e* tren* to a relative increase of
-rofits as a so)rce of reven)e0 *es-ite the -rice re*)ctions referre*
to a+ove, 3irect ta@ation +ecame even less si"nificant0 followin"
c)ts in ta@ on low incomes0 an* also0 in 3ecem+er #$140 in the
D+achelor an* small famil ta@D0 intro*)ce* in wartime .sin"le
women an* co)-les witho)t chil*ren were now e@em-t/,
!*& The Ahrushche0 Era
The State 6an8 was se-arate* from the Ministr of Finance .(&
A-ril #$1</0 an* was then "iven wi*er -owers to )se cre*its to
enco)ra"e financiall efficient enter-rises an* to ta8e meas)res0
almost amo)ntin" to a form of Dsocialist +an8r)-tcD0 to -enaliFe
those who inc)rre* *e+ts .*ecree of (# A)")st #$1<0 an* others/,
These -owers were little )se*,
%orei&n 'rade? +o$e +i&ni1icant han&es
Relations with all cate"ories of co)ntries altere* ra*icall soon after
StalinDs *eath,
There +e"an a revision of the +asis of e@chan"es with other
comm)nist>r)le* states, Tra*e relations were res)me* with Y)"o>
slavia in #$1<, Re-arations *eliveries from East !erman were to
cease in #$1< )n*er an a"reement ne"otiate* in A)")st #$1&I this
also -rovi*e* for the han*in" over of Soviet>controlle* enter-rises
on East !erman territor, In Se-tem+er #$1& the USSR a"ree* to
"ive more technical ai* to China0 an* a similar a"reement0 in
Octo+er #$1<0 also -rovi*e* for the han*in" over of mi@e* Soviet>
Chinese com-anies an* "rante* a lon">term cre*it of 1(5 million
ro)+les, In March an* Se-tem+er #$1< the USSR sol* an* han*e*
over the Soviet share in nearl all Soviet>Romanian mi@e*
com-anies, A cre*it at low interest rates was "rante* to 6)l"aria
.Fe+r)ar #$1%/, This -rocess of normaliFin" an* re")lariFin" tra*e
relations receive* a -owerf)l im-et)s from the tro)+les in Polan*
an* H)n"ar, The Soviet lea*ershi- even felt it necessar0 in its
a"reement with Polan* in Novem+er #$1%0 to cancel Polish
in*e+te*ness on -ast cre*its as com-ensation for Dthe f)ll val)e of
the coal s)--lies to the USSR from Polan* in the ears #$<%>1&D0 a
clear an* -)+lic a*mission of -ast )n*er-aments,
&(
H)n"ar ha* to
+e "iven emer"enc ai*,
Tra*e henceforth was +ase* on -rices r)lin" at vario)s *ates in
worl* .i,e, ca-italist/ mar8ets,
Comecon was revive* as a f)nctionin" instit)tion, It s-ro)te* a
n)m+er of wor8in" committees0 an* achieve* some res)lts in
stan*ar*iFation of *esi"n0 Coint trans-ort arran"ements0 a ver few
Coint investment -roCects0 -i-elines0 some s-ecialiFation
Education/ Technical Trainin)/ Health !*
arran"ements in the fiel* of machiner, However0 tra*e remaine*
-re*ominantl of a +ilateral character0 an* there was no a"ree*
criterion of s-ecialiFation,
The USSR +e"an to -erceive -olitical an* economic o--ort)n>
ities in its *ealin"s with )n*er*evelo-e* co)ntries, Alrea* on
1 A)")st #$1& a tra*e a"reement with Ar"entina ha* incl)*e*
some Soviet s)--lies on cre*it, 6)t the USSR serio)sl entere*
the ai* +)siness after the visit to In*ia in #$11 of 7hr)shchev
an* 6)l"anin, A "reat increase in the vol)me of tra*e occ)rre*0
since Soviet ai* too8 the form of s)--lin" "oo*s on cre*it0 to +e
-ai* for in the "oo*s normall e@-orte* + the reci-ient co)ntr,
6 #$1' the effect was s)fficientl im-ressive to "ive rise to over>
san")ine ho-es in the min* of 7hr)shchev0 an* to e@a""erate*
alarm in :estern circles,
Tra*e with :estern co)ntries also increase*0 as relations )n>
froFe, The com+ine* effect of all these *evelo-ments was to
ca)se a shar- )-war* s)r"e in the vol)me of Soviet forei"n tra*e0
as the followin" fi")res *emonstrate?
?olu"e o# So:iet 6orei$n 9rde
!19// ' 1&&%
I"ports Exports
19/& /4.4 /4.1
19/0 140.4 1(&.&
(Source: -neshnaya torgo'lya
SSSR !1941%, p. 1(%
)ducation" 'echnical 'rainin&" 7ealth
Amon" the most cre*ita+le achievements of the entire Soviet
-erio* has +een the a*vance of e*)cation at all levels, 3es-ite
occasional set+ac8s0 the i*eolo"ical>-olitical commitment to
e*)cation0 -l)s the nee* for more technicall E)alifie* staffs
alwas le* to et another )-war* swin" in e*)cational s-en*in",
Tr)e0 schools were too few0 -)-ils atten*e* in two or sometimes
even three shifts, 6)t teachers were -ro*)ce* at a most cre*ita+le
!%- The Ahrushche0 Era
rate0 an* the avera"e n)m+er of -)-ils -er teacher has for some
time +een m)ch lower than in 6ritain or the Unite* States, The
followin" fi")res are im-ressive evi*ence .it sho)l* +e note* that
the total n)m+er of chil*ren e*)cate* was affecte* + the ver lar"e
re*)ction in the +irth>rate that occ)rre* *)rin" an* C)st after the
war0 an* then the -ost>war increase/?
School ear #$<5><# #$11>% #$1'>$ #$%1>%
Total teachers .tho)san*s/ #0(&4 D04&& #0$55 (0<$4
Total -)-ils .tho)san*s/ &101(' &50545 &M'& <'0(<1
of which0 a"es #1>#' (011' %0#1$ <0%11 #(0%'(
4So%rce: Nar- 1ho2-0 #$1%0 -, (<<I SSSR v tsifra1h v ig"s god%, -, #&(,/
Partic)larl s-ectac)lar "ains were recor*e* in the more +ac8>
war* national re-)+lics,
0 A lar"e e@-ansion of secon*ar e*)cation after the war c)lmin>
ate* in the *ecision of the twentieth -art con"ress .Fe+r)ar #$1%/
to intro*)ce f)ll secon*ar e*)cation for all in towns0 an* "ra*)all
e@ten* it to the co)ntr,
This le* E)ic8l to *iffic)lties which remin* one of the
e*)cational tro)+les of the late thirties, Soviet secon*ar e*)cation
is aca*emicall orientate*0 an* those who com-lete the f)ll #5> or
##> ear co)rse .a"es 4>#4 or #'/ an* -ass the e@aminations e@-ect
to enter hi"her e*)cation0 an* show little *esire for or*inar
technical trainin", 6)t then0 who is to wor8 at the factor +enchG
There were *eclarations on D-oltechniFationD of secon*ar
e*)cation0 i,e, the intro*)ction of elementar wor8 trainin" in the
)--er forms0 +)t lac8 of facilities an* lac8 of interest amon"
teachers ma*e it virt)all a *ea* letter, 7hr)shchev0 who was
instinctivel s)s-icio)s of intellect)als an* averse to -rivile"e0 also
so)"ht to wi*en the social inta8e into )niversities,
Stalin0 it ma +e recalle*0 chec8e* the s-rea* of aca*emic
secon*ar e*)cation + intro*)cin" fees0 an* *ealt with lac8 of
trainees + com-)lsor call>)- of C)veniles, 7hr)shchev ha* C)st
a+olishe* fees0 an* com-)lsion was no lon"er -oliticall -ractic>
a+le, So in 3ecem+er #$1'0 followin" a memoran*)m from 7hr)sh>
Education/ Technical Trainin)/ Health !%1
chev0 a new law was -asse*, This limite* com-)lsor e*)cation to '
ears .4>#1/0 after which the maCorit of -)-ils wo)l* "o on to
technical trainin" of vario)s 8in*s0 either f)ll>time or on the Co+,
Hi"her e*)cation was to +e -art>time for most st)*ents0 +ein"
com+ine* with )sef)l wor80 an* was to +e -rece*e* + at least two
earsD em-loment,
This reform was not -o-)lar amon" either e*)cationalists or
st)*ents0 an* it is a fascinatin" st)* in social -olitics to o+serve
how 7hr)shchevDs intentions were eva*e* an* then virt)all
n)llifie*, Man tho)"ht )- s-ecial reasons wh an e@ce-tion sho)l*
+e ma*e for their s)+Cect .m)sic0 mathematics0 -hsics0 etc,/ or their
*istrict0 an* so on, This was one of 7hr)shchevDs first fail)res, 6)t
one essential element remaine*? the a+an*onment of the *ecision to
e@ten* f)ll secon*ar e*)cation to all0 the de facto acce-tance of the
-rinci-le of selection,
Total n)m+ers of -)-ils receivin" +oth hi"her an* secon*ar
technical e*)cation a*vance* ver ra-i*l0 E)a*r)-lin" +etween
#$<5 an* #$%<, However0 it sho)l* +e note* that in recent ears
ro)"hl a thir* of +oth cate"ories were corres-on*ence or e@ternal
st)*ents0 man of whom never com-lete* their co)rses,
Health statistics li8ewise loo8e* ver im-ressive?
194& 19/0 194/
>edicl doctors !thousnds% 1(4-9 (41B 4H4
Nu"=ers o# hospitl =eds !thousnds% 191 1,/(( .,..4
(Source: SSSR ' tsifrakh ' 3%# godu, p. 1/4.%
"ote: 6i$ures exclude "ilitr+.
Here0 however0 there was m)ch to criticiFe in the E)alit of the
service ren*ere*0 the availa+ilit an* cost of *r)"s0 the lac8 of
hos-ital eE)i-ment, This was reco"niFe* when the -rice of *r)"s
was halve* as from A)")st #$140 an* a *ecree *evote* to the
me*ical in*)str o)t-)t so)"ht "reatl to increase o)t-)t of all
8in*s of items0 from thermometers to -enicillin,
&&
However0 thirt
ears later the same criticisms were ma*e in ver shar- terms?
)n*er>eE)i--e* *octors an* hos-itals0 shorta"e of me*ical
!%, The Ahrushche0 Era
*r)"s0 -oor -a for me*ical staff .e,", see S, Fe*orov0 Pravda, ('
Se-tem+er #$'4/,
Nearl all teachers an* me*ical -ractitioners were an* are
women, There are also man women en"ineers0 technicians0
C)*"es, The -re*ominate in retail tra*e,
3)rin" an* C)st after the war the e@treme shorta"e of o)n"
men ca)se* the )tiliFation of women in e@cee*in"l heav an*
*isa"reea+le wor80 an* while women are ha+it)all en"a"e* in
man)al la+o)r in most -easant co)ntries0 this came increasin"l
to +e re"ar*e* as )n*esira+leI in 2)l #$14 a *ecree for+a*e the
em-loment of women in the mines0 e@ce-t in s)-ervisor an*
service tas8s, However0 as we have +een learnin" )n*er glasnosf,
man of the re")lations which -rotecte* women wor8ers were
not enforce* or were sim-l i"nore*,
&<
Most wives contin)e* to wor8 an* this ha* ca)se* another
social -ro+lem? small families +ecame increasin"l the r)le in
towns0 es-eciall as there was so little ho)sin" s-ace, Increase*
creche facilities *i* little to co)nter this tren*, The res)lt was an
immense "a- +etween the +irth>rates in R)ssia -ro-er .#1,' -er
#0555/ or the U8raine .#1,&/0 an* the far hi"her rates in AFer+ai*>
Fhan .&%,</ or UF+e8istan .&<,4/0 where *ifferent tra*itions
-revaile*,
Ahrushche0 Rides Hi)h? The (raft Se0en=>ear Plan
A revise* version of the si@th five>ear -lan is now 8nown to
have +een -re-are* + !os-lan an* s)+mitte* for a--roval on
$ A-ril #$14, A--roval was not forthcomin", It was *eci*e* to
-re-are a new -lan coverin" the seven>ear -erio* #$1$>%1,
&1
,,
One reason "iven was the *iscover of new mineral reso)rces0 an*
the new re"ional -lans which wo)l* follow from the sovn>ar8hoF
reform, F)rther0 7hr)shchev *esire* "reatl to s-ee* )- the
"rowth of the relativel +ac8war* chemical in*)str .this was
*eci*e* + the -len)m of Ma #$1'/0 an* also to transform the
f)el +alance of the USSR0 which was too heavil orientate* to
coal an* ne"lecte* oil .which was a+)n*antl an* chea-l avail>
a+le in the =ol"a>Urals fiel*s/ an* a+ove all nat)ral "as0 which
Ahrushche0 Rides Hi)h? The (raft Se0en=>ear Plan !%!
was availa+le in lar"e E)antities an* ver little )se*, The la+o)r
sit)ation0 while a*versel affecte* + the conseE)ences of low
wartime +irths0 was relieve* + re*)ctions in the arme* forces,
This *)l fo)n* its reflection in the new seven>ear -lan
tar"ets, Meanwhile the ears #$1%0 #$140 an* #$1' were0 from the
-oint of view of lon">term -lans0 or-han ears,
The seven>ear -lan envisa"e* the followin"?
19/0 194/ 194/
1&&
pln 14.-
14/
ctul
Ntionl inco"e 1/0
Gross industril output !index% 1&& 10& 104
ProducersC $oods 1&& 10/-100 194
2onsu"ersC $oods
1&&
14.-14/
14&
Iron ore !"illion tons% 00.0 1/&-14& 1/(-4
Pi$ iron !"illion tons% (9-4 4/-1& 44..
Steel !"illion tons% /4-9 04-91 91.&
2ol !"illion tons% 49( 4&&-41. /10
Oil !"illion tons% R( .(&-.4& .4..9
Gs !"illird cu=ic "etres% .9.9 1/& 1.9.(
Electricit+ !"illird ,-hs% .(/ /&&-/.& /[Z1
>inerl #ertiliEer !"illion tons% 1. (/ (1.4
S+nthetic #i=res !thousnd tons% 144 444 4B1
>chine tools !thousnds% 1(0 i9&-.&& 10/
9rctors !thousnds% ..&
3
(//
2o""ercil ti"=er !"illion cu=ic "etres% ./1 .1/-.0& .1(
2e"ent !"illion tons% ((-( 1/-0i 1.4
2otton #=rics !"illion sFure "etres% /-19 1.1-0.& 1.&0
-ool #=rics !"illion sFure "etres% (&( 40/ (4/
;ether #oot5er !"illion pirs% (S4.4 /i/ 404
Grin hr:est !"illion tons% 1(4-1 144-10& 1.1.1
>et !totl% !"illion tons% (-(1 4.1( /-./
-or,ers nd e"plo+ees !"illions% /4.& 44./ 14.9
7ousin$ !"illion sFure "etres% 11.. 4/&-44&@ 19..
U Total for seven ears #$1$>%1,
4So%rce: Nar- 1ho2-, i$%50 --, (#5>#(I Nar- 1ho2, #$%10 --, #&%>$0 (%(0
1140 %5$I seven>ear -lan0 =>H>!DH-5
A-art from a -artic)larl lar"e increase in investment in chem>
icals an* non>soli* f)els0 the -lan envisa"e* an increase* wei"ht
of investments in eastern areas0 which were to receive over <5 -er
cent of the total f)n*s, It was a re-eate* so)rce of criticism that
3:9 'he 6hrushchev )ra
ministries ha* fo)n* it convenient to *irect investments0 whenever
-ossi+le0 to alrea* *evelo-e* re"ions0 to save overhea*s, It was
ho-e* that sovnar8hoF wo)l* see thin"s *ifferentl,
7hr)shchev0 in his o-timistic moo*s0 soon fo)n* the new -lan
mo*est0 an* in Octo+er #$%#0 at the twent>secon* con"ress0 he
anno)nce* some )-war* amen*ments .e,", steel to $1>$4 million
tons/, This was -art of his moo* of tri)m-h, S)ccess in ma8in" an
im-act on the ima"ination of the o)tsi*e worl*0 an* his own self>
confi*ence0 was mar8e*l hel-e* + the la)nchin"0 on < Octo+er
#$140 of the first s-)tni8, R)ssia0 the +ac8war* "iant so often
loo8e* *own )-on + the *evelo-e* :est0 not so lon" a"o a co)ntr
of -easant illiterates0 ha* scoo-e* the worl*, A fine a*vertisement
for the Soviet sstem,
As the final col)mn in the a+ove ta+le shows .an* allowin" et
a"ain for e@a""eration in in*ices/0 in*)strial -ro"ress was im-res>
sive *)rin" the -erio* of the seven>ear -lan, There was also a
maCor )-war* s)r"e in o)t-)t of man cons)mer *)ra+les, Yet there
were some serio)s shortfalls0 an* critical *eficiencies *evelo-e*
which0 as we shall see0 hel-e* to to--le 7hr)shchev, The strains of
these ears have +een hi"hl relevant to an )n*erstan*in" of the
nat)re0 f)nctionin" an* -ro+lems of the Soviet -lannin" sstem0 as
esta+lishe* )n*er StalinI a s)rve of the *iffic)lties of 7hr)shchevDs
last ears of -ower le"itimatel forms -art of o)r st)*,
6hrushchev4s 'rou,les? A hronic risis o1 *lannin&
The sovnar8hoF .re"ional/ str)ct)re containe* within itself a ver
serio)s wea8ness, To sa so is not to +e wise after the event, It was
no *o)+t clear to 7hr)shchevDs o--onents at the time > an* to some
o)tsi*e o+servers too0 incl)*in" the -resent writer,
&%
The f)n*amental -ro+lem that face* the -lannin" sstem )n*er
StalinDs s)ccessors was this? centraliFe* *ecision>ma8in" co)l* onl
encom-ass a -ortion of the m)ltit)*e of *ecisions which0 in an
econom of the Stalin t-e0 m)st +e ta8en + the -lanner>
a*ministrators0 an* which0 in the a+sence of an effective criteria
other than -lan>or*ers0 lo"icall cannot +e ta8en else>
Ahrushche0's Trou+les? A Chronic Crisis of Plannin) !%*
where, Therefore man -lans consiste* of a""re"ate* in*icators
.ro)+les of total o)t-)t0 or tons0 or sE)are metres/0 an* man
elements of the -lan co)l* +e inconsistent with one another, For
e@am-le0 the s)--l -lan freE)entl faile* to match the -ro*)ction
-lan0 the f)lfilment of a""re"ate* o)t-)t tar"ets was inconsistent
with meetin" )ser reE)irementsI the la+o)r0 or wa"es0 or financial
-lans were o)t of line with each other or with o)t-)t -lans0 an* so
on, A lar"e n)m+er of semi>anec*otal e@am-les can rea*il +e
assem+le* to ill)strate the res)ltant irrationalities, Steel sheet was
ma*e too heav +eca)se the -lan was in tons0 an* acce-tance of
or*ers from c)stomers for thin sheet threatene* -lan f)lfilment,
Roa* trans-ort vehicles ma*e )seless Co)rnes to f)lfil -lans in ton>
8ilometres, 7hr)shchev himself E)ote* the e@am-les of heav
chan*eliers .-lans in tons/0 an* over>lar"e sofas ma*e + the
f)rnit)re in*)str .the easiest wa of f)lfillin" -lans in ro)+les/,
&4
New *esi"ns or new metho*s were avoi*e*0 +eca)se the res)ltant
tem-orar *isr)-tion of esta+lishe* -ractices wo)l* threaten the
f)lfilment of E)antitative o)t-)t tar"ets, It wo)l* in*ee* +e a
mirac)lo)s coinci*ence if the -ro*)ct mi@ which accor*e* with the
reE)irements of the )ser also ha--ene* to a** )- to the a""re"ate
total reE)ire* + the -lan, Of co)rse0 i*eall0 the a""re"ate total is
ma*e )- of the se-arate reE)irements of all the )sers, 6)t there is
never time or information availa+le for s)ch -erfect -lannin", The
-lanners in fact -rocee*e* on the +asis of statistics of -ast
-erformance,
Yet0 with -rices not even in theor ca-a+le of f)lfillin" their role
as economic Dsi"nalsD0 there was no other criterion than the -lan, The
central or"ans either themselves *eci*e* these -lans0 or lai* *own
limits within which s)+or*inate )nits co)l* o-erate, Central
*ecisions0 tho)"h often incom-lete an* im-erfect0 were +ase* on an
assessment of what was nee*e*, This in t)rn was +ase* on -olitical
*irectives0 -ast e@-erience em+o*ie* in statistical ret)rns0
a--lications .in*ents/ from +elow0 an* material +alances *esi"ne* to
achieve an elementar in-)t>o)t-)t consistenc, In the almost total
a+sence of mar8et forces this com+ination of information flows0
reE)ests an* *irectives constit)te* the fo)n*ation )-on which
economic activit reste*,
This activit0 hi"hl com-le@ in its nat)re0 +ecame more so as
!%% The Ahrushche0 Era
the econom "rew0 an* then in a sense o)t"rew the centraliFation
)-on which it was +)ilt, Tas8s ha* to +e *ivi*e*0 +etween ministries
a*ministerin" in*)stries0 !os-lan an* its n)mero)s s)+*ivisions
.*ealin" with -rices0 investment -olic0 la+o)r0 s)--lies of 8e
commo*ities/0 the Ministr of Finance0 the State Committee on
Constr)ction0 an* so on, A f)rther so)rce of com-lication was the
*ivision of a)thorit +etween "overnment an* -art or"ans0 at all
levels, As alrea* -ointe* o)t0 all this le* to ac)te strain in the
-rocess of see8in" to ens)re coor*ination0 an* sometimes -lans
were inconsistent0 or im-ossi+le to carr o)t in to to- In the 8e area
of investment this too8 the form of chronic over>s-rea*in" of
reso)rces on too man -roCects 4ras#ylenie sredstv5, ca)sin" serio)s
*elas in com-letion, A contri+)tor ca)se was that ca-ital was
-rovi*e* free o)t of the state +)*"et0 there was no ca-ital char"e0
an* so s)+or*inate a)thorities over>a--lie* for it an* starte* all the
co)l* in the ho-e of "ettin" more,
Un*er Stalin the to- -riorit of heav in*)str was r)thlessl
enforce*, Errors an* omissions were +orne + the less im-ortant
sectors, Hence -ersistent ne"lect of a"ric)lt)re0 an* the fact that
even the mo*est ho)sin" -lans were never f)lfille*0 *es-ite the
notorio)s *e"ree of overcrow*in",
6)t )n*er his s)ccessors this was no lon"er so, Ho)sin"0
a"ric)lt)re0 cons)mersD "oo*s0 tra*e0 all +ecame matters of im>
-ortance0 even of -riorit, So the tas8 of -lannin" +ecame more
com-licate*0 +eca)se a sstem +ase* on a few 8e -riorities0
resem+lin" in this res-ect a :estern war econom0 co)l* not wor8
so effectivel if -riorities were *il)te* or m)lti-lie*,
Cons)mer *eman*0 for so lon" i"nore*0 +ecame more im-ortant0
as livin" stan*ar*s im-rove* an* c)stomers co)l* e@ercise more
choice, Some "oo*s +ecame )nsalea+le0 either thro)"h -oor E)alit
or over>-ro*)ction, Yet the sstem was not *esi"ne* to res-on* to
*eman*0 whether from cons)mers or in*ee* from enter-rises .e,",
for some -artic)lar item of eE)i-ment0 or metal of -recisel the
*esire* E)alit/, It was +)ilt to res-on* to or*ers from a+ove0 an*
for the achievement of lar"e>scale investment -roCects an*
e@-an*in" the vol)me of -ro*)ction, The financial an* -rice
sstems were well a+le to e@tract the s)r-l)ses nee*e* to s)stain
hi"h "rowth>rates0 +)t of whatG
Ahrushche0's Trou+les? A Chronic Crisis of Plannin) !%5
The -lanners trie* vario)s e@-e*ients, The iss)e* instr)ctions
that )ser *eman* sho)l* +e met, The mo*ifie* the +on)s
sstems so that the achievement of -)rel E)antitative tar"ets
sho)l* not +e s)fficient0 that the assortment -lan ha* also to +e
f)lfille*0 that costs ha* to +e re*)ce*0 the wa"es -lan not
e@cee*e*0 an* so on, The e@-erimente* with a 8in* of val)e>
a**e* in*icator 8nown as Dnorme* val)e of -rocessin"D, Each of
these Ds)ccess in*icatorsD ha* its own *efect0 in*)ce* its own
*istortions, Th)s0 insistence on cost re*)ction often stoo* in the
wa of the ma8in" of a +etter>E)alit -ro*)ct, A +oo8 co)l* +e
easil fille* with a list of vario)s e@-e*ients *esi"ne* to enco)ra"e
enter-rises to act in the manner the -lanners wishe*0 an* the
tro)+les to which each of them "ave rise,
&'
The "reater the
n)m+er of in*icators0 the more li8el it was that the wo)l* +e
inconsistent, Similarl0 the "reater the n)m+er of items an* s)+>
items -lanne* an* allocate* + the centre0 the "reater the +)r*en
on the -lanners an* the li8elihoo* of error or *ela, 6)t0 since
the central -lan was the +asis of all activit0 the a+sence of some
item from the -lan mi"ht have res)lte* in it not +ein" -rovi*e*,
So efforts to re*)ce the n)m+er of centrall -lanne* in*icators
ten*e* to +e f)tile, If0 sa0 frin" -ans or electric irons were not
in the -lan0 then the ten*e* not to +e -ro*)ce*0 an* -ro*)ctive
ca-acit wo)l* +e switche* to ma8e thin"s in which the centre
e@-resse* an interest,
Errors in investment -lannin"0 shortfalls in technical -ro"ress0
were to some e@tent offset0 )n*er Stalin0 + )n-lanne* movement
of la+o)r from the villa"es, In ever -lan -erio*0 e@ce-t the
secon*0 more wor8ers came to town than was envisa"e*, 6 the
mi**le fifties there was m)ch "reater conscio)sness of the nee*
for efficient )tiliFation of reso)rces0 incl)*in" the now scarcer
la+o)r reso)rces0 to meet the man com-etin" nee*s, Matters
were f)rther com-licate* + la+o)rDs "reater free*om of
movement,
All these ` circ)mstances0 an* the li+eratin" effect of StalinDs
*e-art)re0 le* to a revival of economic tho)"ht, No lon"er +arre*
from -ractical affairs0 economists Coine* with the more intelli"ent
-lanners in see8in" new criteria > for investment *ecisions0 for
reso)rce allocation + -lanners0 an*0 last +)t not least0 for
!%& The Ahrushche0 Era
*ecision>ma8in" at enter-rise level, The role of -rices0 of what
came to +e calle* Dcommo*it>mone relationsD0 +ecame a s)+Cect of
livel *isc)ssion, StalinDs *ict)m that Dthe law of val)eD .affectin"
e@chan"e relations/ *oes not o-erate in transactions +etween state
enter-rises was reCecte*,
In the li"ht of this sit)ation the #$14 sovnar8hoF reform was a
ste- in the wron" *irection0 or at +est a ste- si*ewas, The essentials
of the sstem were )naltere*0 in the sense that the -lan was the sole
effective o-erational criterion0 -lan f)lfilment the onl im-ortant
so)rce of mana"erial +on)ses, .Profits0 it is tr)e0 forme* the +asis of
a D*irectorDs f)n*D0 rename* Denter-rise f)n*D0 +)t it was of minor
im-ortance as an incentive to act,/ Yet the a+olition of the ministries
remove* a vital element in the chain of comman*, An one of the
#51 sovnar8hoF was )na+le to assess the nee*s of the other #5<0
)nless these were convee* to them + the centre, For how co)l* an
official in0 sa0 7har8ov or Oms8 8now the relative im-ortance of
reE)ests receive* from all over the co)ntrG In an case0 the central
allocation of 8e commo*ities was -reserve*0 an* in*ee* ha* to +e
reinforce* to avoi* conf)sion, 6)t one can onl allocate what is
-ro*)ce*0 an* so the centre E)ic8l fo)n* itself immerse* in what
amo)nte* to -ro*)ction *ecisions too0 +)t witho)t the ministerial
mechanism, !os-lan0 the one +o* with the necessar information0
lac8e* -ower an* was *el)"e* with wor8,
Yet enter-rises were s)+or*inate* to sovnar8hoF0 an* the latter
ha* onl one in*e-en*ent criterion? the nee*s of their own re"ions,
In the a+sence of clear or*ers to the contrar the therefore allocate*
scarce reso)rces to their own re"ions, 9o)* -rotests reache*
Moscow that esta+lishe* s)--l lin8s were +ein" +ro8en, More an*
more items therefore ha* to +e controlle* + or thro)"h !os-lan,
Similarl0 investment f)n*s )n*er the control of sovnar8hoF were
*iverte* to local nee*s0 to the *etriment of other re"ions, Evi*entl
7hr)shchev tho)"ht that the re"ional -art secretaries wo)l* ens)re
that their sovnar8hoF enforce* national -riorities, This *i* not
wor8 o)t, The *isease of DlocalismD 4mestnichestvo5 was *ia"nose*0
officials +lame*0 *ismisse*0 threatene* with -)nishment .e,", + the
*ecree of < A)")st #$1'/, The same com-laints were afterwar*s
re-eate*0 since the *efect was +)ilt into the sstem,
<r)ani9ation' Reor)ani9ation/ (isor)ani9ation !%
As the sovnar8hoF "ra*)all lost effective -ower > in #$%( the
Estonian sovnar8hoF controlle* onl 5,( -er cent of the -ro*)c>
tion of that re-)+lic
&$
> the enter-rises fo)n* themselves virt)all
witho)t a master0 or rather with man masters0 since -ro*)ction
an* s)--l -lans reache* them from several -ro*)ction an*
allocation *e-artments at all>)nion an* re-)+lican levels,
<5
It
was fort)nate that informal lin8s of man 8in*s 8e-t thin"s more
or less on an even 8eel most of the time, 6)t some of these
evi*entl worrie* the a)thorities0 as the facilitate* em+eFFle>
ment0 or C)st theft, The intro*)ction on 4 Ma #$%# of the *eath
sentence for a ran"e of economic offences .as *istinct from
co)nter>revol)tionar or treasona+le activities/ was a si"n of
alarm,
=r&ani8ation" (eor&ani8ation" #isor&ani8ation
As the *eficiencies of the #$14 reforms +ecame a--arent 7hr)sh>
chev set a+o)t ma8in" a*ministrative chan"es, To list an* e@-lain
them all is im-ossi+le in the conte@t of a "eneral histor, A +are
list of main chan"es0 affectin" in*)str an* constr)ction0 will +e
s)fficient to *emonstrate the conf)sion create* in the -rocess of
trin" to reme* conf)sion, The were -art of a rather chaotic
-rocess of re>centraliFation,
.#/ A lon" list of state committees was create* which + #$%(
ha* ver m)ch the same *esi"nations as the *ef)nct ministries0
+)t the ha* no e@ec)tive a)thorit, Enter-rises were not s)+or*i
nate to them, The consi*ere*, The a*vise*0 es-eciall on
investment an* technical -olic, The co)l* not or*er,
.(/ !os-lan was a"ain s-lit, At all>)nion level -ers-ective
-lannin" an* research were ma*e the res-onsi+ilit of an Eco
nomic science co)ncil 4(ose1onomsovet5 in i$%5, Then0 in
Novem+er #$%(0 7hr)shchev anno)nce* another chan"e? !os
-lan wo)l* -lan0 -artic)larl in the lon"er term0 while a new
+o*0 the all>)nion sovnar8hoF0 wo)l* im-lement -lans, This
*ivision was not a ha-- one0 an* there was m)ch criticism of
-arallelism, So0 after an o+sc)re str)""le0 there emer"e* in
Fe+r)ar #$%& a s)-er>coor*inator of the coor*inators which was
!5- The Ahrushche0 Era
"iven the historicall memora+le name of =SN7H0 +)t which seems
to have achieve* little in its short life,
88 Sovnar8hoF were mer"e*0 re*)ce* in n)m+er from over #55
to <4 earl in #$%&, The fo)r Central Asian re-)+lics were ma*e
into one sovnar8hoF0 an* a R)ssian was a--ointe* to hea* it, Other
chan"es incl)*e* the creation of lar"e -lannin" re"ions .seventeen
for the whole co)ntr/0 which achieve* little in -ractice,
89 The -art itself was s-lit in #$%(0 into in*)strial an*
a"ric)lt)ral sections0 which ca)se* m)ch -er-le@it, So *i* the fact
that the enlar"e* sovnar8hoF sel*om coinci*e* with the
"eo"ra-hical *ivisions of the -art0 so on the one han* each half of
the *ivi*e* -art was enCoine* to s)-ervise the economic activities
within its C)ris*iction0 +)t on the other it was ma*e or"aniFationall
*iffic)lt to *o this, 7hr)shchev seems to have feare* -art officialsD
coll)sion in DlocalismD, This ma*e no a*ministrative sense,
6 #$%& no one 8new E)ite where the were0 or who was
res-onsi+le for what, P)n"ent criticisms were a--earin" in the
s-ecialiFe* -ress, Plannin" was +ein" *isr)-te*,
7hr)shchev a**e* to the tro)+les of the -lanners + lo)*
acc)sations of conservatism0 an* + -ressin" on them a chemical
in*)str investment -ro"ramme which threatene* the whole +alance
of the econom0 an* e@ten*e* to in*)str a t-ical 7hr)sh>chevian
cam-ai"n of a t-e which ha* *one harm in a"ric)lt)re, O)t-)t was
to +e tre+le* in seven ears, The tar"ets he force* thro)"h were
a+s)r* an* were -rom-tl a+an*one* + his s)ccessors0 tho)"h no
one *enie* the *esira+ilit of s)+stantiall e@-an*in" the chemical
in*)str, To ma8e room for them0 a new -lan for #$%<>1 scale*
*own man other -lan tar"ets0 from steel to ho)sin", 7hr)shchevDs
cam-ai"nin" Feal threatene* serio)s shorta"es of steel0 of coal0 of
+ric8s, It was t-ical that sensi+le chan"es > s)ch as the s)+stit)tion
of non>soli* f)els for coal0 or -refa+ricate* concrete for +ric8s >
+ecame m)ch too *rastic, Th)s most +ric8wor8s were close*0 '0555
o)t of a total of #(05550 accor*in" to A, 6irman 4Novy mir, No, #0
#$%4/0 ca)sin" "rave shorta"es,
F)rther ca)ses of tro)+le were the soarin" e@-enses of the
<r)ani9ation/ Reor)ani9ation/ (isor)ani9ation !51
s-ace an* missile -ro"ramme0 an* the shar- rise in militar
e@-en*it)re > + &5 -er cent in #$%#0 which re-resente* a heav
call on scarce s8ills an* s-ecialist eE)i-ment,
Other reasons too contri+)te* to a slow*own in "rowth0 which
+ecame E)ite noticea+le es-eciall after #$1', The rate of increase
in investment "reatl *ecrease*0 as the followin" fi")res am-l
*emonstrate?
4#er cent5
1958 * 16
959 * 13
i960 * 8
90 * 4
91 * 5
92 * 5
In #$%& an* #$%<0 officiall claime* in*)strial "rowth rates fell
+elow ' -er cent0 the lowest -eacetime fi")res e@ce-t #$&&, Owin"
to -oor a"ric)lt)ral -erformance0 the national income in #$%& is sai*
to have risen + onl <,( -er cent, This was when the CIA ma*e
news + claimin" that the real fi")re was now *own to E3 -er
cent0 or well +elow even the Unite* States, The view +ecame
wi*es-rea* that 7hr)shchevDs han*lin" of affairs *i* not hel-,
As strains *evelo-e*0 so investment controls +ecame more
strin"ent0 an* the ho)sin" -ro"ramme0 to which m)ch -)+licit
ha* +een *evote*0 was c)t +ac8, Partic)larl severe c)ts were
im-ose* on -rivate +)il*in"0 as the followin" fi")res *emonstrate?
Ur+an ho)se>+)il*in"
4million s0%are metres of
total s#ace5
State Private
i$%5 11>'
.1.&
#$%# 1%,' (&,%
#$%( 1$>'
.&.1
#$%& %#,$ _4><
#$%< 1',$
14..
#$%1 %(,< _1>1
4So%rce: SSSR v tsifra1h v
igDFgod%,#- #14,/
!5, The Ahrushche0 Era
7hr)shchev in*ee* mo)nte* a cam-ai"n a"ainst ownershi- of
-rivate cotta"es0 which res)lte* in some confiscations, He seeme*
in his later ears to have +een -)rs)in" a cam-ai"n a"ainst
D+o)r"eoisD -ro-ert ten*encies, He "oa*e* on the -lanners an*
the mana"ement + lo)*>so)n*in" -romises a+o)t overta8in"
America within a few ears0 even + #$450 an* -romisin" to
achieve some elements of f)ll comm)nism .free m)nici-al ho)s>
in"0 free canteen meals0 free )r+an trans-ort/ + #$'5, This was0
no *o)+t0 -art of his effort to revive i*eolo"ical fervo)r an*
inCect *namism into a sstem which0 left to itself0 was lia+le
to fall victim to inertia, He ma*e other -romises too? a &1>
ho)r wee80 the a+olition of income ta@0 at minim)m wa"e of
%5 ro)+les0 all + -recise *ates0 at which the wo)l* not +e
im-lemente*, .The %5>ro)+le minim)m in fact came into force
in #$%',/
6hrushchev4s A&ricultural 2is$ana&e$ent
A"ric)lt)ral o)t-)t *)rin" the seven>ear -lan sho)l* have in>
crease* + 45 -er cent, This is what in fact ha--ene*?
+tal ,-ps .i'%stc&
1958 100 100 100
1959 100.4 95 108
i960 103 99.4 107
93 106 101 112
94 107 101 115
1963 99 92 108
1964 113 119 106
1965 114 107 123
1965 plan 170
(Source: SSSR ' tsifrakh ' /60 godu, p. 69.)
The #$%& an* #$%1 "rain harvests were +a*l affecte* +
a*verse weather, 6)t the -ict)re as a whole was ver *isa--oint>
in"0 an* was so treate* + ever Soviet analst,
The followin" were the -rinci-al reasons for this?
Ahrushche0's A)ricultural 4ismana)ement !5!
95 The #$1' reform im-ose* e@cessive +)r*ens on 8ol8hoFes0
which the -roc)rement -rices *i* not f)ll cover, The ha* to -a
too m)ch0 an* too E)ic8l0 for machiner, The res)lt was to com-el
a c)t+ac8 in investments an* *ecline in -aments to -easants,
96 The a+olition of the MTS a*versel affecte* maintenance +
*is-ersin" so-histicate* eE)i-ment aro)n* 8ol8hoFes0 few of which
-ossesse* either the wor8sho-s or the s8ille* man-ower to maintain
or re-air it -ro-erl, Man mechanics an* tractor>*rivers ha* left the
villa"es rather than +ecome 8ol8hoF -easants, .The Re-air Technical
Stations -rovi*e* for in the #$1' reform never "ot off0 or rather on
to0 the "ro)n*,/
97 7hr)shchev -resse* cam-ai"ns )-on the farms0 )sin" for this
-)r-ose the -art machine0 which interfere* with little or no re"ar*
for local con*itions0 an* *i* "reat *ama"e, The list of cam-ai"ns
an* *istortions is a lon" one, MaiFe was to +e sown in areas in
which the soil an* climate were )ns)ita+le0 or where the necessar
la+o)r an* machines were lac8in"0 with misera+le harvests as a
res)lt, Cro- rotations were *isr)-te*, Cattle were )nnecessaril
sla)"htere* to achieve s-ectac)lar short>term res)lts in meat
-ro*)ction0 then -ermission to sla)"hter was withhel*0 to re+)il* the
her*s0 even if there was no -oint to it .other than statistical -oint/,
The cam-ai"n a"ainst StalinDs favo)rite tra>vo-ole ."rass>rotation/
reache* s)ch a hei"ht in #$%#>& that some farms were or*ere* to
-lo)"h )- fiel*s of clover0 for no +etter reason than to re-ort to
Moscow that the area )n*er "rasses ha* +een re*)ce*, Stron"
-ress)re from Moscow com-elle* monoc)lt)re .s-rin" wheat/ on
the formerl vir"in lan*sI -ermission to re*)ce sowin"s to -reserve
the soil from erosion an* wee* infestation was ref)se*, Serio)s
harm res)lte*, 7hr)shchev -ersonall to)re* the co)ntr re-eate*l
to a*vocate these cam-ai"ns0 an* *ismisse* man local officials an*
e@-erts who *are* to *isa"ree with him0 or who faile* to carr
thro)"h im-ossi+l am+itio)s -lans, Proc)rement E)otas ten*e* to
+e +ase* on )nrealistic -ro*)ction tar"ets0 an* this force* local -art
officials to act as the *i* in StalinDs time0 ta8in" whatever the
co)l* sE)eeFe o)t0 *isre"ar*in" E)ota r)les0 or*erin" farms a+o)t,
Even metho*s of c)ltivation ha* their DwavesD of im-ose*
!51 The Ahrushche0 Era
fashions? two>sta"e harvestin" .c)ttin" first0 threshin" later/0 the )se
of -eat com-ost for see*lin"s0 sE)are>cl)ster sowin" of maiFe an*
-otatoes0 alwas re"ar*less of the local sit)ation,
.</ As also in in*)strial -lannin"0 7hr)shchev conf)se* matters
+ re-eate* reor"aniFations, The #$1' reform ha* wi-e* o)t the
MTS0 an* with it an im-ortant controllin" mechanism, In the
co)rse of #$1$>%# he ha* s)ccee*e* in t)rnin" the Ministr of
A"ric)lt)re into a mere technical a*visor service, At first he
seeme* to la "reat stress on the role of the State Proc)rements
Committee0 as -rovi*er of ")i*ance to farms + a contract
sstem0 while another state committee han*le* s)--lies of eE)i-
ment an* materials to a"ric)lt)re 4Se&1ho2te1hni1a5- The r)ral
-art or"ans also interfere* constantl, Im-atient of *efects an*
inefficiencies0 7hr)shchev then scra--e* this ina*eE)ate a*minis
trative hotch>-otch0 *eci*e* on ti"hter controls0 an* in #$%# set
)- a+o)t a tho)san* Territorial Pro*)ction A*ministrations
.TPA/0 to control +oth 8ol8hoFes an* state farms within their
areas, At first these TPA were o)tsi*e the control of the raion
.*istrict/ -art secretaries0 an* in each there was to +e a -art
-leni-otentiar a--ointe* + the re-)+lic, In #$%< he -ro-ose*
to a*minister a"ric)lt)re + all>)nion *e-artments concerne*
with -artic)lar -ro*)cts, One s)ch was set )-? Ptitse#rom SSSR,
to *eal with -o)ltr an* e""s, How this wo)l* fit in with the
TPA0 or in*ee* with the internal a*ministration of the farm0 was
never e@-laine*,
98 After #$140 o)t-)t of man 8in*s of farm machiner act)all
fell, A--arentl it was instinctivel felt that the 8ol8hoFes0 as non>
state instit)tions0 *eserve* a lower -riorit0 an*Bor that the MTS ha*
+een over>s)--lie* with eE)i-ment,
99 Price relativities esta+lishe* in #$1' were in total conflict
with the -lan0 es-eciall the -lan to e@-an* the o)t-)t of livestoc8
-ro*)cts, Meat an* mil8 -rices were far too low0 an* Soviet
economists ha* no *iffic)lt in *emonstratin" that these items were
-ro*)ce* at a loss, So the +i""er the effort in this *irection0 the
-oorer the farm wo)l* +ecome, This contri+)te* to the re*)ction in
-easant incomes as from #$1'0 alrea* referre* to, In #$%(0
-roc)rement -rices for these items were increase* + )-war*s of &5
-er cent0 an* this was accom-anie* + a similar
Ahrushche0's A)ricultural 4ismana)ement !5*
increase in retail -rices0 which "ave rise to lo)* -rotests in the
towns, Yet even after this increase0 an* *es-ite the fact that the "a-
+etween -roc)rement an* retail -rices was now too small to cover
e@-enses0 necessitatin" a s)+si*0 livestoc8 -rices were still
)nattractiveI the ha* to +e f)rther increase* after 7hr)shchevDs fall,
Prices were also ins)fficientl *ifferentiate* +etween re"ions,
Finall0 7hr)shchev committe* the "rave error of attac8in" the
-rivate -lots, :e have seen earlier that s)+)r+an livestoc8 owners
ha* alrea* +een s)+Cecte* to fiscal +)r*ens in #$1% +)t the *rive
+e"an serio)sl to "et )n*er wa in #$1' when 7hr)shchev ma*e
his s-eech to the effect that -easants in his +irth-lace0 7alinov8a0
ha* vol)ntaril sol* their cows to the 8ol8hoF, He em-hasiFe* the
wor* Dvol)ntarilDI +)t soon eno)"h tho)san*s of -art secretaries
were e@ertin" -ress)re on the -easants to *o the same, Then there
was the "eneral fo**er shorta"e0 with -riorit enforce* for collective
an* state animals, Past)re ri"hts were limite*, Ta@es were im-ose*
where n)m+ers of livestoc8 e@cee*e* strict limits .es-eciall on
those owne* + state>farm -easants/, The net effect on la+o)r in-)ts
was ne"ative, One analst later showe* that -easants wor8e* less
for the 8ol8hoF0 +eca)se it too8 them lon"er to -roc)re .or
scro)n"e/ fo**er for their livestoc8,
<#
An ee>witness tol* me of the
followin" conversation overhear* on a farm?
First -easant? DThatDs smo8e on*erI whatDs +)rnin"GD
Secon* -easant? DHa is +)rnin",D
First -easant? D:ell0 let it +)rnI if it all +)rns0 ma+e *ie will ret)rn
)s o)r cows,D
Statistics show that most -easants *i* retain their livestoc80 +)t the
n)m+er of -rivatel owne* cows fell +etween #$1$ an* #$%< + #<
-er cent while collective an* state her*s "rew ra-i*l, All these
irritations affecte* wor8 morale0 the more so as -a in the
collectives *ecline* at the same time,
The "reat -ress)re to increase livestoc8 n)m+ers while cro-
o)t-)t was sta"nant *o)+tless contri+)te* to a r)n>*own of
reserves, The #$%& "rain harvest was +a*0 an* it -rove* necessar to
im-ort lar"e amo)nts of wheat from ca-italist co)ntries, This was a
heav +low to -resti"e0 an* even tho)"h 7hr)shchev co)l*
!5% The Ahrushche0 Era
+lame the weather0 his -ersonal stan*in" s)ffere* a severe shoc80
since he ha* sta8e* so m)ch on his -et a"ric)lt)ral -roCects, Total
livestoc8 n)m+ers fell ver ra-i*l owin" to fo**er shorta"e .-i"s
from over 45 million to onl <# million/, 3es-ite im-orts there was
some *iffic)lt in s)--lin" +rea* an*0 es-eciall0 flo)r, Man
a"ric)lt)ral areas +ecame short of foo*, The #$%< harvest -rove*
m)ch +etter0 +)t it was too late to save 7hr)shchev, .His s)ccessors
were so em+arrasse* that the for a time conceale* the #$%<
statistics0 +eca)se the were too favo)ra+le,/
The +asic -ro+lems of a"ric)lt)re were not0 of co)rse0 7hr)sh>
chevDs creation, He interfere*0 reor"aniFe* an* cam-ai"ne* too
m)ch0 +)t he ha* inherite* a "eneration of ne"lect an* im-overish>
ment an* a sstem in which chan"e co)l* come onl + or*er from
a+ove0 since it treate* -easant or even farm>mana"erial initiative
with instinctive s)s-icion, The wor* Ds-ontaneitD 4samot!yo15 was
never close to 6olshevi8 hearts0 +)t it was treate* as a -artic)larl
*irt wor* in a"ric)lt)re, 3r 2asn0 the o)tstan*in" emi"re analst0
once sai*? DMore than an other sin"le thin"0 Soviet a"ric)lt)re
nee*s samoto8,D In its a+sence0 -lans ha* to +e im-ose*0 an* the
metho*s of Soviet official*om0 create* + the Stalin e-och0 ens)re*
that the +e im-ose* on a set -attern0 re"ar*less of local
circ)mstances0 so as to re-ort what Moscow wante* to hear, Hence
cam-ai"ns alwas *e"enerate* into e@cesses0 even if the ha*
within them some rational -)r-ose > as the )s)all ha*,
Un*er Stalin too there ha* +een cam-ai"ns, 6)t in the last
analsis he was reall onl intereste* in -roc)rements0 an* interfer>
ence of -art officials was onl s-asmo*ic,
It ma +e as8e*? +)t if -a for collective wor8 im-rove* so m)ch
in com-arison with the Stalin -erio* .*es-ite the *ownt)rn of #$1'>
%5/0 an* if -rices -ai* + the state increase* so ver "reatl0 how is
it that incentives remaine* ina*eE)ateG The answer lies in one
sel*om>)n*erstoo* fact, Un*er Stalin -roc)rement of foo*st)ffs
co)l* +e re"ar*e* as a heav0 +)r*ensome ta@ in 8in*, E@ce-t in
areas of in*)strial cro-s0 s)ch as cotton0 where -rices were m)ch
+etter0 the -easants to all intents an* -)r-oses live* on what was left
after the state ha* ta8en its share0 an* on the -ro*)ce an* cash
*erive* from -rivate -lots, Their wor8 for
Ahrushche0's Fall !55
the 8ol8hoF0 in the maCorit of cases0 was C)st a -art>time
occ)-ation, Therefore the fact that the co)l* not e@ist on
collective -a was not *isastro)s? it co)l* +e seen as almost
)n-ai* service E)alifin" them to o-erate their little -rivate
enter-rise0 on which the live*, 6)t )n*er 7hr)shchev cam-ai"ns
to increase o)t-)t .es-eciall in the almost )nmechaniFe* an*
la+o)r>intensive livestoc8 sector/0 an* to e@-an* -roc)rements
le* to a +i" rise in la+o)r in-)ts on the farms0 so for man
-easants collective wor8 +ecame their -rimar occ)-ation, For
this -)r-ose neither -a nor con*itions were a*eE)ate, As late as
#$%4 there were still recommen*ations +ein" ma*e that shiftwor8>
in" for mil8mai*s +e a*o-te* more wi*el0 so as not to have wor8
-erio*s r)nnin" from &,<1 a,m, to $,<1 -,m,0 which ma*e all
-rivate life im-ossi+le,
<(
The same -oint was still +ein" ma*e in
#$'1H
Ahrushche0's Fall
7hr)shchev was *ismisse* in Octo+er #$%<, The economic
tro)+les C)st *escri+e* were -art>ca)ses of his fell, His over>
am+itio)s cam-ai"nin" .Dhare>+raine* schemesD/0 his e@a""erate*
-romises0 his ar+itrar metho*s0 his *isor"aniFin" Dreor"aniFa>
tionsD0 were too m)ch, Yet he *i* achieve consi*era+le s)ccesses0
es-eciall in his first five ears0 an* his *efects are e@-lica+le +
his +ac8"ro)n* an* e@-erience, He was -oliticall De*)cate*D
)n*er 7a"anovich0 in the *ramatic ears of the earl thirties, He
inherite* man -er-le@in" -ro+lems0 an* his metho*s of tac8lin"
them +elon"e* to a *ifferent e-och0 an* were now o+solete, He
half )n*erstoo* the nee* an* even the reE)ire* *irection of
chan"e0 an* often s-o8e of mana"erial a)tonom in in*)str an*
a"ric)lt)re0 economic criteria0 rational investment -olic, He
showe* that he 8new +etter than anone how the +)rea)cratic
a--arat)s of -art an* state co)l* *istort -olic an* -aralse
*esire* initiative, 6)t in the en* he 8new onl the tra*itional
metho*s,
1! 2re9hne0? From Sta+ility to
"mmo+ility
6reFhnev an* 7os"in s)ccee*e* 7hr)shchev, The )n*i* what
the consi*ere* .not witho)t reason/ to +e his wron">hea*e*
reforms? the a"ric)lt)ral TPAs were eliminate*0 the normal raion
a*ministrative or"ans were reconstit)te*0 the Ministr of A"ric)l>
t)re rea--eare* with its former -owers0 the *ivision of the -art
+etween in*)strial an* a"ric)lt)ral -arts was a+an*one*0 its )nit
restore*, In Se-tem+er #$%1 the sovnar1ho2y were finall
a+olishe*0 an* the in*)strial ministries rea--eare*I !os-lan a"ain
+ecame the 8e -lannin" or"an0 coverin" +oth lon">term an* short>
term -lannin", However0 re"ional s)--l *e-ots remaine*0 )n*er
the a)thorit of the State Committee on Material S)--lies
4(ossna"5- The co)ntr was -romise* an en* to Dhare>+raine*
schemesD an* constant reor"aniFations,
A&riculture a *riorit-
The -olicies of the new lea*ershi- towar*s a"ric)lt)re emer"e* in
the March #$%1 -len)m of the central committee, There was severe
criticism of -ast errors? e@cessive Dcam-ai"nin"D0 ne"lect of the non>
+lac8>earth re"ions0 restrictions on -rivate livestoc80 ina*eE)ate
s)--l of machiner0 the )n-rofita+ilit of the livestoc8 sector, It
was *eci*e* to increase -roc)rement -rices s)+stantiall0 es-eciall
for livestoc8, In s)+seE)ent ears there were f)rther increases in
-rices0 witho)t an conseE)ential rise in retail -rices, As a res)lt0
there was a f)n*amental chan"e in the role of a"ric)lt)re in the
econom, From +ein" a so)rce of acc)m)lation of ca-ital for
investment in in*)str0 a"ric)lt)re
A"ric)lt)re a Priorit &4$
+ecame a net +)r*en on the rest of the econom, The s)+si* to
cover losses in the livestoc8 sector .i,e, the *ifference +etween the
-rice -ai* to farms -l)s han*lin" costs an* recei-ts from retail
sales/ "rew an* "rew, Investment in a"ric)lt)re0 +oth state an*
collective0 rose s)+stantiall0 +oth relativel an* a+sol)tel?
1941-/ 1944-1& 1911-/
9O9*; IN?ES9>EN9S !"illirds o#
rou=les% .41-4 (/(-0 /&1.4
o# 5hichG *$riculture@ 40.4 0... i(r-/
per cent o# totl 19.4 .(.. .4..
@ Producti:e nd unproducti:e in:est"ents, includin$ expenditure on repir
5or,shops o# Se1kho(lekhnika, reserch, est=lish"ents #or processin$ #r"
products, irri$tion 5or,s, etc. (Source: "ar. kho(, 191/, pp. /&., /1&.%
6reFhnev affirme* an* reaffirme* the hi"h -riorit to +e accor*e* to
a"ric)lt)re0 an* to in*)stries servin" the nee*s of a"ric)lt)re, :hile
scalin" *own 7hr)shchevDs )nrealisticall overam+itio)s tar"ets
for fertiliFer -ro*)ction0 he contin)e* the -olic of -ressin"
ahea* with the e@-ansion of this an* other sectors of the chemical
in*)str,
:ith what res)ltG One m)st tr to eliminate the variations due
to weather0 which contin)e to have a lar"e infl)ence on the siFe
of the harvest, Th)s #$%10 #$%40 #$4(0 #$41 an* #$4$ were poor
ears0 for reasons E)ite )nconnecte* with -lans an* -olicies, 9he
+asic tren* was )-war*s?
*nnul :er$es 1941-/
1944-N1& 1911-/ 1914-0&
Gross $riculturl output
!"illirds o# rou=les% 44.( 0&./ 91.& 99-9
Grin hr:est !"illion tons% 1(&( 141.4 101.4
.&/
2otton !"illion tons% 4-9
4.1
1-1 0-9
Su$r=eet !"illion tons% /9-. 01.1 14.& 00.4
Pottoes !"illion tons% 01.4 &4.0 09.4 04
>et !"illion tons% 9-( 11.4 14.& 14.0
>il, !"illion tons% 44.1 0&.4 01.4 9..4
(Sources: "ar. kho(., 191/ nd pln #ul#il"ent reports.%
!&- 2re9hne0? From Sta+ility to "mmo+ility
It ma +e sai* that0 *es-ite some recent slow*own0 Soviet
a"ric)lt)ral o)t-)t ha* in fact risen faster than that of most other
co)ntries0 es-eciall :estern co)ntries, However0 the sit)ation was
in fact *ee-l )nsatisfactor0 an* this for the followin" reasons,
100 The increases were from ver low levels0 of iel*s an*
-ro*)ctivit0 an* meas)re* + international stan*ar*s the were still
ver low,
101 The increases were achieve* at *is-ro-ortionate cost, No
maCor co)ntr *evotes so hi"h a -ro-ortion of its total investment to
a"ric)lt)re, Yet it still a--ears to +e )n*erca-italiFe*0 *)e -artl to
)n+alance* 4ne1om#le1snyt5 mechaniFation0 -artl to low E)alit of
machines0 an* also to -oor maintenance0 so that eE)i-ment an*
vehicles wear o)t E)ic8l,
#
102 The re*)ction of the la+o)r force was slow0 while -a +oth
in 1ol1ho2y an* sov1ho2y increase* s)+stantiall, This le* to a shar-
rise in costs of -ro*)ction0 which a**e* to the +)r*ens on the state
+)*"et thro)"h the ever>increasin" s)+si*ies which ha* to +e -ai*,
There was still a shorta"e of la+o)r at -ea8 -erio*s0 an* millions of
)r+an citiFens an* sol*iers were *rafte* in to hel- +rin" in the
harvest,
103 A"ric)lt)re -rove* inca-a+le of s)--lin" eno)"h foo* to
cover ra-i*l "rowin" *eman*s from the now +etter>-ai* citiFens0
es-eciall as the -easants themselves were eatin" +etter, 3eman*
was artificiall stim)late* + the -olic of low -rices for foo*, Th)s
meat -rices ha* +een last increase* in #$%(0 an* since then avera"e
wa"es ha* than *o)+le*, So even tho)"h -ro*)ction ha* "one )-0
shorta"es +ecame more ac)te,
104 The "a- +etween s)--l an* *eman* .es-eciall of fo**er
"rains0 to s)stain a lar"er livestoc8 -o-)lation/ le* to increase*
*e-en*ence on im-orts from the ca-italist worl*, Th)s in #$4&0
followin" the -oor harvest of the -revio)s ear0 im-orts of "rain
reache* (& million tons, The s)+seE)entl e@cee*e* <5 million
tons0 since harvests in #$'#>1 were -oor, The avera"e for "rain .#'#
million tons/ was well +elow the #$4%>'5 fi")re of (510 *es-ite
ver lar"e investments0 incl)*in" h)"e e@-en*it)res on lan*
im-rovements0 most of which seem to have +een waste*,
It was often the case that s)ccesses in one sector were ne"ative*
A)riculture a Priority !&1
+ fail)re to -rovi*e com-lementar reso)rces, For e@am-le0
fertiliFer *eliveries *i* rise ra-i*l0 an* this0 to"ether with increase*
e@-en*it)re on limin" an* lan* im-rovement0 *i* contri+)te to the
rise in the avera"e harvests, However0 as man so)rces showe*0
there were shorta"es of +a"s0 means of trans-ort0 stora"e facilities
an* s-rea*in" machines, Also0 the t-e of fertiliFer *elivere* often
*i* not accor* with local reE)irements0 an* )n*er these con*itions it
-ile* )- at railwa ar*s an* m)ch of it was waste*,
Economicall0 the 6reFhnev -erio* has to +e seen as a *isaster,
Net o)t-)t +arel rose0 *es-ite recor* investments in machiner0
livestoc8 com-le@es an* lan* DmeliorationD0 while it -rove* neces>
sar to mo+iliFe millions of towns-eo-le an* sol*iers ever ear to
hel- with the harvest0 owin" to lo-si*e* mechaniFation an* the
)nwillin"ness of the -easants to -)t in the nee*e* effort, Accor*in"
to E, Manevich0 the n)m+er so mo+iliFe* *o)+le* +etween #$45
an* #$'50 an* reache* the e@traor*inaril hi"h fi")re of #1 million
-ersons,
(
An* this *es-ite the fact that0 + the stan*ar* of
in*)strialiFe* co)ntries0 the -ro-ortion of the wor8in" -o-)lation
en"a"e* in a"ric)lt)re was ver hi"h,
In the -erio* #$45>'1 there was an o)tflow of la+o)r from some
r)ral areas0 es-eciall in the Dnon>+lac8>earthD re"ions of central an*
north R)ssia, This was )nintentionall stim)late* + a -olic of
a+an*onin" .or forcin" the a+an*onment of/ so>calle*
ne#ers#e1tivnye .Df)t)relessD/ villa"es an* hamlets, This was a sort
of re-la of 7hr)shchevDs vision of Da"ro>townsD referre* to earlier
.-, &#(/? -easants were to +e move* into mo*ern central )r+an>t-e
settlements, However0 the a+sence of har*>s)rface roa*s0 an*
-easantsD attachment to their s)rro)n*in"s0 ma*e this +oth inefficient
an* )n-o-)lar, Its scale can +e C)*"e* + the fact that0 as was
re-orte* + E, Yasin in ;omm%nist No, #(0 #$'40 -, <10 in the
7ostroma -rovince alone no less than a tho)san* villa"es an*
hamlets .H/ were *eclare* to +e ne#ers#e1tivnye- The availa+ilit to
-easants of elementar amenities0 a*eE)ate sho-s0 health services
an* schoolin" were all the s)+Cect of severe criticisms0 an* efforts
were +ein" ma*e to -)t thin"s ri"ht,
In the late 6reFhnev ears there was a *rastic overha)l of
a"ric)lt)ral a*ministration, Conscio)s of -oor res)lts0 an* of
!&, 2re9hne0? From Sta+ility to "mmo+ility
wastef)l )se of reso)rces + so>calle* service or"aniFations .who
f)lfille* -lans in millions of ro)+les instea* of *oin" what the farms
nee*e*/0 it was *eci*e* to create a new hierarch coverin" the entire
Da"ro>in*)strial com-le@DI its local or"ans +ecame 8nown as RAPO
CRayonnoye agro!#romyshlennoye o"yedineniye5- Its creation was a
feat)re of a m)ch>-)+liciFe* foo* -ro"ramme0 a*o-te* in Ma
#$'(, In its ori"inal form it faile* to achieve the necessar
coor*ination0 an* there was a f)rther reor"aniFation in #$'1, It is
now )niversall a"ree* that this +)rea)cratic sol)tion was a serio)s
error .a contem-orar Co8e +lames the creation of the RAPO on the
CIAH/, The net effect was the creation of another laer of controllin"
officials an* a wea8enin" of the -osition of farm mana"ement0
which o)"ht to have +een free to hire .or not to hire/ service
a"encies as s)+>contractors,
The )r"ent an* vital -ro+lem of motivatin" -easants to wor8 was
to +e tac8le* + the creation of small wor8>"ro)-s wor8in"
a)tonomo)sl on contract an* -ai* + res)lts, In fact some
e@-eriments on these lines ha* +een con*)cte* in the late fifties an*
earl si@ties, An enter-risin" state>farm mana"er0 7h)*en8o0 ma*e
a +rilliant s)ccess of s)ch a scheme, However0 he fell fo)l of the
re")lations an* of the +)rea)crac0 was arreste* an* *ie* in -rison,
.The stor is tol*0 with in*i"nation0 + =, 6el8in an* =,
Pereve*entsev in Literat%rnaya ga2eta, = A-ril #$'4,/ The final
+lessin" of the -olit+)rea) for small>"ro)- contracts was anno)nce*
+ !or+achev0 at that time in char"e of a"ric)lt)re0 in a s-eech in
6el"oro* in March #$'&, This0 however0 ma*e little hea*wa, The
later *evelo-ment of famil leasin" will +e *isc)sse* in the ne@t
cha-ter,
4(e1or$4 o1 Industrial *lannin&
A seemin"l im-ortant reform was a*o-te* in #$%1 R a *ecree
which ha* the *eclare* intention of increasin" mana"erial -owers0
re*)cin" consi*era+l the n)m+er of com-)lsor in*icators D-asse*
*ownD from the centre, Prices were recalc)late* on the +asis of cost
-l)s a -ercenta"e of the val)e of ca-ital assets0 th)s s)--ose*l
corres-on*in" to Mar@Ds D-rice of -ro*)ctionD, A
'Reform' of "ndustrial Plannin) !&!
maCor a*C)stment in -rices was to eliminate losses in s)ch sectors as
coal an* tim+er, A ca-ital char"e0 avera"in" % -er cent0 was to +e
levie*, This same *ecree finall eliminate* the sovnar1ho2y an*
restore* the in*)strial ministries with almost the -re>sovnar1ho2
-owers0 one im-ortant *ifference +ein" the attem-t to concentrate in
(ossna" .the state material>technical s)--l committee/ the
f)nction of *is-osal which *e-artments of ministries formerl
e@ercise*, There was to +e Dtra*e in means of -ro*)ctionD0 i,e, a
"ra*)al scra--in" of the a*ministere* sstem of material allocation
.this was a"ain -ro-ose* in #$'4/, Most of the ministries were all>
)nion rather than )nion>re-)+licanI in other wor*s0 altho)"h there
was a move towar*s "reater *evol)tion to mana"ement0 the clear
intention was to centraliFe -lannin" an* ministerial -owers in
Moscow, Re-)+lican an* other re"ional -lannin" or"ans lost
-owers,
It soon +ecame evi*ent that the reforms of #$%1 were internall
inconsistent, Ministerial -owers over DtheirD enter-rises were those of
s)-eriors vis!a!vis s)+or*inates0 an* or*ers co)l* +e0 an* were0
iss)e* on a wi*e variet of to-ics s)--ose*l within the com-etence
of mana"ement, Ela+orate schemes inten*e* to relate mana"erial
+on)ses0 an* -aments into vario)s incentive f)n*s0 to -rofita+ilit
an* sales .*is-osals/ were ineffective0 for a variet of reasons, Th)s
-lans were anthin" +)t sta+le0 re-eate*l altere* within the -erio*
of their c)rrenc, The r)les "overnin" +on)ses were chan"e*
ar+itraril an* freE)entl, :hile mana"ement was s)--ose* to +e
enco)ra"e* to aim hi"h0 s)ccess an* +on)ses still *e-en*e*
-rimaril on -lan f%lfilment, which meant that it alwas D-ai*D to tr
to have a mo*est0 Df)lfilla+leD -lan, Persistent shorta"es of man
in-)ts le* to a n)m+er of ne"ative -henomena? hoar*in"0 over>
a--lication for material allocations0 -ro*)ction an* constr)ction
*elas, It also meant that ministries an* enter-rises ma*e their own
s)--l an* -roc)rement arran"ements0 an* )nofficial De@-e*itorsD
4tol1achi5 s)--lemente* the s)--l sstem + semi>le"al *eals, The
stress on the -rofit motive0 which seeme* to +e a feat)re of the #$%1
reform0 was also ne"ative* + several factors? the fact that an
a**itional -rofits were li8el to +e transferre* to the +)*"et .the
Dfree remain*erD0 svo"odnyi ostato1 #ri"yli5, the m)ch "reater stress
on the f)lfilment
!&1 2re9hne0? From Sta+ility to "mmo+ility
of E)antitative tar"ets0 an*0 finall0 the inherent illo"icalit of )sin"
-rofits as a ")i*eline when -rices were )ninfl)ence* + *eman* or
nee*,
6 #$45 not m)ch was left of the a**itional mana"erial -owers
ostensi+l "rante* + the #$%1 reform, So the -lans an* -olicies of
the *eca*e of the seventies were a--lie* within the tra*itional
sstem of centraliFe* -lannin"0 with m)lti-le o+li"ator tar"ets
im-ose* on mana"ement0 an* a*ministrative allocation of in-)tsI a
tas8 *ivi*e* three was? +etween !os-lan0 !ossna+ an* ministries,
As will +e ar")e* later in *etail0 the inherent im-ossi+ilit of
efficient an* effective centraliFation )n*erla man if not most of
the -ro+lems face* + the econom,
A so>calle* reform was -rom)l"ate* in #$4<0 +)t this in no wa
tac8le* the f)n*amental iss)es, It was0 on +alance0 a centraliFin"
meas)re0 with a m)lti-licit of com-)lsor -lan>in*icators im-ose*
from a+ove, One of them was to +e Dnorme* val)e a**e*D0 +)t this
-rove* )nwor8a+le0 an* the m)ch>criticiFe* val ."ross val)e of
o)t-)t/ s)rvive* alon" with tar"ets in E)antitative terms .tons0
sE)are metres0 etc,/, There was "reater em-hasis on the f)lfilment of
*eliver o+li"ations0 +)t C)*"in" from s)+seE)ent criticisms it ma*e
little *ifference, Also *)rin" the seventies there was a move to
mer"e enter-rises into lar"er cor-orations or associations
4#"yedineniyd5 within the economic ministries, However0 these
associations were not en*owe* with an a**itional -owers0 an* the
concentration of res-onsi+ilit for s-ecific -ro*)cts within
o"yedineniya was im-e*e* + the fact that man if not most "oo*s
were ma*e in enter-rises )n*er several *ifferent ministries,
Industrial Growth +lows #own
The tar"ets of the ei"hth five>ear -lan .#$%%>45/ ma +e seen in
the ta+le on -a"e &'%0 to"ether with those of the ne@t two
E)inE)ennia, :hile am+itio)s0 it avoi*e* e@tremes, The o)tcome
seeme* satisfactor in a""re"ate, A""re"ate "rowth rates were
similar to those achieve* in the -revio)s E)inE)enni)m .15 -er cent
in #$%%>Q450 1# -er cent in #$%#>1/0 with a relative im-rove>
"ndustrial #ro$th Slo$s (o$n !&*
ment in the "rowth of the o)t-)t of cons)mersD "oo*s .+ <$ -er
cent0 a"ainst &% -er cent in #$%#R1/B Some in*)stries *i* nota+l
well, Oil o)t-)t rose + <1 -er cent0 with a lar"e contri+)tion from
the newl>o-erational wells in north>west Si+eria0 fertiliFer + over
#55 -er cent .tho)"h the -lan tar"et was even hi"her/, Of co)rse0
this was *)e in lar"e -art to the investments ma*e in earlier -erio*s0
+)t in*)str as well as a"ric)lt)re +enefite* from "reater sta+ilit0
the restoration of ha+it)al lines of comman*0 the en* of e@tremes of
Dcam-ai"nin"D so characteristic of the 7hr)shchev -erio*,
On closer e@amination0 the ta+le "ives "ro)n*s for some -er-le@>
it, How co)l* the overall -lan for national income an* for in*)str
have +een over>f)lfille*0 when there were serio)s shortfalls in
ener" .e@ce-t oil/0 steel0 an* in*ee* virt)all ever other -ro*)ct
e@ce-t footwear .a"ric)lt)re was also short of its -lan tar"ets/G Of
co)rse0 the )s)al warnin" is necessar? a""re"ate in*ices ten* to
e@a""erate "rowth rates, 6)t wh sho)l* this factor +e es-eciall
im-ortant in this E)inE)enni)mG One reason s)""ests itself? this
was a -erio* of a -artic)larl ra-i* rise in militar har*ware
-ro*)ction0 which is incl)*e* in the a""re"ate in*e@ of in*)strial
-ro*)ction0 +)t not in the -hsical>o)t-)t statistics0 which are
confine* to civilian -ro*)ction,
The same ta+le shows a si"nificant *e"ree of )n*er>f)lfilment0
even in terms of a""re"ate in*ices0 as well as in 8e in*)strial
sectors0 in the -erio* after #$45, The ninth five>ear -lan .#$4#>1/
envisa"e* an in*)strial "rowth rate almost as hi"h as that -revio)sl
claime* .<4 -er cent in the five ears/0 with cons)mersD "oo*s
o)t-)t sli"htl o)t-acin" that of -ro*)cersD "oo*s, 6)t this was not
to +eI the cons)mersD "oo*s tar"et -rove* far +eon* reach0 *)e
-artl to the shortfalls in a"ric)lt)re .an* so in the foo* in*)str/0
an* -artl to increasin" *elas in constr)ctionI the latter factor has
+ecome of "reat im-ortance0 with a -ersistent rise in the vol)me of
)ncom-lete* investments an* in the time ta8en to +rin" new
-ro*)ctive ca-acit into o-eration, The official in*e@ for national
income showe* an )n)s)all lar"e "a- +etween -lan . a &',% -er
cent/ an* act)al . a (' -er cent/, Since -ersonal incomes rose faster
than -lanne*0 shorta"es of cons)mersD "oo*s "rew "ra*)all more
ac)te,
!&% 2re9hne0? From Sta+ility to "mmo+ility
9he ei$hth, ninth nd tenth #i:e-+er plns !194/-1&,1911-/,1914-0&%
(3%s < too) (34! ' !!) !A&1/ ' !!)
194/ 191& 191& 191/ 191/ 190& 190&
pln ctul pln ctul pln ctul
.. /nde= numbers
Ntionl inco"e
!utiliEed%@ 1&&
Industril production 1&&
ProducersC $oods 1&&
2onsu"ersC $oods 1&&
>. ?uantities
Electricit+
!"illird ,-hs%
/&1
Oil !"illion tons%t
.4(
Gs !"illird
cu=. "etres%
1.9
2ol !"illion tons% /10
Steel !"illion tons% 9i
6ertiliEer !"illion
tons%Y
(i
>otor :ehicles
!thousnds%
414
9rctors !thousnds% (//
2e"ent !"illion
tons%
1.4
6=rics !"illion
sF. "etres%
1,/&&
;ether #oot5er
!"illion pirs%
404
04&
(/&
14&
(/(
1,&4/ 1,&(9 /&/
49i
1,(0&
44&
1..9/
4&(
.((
41&
1.4
.&& 4.4
114
(.& .09
494.9 1&1
144.4 141
4(/
0&&
140
4(/
114
141
4(/ // 9& 9&.. 14( 1&4
,(0/
41.
914
4/0
.,1&& 1,944 /1/
//B
.,.94 /9& .,199
///
1&../ 9/ 1./ 1.. 144-/ 1./
,4/& 0,0/. 11,1&& 9,9/4 1.,0&& 1&,1&&
620 676 830 698 (n.a.)
@ >teril product !utiliEed%.
# Includin$ $s-condenste.
< Gross 5ei$ht.
(Sources: Pra'da, 14 Jece"=er 191/,1 >rch 1914, nd sttisticl returns #or the
rele:nt +ersU 2PSS ' re(olyutsiyakh, ?ol. 9,191., pp. 4.,49, /&.%
"ote: So"e pln #i$ures re "idpoints o# rn$es.
These ten*encies were even more noticea+le in the tenth
E)inE)enni)m .#$4%>'5/? a +i""er "a- still +etween the .alrea*
more mo*est/ -lan an* its f)lfilment0 in a""re"ate an* for almost
ever -ro*)ct of factor an* mine, In #$'5 onl "as an* -assen"er
cars reache* their five>ear tar"ets, Other so)rces of ener"0 an*
also steel0 fertiliFer0 tractors0 man other items of civilian machin>
er0 locomotives0 +)il*in" materials0 an* virt)all all cons)mersD
"oo*s0 were far +ehin* e@-ectations,
'39-5 141 138.6 128 126 120
148.5 150 . 147.0 143 137 124
150.5 151 146.3 146 140 126
144.5 149 148.6 137 131 121
A Pre=crisis Situation !&5
A Pre=crisis Situation
All these )nfavo)ra+le ten*encies contin)e* into the ne@t E)in>
E)enni)m0 which covere* the last 6reFhnev ears an* the +rief
rei"n of his two s)ccessors, The #$'#R1 -lan0 the tenth0 was
si"nificantl )n*erf)lfille*0 even in terms of the .inflate*/ official
in*ices0 as the followin" ta+le shows?
190&
#$'1 #$'1
1&&
-lan .a/
119
act)al
National income .)tiliFe*/ K4>1
!ross in*)strial -ro*)ction
1&& 1.1 1.&
Pro*)cersD "oo*s
1&& 1.1 1.&
Cons)mersD "oo*s
1&& 1.0 1.1
!rain harvest .&/@ .4&@ 101@
Electricit .milliar* 8:hs/
1,.94
i0141 #,1<<
Oil .million tons/
.+/
%5& %&( 1$1
!as .milliar* c)+, metres/ <&1
4.&
%<&
Coal .million tons/ 4#% 4'1 4(%
Steel .rolle*/ .million tons/
1&(
##',1
1&0
FertiliFer .n)trient content0
million tons/ (<,' &%,1 &&>(
Tractors .tho)san*s/ 111 R 1'1
Cement .million tons/ K1 Hi
1(1
Fa+rics .million sE, metres/ #504<% >>>>>
1.,&/.
.a/ Mi*-oints of ran"es, .+/ Incl)*in" "as>con*ensate,
YAvera"e of 1 ears,
Note: The #$'5 fi")res0 ta8en from the #$'1 statistical han*+oo80
*iffer in *etail from those cite* on -, &'%0 a+ove,
A s)+stantial *ecline in the rate of "rowth of civilian machiner
an* eE)i-ment0 an* in investment0 was -artiall conceale* + the
)n*er>recor*in" of -rice increases .for evi*ence an* f)rther
analsis0 see A--en*i@ on "rowth rates/, O+solete machiner in
)r"ent nee* of re-lacement contin)e* in )se0 necessitatin" lar"e
e@-en*it)res on re-airs, Technolo"ical -ro"ress slowe*0 im+al>
ances m)lti-lie*, S-eeches an* articles0 es-eciall + !or+achev
himself0 referre* re-eate*l to the s-rea* of corr)-tion0 alcohol>
ism0 crime, The wor*s D-re>crisis sit)ationD were his0 an* so were
Dears of sta"nationD,
!&& 2re9hne0? From Sta+ility to "mmo+ility
9ivin" stan*ar*s also sta"nate*0 es-eciall if one ma8es allow>
ance for the )n*erstatement of -rice increases in the official
in*e@, Increases in mone incomes were not matche* + the rise
in s)--lies in "oo*s an* services0 which was reflecte* + the
"rowin" "a- +etween official an* free>mar8et -rices of foo*st)ffs0
an* + the ver lar"e rise in savin"s +an8 *e-osits0 which Soviet
so)rces treat as evi*ence of fr)strate* -)rchasin">-ower an*
s)--resse* inflation .tho)"h0 o**l eno)"h0 some :estern o+serv>
ers *is-)te this/, The fi")res are clear eno)"h,
6ree "r,et prices o# #ood
!o##icil prices ' ioo%
194/ 191& 1910 1904
C(/ C/4-/
.
BB
..
B
(Sources: clculted #ro"
t=les in "ar. kho(. o# the
respecti:e +ers.%
S:in$s =n, deposits
(milliards of roubles)
i94& 191& 190& 1904
IO.9 44.4 1/4./ .&..1
(Sources: "ar. kho(. o#
respecti:e +ers.%
A t-ical Soviet comment ma +e cite*0 + Aca*emician O,
6o"omolov, He wrote ofDinflation,,, manifestin" itself in "rowin"
shorta"es in retail tra*e an* the "rowth of e@cessive fr)strate*
-)rchasin">-ower, In the ho-e of acE)irin" the "oo*s the nee*e*
the -o-)lation acc)m)late* mone in savin"s +an8s or in mone>
+o@es,D In his view0 -rices rose not onl in the free mar8et +)t also0
*es-ite the official in*e@0 in state tra*e too, The )r+an cons)mersD
+as8et more than *o)+le* its -rice since the en* of the fifties
<
.note that the official in*e@ showe* a rise + onl 4 -er
centH/,
Im+alances an* shorta"es "ive rise to man )n*esira+le si*e>
effects? corr)-tion0 +ri+er0 )n*er>the>co)nter sales0 hoar*in"0
A Pre=crisis Situation !&
*isre"ar* for c)stomer reE)irements, Several Soviet so)rces have
-ointe* to the fact that stoc8s .inventories/ hel* + enter-rises rose
m)ch faster than o)t-)t0 immo+iliFin" reso)rces on a h)"e scale, So
*i* the notorio)s dolgostroi .Dlon"+)il*D/0 the lon" *elas in
com-letin" constr)ction of all +)t the to-most -riorit -roCects, All
these *eficiencies "rew worse in the last D6reFhnevD ears,
These *iffic)lties were "rowin" *es-ite a ver s)+stantial +on)s
in the form of im-rove* terms of tra*e, In the last 6reFhnev ears
reco)rse was ha* .in secret/ to the -rintin">-ress to cover a
conceale* +)*"et *eficit0 the e@istence of which was first -ointe* to
+ I"or 6irman,
1
S)+si*ies increase*0 as *i* .hi**en/ militar
e@-en*it)re, So *i* +an8 cre*its0 which were -art of what 7ornai
has calle* the Dsoft +)*"et constraintD0 i,e,0 mana"ement 8new that
an losses wo)l* +e covere*,
This was evi*ence of a *evelo-in" crisis in the Soviet -lannin"
sstem, The followin" a--ear to +e 8e elements of an e@-lana>
tion,
One element is *emo"ra-hic, 6eca)se of low +irth>rates0 the
wor8in" -o-)lation ha* virt)all sto--e* increasin", Shorta"es of
la+o)r were serio)s0 even tho)"h there was overmannin" an* waste
in some sectors, The hi"h +irth>rate in Central Asia was of little
hel-0 since the native -eo-les ten* to +e immo+ile an* to remain in
their villa"es, Increase* o)t-)t now *e-en*e* almost wholl on
increase* -ro*)ctivit -er hea*,
This has +een characteriFe* + man in East an* :est as the nee*
to shift from e@tensive to intensive "rowth, Technical -ro"ress0
more an* +etter mechaniFation an* "reater efficienc in the )se of
reso)rces0 +ecome more an* more vital,
The efforts to achieve -arit in the militar fiel* a**e* to the
strain on reso)rces, The militar sector a+sor+e* a lar"e se"ment of
the o)t-)t of the Soviet machiner0 en"ineerin" an* electronic
in*)stries, In an* after #$'$ it was a*mitte* that the -)+lishe*
*efence e@-en*it)res were far +elow the tr)e ones0 that the real
fi")re was fo)r times hi"her, 6)t some Soviet critics maintain that
the real fi")re was hi"her still0
%
an* D+lameD the hi"h level of militar
s-en*in" for the ne"lect of the mo*erniFation of civilian in*)str,
The militar +)r*en certainl ma*e an a--recia+le contri+)tion to
the tro)+les of the econom,
!- 2re9hne0? From Sta+ility to "mmo+ility
A f)rther *rain on reso)rces ha* +een the +i" investment effort in
a"ric)lt)re0 alrea* referre* to, Of -erha-s even "reater im-ortance
were the ma"nit)*e an* cost of investments in Si+eria, These
investments were )n*o)+te*l necessar? vast reso)rces of ener"
an* man val)a+le minerals lie in the lar"el em-t an* climaticall
)n-leasant areas north of the Trans>Si+erian railwa, It has +een
re-eate*l -ointe* o)t that while $5 -er cent of ener" )tiliFation is
west of the Urals0 $5 -er cent of ener" reso)rces are east of the
Urals, :ith the e@ha)stion of oil wells in E)ro-ean areas0 it is
essential to rel increasin"l on Si+erian so)rces0 an* the richest
so)rces of nat)ral "as lie in the froFen north>west of Si+eria, 6)t
these investments are ver costl0 even while in the lon"er r)n their
im-ortance will +e ver "reat,
All this -resente* a challen"e to the Dtra*itionalD centraliFe*
-lannin" sstem0 m)ch more att)ne* to E)antit than to E)alit0
-oor at relatin" -ro*)ction to )ser *eman*0 an*0 a+ove all0
increasin"l overwhelme* + its own com-le@it, Inefficienc an*
waste0 the slow *iff)sion of technical -ro"ress0 im+alances an*
+ottlenec8s0 -la")e* the econom, The -art lea*ershi- contin)e* to
a*o-t resol)tions *eman*in" "reater attention to the reE)irements of
the c)stomer0 whether the c)stomer +e in*)str itself or the citiFen,
However0 -ro*)ction contin)e* to a*a-t itself not to )ser *eman*
+)t to the Ds)ccess in*icatorsD0 i,e, to -lan>f)lfilment statistics in
ro)+les0 tons0 sE)are metres, It has -rove* e@tremel *iffic)lt to
incor-orate *esira+le forms of technical -ro"ress into D*irectiveD
-lan>or*ers, New -ro*)cts or new machines reE)ire* to +e a--rove*
+ n)mero)s +)rea)cratic instances0 an* then fitte* into -lan tar"et
fi")res0 an* the allocate* material in-)ts freE)entl faile* to match
reE)irements, Information flows were *istorte* + the interest of
information>-rovi*ers in +ein" "iven a -lan that was eas to f)lfil,
Unrelia+ilit of s)--lies enco)ra"e* hoar*in" an* over>a--lication
for in-)t allocationsI freE)ent chan"es of -lan enco)ra"e* the
hoar*in" of la+o)r too, 6reFhnev com-laine* of the stren"th of what
he calle* vedomstvennost, an* mestnichestvo, D*e-artmentalismD an*
DlocalismD? ministries0 an* re"ional state an* -art or"ans0 *iverte*
reso)rces in the li"ht of their sectional interests0 ma*e their own
com-onents .often in ill>eE)i--e* +ac8ar* wor8sho-s/0 an*
Forei)n Trade' Comecon and (%tente !1
-rove* too stron" for the overwor8e* coor*inatin" or"ans, Far too
man investment -roCects were +e")n0 *es-ite re-eate* or*ers to
sto- this -ractice, Plans were too often )n+alance*0 in that the
necessar in-)ts co)l* not +e -rovi*e* or *i* not arrive0 an* in the
most recent ears a serio)s +ottlenec8 has +een raCl trans-ort, The
man calls on reso)rces "reatl re*)ce* the rate of "rowth of
investmentI in #$4$0 a -artic)larl *iffic)lt ear0 it was onl # -er
cent, In fact the vol)me of investment *ecline*0 owin" to increase*
costs an* -rices,
As 6reFhnev himself "rew ol*er0 so *i* his increasin"l "eriatric
collea")es in the lea*ershi-, One ha* an increasin" sense of
-aralsis in the face of the nee* for action, His *eath +ro)"ht the
reform>min*e* An*ro-ov to -ower0 +)t his health colla-se* +efore
he co)l* ma8e an im-act, The +rief -erio* *)rin" which Chernen8o
was "eneral secretar re-resente* the last f)tile attem-t of the ol*er
"eneration0 which came -oliticall of a"e )n*er Stalin0 to clin" to
the ol* was, !or+achev was alrea* waitin" in the win"s,
%orei&n 'rade" o$econ and #etente
A feat)re of the 6reFhnev -erio* was a s)+stantial e@-ansion of
Soviet forei"n tra*e0 -artic)larl with the ca-italist worl*, This was
facilitate* + an im-rove* -olitical atmos-here .D*etenteD/0 which
enco)ra"e* :estern firms an* +an8s to "rant lon">term cre*its on a
lar"e scale0 an*0 from #$4&0 also + the rise in -rices of oil .+ far
the lar"est Soviet e@-ort to the :est/ an* some other commo*ities0
as well as of "ol*, Soviet -)rchases of :estern .an* 2a-anese/
technolo" increase* ver shar-l0 an* there were also lar"e
-)rchases of "rain, Soviet ai* -ro"rammes for *evelo-in" co)ntries
*i* not e@-an*0 +)t tra*e "rew0 es-eciall Soviet sales of arms to
thir*>worl* co)ntries,
Efforts were also ma*e to enlar"e the f)nctions of Comecon, In
#$4# an am+itio)s -ro"ramme of inte"ration was formall a*o-te*0
+)t0 while the vol)me of tra*e e@-an*e*0 it remaine* -re*ominantl
+ilateral0 with onl slow -ro"ress in Coint -lannin" of investments,
Tho)"h there was formal -rovision for converti+il>
&$( 6reFhnev? From Sta+ilit to Immo+ilit
fr0 in -ractice the c)rrencies remaine* non>converti+le0 an* the so>
calle* transfera+le ro)+le was a )nit of acco)nt an* not in fact
transfera+le, In the most recent ears the USSR0 as the maCor
s)--lier of f)el an* material to the in*)strialiFe* mem+ers of
Comecon0 face* a *ilemma? with the slow*own of "rowth of o)t-)t0
it has not +een -ossi+le to s)--l the nee*s of the Comecon -artners
> for instance for oil > witho)t a*versel affectin" earnin"s from
sales to :estern mar8ets an*Bor failin" to co-e with risin" *omestic
*eman*, Comecon co)ntries then ha* to +) more oil an* other
commo*ities .for instance0 "rain/ for har* c)rrenc in the ca-italist
worl*0 an* therefore to e@-ort more to the :est0 which acte* a"ainst
closer inte"ration with the USSR an* the other Comecon -artners,
The ta+le o--osite shows the scale on which tra*e ha* increase*0
with all cate"ories of co)ntries, The fi")res "iven are in c)rrent
-rices0 an* of co)rse were "reatl infl)ence* + the rise in the -rice
of oil0 + far the lar"est item in Soviet e@-orts, The a"reement on
-rices with Comecon co)ntries .that -rices +e a sli*in" avera"e of
the -revio)s five ears/ meant that for a n)m+er of ears the were
a+le to +) Soviet oil an* "as at -rices well +elow the ra-i*l risin"
worl* -rices0 which le* some commentators to assert that the USSR
was s)+si*iFin" its Comecon -artners on a lar"e scale, However0 the
same r)les le* to a reverse sit)ation in #$'%0 when worl* -rices fell,
It was sometimes sai* that 6reFhnev em+ar8e* on a -olic of
*etente in or*er to sec)re economic a*vanta"es, This is a -olitical
an* an economic misinter-retation, Soviet "ains from tra*e were
*)e *ecisivel to the fort)ito)s com+ination of a lar"e rise in
*omestic o)t-)t in oil .an* "as/ an* an even lar"er increase in the
worl* -rice, These "ains contin)e* into the ei"hties0 +)t were
-artiall reverse*, Oil o)t-)t +e"an to sta"nate0 an* worl* -rices
fell, This le* to a shar- *ro- in Soviet har*>c)rrenc earnin"s0 in
#$'1 an* #$'%0 an* to some fall in Soviet -)rchases,
#$%1
#$41
#$'5 #$'<
E
@
4
I
9O9*; 1-(/ 1-./
Socilist countries
/.&&
/B/
2pitlist countries i-(/
1-41
Je:elopin$ countries
1.&1 &-1(
4So%rce:
6neshnay
a
torgodya
SSSR of
the a+ove
*ates,/
o
o
!
G( <
o
! -F
C(
!
11 #or+ache0? From Reform to
(isaster
'he %irst (e1or$ .ave
:hen0 + a narrow maCorit0 !or+achev was ma*e "eneral
secretar0 he E)ic8l so)n*e* the alarm, M)ch nee*e* to +e *one,
All was ver far from well, However0 in his first ear he seeme* li8e
a o)n"er an* healthier An*ro-ov0 who *)rin" his short ten)re of
office also -ointe* to the nee* for chan"e in the -etrifie* an*
sta"nant sstem, It now a--ears that !or+achev *i* have more
ra*ical i*eas than he was a+le to s-ea8 of -)+licl0 since in the
"iven -olitical +alance0 he wo)l* then not have +een allowe* to
+ecome "eneral secretar, Onl after he "ot ri* of some of the
lea*in" DconservativesD on the -olit+)rea)0 s)ch as !rishin an*
Romanov0 co)l* he "ra*)all )nveil a reform -ro"ramme that went
+eon* what )se* to +e calle* Df)rther -erfectin"D the centraliFe*
sstem, Alrea* in A-ril #$'1 he state* that Dthe fate of o)r co)ntr0
the f)t)re of socialism in the worl*0 *e-en* in lar"e meas)re on how
we tac8le o)r tas80K an* all evi*ence shows that he 8new how vast
the tas8 of reform was0 tho)"h he was as et )nclear C)st how he
wo)l* tac8le it,
At first we seeme* to +e seein" a Dre-laD of the a+ortive
D7os"inD reform of #$'1? a shift from material allocation to tra*e in
means of -ro*)ction0 more free*om to ne"otiate some -rices0 more
financial res-onsi+ilit an* more in*e-en*ence for enter-rise
mana"ement0 with the -ro*)ct>mi@ *etermine* -rimaril + the
nee*s of the c)stomers, Instea* of com-)lsor -lan tar"ets0 there
wo)l* +e Dstate or*ersD 4gos2a1a2y5 coverin" onl +asic
reE)irementsI the rest of -ro*)ctive ca-acit co)l* then +e *evote*
to freel ne"otiate* contracts,
In -ractice0 little chan"e*, In*)strial ministries remaine* in
The First Reform :ave &$1
e@istence0 still with res-onsi+ilit for their sectors of the econom0
res-onsi+ilities the co)l* onl carr o)t if the ha* -ower to iss)e
or*ers0 which the contin)e* to *o, The more was this necessar
when ra*ical -rice reform was -ost-one*0 so that -rofita+ilit co)l*
not act as a rational ")i*e to action0 since -rices in no wa reflecte*
relative scarcities or )se>val)es, F)rthermore0 the -ractice of Dta)tD
-lannin" contin)e*0 with the a*o-tion of the twelfth five>ear -lan
.see +elow/0 an* this meant more of the all>too>familiar shorta"es0
incl)*in" shorta"es of material in-)ts, As a res)lt0 gos2a1a2 came to
cover the +)l8 of o)t-)t0 an* mana"ement activel so)"ht after
gos2a1a2y +eca)se the wo)l* then +e more li8el to receive
allocate* in-)ts, So +oth -ro*)ction -lannin" an* a*ministere*
allocation contin)e* to *ominate, It loo8e* li8e a re-eat of the
fr)strations that followe* the similar attem-t in #$%1,
One reason for the inconsistent half>hearte*ness with which
reform was tac8le* at this time was )nclarit as to the sco-e an*
scale of reform an* its en*>o+Cective, In the first ear even the wor*
Dmar8etD was avoi*e* > one s-o8e of Dcommo*it>mone relationsD0
an* not .et/ of an s-ecies of even a socialist mar8et, The ol*
ortho*o@ies were onl "ra*)all she*, The revival of coo-erative
enter-rises was moote*0 an* event)all the were le"aliFe*0 +)t not
)ntil #$'' .see -, <5( +elow/, In a"ric)lt)re0 small>"ro)- an* famil
contract ithin state an* collective farms was +ein" activel
enco)ra"e* + the new lea*ershi-0 +)t was also +ein" activel
o+str)cte* + local official*om an* + farm mana"ement0 so that
little chan"e* there either,
!or+achev clearl inten*e* to -)sh ahea* with economic
#erestroi1a, Drestr)ct)rin"D0 an* he listene* to a*visers who )r"e* a
more ra-i* tem-o of chan"e, Amon" these were A+el A+en>+e"an
an* Tatiana ;aslavs8aaI the latter0 in the late>6reFhnev ears0 ha*
circ)late* a memoran*)m that was lea8e* to the :est .which earne*
+oth of them a formal re-riman*/0 in which she -ointe* to the man
*eficiencies of the sstem0 an* calle* for ra*ical systemic chan"e,
(
!or+achev also a*vocate* glasnost,, a term which co)l* +e
inter-rete* C)st as "reater o-enness on the -art of the a)thorities0 +)t
which ra-i*l +ecame a reci-e for m)ch "reater free*om of
!% #or+ache0? From Reform to (isaster
criticism0 *isc)ssion an* -)+lication, .The attem-t in #$'% to cover
)- the Cherno+l n)clear *isaster ma*e glasnost, seem more
)r"ent,/ This ma*e -ossi+le the a--earance of a *evastatin" acco)nt
of the real state of the econom0 an* it is a ")i*e to the tho)"ht>
-rocesses of !or+achev himself that0 when as8e* for a comment0 he
sai* that he a"ree* with almost all of it .the e@ce-tion +ein" his
reCection of )nem-loment as -art of the c)re/, Here is a siFea+le
e@tract from this article0 + N, Shmelev?
:e are still *ominate* + the conce-tion that the e@istin" sstem of
economic an* -ro-ert relations is the em+o*iment of Mar@ism>9eninism
in -ractice0 f)ll consonant with the nat)re of socialism as a social
formation,
Mar@ an* En"els ela+orate* the theoretical +ases of revol)tion0 showe*
its o+Cective inevita+ilit0 +)t as for what sha-e the econom wo)l* ta8e
after victor0 on this the onl ha* ")esses 9dogad1i: --- The left )s
virt)all nothin" which co)l* +e consi*ere* as -ractical a*vice a+o)t the
metho*s of reachin" the aims Oof socialismP, The -re>revol)tionar wor8s of
9enin were also in the main *evote* -)rel to -olitics ,,, an* not to what
will have to +e *one to or"aniFe a f)ll>+loo*e* economic life after the
revol)tion, Th)s the revol)tion ca)"ht )s witho)t a tho)"ht>o)t or
com-lete economic theor of socialism,,, It is essential to realiFe that the
ca)se of o)r *ifHc)lties is not onl or not solel *)e to the heav +)r*en of
militar e@-en*it)res an* the ver e@-ensive "lo+al res-onsi+ilities of o)r
co)ntr, If we e@-en*e* them correctl0 even the remainin" reso)rces
wo)l* +e s)fficient for maintainin" a +alance* an* technicall -ro"ressive
econom an* for satisfin" the tra*itionall mo*est nee*s of o)r -o-)lation,
However0 -rolon"e* attem-ts to +rea8 )- the o+Cective laws of economic
life0 to s)--ress the a"e>lon" nat)ral stim)li for h)man la+o)r0 +ro)"ht
a+o)t res)lts E)ite *ifferent from what was inten*e*, To*a we have an
econom characteriFe* + shorta"e0 im+alances0 in man res-ects )nman>
a"ea+le0 an*0 if we were to +e honest0 an econom almost )n-lanna+le
,,, :e have one of the lowest levels of la+o)r -ro*)ctivit of an
in*)strial nation0 es-eciall in a"ric)lt)re an* in constr)ction0 since
thro)"h the ears of sta"nation the wor8in" masses have reache* a state
of almost total *isintereste*ness in freel committe* an* honest
la+o)r,,,
A-ath0 in*ifference0 thievin" ,,, have +ecome mass -henomena0
with at the same time a""ressive env towar*s hi"h earners, There have
The First Reform .a0e !5
a--eare* si"ns of a sort of -hsical *e"ra*ation of a siFea+le -art of o)r
-o-)lation0 thro)"h *r)n8enness an* i*leness, Finall0 there is a lac8 of
+elief in the officiall anno)nce* o+Cectives an* -)r-oses0 in the ver
-ossi+ilit of a more rational economic an* social or"aniFation of life,
Clearl all this cannot +e swiftl overcome > ears0 ma+e "enerations0
will +e nee*e*,
&
:hat0 then0 ha* to +e *oneG :hat was the alternative to the
D)nmana"ea+le an* )n-lanna+leD centraliFe* sstemG There was0
o+Cectivel s-ea8in"0 onl one alternative? either oneDs o)t-)t is
allocate*0 or one sellsB either one a--lies for material in-)ts0 or one
"%ys- 6)in" an* sellin" eE)als the mar8et, Terti%m non dat%r-
6)t this reE)ire* the overcomin" of the most formi*a+le
o+stacles, One was i*eolo"ical? mar8et an* socialism ha* for
"enerations of Mar@ists seeme* to +e inherentl incom-ati+le,
Mar8ets co)l* +e0 in*ee* were0 tolerate* on a limite* scale0 +)t
sho)l* event)all wither awa, This view was not onl hel* +
n)mero)s officialsI it -enetrate* *ee-l into societ, Or*inar
citiFens also saw -rivate enter-rise an* +)in" an* sellin" for -rofit
as some sort of +lac8>mar8et or Ds-ec)lativeD activit, The masses
were acc)stome* to low -rices of necessities .foo*0 rents0 etc,/ an*
to Co+ sec)rit0 an* val)e* +oth0 tho)"h efficienc reE)ire* a +rea8
with s)ch -ractices,
It is noteworth that even as late as 2)l #$$50 when the twent>
ei"hth -art con"ress met0 the *ele"ates vote* + a lar"e maCorit0
to !or+achevDs annoance0 to omit the wor* Dmar8etD from the name
of the economic reform commission which it a--ointe*,
<
This
showe* the attit)*e0 or lac8 of )n*erstan*in"0 of the +)l8 of -art
f)nctionaries0 an* )n*erline* his *ilemma? the one effective means
of im-osin" reform0 the -art machine0 was0 to sa the least0
)ncommitte*0 if not *irectl o--ose*0 to the -olic it was as8e* to
carr o)t, A -artic)larl vivi* e@am-le of this occ)rre* in #$'%>40
when f)nctionaries la)nche* a cam-ai"n a"ainst so>calle* D)nearne*
incomesD, 9ocal officials too8 this as a si"nal to o+str)ct the
.-erfectl le"al/ trans-ort of "oo*s to 8ol8hoF mar8ets0 while Da@es
an* even +)ll*oFersD were )se* to *estro -easantsD attem-ts to "row
ve"eta+les )n*er "lass .e,", see 6o#- e1on, No, 40 #$'4/,
&$' !or+achev? From Reform to 3isaster
So a secon* o+stacle was the interest of man in the -art>state
machine to retain their f)nction of allocatin" reso)rces0 which was
a vital so)rce of +oth -ower an* -rivile"e0 a -oint *isc)sse* +
;aslavs8aa in the memoran*)m to which reference was ma*e
a+ove, 6)rea)crats co)l* an* *i* o+str)ct chan"e which threatene*
Co+s an* careers,
A thir* an* vitall im-ortant o+stacle was more -)rel -ractical,
Millions ha* +ecome acc)stome* to the ol* sstem0 8new how to
o-erate within it, Mana"ement was )se* to havin" their c)stomers
*esi"nate* + the -lan0 never ha* to -ractise the arts of mar8etin",
Mar8et infrastr)ct)re was .an* is/ lac8in", So were the nee*e*
information flows0 an* the ver e@istence of non>state tra*in"
interme*iaries was still ille"al, The law of contract was f)ll of holes0
contracts all too freE)entl +ro8en, DMar8et c)lt)reD was lac8in", So
that even if all a"ree* a+o)t what 8in* of mar8et econom there
sho)l* +e0 an* a"ree* on the +o)n*ar +etween -lan an* mar8et0 the
transition to a new sstem was "oin" to +e a formi*a+l *iffic)lt
tas8, The more so +eca)se0 while a *irect lea- into a f)ll fle*"e*
mar8et seeme* im-ossi+le an* alto"ether too ris80 interme*iate
sto-s on the wa threatene* to create im-ossi+le h+ri*s, Th)s0 to
ta8e +)t one e@am-le0 to "ive mana"ement f)ll free*om over the
-ro*)ct>mi@ reE)ire* a total chan"e in the -rinci-les of -ricin"0
while -rice rises alone co)l* not +e e@-ecte* to re*)ce *eman* for
material in-)ts so lon" as there was not a Dhar* +)*"et constraintD
an* enter-rises retaine* an interest in increasin" the val)e of "ross
o)t-)t .since hi"her>-rice* in-)ts were then act)all -referre*/,
Reform ha* to +e intro*)ce* in via+le #ac1ages- So one ha* what
co)l* +e calle* +oth the necessit an* im-ossi+ilit of "ra*)alness,
It is worth stressin" all this +eca)se it hel-s )s to see some of the
8e ca)ses of the fail)re of economic #erestroi1a- 6)t there were
also "rave -olic errors0 which ma*e a *iffic)lt tas8 alto"ether
im-ossi+le,
One s)ch error was0 in fact0 the twelfth .an* last/ five>ear -lan,
!or+achevDs a*vice0 for which A"an+e"an was s)+seE)entl
+lame*0 was that the sta"nation of the 6reFhnev ears ha* to +e
overcome + a shar- acceleration 4%s1orenie5 in "rowth an* in
investment0 with -riorit "iven to in*)strial re>eE)i-ment an* so to
e@-an*in" an* mo*erniFin" the machine>+)il*in"
The First Reform .a0e !
in*)str, As will +e seen +elow0 the first version of the -lan0
*rafte* *)rin" #$'10 was amen*e* )-war*s when finall a*o-te*
+ the twent>seventh -art con"ress in #$'%, An am+itio)s
lon">term -lan0 thro)"h to the ear (5550 was also -resente*,
The #$'%>$5 -lan envisa"e* the followin" "rowth rates over the
five>ear -erio* .note that the #$'#R1 a""re"ate "rowth fi")res are
s)+stantiall overstate*0 for reasons alrea* referre* to/?
1901-/ 1904-9& 1904-9&
first version final version
National income )tiliFe* 14./ 19-.. ...1
In*)strial -ro*)ction
.& .1-.4 ./
Pro*)cersD "oo*s 19.4 .&-.( .4
Cons)mersD "oo*s
.&.0 ..-./ .1
A"ric)lt)ral -ro*)ction 1>1
14-14 14.4
Investments
1/4 10-.. .(.4
Real incomes -er ca-ita
11 1(-1/ 14
CSo%rce: Pravda, #$ 2)ne #$'%,/
6 #$$5 all in*icators were -ointin" *ownwar*s0 as we shall
see, The followin" ta+les "ive one a notion of the rate of -ro"ress
thro)"h #$''0 after which the re"ress +e"an,
Official "rowth fi")res0 -er cent
#$'#>'1 #$'% #$'4 #$'' #$'$ #$$5
.avera"e/
National income )tiliFe* &,( (,& #,% <,< (,1 b<>o
In*)strial -ro*)ction &,$ 1,1 <,% %,& 5,< >#,(
A"ric)lt)ral -ro*)ction #,5 4,# >#,< (,1 #,4
\
(>&
4So%rces: Soviet re-ort to IMF0 I6R30 OEC30 for *ata thro)"h #$'$, #$$5
fi")res from E1onomi1a i 2hi2n,, No, 10#$$#,/
The in*)strial statistics .-, <55/ show +oth the shortfalls vis!d!
vis the five>ear -lan an* the *ecline which set in after #$'' .an*
which accelerate* in #$$#/,
:hile o)t-)t of the 8e in*)strial sectors +e"an a shar-
*ecline after #$''0 man)fact)re* cons)mersD "oo*s0 es-eciall
*)ra+les0 contin)e* to *o well )ntil #$$5, This was tr)e0 for
1-- #or+ache0? From Reform to (isaster
190S 1900 199& 199&
1,1&/
pln
1,04&
ctul
Electricit+ !"illird ,-hs% i,S4S 1,1.0
Oil !"illion tons% /9/ 4.4 4(/ /1&
Gs !"illird cu=. "etres% 44( 11& 0/& 01/
2ol !"illion tons% 1.4 11. 19/ 1&9
)olled steel !"illion tons% 1&0 114 119 11.
2he"icl #i=res !thousnd tons% i,(94 i,/(/ 1,0/& 1,/&&
(Source: Pra'da, 19 <une 1904, ;konomika i(hi(n', No. /,1991.%
e@am-le0 for T= sets0 refri"erators0 ra*ios, It is onl in #$$# that
the too were affecte* + the "rowin" chaos,
The +asic -ro+lem with the strate" of DaccelerationD was that it
was in com-lete conflict with the aim of economic reform0 which
reE)ire* a lesser *e"ree of ta)tness to -ermit fle@i+ilit an* the
a+an*onment of a*ministere* allocation of in-)ts, Allocation0 a
form of rationin"0 was 8e-t in +ein" + fear of shorta"e, This same
fear enco)ra"e* hoar*in" + enter-rises0 which accent)ate*
shorta"e, So one co)l* sa that %s1orenie conflicte* with economic
#erestroi1a-
The -riorit of machine>+)il*in" in investment *i* not in fact
materialiFe, The lar"est increases were *irecte* towar*s ener"0
where costs were risin" ra-i*l, The notorio)s dolgostroi .Dlon">
+)il*D/ +ecame worse0 as the economic ministries contin)e* to -ress
their own -roCects0 in *efiance of the efforts of !os-lan to re*)ce
the total investments to the level at which the +alance* the
reso)rces availa+le, Nor were there an *efence c)ts in those ears
to relieve the strain on reso)rces,
It is a fair "eneraliFation that0 thro)"h #$''0 the ol* sstem
contin)e* to f)nction in m)ch the ol* wa0 with gos2a1a2 +ein"
gos#ri1a2, i,e,0 state DcommercialD or*ers were in -ractice com-)l>
sor or*ers of the tra*itional s-ecies0 an* "rowth ma have
+enefite* from the cam-ai"n a"ainst *r)n8enness0 which0 as we
shall see0 *i* harm to state finances, 6)t the lon">e@istin" *efects of
the ol* sstem > waste of in-)ts0 ne"lect of )ser reE)irements0 -oor
E)alit R contin)e* to +e *eno)nce* + the increasin"l free me*ia
an* + hi"hl critical economist>reformers, Th)s 3, =al>ovoi
com-laine* that the lin8in" of the wa"e level with the val)e
The First Reform .aye 1-1
of "ross o)t-)t 4val5 contin)e* to stim)late the wastef)l )se of
in-)ts0 since Dthe hi"her the cost0 the hi"her the wa"eD0
1
an* 3anilov>
3anilan s)mmariFe* the -osition as follows?
o)r econom can +e characteriFe* as cost>in*)cin" 42atratnoi5, +eca)se
the economic mechanism for man ears orientate* enter-rises to in>
crease costs rather than economiFe on them0 since it is -recisel thro)"h
e@-en*it)re 42atraty5 that the comman*>+)rea)cratic sstem meas)res
the res)lts of economic activit? there is no other wa in the a+sence of a
mar8et0 the onl 8nown o+Cective instr)ment + which to com-are costs
an* res)lts, 6)t it is cost>in*)cin" in another sense? its ver str)ct)re
-re*etermines e@cessive costs in com-arison with the economies of -ost>
in*)strial co)ntries0 an* this for -racticall ever 8in* of -ro*)ct,D
In #$'4 came a new Denter-rise lawD0 an* also the notion of
Dre-)+lican 1ho2raschyof, which ha* the intention of transferrin"
more -owers to the re-)+lics0 Un8in" their own finances more
closel with the f)nctionin" of DtheirD enter-rises, The two meas)res
were in fact contra*ictor? mana"erial in*e-en*ence *i* not reE)ire
the transfer of -ower from all>)nion to re-)+lican +)rea)crats, In
-ractice little chan"e*0 +)t the meas)re "ave an im-et)s to
re-)+lican se-aratism0 which was to have ver "rave conseE)ences
in an* after #$$5,
Meanwhile -ro"ress in a"ric)lt)re remaine* mostl on -a-er,
There was an increasin" vol)me of -)+lishe* criticism? th)s N,
Shmelev wrote0 DThe crisis>sit)ation in o)r a"ric)lt)re is evi*ent to
all,D 9ar"e investment has +een lar"el waste*, DThe crisis in o)r
villa"es is *)e to the tri)m-h of coercion over common sense ,,,
Few can now *o)+t that the +asic reason for the *e-lora+le
con*ition of o)r a"ric)lt)re0 its sta"nation0 lies in the )n*ivi*e*
-ower which the a*ministrative strat)m has acE)ire* over ever>
thin" in the villa"e,K The -easants ha* +ecome totall alienate*0
in*ee* *e-easantiFe*, To E)ote S, =i8)lov0 Din the ol* *as the
-easants reasone*? wh sho)l* we wor80 we will not +e -ai*, Now
the reason? wh sho)l* we wor80 we will +e -ai* anwa,D
'
The efforts to overcome this in*ifference thro)"h the intro*)ction
of contract "ro)-s an* famil leasin" were ma8in" ver slow
hea*wa0 an* there emer"e* a stron" lo++ of farm mana"ers0 le*
+ =, Staro*)+tsev0 one of the -lotters in A)")st #$$#0 who
1-, #or+ache0? From Reform to (isaster
resiste* loss of lan* for -easants0 to avoi* the *an"er of +rea8in" )-
the state an* collective farms which the mana"e* .an* in which
the +ehave*0 in the wor*s of man critics0 li8e lan*lor*s0
#omeshchi1i5- E, !ai*ar wrote witherin" wor*s a+o)t Dvast
ineffective ca-ital investments0 the erection of reinforce* concrete
-alaces for low>-ro*)ctive livestoc80 the *i""in" of O)selessP
irri"ation canals0 the s)--l of recor* E)antities of -ainte* scra->iron
-ro)*l *escri+e* as a"ric)lt)ral machiner ,,,D, He -ointe* o)t that
in #$4#>'1 a"ric)lt)re ha* o+taine* investment of 1$5 milliar*
ro)+les0 et Dthe national income create* in this sector in the mi**le
#$'5s remaine* at the level of the earl #$45s,D
$
A whole n)m+er of
*ecrees aime* at chan"in" this state of affairs ma*e little im-act0
*il)te* or sa+ota"e* + local official*om0 ai*e* an* a+ette* +
those at the centre .for e@am-le E, 9i"achev/ who ho-e* to -reserve
the 1ol1ho2y an* sov1ho2y while ma8in" their o-erations more
efficient,
Investments in a"ric)lt)re contin)e* to +e waste* on )nso)n*
-roCects, M)ch criticism was *irecte* at Minvod1ho2, the Ministr
of :ater Reso)rces0 which s-ent vast s)ms on *raina"e an*
irri"ation to no "oo* -)r-ose0 an* re-eate*l at -roCects to +)il*
+i"0 De@tremel ineffectiveD livestoc8 com-le@es while essential
infrastr)ct)re .stora"e s-ace0 roa*s/ was ne"lecte*,
#5
In Central
Asia0 im-ose* cotton monoc)lt)re an* )nso)n* irri"ation le* to
ecolo"ical *isaster0 incl)*in" the *estr)ction of the Aral Sea,
A ho-ef)l an* over*)e si"n of -ro"ress was the law on
coo-eratives0 a*o-te* at the +e"innin" of #$'', It was *ivi*e* into
two -arts, One concerne* the le"aliFation of )r+an coo-eratives of
man 8in*s > small>scale>in*)strial0 service0 caterin"0 tra*in" > to
fill "a-s an* to com-ete with the mono-olistic state sector, The
other envisa"e* t)rnin" )nits within the +i" sov1ho2y an* 1ol1ho2y,
an* also the service or"aniFations in the a"ric)lt)ral sector0 into
"en)ine coo-eratives, This0 to"ether with famil an* small>"ro)-
leasin"0 co)l* have ha* a siFea+le im-act, However0 for reasons
alrea* a*vance*0 chan"es were ver slow in a"ric)lt)re0 an* we
shall see that more ra*ical meas)res ta8en in #$'$>$5 also ma*e
little *ifference in the short r)n,
As for )r+an coo-eratives0 their activities *i* s)+stantiall
e@-an*, Th)s o)t-)t of "oo*s an* services increase* from <5
The First Reform .a0e 1-!
milliar* ro)+les in #$'$ to 45 milliar* in #$$5, At the en* of #$$50
(%50555 coo-erative enter-rises0 man ver small0 em-loe* %,(
million -ersons0 incl)*in" -art>timers0 +)t man were *irectl
lin8e* into .or even o-erate* within/ state enter-rises .as a means of
eva*in" financial controls/, Leased enter-rises in in*)str -ro*)ce*
"oo*s worth <' milliar* ro)+les,K
However0 coo-eratives ran into several -ro+lems an* o+stacles,
One was the fact that0 with "eneraliFe* shorta"e0 the were a+le to
char"e hi"h -rices0 which ren*ere* them )n-o-)lar an* attracte*
restrictive le"islation, Then these same shorta"es stoo* in the wa
of their o+tainin" material in-)ts thro)"h le"itimate channels,
Another -ro+lem was that the co)l* -a their mem+ers an*
em-loees well a+ove the .controlle*/ wa"e rate -ai* in state
enter-rises0 which ca)se* tensions an* -rotests, 9ocal a)thorities
freE)entl o+str)cte* their activities0 which co)l* have e@-an*e*
m)ch faster if these o+stacles ha* not +een -resent,
Another im-ortant reform affecte* forei"n tra*e0 hitherto strictl
the mono-ol of the Ministr of Forei"n Tra*e an* its cor-orations,
In #$'4 it was *ecree* that a lar"e n)m+er of other ministries0
cor-orations0 enter-rises0 co)l* enter into *irect *ealin"s with
a+roa*, The meas)re was wi*el welcome*, However0 it came at a
time when the USSRDs tra*in" -osition +ecame less favo)ra+le0 with
a*verse movements in terms of tra*e, Also it create* conf)sion as to
res-onsi+ilit for *e+t, Previo)sl0 all forei"n tra*e *eals co)l* +e
seen as +ein" +ac8e* + a Soviet state ")arantee0 since tra*e was in
realit with the state, Now there was a transfer of res-onsi+ilit to
those who -revio)sl ha* har*l an e@-erience of *ealin" with
forei"ners0 an* this at a time when forei"n Dhar*D c)rrenc was
-artic)larl scarce0 as were the "oo*s that co)l* +e +o)"ht with it, It
+ecame "ra*)all a--arent that the r)les concernin" retention of a
-art of the c)rrenc earne* + e@-ort co)l* +e eva*e*0 an* + #$$5
-er-le@e* forei"ners were )ncertain as to who was to -a them, The
hi"h cre*it ratin" -revio)sl earne* + the Soviet Union +e"an to
t)m+le,
In the -revio)s cha-ter it was note* how0 )n*er 6reFhnev0 the
com+ine* effects of increase* oil o)t-)t an* soarin" oil -rices le* to
a ver s)+stantial rise in forei"n>c)rrenc earnin"s, Un*er
!or+achev there was the *eclare* intention of "reater -artici-a>
1-1 #or+ache0? From Reform to (isaster
tion in the international *ivision of la+o)r, However0 two a*verse
factors intervene*, Firstl0 oil o)t-)t +e"an to sta"nate0 an* later in
the *eca*e to fall, Secon*l0 #$'1 saw a stee- *ecline in worl*
-rices of oil an* "as, Alrea* + #$'% e@-orts to ca-italist co)ntries
fell + &,1 milliar* forei"n>tra*e ro)+les0 i,e, + some 1 milliar*
*ollars0 an* wo)l* have fallen faster if the tonna"e of oil e@-orts
ha* not +een s)+stantiall increase*, This a*verse tren* contin)e*
in s)+seE)ent ears an* ha* two ne"ative conseE)ences, One was a
c)t in im-orts0 es-eciall of cons)mersD "oo*s .other than "rain0
which remaine* hi"h +eca)se of a"ric)lt)ral shortfalls/, The other
was a fall in +)*"et reven)e, Converti+ilit of the ro)+le co)l* onl
+e a remote aim in the circ)mstances,
'he /ud&et" 2one-" .a&es" In1lation
To move towar*s a mar8et econom in an form one evi*entl
nee*s mone with real internal -)rchasin">-ower0 i,e, an en* to
chronic shorta"es, This in t)rn is inconsistent with +)*"et *eficits
finance* + mone creation, One nee*e* strict control over cre*its0
an* wa"es either s)+Cect to *irect control thro)"h the -lanne*
Dwa"es f)n*D or + har*enin" +)*"et constraints on enter-rises,
Tra"icall0 a series of *ecisions an* events0 some foreseea+le0 others
not0 ha* -rofo)n*l a*verse effects on the whole reform -rocess,
First0 the +)*"et, As has alrea* +een note* .-,&'$ a+ove/0 it was
s)--ose* to +e in s)r-l)s0 tho)"h this was not the case, !or+achev
inherite* *eficits of the or*er of #5>#1 milliar*s0 covere* +
a*vances from the state +an8, This *eficit "rew e@tremel ra-i*l0
to <4,$ milliar*s in #$'%0 14,# in #$'40 $5,# in #$'', It was
a--roachin" #55 milliar*s in #$'$0 an* at lon" last it was -ossi+le
to sa so -)+licl,
#(
:h *i* this ha--enG
The followin" ca)ses can +e *istin")ishe*, Firstl0 the +)*"etDs
reven)es were a*versel affecte* + the shar- fall in ta@ iel* on
liE)or0 *)e to the cam-ai"n a"ainst *r)n8enness .which le* to a
shar- c)t+ac8 in o)t-)t of not onl vo*8a +)t also wine/0 an* in
reven)e from forei"n tra*e arisin" from the fall in worl* oil
The 2ud)et' 4oney' .a)es/ "nflation 1-*
-rices an* the c)t+ac8 of im-orts of cons)mersD "oo*s that were
resol* at hi"h -rices, Secon*l0 +)*"et e@-en*it)res rose +eca)se of
the escalatin" cost of foo* s)+si*ies .hi"her -rices for farms were
)naccom-anie*0 )ntil #$$#0 + hi"her retail -rices of sta-le
foo*st)ffs/0 -l)s )r"entl nee*e* increases in s-en*in" on the
shamef)ll ne"lecte* me*ical service0 an* on e*)cation0 -ensions
an* ho)sin"0 an* then +eca)se of the )ne@-ecte*l hi"h e@-en*i>
t)res associate* with the Cherno+l n)clear *isaster an* the
Armenian earthE)a8e, So reven)es fell0 e@-en*it)re rose, C)ts in
*efence s-en*in" were resiste*0 as were the s-en*in" -ro"rammes
of most ministries, The res)lt was a shar- rise in mone s)--l,
Of co)rse0 we sho)l* not for"et that lar"e +)*"et *eficits ha--en
elsewhere0 incl)*in" Rea"anDs an* 6)shDs Unite* States, However0
the American *eficit was a m)ch smaller -ercenta"e of !NP0 an*
was finance* in a non>inflationar wa,
The other ca)se of tro)+le was a conseE)ence of the loosenin" of
control over enter-rise finance0 +oth in res-ect of wa"es an* of
ca-ital e@-en*it)res, :a"e control ha* -revio)sl +een remar8a+l
effective? in s)ccessive E)inE)ennia the Dtar"etD for avera"e wa"es
was not e@cee*e*, This was *)e not to a har* +)*"et constraint +)t
to an im-ose* Dwa"es f)n*D limit0 which enter-rises were )na+le to
e@cee* witho)t s-ecific a)thorit, This limit was a+an*one* as -art
of the -olic of enlar"in" enter-rise a)tonom, :a"e increases were
henceforth s)--ose* to +e lin8e* to D-ro*)ctivitD0 +)t this co)l* +e
increase* + shiftin" to *earer -ro*)ct variants0 or + eva*in" -rice
control0 there+ increasin" ro)+le -ro*)ction -er wor8er, Shorta"es
hel-e* enter-rises to foist hi"her>-rice* "oo*s on their c)stomers,
:ith more mone availa+le to them0 enter-rises -ai* hi"her wa"es0
an* )n*ertoo8 investments which a**e* to e@cess *eman* an* so to
dolgostroi- The ta+le on -, <51 ill)strates what was ha--enin",
Accor*in" to E, !ai*ar0 while in #$'$ a total of (<0555 investment
-roCects were DfroFenD + the centre0 no less than #<%0555 new ones
were +e")n0 ma8in" nonsense of the -olic of concentratin"
investment reso)rces on what co)l* +e com-lete*,
#&
Also the +)r*en
of *efence contin)e* hi"h, Th)s0 accor*in" to =, 9o"inov0 o)t of
#%01 million -ersons em-loe* in the Dmachine>+)il*in"
1-% #or+ache0? From Reform to (isaster
7ousehold "one+ inco"es
!percent$e rise o:er
pre:ious +er%
1904 1901 1900 1909
(.4 (.9 9.. 1(.1
2urrenc+ in circultion
!\ increses%
1904 1901 1900 1909
4.1 1.0 1(.4 19./
)Source: 0he ;conomy of the
@SSR !I>6, IB)J, OE2J,
EB)J%, Jece"=er 199&, Cdt
pro:ided =+ the So:iet
uthoritiesC.%
com-le@D0 onl 1,% million0 a thir*0 wor8e* in enter-rises )n*er
civilian .i,e, non>militar/ ministries,
#<
The a+ove>cite* increases in mone s)--l an* -ersonal incomes
*o not loo8 )n)s)all +i" + the stan*ar*s of other inflation>-rone
co)ntries, Their conseE)ences were ren*ere* "rave + the attem-t
to hol* +ac8 the rise in -rices, This le* to an increasin" "a- +etween
-ersonal incomes an* enter-rise reven)es on the one han*0 an* the
cons)mer an* -ro*)cer "oo*s availa+le at esta+lishe* -rices on the
other, Of co)rse -rices *i* in fact rise0 + the sort of manoe)vres
*escri+e* in the A--en*i@, 6)t none the less the "a- +ecame most
serio)s0 an*0 as ha--ens in s)ch cases0 the r)sh + all concerne* to
+) )- an* hoar* whatever can +e fo)n*0 lea*s to ever>"reater
shorta"es, It also acts as a *isincentive to wor8? wh earn e@tra if it
cannot +e s-entG A lar"e -art of the increase in savin"s +an8
*e-osits is re"ar*e* + Soviet economists as fr)strate* -)rchasin"
-ower,
The a)thorities well 8new that -rices were o)t of line, In a s-eech
in M)rmans8 in Octo+er #$'40 !or+achev himself asserte* the nee*
for a ra*ical overha)l of cons)mer -rices0 to re*)ce the +)r*en of
s)+si*ies an* to stim)late the econom,
#1
Man economists -ointe*
o)t that the low -rices .e,", of meat/ +enefite*
Radicali9ation of Reformers and the Rise of 8ationalism 1-5
mainl the resi*ents in D-rioritD cities s)ch as Moscow0 an* those
with access to s-ecial stores0 while a "reat man of the -oorest ha*
to -a the m)ch hi"her free>mar8et -rices or "o witho)t, 6)t the
)n-o-)larit of -rice rises was s)ch that the lon">nee*e* rise was
-ost-one* )ntil it was too late, Price increases of )n*er-rice*
ener"0 tim+er an* other materials were also left )ntil #$$#0 +
which time the were irrelevant ami* omino)s threats of
h-erinflation,
Yet witho)t meanin"f)l -rices0 i,e, -rices at which "oo*s an*
services can act)all +e o+taine*0 there co)l* +e no move to a
mar8et econom, Thro)"h #$'' the wheels still t)rne*0 -ro*)ction
contin)e*, The ol* s)--l relationshi-s an* the a*ministrative
allocation sstem ens)re*0 + a 8in* of inertia0 that materials arrive*
most of the time, However0 the centraliFe* sstem was +ein"
"ra*)all *ismantle*0 while the con*itions for creatin" a mar8et
sstem were not -resent, The sta"e was set for *isinte"ration,
Radicali9ation of Reformers and the Rise of 8ationalism
As mentione* a+ove0 in the first !or+achev ears the Dra*ical
reformsD *i* not E)estion the commitment to socialism0 or the
*ominance of state ownershi-, The i*ea was to s)+Cect state
enter-rises to the *isci-line of the mar8et0 with cons)mer choice
an* therefore com-etition, In #$'' coo-eratives were le"aliFe*0 +)t
#rivate enter-rise remaine* ta+oo0 an* -rivate em-loment was still
seen as im-ermissi+le De@-loitationD, In*ee* one acc)sation levelle*
at the newl le"aliFe* coo-eratives is that the were -rivate
enter-rise in *is")ise0 which in fact some of them were,
In the secon* half of #$'$0 an* even more in #$$50 the reformersD
i*eas +ecame +ol*er, The more conservative elements in the
-rofession contin)e* to resist0 an* a conference of economists0
mana"ers an* economic officials which met in Novem+er #$'$
res-on*e* to some of the conservative s-eeches with lo)* a--la)se0
note* with *isma + the then *irector of the Instit)te of Economics
an* vice>-remier in char"e of economic reform
1-& #or+ache0? From Reform to (isaster
-roCects0 9, A+al8in, However0 conscio)s that the entire reform
-rocess ha* stalle*0 "ro)-s of economists *rafte* new reform -lans?
*)rin" the s-rin" an* s)mmer of #$$5 S, Shatalin0 !, Yavlins8 an*
others *rafte* a so>calle* D155 *a -ro"rammeD for transition to a
mar8et econom0 which now envisa"e* lar"e>scale -rivatiFation, As
Shatalin tol* a -art meetin" earlier that ear0 Dit is not a E)estion
now of savin" socialism0 comm)nism or an other >ism0 it is a
E)estion of savin" o)r co)ntr0 o)r -eo-le,D
#%
At the same time -rime
minister RFh8ov0 assiste* + A+al8in0 was *raftin" an alternative
-lan0 less ra*ical0 +)t also aimin" at mar8etiFation, !or+achev as8e*
A"an+e"an to a*C)*icate0 an* he came *own lar"el on the si*e of
Shatalin>Yavlins8, The all calle* for financial sta+iliFation0 an en*
to +)*"et *eficits0 the creation of the nee*e* mar8et infrastr)ct)re0
the le"aliFation of -rivate enter-rise, .I have at home a collection of
these an* other s)ch *oc)ments0 which0 )nfort)natel0 -ro*)ce*
nothin" e@ce-t -a-er,/
The S)-reme Soviet0 electe* in the freest +allot 8nown in Soviet
histor since #$#40 still containe* man officials nominate* +
vario)s +o*ies controlle* + the Comm)nist -art0 an* in*ee* some
nominate* + the -art itself, :hile it was the scene of free *e+ate0
contrastin" with the *rear )nanimit of the -ast0 it was not an
effective le"islative +o* an* + no means containe* a relia+le
reform>min*e* maCorit, Presente* with the com-romise
A"an+e"an version0 the S)-reme Soviet *ithere* an* -rocrasti>
nate*0 +ein" -artic)larl )nha-- with the .m)ch>nee*e*/ -rice
rises, Nor0 as we have seen0 were -art f)nctionaries convince* of
the virt)es of a f)ll fle*"e* mar8et0 as was shown + the reactions
of the *ele"ates to the twent>ei"hth -art con"ress to !or+achevDs
s-eech0 in which he ar")e* for m)ch "reater free*om for all
cate"ories of enter-rises0 ra*ical -rice reform an* even for the
creation of stoc8 an* commo*it e@chan"es,
#4
6 now0 D-rivatiFationD was -)+licl a*vocate*0 tho)"h it was also
stron"l o--ose*, Meanwhile0 in the wor*s of Y), Masl)>8o0 hea*
of !os-lan0 s-ea8in" to the -artDs Fe+r)ar .#$$5/ -len)m0 Dthe
stateDs *irectin" or"ans have lost control over man of the most
+asic as-ects of economic *evelo-ment0D an* E, !ai*er wrote0 Dfrom
the mi**le of #$'$ the all>)nion or"ans
Radicali9ation of Reformers and the Rise of 8ationalism 1-
increasin"l lost free*om to manoe)vre, There was a "rowin"
*iver"ence +etween the economicall essential an* the -oliticall
-ossi+le,D
#'
Shortl afterwar*s we ha* the followin" comment + the talente*
-)+licist I"or 7lam8in? D:e sho)l* not *eman* of !or+achev that
he0 +ein" in the -osition of 2anos 7a*ar0 sho)l* act li8e =aclav
Havel ,,, O)r economic life )ntil recentl was *ominate* + two
"ro)-s of all>-owerf)l officials? -art an* "overnment>
*e-artmental0 an* +oth were secret or not>so>secret colla+orators of
the militar>in*)strial com-le@0 which was the +one>str)ct)re of the
Soviet econom an* the sta+le +asis of the totalitarian re"ime,D It
too8 several ears of fail)re of -artial reforms to -ers)a*e them that
more ra*ical ste-s were essential, DTh)s life com-elle* the
reformers0 le* + !or+achev0 to a*o-t s)ch alien wor*s as Kmar8etK0
K-rivatiFationK0 K-rivate -ro-ertK, 6)t the reformers0 themselves
-ro*)cts of -art an* *e-artmental official*om0 also clearl
)n*erstoo* that these alien reme*ies are -oison for them, Hence no
*o)+t the lon" *ela0 )ntil *ela seeme* even more *an"ero)s ,,,DK
Hence also a 8in* of +)ilt>in half>hearte*ness or o+str)ctionism in
im-lementation, An* in another article0 I"or 7lam8in note* that0 in
the a+sence of -rivate -ro-ert in the means of -ro*)ction0 citiFens
saw themselves -rimaril as cons)mers0 the a)thorities as -rovi*ers,
DSo if in s)ch a societ one intro*)ces a re-resentative *emocrac0
the electe* -arliaments cannot +)t +ecome societies of an"r
cons)mers 4serdity1h #otre"itelei5, who *eman* re*istri+)tion at the
e@-ense of other "ro)-s ,,, 6)t since the r)lers can onl "ive +
ta8in" awa0 an* there is no one the can ta8e from0 the have onl
one sol)tion? to -rint more new mone an* *ivi*e it amon" all the
claimants,D
(5
This hel-s )s to )n*erstan* the ca)ses of the h)"e +)*"et *eficit,
The Dr)lersD 8new it sho)l* not have e@iste*0 which is wh the 8e-t
its e@istence secret,
A "rowin" n)m+er of the ra*ical reformers now +e"an .or were
at last a+le/ to e@-ress *irectl anti>socialist views, It was as8e*?
can a mar8et e@ist if most of the econom was not -rivatiFe*G An*
at the theoretical level it was asserte* that Mar@ an* En"els ha*
+een wron" a+o)t socialism0 wron" a+o)t the
<#5 !or+achev? From Reform to 3isaster
mar8et, At first 9enin was +ro)"ht into the ar")ment + claimin"
that in his last ear he ha* learnt the har* lesson of the fail)re of war
comm)nism an* was a+o)t to re*efine socialism0 +)t a whole
n)m+er of -)+licists .Sel)nin0 Strelan0 A, Tsi-8o0 the novelist
Solo)8hin0 later also !, Po-ov0 e*itor of 6o#rosy e1onomi1i5 were
insistin" that 9eninist 6olshevism itself ha* +een to +lame for the
horrors of Stalinism0 that in #$#4 R)ssia ha* ta8en the wron" roa*0
an* sho)l* now ret)rn to :estern civiliFation, S)ccessive reform
-lans a*vance* + the ra*icals went ever f)rther in the *irection of
-rivatiFation0 ca-ital mar8ets0 in fact the restoration as soon as
-ractica+le of ca-italism,
!or+achev was left )ncomforta+l -oise* +etween the ra*icals
an* the conservatives, However0 +efore *isc)ssin" what he *i* in
the last months of #$$5 it is necessar to loo8 at the rise of
nationalism an* its effects on the -olitical str)ct)re,
(lasnostI an* -olitical free*oms0 incl)*in" free*om to or"aniFe
o--osition -arties0 an* the *ecision0 earl in #$$50 to en* the
constit)tional mono-ol of -ower of the Comm)nist Part0 ha*
-rofo)n* effects0 es-eciall on those re-)+lics with a histor of
nationalism, This concerne* a+ove all the three 6altic re-)+lics0
forci+l incor-orate* followin" the NaFi>Soviet -act of #$&$0 +)t
also !eor"ia0 where a Menshevi8 "overnment was overthrown +
6olshevi8 forces in #$(#0 an* later also the U8raine, To com-licate
matters f)rther0 the R)ssian re-)+lic .RSFSR/0 after electin" Yeltsin
as -resi*ent0 also too8 an in*e-en*ent line, The re-)+lics challen"e*
the UnionDs ri"ht to control their economies0 insiste* on the -riorit
of re-)+lican over )nion in laws, Alrea* in #$$5 there *evelo-e* a
so>calle* Dwar of lawsD 46oina 2a1onov5, with no one E)ite s)re
whose laws were vali*0 or who owne* what, For e@am-le0 the
re-)+lics +e"an to claim ownershi- of all>)nion enter-rises locate*
in their territories, The res)ltant conf)sion in no wa resem+le* the
le"al or*er necessar for a smooth f)nctionin" of either a comman*
or a mar8et econom, :hile the 6altic re-)+lics an* !eor"ia move*
towar*s leavin" the Union alto"ether0 the others at first were willin"
to consi*er some looser forms of association in a new Union treat,
This left man 8e iss)es )nresolve*, :hat -ower0 if an0 wo)l*
+e left to the UnionG How co)l* it maintain the militar0
Radicali9ation of Reformers and the Rise of 8ationalism 111
)nless it ha* real -ower to raise reven)eG How co)l* it im-lement a
-olic0 whether of mar8etiFation0 financial sta+iliFation0 or in*ee*
an -olic0 when it no lon"er ha* the means of im-lementin" itG
Es-eciall when the R)ssian re-)+lic *eclare* that it was
soverei"nG To cite the note* -)+licist A, Mi"ranan0 DThe -resi*ent
an* the S)-reme Soviet are trin" to mar8etiFe an* *emocratiFe the
USSR0 a state that no longer e*ists- The final colla-se of the
-olitical centre means that no reform -ro"ramme has a ho-e of
+ein" im-lemente* + it ,,, :hat is fallin" a-art is not C)st the
em-ire0 +)t the i*eolo" that hel* it to"etherD .em-hasis mine/,
(#
The reference to i*eolo" is vitall im-ortant, Tr)e0 the -art an*
its +eliefs ha* lon" +een *ecain"0 +)t the entire le"itimac of the
re"ime was now )n*ermine*, It ha* -resi*e* over economic fail)re0
an* lo)* voices were assertin" that the h)"e sacrifices of the -ast
ha* +een in vain0 that the were le* for sevent>three ears *own
the wron" roa*0 or a c)l>*e>sac, As a +itter E)i- asserte*0 DSocialism
-rove* to +e the lon"est roa* from fe)*alism to ca-italism,D The
*emoraliFe* -art was *eli+eratel wea8ene* + !or+achev0 when
he *own"ra*e* its -olit+)rea) at the twent>ei"hth con"ress0 in
#$$50 an* tol* its local f)nctionaries not to interfere with0 or or*er
a+o)t0 the mana"ers an* the electe* Soviets, :or8ers res-on*in" to
shorta"es an* har*shi- or"aniFe* stri8es in *efiance of the -art an*
of the official tra*e )nions0 an* in some coalfiel*s the too8 over
the f)nctions of the local a)thorities *)rin" the stri8es,
3emocratiFation an* glasnost, -ermitte* free*om of s-eech0 the
-ress0 or"aniFation, 6)t0 e@ce-t in s)ch national re-)+lics as the
6altic states0 there emer"e* no serio)s -olitical alternative to the
-art0 no mechanism for im-lementin" central .or in R)ssia0
R)ssian>re-)+lican/ *ecisions, The -ower vac))m0 in its t)rn0
affecte* the econom0 most of which was still state>owne* an*
state>r)n, It was no lon"er clear > r)n + whomG
This was the +ac8"ro)n* to !or+achevDs tem-orar Dri"ht t)rnD in
the last months of #$$5, This was when lea*in" reformers
Shevarna*Fe0 Ya8ovlev an* 6a8atin0 an* also the ra*ical economist
Petra8ov0 resi"ne*, Several of their re-lacements were lea*ers of the
a+ortive co)- in A)")st #$$#, The militar attem-te*0
11, #or+ache0? From Reform to (isaster
)ns)ccessf)ll0 to s)--ress 6altic in*e-en*ence, !or+achev a--ar>
entl ho-e* still to save the Union0 an* was )n*er stron" -ress)re
from the militar>in*)strial com-le@ an* most of the -art
f)nctionaries, If he wishe* to "o on with Dmar8etD reform0 as he
insiste* he *i*0 the conservatives were )nli8el to let him >tho)"h
interestin"l one "ro)- of militar colonels0 le* + S)-reme Soviet
*e-)t Al8snis0 s-o8e o-enl of the DPinochet mo*elD0 i,e, im-osin"
the mar8et )n*er martial law, Reformers too s-o8e with man
voices0 some0 li8e 9arisa Pasheva0 +ein" a*mirers of Hae8 an*
Frie*man0 re"ar*in" even !erman social>*emocrats as left>win"
e@tremists,
((
Crisis and Collapse
In #$$50 accor*in" to the official fi")res0 national income fell + <
-er cent0 in*)strial -ro*)ction + #,( -er cent0 a"ric)lt)ral
-ro*)ction + (,& -er cent,
(&
However0 it is "enerall acce-te* that
the falls were +i""er, Partic)larl threatenin" was the s)+stantial
*ecline in o)t-)t of oil an* coal0 the latter -artic)larl affecte* +
stri8es, :hile the weather was favo)ra+le0 an* the "rain "rowin" in
the fiel*s co)l* have +een a recor*0 *isr)-tion *)e to shorta"es of
f)el an* s-are -arts le* to recor* losses, The official total for #$$50
(#' million tons of "rain0 sho)l* have +een s)fficient0 es-eciall
when to--e* )- + im-orts, However0 *istri+)tion was increasin"l
affecte* + the "rowin" *isor*er? farms were rel)ctant to sell to the
state0 so -roc)rements fell, This ten*enc was even more
-rono)nce* in #$$#? farm mana"ement ho-e* for -rice increases0 or
were hoar*in" foo*st)ffs for )se in +arter *eals, Re-)+lics an* local
a)thorities acte* li8ewise0 freE)entl +loc8in" movement of foo*
o)t of their re"ions, The com-)lsor -roc)rement E)otas of the -ast
were no lon"er com-)lsor0 +)t con*itions were )n-ro-itio)s for
mar8etin", Shorta"es +ecame worse0 f)ellin" *iscontent an* stri8es,
The #$$# harvest was *isa--ointin"0 estimates ran"in" from #11 to
#%5 million tons0 an*0 antici-atin" serio)s foo* shorta"es0 there
were a--eals for :estern ai*,
6oth at the centre an* in man of the re-)+lics le"islation was
Crisis and Collapse 11!
a*o-te* facilitatin" the creation of -rivate famil farms0 either on
lon" leases or in some instances .e,", in the 6altic re-)+lics/ +ase*
on lan* ownershi-, Famil farms *i* come into e@istence0 first in
!eor"ia0 9atvia an* Estonia0 then in other re-)+lics too0 +)t
-ro"ress was an* is im-e*e* + lac8 of s)--lies of necessar in-)ts
.incl)*in" small>scale machiner an* +)il*in" materials/0 an* in
R)ssia an* the U8raine also + the )nwillin"ness of most -easants
to ta8e the ris8s involve* in wor8in" for themselves0 es-eciall
"iven the )ncertaint with re"ar* to f)t)re -olicies .wo)l* the
s)ccessf)l a"ain +e la+elle* 8)la8sG/, Also0 )ntil the co)-0
mana"ement of 1ol1ho2y an* sov1ho2y contin)e* to o+str)ct
chan"e,
The fall in oil -ro*)ction le* inevita+l to a fall in e@-orts, Oil
e@-orts fell + nearl 15 -er cent +etween #$'$ an* #$$#, !ol* was
sol* in increasin" E)antities to tr to maintain the necessar level of
im-orts, A f)rther +low to forei"n tra*e came as a res)lt of the
*ramatic events of #$'$>$5 in Eastern E)ro-e, Comecon was
*issolve*0 an* it was *eci*e* that tra*e with the USSRDs former
allies +e con*)cte* in har* c)rrenc, This0 to"ether with the
conseE)ences of -olitical chan"es0 le* to a ver stee- *ecline in
tra*e with all the former Comecon -artners0 an* to shorta"es of
eE)i-ment0 com-onents an* cons)mersD "oo*s formerl im-orte*
from these co)ntries,
In #$$5 there was a c)rrent acco)nt *eficit of ro)"hl #1 milliar*
*ollars0 which necessitate* a *rastic c)t in im-orts in #$$# > in the
first half ear im-orts fell + <4 -er cent, The economic a*viser
!ri"or Yavlins8 anno)nce* that the "ol* reserves .-revio)sl
secret/ ha* fallen to (<5 tons0 far less than -revio)sl estimate*? Dthe
co)ntr is +an8r)-t,D
(<
Far too late0 it was *eci*e* to "ras- the -rice nettle, :holesale
-rices were increase* on # 2an)ar #$$#0 retail -rices on # A-ril,
The increases were s)+stantial0 as the ta+le on -, <#< shows, 6)t
there was still an attem-t to fi@ an* control -rices0 an*0 with o)t-)t
fallin"0 most of these items remaine* )no+taina+le0 other than
thro)"h what remaine* of the allocation sstem or thro)"h +arter
*eals0 since mone was ra-i*l losin" -)rchasin" -ower, The
R)ssian re-)+lic was -ro-osin" m)ch hi"her -rices for coal an* oil0
an* it was -ointe* o)t that even the new -rices were in
111 #or+ache0? From Reform to (isaster
Prices !*pril 199& '1&&%
Electricit+ 19.
2rude oil .//
Oil products .10
Iron nd steel 104
>chiner+ nd eFuip"ent 104
;i$ht industr+ ./.
6ood industr+ .(/
(Source: ;konomika i (hi(n', No.
.(,1991%
some instances .e,", oil/ far +elow worl* -rices even at the official
e@chan"e rate, ,
Cons)mersD "oo*s -rices were to have +een raise* in 2)ne #$$50
)n*er -ro-osals -)t forwar* + -remier RFh8ov +)t +loc8e* + the
S)-reme Soviet, The increases in A-ril were estimate* as more than
*o)+lin" the "eneral level of cons)mer "oo*s an* services0 tho)"h
the *eclare* intention was a rise of onl %5 -er cent0 with
com-ensator increases in incomes an* +enefits0 an* even an
)-war* reval)ation of -art of savin"s +an8 *e-osits, Increases in
-revio)sl hi"hl s)+si*iFe* items were h)"e? +eef from ( to 4
ro)+les -er 8ilo0 -or8 from #,$5 to 1,&50 +)tter from &,15 to ','50
e""s from #,&5 to (,%50 the chea-est re +rea* from 5,#( to 5,<'0 the
chea-est cotton cloth from #,#( to &,55 -er metre0 chil*renDs clothes
)- +etween <> an* 1>fol*,
(1
6)t with o)t-)t fallin" an* incomes o)t of control0 -rices in free
mar8ets increase* ra-i*l, In the first half of #$$# !NP fell + #5
-er cent over the same -erio* of #$$50 in*)strial o)t-)t + over %
-er cent0 foo*>in*)str o)t-)t + ',1 -er cent0 a"ric)lt)ral o)t-)t +
## -er cent0 accor*in" to the half>earl statistical re-ort,
6 mi*>#$$#0 all -hsical o)t-)t in*icators with the sin"le
e@ce-tion of "as were showin" a fall over the same -erio* in #$$5I
oil + $ -er cent0 coal + ## -er cent0 steel + #( -er cent0 iron ore
+ #5 -er cent0 motor vehicles + ' -er cent0 tractors + #( -er cent0
fertiliFers + ' -er cent0 tim+er + #& -er cent0 -a-er + 4 -er cent0
accor*in" to the a+ove>cite* re-ort, :ith s)--lies *isr)-te* + the
shar- c)t in im-orts an* + re-)+lican
Crisis and Collapse 11*
an* local>a)thorit +arriers0 the *ecline loo8e* set to +ecome
c)m)lative,
In #$'$>$# one saw a ra*icaliFation of the nationalist movements0
as well as some +loo* clashes? +etween the militar an*
secessionist forces in 9ith)ania an* 9atvia .in 2an)ar #$$#/0
+etween AFer+ai*Fhanis an* Armenians0 +etween UF+e8s an*
7ir"iF0 +etween vario)s nationalities in Mol*avia, Secession
+ecame a live iss)e also in the U8raine, 3eman*s for soverei"nt
emer"e* also within the R)ssian fe*eral re-)+lic, On -a-er the
)nion re-)+lics ha* Dsoverei"ntD0 an* the ri"ht to sece*e0 even
)n*er the DStalinD constit)tion, 6)t of co)rse this Dri"htD co)l* not +e
"iven an real meanin"0 an* -ower was in fact e@ercise* + a hi"hl
centraliFe* Comm)nist Part0 with the Delecte*D re-)+lican Soviets
havin" minimal -olitical an* economic -owers, Now0 however0
there was real free*om0 an* nationalism was stren"thene* +0 an*
contri+)te* to0 economic *isinte"ration, The economic lin8s
+etween re-)+lics an* re"ions were close0 there was a networ8 of
-i-elines0 an inter>re-)+lican electricit "ri*, There were also
millions of mi@e* marria"es0 an* +etween %5 an* 45 million -ersons
live* in re-)+lics other than their own, Se-aration le* to *isr)-tion
of s)--lies an* threatene* colla-se an* conflict, This was realiFe*
+ man economists an* -oliticians +oth in Moscow an* in the
-eri-her, 6)t centrif)"al forces co)l* not +e halte*, Tho)"h -lans
for Deconomic )nion of soverei"n statesD contin)e* to a--ear0 the
are )nli8el to +e realiFe*,
In #$$# the a)thorit of the centre was colla-sin"0 an* in man
instances re-)+lics or even cities .incl)*in" Moscow/ *ecree* their
own -rices, In an case0 +arter *eals0 an* not a mar8et0 were in
-rocess of re-lacin" the allocation sstem, 6arter +etween
re-)+lics0 +etween re"ions0 +etween enter-rises an* farms, Man>
a"ement ha* to tr to o+tain + +arter foo* for its own wor8ers0 as
well as material in-)ts, An* anone who co)l* sell anthin" for
har* c)rrenc nat)rall trie* to *o so0 even if this meant not
s)--lin" anone who co)l* -a onl in ro)+les,
E@am-les of +arter *eals co)l* fill a +oo8? 7)F+as coal +artere*
for Urals cons)mer "oo*sI =olo"*a -rovince +arters metal for "rain
from 7rasno*ar, U8raineDs news-a-ers were sto--in"
11% #or+ache0? From Reform to (isaster
-)+lication +eca)se -a-er from R)ssia wo)l* onl +e s)--lie*
a"ainst U8rainian foo*0 which co)l* not +e ma*e availa+le,
It was o+vio)s that a real c)rrenc was nee*e*0 an* this reE)ire*
sto--in" -rintin" so m)ch mone, However0 the -olitical
+rea8*own ha* *e-lora+le financial conseE)ences, Th)s the all>
)nion +)*"et was to have o+taine* reven)es of 11 milliar* ro)+les
in the first E)arter of #$$#0 +)t the act)al reven)e was onl #$,$0
while e@-en*it)res were <4,50 since re-)+lics withhel* the s)ms
*estine* for the centre0
(%
an* some re-)+lics0 nota+l R)ssia an* the
U8raine0 ran +i" *eficits of their ownI total *eficits were e@-ecte* to
e@cee* (5 -er cent of !NP in #$$#0 a clear reci-e for fiscal an*
monetar catastro-he,
An official reform -ro-osal for the R)ssian re-)+lic *escri+e*
the sit)ation as at A-ril #$$# as follows?
The econom a--roaches the +or*erline +eon* which one can s-ea8 not of
economic crisis +)t catastro-he, The shar- fall in o)t-)t that is occ)rrin" in
most state enter-rises is accom-anie* + "rowin" inflationar -rocesses,
Mana"ement is concerne* not with -ro*)ction0 +)t with how to fin* means
to -a the wa"es *eman*e* + its em-loees an* how to s)--l them with
foo* an* cons)mers "oo*s to s-en* these wa"es on, These -ro+lems0 as well
as those of material>technical s)--l0 are increasin"l +ein" resolve* + the
archaic metho* of +arter,,, +)t this cannot ens)re the nee*e* s)--lies0 so
economic lin8s are *isr)-te* an* -ro*)ction is halte*, The *e"ree of
)ncontrolla+ilit 4ne%#ravlyaemosti5 of the econom has reache* cata>
stro-hic *imensions, The -lannin" instit)tions are *emoraliFe* + the
)ncertainties of their sit)ation to*a an* -artic)larl tomorrow, Informa>
tion from the "rass>roots is lac8in", All>)nion0 re-)+lican an* re"ional
or*ers contra*ict one another0 which a**s to social>-olitical tensions
(4
The R)ssian re-)+lic0 )n*er Yeltsin0 seeme* willin" to "o faster
in the *irection of mar8etiFation, The Shatalin>Yavlins8
-ro"ramme0 stalle* at all>)nion level0 was formall a*o-te* + the
re-)+lic in the a)t)mn of #$$5, 6)t + the en* of that ear
Yavlins80 who ha* +een "iven a senior -ost in the re-)+lican
"overnment an* 6, Fe*orov0 who was a o)n" reformin" R)ssian
finance minister0 +oth resi"ne*0 com-lainin" of irres-onsi+le
-o-)lism on the -art of their collea")es, YeltsinDs "overnment was
C)st as -rone to r)n +)*"et *eficits as ha* +een the Union,
Crisis and Collapse 115
The Union "overnment0 followin" RFh8ovDs resi"nation *)e
to ill>health0 was now hea*e* + the former finance minister0
Pavlov, He too -ro*)ce* a mar8etiFation>an*>-rivatiFation scheme
.Da sociall orientate* mar8et econom within a sin"le all>)nion
areaD/0 with -rices lar"el free*0 ste-s towar*s -rivatiFation0 an*
so on,
('
6)t0 as was also the case with YeltsinDs R)ssian re-)+lic0
there was little im-lementation, An* Pavlov was a lea*in" mem+er
of the #%t schists of A)")st #$$#,
There were0 it is tr)e0 some im-ortant moves towar*s mar8etiFa>
tion, N)mero)s commercial +an8s came into e@istence0 an* also
commo*it e@chan"es0 where materials an* machines co)l* +e
+o)"ht0 sol* an* swa--e*0 at -rices freel ne"otiate*, Attem-ts
to attract forei"n ca-ital res)lte* in the creation of n)mero)s
Coint vent)res0 tho)"h few of these were -ro*)cin" "oo*s an*
services, PrivatiFation0 incl)*in" the sale of stoc8s an* shares on
nascent stoc8 e@chan"es0 ma*e slow hea*wa0 with criticism
*irecte* at nomen1lat%ra .mana"erial/ ta8eovers, There was lim>
ite* li+eraliFation of forei"n c)rrenc *eals0 with a)ctions0 which
ena+le* enter-rises to -)rchase *ollars from each other0 at e@>
tremel )nfavo)ra+le rates0 ran"in" from (4 to &1 ro)+les to the
*ollar, In #$$# this also +ecame the to)rist rate, Since the official
an* so>calle* DcommercialD rates were still 8e-t hi"h .5,%% an* #,'5
ro)+les to the *ollar res-ectivel/0 an* controls were wea8ene*0
*iis0 an* the chronic shorta"es of everthin"0 -rovi*e* am-le
o--ort)nities to ma8e mone o)t of -rice an* e@chan"e>rate
*ifferences0 so that m)ch of the le"aliFe* -rivate enter-rise was
*iverte* into *ealin" an* not -ro*)ction, It sho)l* +e note* that
at the free e@chan"e rate0 avera"e wa"es in mi*>#$$# were onl
a+o)t #1 *ollars a month .an* when I travelle* from 7iev to
9vov + slee-er in 2)ne #$$#0 m tic8et cost C)st one *ollar an*
twent centsH/, 6 3ecem+er the free rate reache* #55 ro)+les to
*ie *ollar,
It was onl on ( A-ril #$$# that a law was a*o-te* Don the
"eneral -rinci-le of entre-rene)rshi- + citiFensD0 which finall
allowe* in*ivi*)als to tra*e .D+)0 sell0 *eal in +on*sD/ and to
em-lo others, So for the first time since #$&5 -rivate tra*e
cease* to +e -)nisha+le Ds-ec)lationD0 an* -rivate em-loment no
lon"er no@io)s De@-loitationD,
11& #or+ache0? From Reform to (isaster
It was also sm+olicall im-ortant that !os-lan was a+olishe*
)n*er that name0 an* !ossna+ rela+elle* the Ministr of :hole>
sale Tra*e,
6 the s)mmer of #$$# the -rocess of *isinte"ration was
-rocee*in" at an accelerate* -ace, The centre ha* now neither
mone nor a)thorit0 not even in Moscow0 where YeltsinDs
R)ssian>re-)+lican instit)tions i"nore* !or+achevDs *ecrees or
the all>)nion S)-reme SovietDs laws whenever the chose, Ne"oti>
ations on a new Union treat *ra""e* on0 while the economic
sit)ation contin)e* to *eteriorate, The *raft Union treat which
!or+achev was to have si"ne* in A)")st left the centre with little
in the wa of -ower an* reso)rces0 +)t was in an event f)ll of
va")e "eneraliFations, No *o)+t the militar>in*)strial com-le@
felt it was +ein" +ereft of an financial or a*ministrative +ase0
an* this was -ro+a+l wh the co)- was time* for the *a +efore
the Union treat was to have +een si"ne*, :e 8now that this last
attem-t to save the ol* Union faile*0 the Comm)nist Part
*issolve*0 all the re-)+lics *eclare* their soverei"nt, So now
there is no Union of Soviet Socialist Re-)+lics, There ma +e a
loose economic association of soverei"n states0 )n*er ne"otiation
at the time of writin", 6)t a more li8el o)tcome is that most
re-)+lics will "o their own wa0 with all0 incl)*in" R)ssia0 facin"
chaos an* +rea8*own as the tr to "o it alone, Yeltsin anno)nce*
R)ssiaDs Dmar8etiFationD -ro"ramme on ($ Octo+er #$$#, !ai*ar0
whom I have freE)entl E)ote*0 has +een -)t in char"e of
R)ssiaDs roa* to a mar8et econom, It is far too soon to s-ec)late
a+o)t s)ccess or fail)re0 in R)ssia or in other re-)+lics,
There will +e no more cha-ters in the histor of the USSR,
9oo8in" +ac80 one is str)c8 + a -ara*o@0 or *ilemma, To carr
thro)"h the f)n*amental #erestroi1a of the econom reE)ire*
stron" "overnment, In the first three ears of !or+achevDs r)le
the mechanism for im-osin" a -olic *i* e@ist0 +)t the a--arat)s
which wo)l* have ha* to *o the im-osin" was not incline* to *o
the Co+0 since mar8etiFation threatene* its -ower an* -rivile"es,
So !or+achev set a+o)t *ismantlin" the a--arat)s0 chan"in" its
-ersonnel0 allowin" criticism of the -rivile"es0 -)ttin" the whole
nomen1lat%ra sstem into E)estion, (lasnost, an*
demo1rati2atsiya
Crisis an* Colla-se <#$
*o)+tless wea8ene* the -owers of resistance an* o+str)ction of
the a##aratchi1i- However0 the effect was also to )n*ermine the
-ower to im-lement -olic, So + the time the reform -ro"ramme
was ra*icaliFe*0 the means to enforce it no lon"er e@iste*, This0
as well as *o)+ts an* hesitations a+o)t how far an* how fast the
reform -rocess sho)l* "o0 -l)s the *isastro)s monetar an* fiscal
-olic .or lac8 of -olic/0 le* to fail)re, A** the centrif)"al forces
of nationalism an* re"ionalism0 an* one ha* colla-se, :hat was
there that co)l* hol* it all to"etherG In the name of whatG
Answer came there none,
1* Conclusion
9et )s now loo8 +ac8 at what has +een *escri+e*0 as far as this was
-ossi+le in the s-ace of the -revio)s -a"es, :hat act)all
ha--ene*0 an* whG
A "reat co)ntr0 alrea* in the -rocess of in*)strialiFation0
colla-se* )n*er the com+ine* stress of social>economic chan"e an*
a "reat war, :hether or not the o)t+rea8 of war at that time ca)se*
the *ownfall of Tsarism is not a matter into which it is fr)itf)l to
inE)ire, It colla-se*, :ar an* economic *isor"aniFation ren*ere*
im-ossi+le the tas8 of the Provisional "overnment0 which was
)na+le to ma8e -eace0 to "ive free rein to -easant lan*>"ra++in"
anarch0 or to control the )r+an mo+, It lac8e* not onl )nit an*
-olitical *etermination0 +)t also le"itimac in the min*s of the +)l8
of the citiFens0 whether arm officers or sim-le -easants, Mo*erates
were swe-t awaI 9enin ro*e the storm0 +ol*l )sin" the -easant
+ac0%erie to achieve -ower, There followe* civil war0 r)in0
starvation,
Then the reconstr)ction an* economic *evelo-ment of R)ssia
-rocee*e*0 )n*er 6olshevi8 lea*ershi-, In*)strialiFation0 therefore0
was to +e achieve*0 witho)t ca-italists0 in a -easant co)ntr0 )n*er a
"overnment an* -art r)lin" *ictatoriall in the name of a small an*0
+ #$(#0 lar"el e@ha)ste* an* *is-erse* -roletariat, The co)ntr
wo)l* +e economicall an* sociall transforme* from a"ove, + the
-olitical lea*ershi-0 + an active minorit of -art Fealots mo+iliFin"
the still inert an* i"norant mass0 for its own "oo*, O--osition to the
lea*ershi- seeme* to *ivert the -eo-le from the tr)e -ath0 8nown to
those who )n*erstoo* historical -rocesses0 who ha* the s)re
com-ass of Mar@ism>9eninism to show the wa to socialism an*
comm)nism, The
onclusion 921
-art an* "overnment th)s +ecame the instr)ment of in*)strialiFa>
tion0 of mo*erniFation, 3issent was not tolerate*0 the nee* for
*isci-line stresse*,
6)t the -art an* "overnment were com-ose* mostl of -artiall
e*)cate* men0 ra-i*l -romote*0 who learnt the metho*s of
"overnin" the har* wa in the r)thless school of civil war, The
relativel thin veneer of cosmo-olitan intellect)als co)l* -rovi*e
onl -art of the necessar r)lin" strat)m0 an* in an case the were
+ tem-erament +etter at *isc)ssion an* clever -olemics than the
were at or"aniFin" the state or the econom, In *)e co)rse +oth the
an* the more i*ealistic .or "en)inel i*eolo"icall>orientate*/ of the
ol* -art mem+ers of wor8in">class ori"in were -)she* awa from
the seats of -ower an* )ltimatel liE)i*ate* almost to a man,
It is interestin" to note that for man of the ol* -art intellect)als
.for instance0 Preo+raFhens80 9arin/0 as well as for the civil>war
commissar t-e0 NEP was a *istastef)l tho)"h necessar
com-romiseI the mar8et an* economic laws were0 if not *irt
wor*s0 then -art of the *efinition of what the were fi"htin" a"ainst,
:hen the offensive was in fact res)me* at the en* of the
twenties0 Stalin ha* alrea* achieve* -ersonal *ominance an* was
-lacin" in -ositions of lea*ershi- men more *istin")ishe* +
r)thlessness in action than + an sort of c)lt)ral +ac8"ro)n*0 men
whose Mar@ism>9eninism was a catechism0 a car*>in*e@ of
E)otations0 )se* either with conscio)s cnicism or with +lin8ere*
sincerit0 accor*in" to tem-erament, No *o)+t the all claime* to
+elieve in comm)nism0 an* some *i*,
In em-hasiFin" in this wa the -ersonal factor0 it is not in the
least inten*e* to a*o-t the Dstr)""le for -owerD inter-retation of
histor0 let alone of economic an* social histor, The t-es of -eo-le
who -rovi*e lea*ershi- > not C)st the -olit+)rea) or the
"overnment0
#
+)t also official*om as a whole > *o *ee-l affect the
wa in which -)+lic affairs are r)n0 an* when most of the econom
an* social or"aniFation are within the -)+lic sector0 this *ee-l
affects them too, This is where +oth R)ssiaDs +ac8war*ness an* her
historical tra*ition are hi"hl relevant? the *e"ree of cr)*e
i"norance amon" a "reat man of the -eo-le is s)r-asse*
1,, Conclusion
onl + the E)alit an* *evotion of the +est of the intelli"entsia an*
of the small i*ealistic "ro)- of s8ille* wor8ers,
6)m-tio)s0 +oorish an* cr)*e followers of Stalin act)all carrie*
o)t the lea- forwar*0 an* -ossi+l the "host of Stalin wo)l* claim
in e@ten)ation that no other instr)ment was to han*,
The 8e -ro+lem0 as 9enin ha* well )n*erstoo*0 was that of the
-easants, :e have seen how Stalin an* his henchmen *ealt with it,
Is this what 9enin ha* in min* when he s-o8e of the )ltimate
res)m-tion of the a*vanceG 3i* 9enin also envisa"e the
)ltracentraliFe* comman* econom which emer"e* in the earl
thirtiesG
9enin0 as has +een -ointe* o)t + man0 was a )niE)e mi@t)re of
the intellect)al an* the r)thless or"aniFer, :here Martov0 the
Menshevi80 ha* feare* the cr)el an* i"norant -easant masses
.*eno)ncin" P%gachevshchina, i,e, elemental risin"s li8e that of
P)"achev a"ainst Catherine II/ an* hate* terror0 9enin was willin"
to )se +oth, 6)t in res-ect of the -easants he seeme*0 at least in his
last ears0 to har+o)r ill)sions, Even if worl* revol)tion *i* not
resc)e the R)ssian comra*es from their *ilemma0 machiner wo)l*
+e the de%s e* machina, so to s-ea8, DIf we ha* #550555 tractors ,,,
then the -easants wo)l* sa? we are for comm)nism,D This -rove*
not to +e the case, So0 while 9enin wo)l* *o)+tless have so)"ht to
avoi* t-icall Stalinist lies an* +r)talities0 who 8nows what he0 or
Trots8 for that matter0 wo)l* have *one0 face* with the realities of
#$('G Tr)e0 9enin in his last ears0 an* Trots8 in o--osition
invei"he* a"ainst +)rea)cratic *eformations, 6)t how co)l* chan"e
from a+ove +e achieve* other than thro)"h a -art>s)-ervise* or
-art>staffe* +)rea)cracG It is li8e +lamin" the t-ical *efects of
militar or"aniFation on the e@istence of a "eneral staff or ah
officersD cor-s, .An* are there not lessons to +e learnt from the chaos
which followe* Mao Tse>t)n"Ds attem-t to )se the masses a"ainst
-art +)rea)cracG/
Chan"e from a+ove0 an* in the *irection of mo*erniFation0 is
well esta+lishe* in R)ssian historical tra*ition, It is not for nothin"
that Stalin or*ere* the "lorification of Ivan the Terri+le an* Peter
the !reat, Man historians have ma*e the -oint that it was lac8 of
s-ontaneo)sl f)nctionin" social forces0 an* of effect>
Conclusion 1,!
ive mercantile an* .later/ +o)r"eois "ro)-s0 which com-elle* the
state0 in its own an* the national interest0 to s)+stit)te action
from a+ove for the wea8 initiatives of -rivate -ersons, In *oin"
so0 of co)rse0 it sn)ffe* o)t what initiative there was, In this
res-ect 9enin was no e@ce-tion, 6 the time he "aine* -ower
-rivate enter-rise was *evelo-in" ra-i*l0 +)t it was still econom>
icall0 sociall0 -oliticall inca-a+le of resistin" either Tsarist
*es-otism or its more *etermine* an* more r)thless s)ccessors,
:o)l* 9enin have or"aniFe* a Dcomman* economDG In the
mi*st of civil war he certainl hel-e* in the attem-t to *o so, 3i*
he learn + e@-erience that this was a *isastro)s errorG A school
of Soviet -)+licists claims that he *i*, The hol* that0 while
e@-ectin" an* ho-in" for a renewe* offensive a"ainst Ne-men0
i,e, a"ainst -rivate enter-rise0 9enin was a"ainst s)+or*inatin"
state enter-rises an* tr)sts to the centre in the Stalinist manner0
or of wi-in" o)t socialist mar8et forces,
(
This is a minorit view,
It cannot +e either -rove* or *is-rove* + the min)test st)* of
9eninDs wor8s, Clearl the Dlea- forwar*D a--roach reE)ire* stern
centraliFation, 6)t was the Dlea- forwar*D reE)ire*G
The -erio* #$(5>&< mar8e* a "reat cataclsm0 which shoo8
the entire societ of R)ssia to its fo)n*ations, It was then0 facin"
a *ramatic lowerin" of livin" stan*ar*s in towns an* coercion in
the villa"es0 that the sec)rit -olice sec)re* the *ominant -lace
in societ which the retaine* )ntil StalinDs *eath, No *o)+t
someone mi"ht o+Cect that the -olice were a 8e factor also in the
twenties, The answer is? not nearl to the same e@tent, A Soviet
novelist recalls how0 in a r)ral area0 Dthe Ee whose tas8 it was to
+e vi"ilantD )se* to sit E)ietl at the +ac8 of -art +)rea)
meetin"s, Then0 "ra*)all0 he move* to the front row0 an* + the
mi**le thirties he ha* his el+ow on the ta+le an* "lare* at the
fri"htene* +)rea) mem+ers,
The atmos-here of terror affecte* the econom *ee-l, It was
not onl a matter of ar+itrariness0 it was the -ec)liar form that
ar+itrariness too8? the fear of tr)thf)l re-ortin"0 the concentration
of all effort on +lin* f)lfilment of or*ers0 the sn)ffin" o)t of
inconvenient i*eas an* of those who mi"ht +e s)s-ecte* of
a*vocatin" them .-l)s their frien*s an* relations for "oo* meas>
)re/, This meant not onl that Stalin insiste* on the incorrect
H,1 Conclusion
sitin" of some factor0 +)t also that a -ett -art secretar in the
*e-ths of the Tam+ov -rovince a--ointe* -leni-otentiaries to see
that ne@t earDs selecte* see* "rain was han*e* over to the state0
so that no one co)l* acc)se him of softness in -)rs)it of the
-artDs -lan for 2agotov1i .-roc)rements/, It -)t heav -ress)re
on those whose Co+ it was to -rovi*e statistics? if the s-o8e the
tr)th the mi"ht +e *ismisse* or even arreste*0 +)t if the were
*iscovere* to +e lin" the mi"ht also +e *ismisse* or even
arreste* ,,, 9ife was far from eas for mana"ers0 -lanners an*
officials "enerall, StalinDs ca-ricio)s an* hierarchicall )n-re*ict>
a+le metho*s involve* everone in ris8 an* strain,
Yet in the mi*st of all this there were enth)siastic0 o)n"0
talente* or"aniFers0 who0 alon" with scientists of the ol*er "enera>
tion0 *i* *o "reat thin"s, Or*Fhoni8i*Fe0 )ntil his s)ici*e in
#$&40 was a har*>swearin"0 har*>*rin8in" an* ins-irin" lea*er of
s)ch men, Even 7a"anovich in his tro)+le>shootin" *as was an
efficient or"aniFer, There were man others, =ast new in*)stries
were not create* merel + threats, It m)st a"ain +e em-hasiFe*
that we have +een *escri+in" a sstem in which0 *es-ite the
terror0 man *evote* -eo-le wor8e* har* for the Ca)se0 or for
R)ssia0 or even for their own a*vancement0 +)t wor8e* with a
will,
One feat)re of the sstem as it emer"e* sel*om a--ears in
histor +oo8s0 +)t is s)rel of "reat social im-ortance? the new
men were remar8a+l in*ifferent to the welfare of the masses,
A"ain0 it is not C)st that Stalin im-ose* hi"h investment tar"ets
or *iverte* +ric8 s)--lies from ho)se to factor +)il*in", Pett
officials0 mana"ers0 arm officers0 *isre"ar*e* the most elemen>
tar nee*s of their s)+or*inates to a *e"ree almost -ast +elief0 in
a co)ntr s)--ose*l )n*er a wor8in">class *ictatorshi-, The
o+verse of this is0 of co)rse0 -ett .an* not so -ett/ -rivile"es for
the nacha6stvo .+osses/, Un*er !or+achevDs glasnost, these -rivi>
le"es0 )nmentiona+le in the -ress for fift ears0 came )n*er
scr)tin an* o-en criticism, The contrast was ma*e with what
was availa+le to or*inar citiFens, The most elementar services
an* amenities were lac8in" > e@ce-t for those entitle* to )se
official facilities, Far less -leasant e@am-les co)l* +e m)lti-lie*
over an* over a"ain,
Concl)sion <(s
:h *i* this ha--enG :ell0 it is an ill)sion that men -romote*
from the ran8s care for those left in the ran8s, Ser"eants are not
note* for softness towar*s erstwhile associates, The fact that the
revol)tion le* to s)ch social effects *oes not -rove it was not a
real -eo-leDs revol)tionI on the contrar, Man of the more
am+itio)s an* ener"etic wor8ers +ecame nachatstvo- The ten*e*
to loo8 *own )-on their more -assive an* )ns)ccessf)l fellows,
Then0 in the earl thirties0 came the "reat mi"ration of )ns8ille*
-easants from the villa"es, The nee*e* *isci-line, Ac)te o+serva>
tions a+o)t this were -)t + 7oestler .in 'ar1ness at Noon5 into
the mo)th of his -oliceman0 !let8in, The ha* no notion of
time8ee-in"0 the were inefficient, In everoneDs interest0 the
ha* to +e com-elle*, An* this was a time of "reat shorta"e, The
men who ran thin"s0 who wor8e* e@cee*in"l har*0 were entitle*
not to have to stan* in E)e)es, Therefore the ha* s-ecial
-rivile"es, Then it was all instit)tionaliFe*0 +ecame a ha+it0 a
veste* interest, An* no -rotest from +elow was -ossi+le0 +eca)se
all or"aniFe* o--osition of an 8in* ha* +ecome0 + *efinition0
treasona+le,
That0 of co)rse0 was -art of the lo"ic of a one>-art state0 an*
s)ch a state was -art of the lo"ic of a comm)nist re"ime r)lin" an
overwhelmin"l -easant co)ntr,
Economic historians sho)l* note the hi"h cost of elimination of
all o--osition, 6 this is meant not onl the h)man cost0 in the
*iversion to cam-s of man millions0 of whom a hi"h -ro-ortion
were a+ove avera"e in intelli"ence0 ener" an* technical 8nowl>
e*"e, Heav losses were im-ose* + the mere feet that e@a""er>
ate* an* im-ossi+le -lans co)l* not +e criticiFe*0 even + e@-erts0
lest the +e s)s-ecte* of *eviation, This certainl contri+)te* a
"reat *eal to the e@cesses of the Dlea- forwar*D -erio*0 in in*)str
an* a"ric)lt)re ali8e0 an* later also in China,
R)ssian historians an* -)+licists have +een consi*erin"
whether there was an alternative to Stalinism, :as there a
mo*erate0 D6)8harinistD strate"0 which co)l* have -reserve*
NEPG 3i* the left o--osition offer an alternative0 or *i* Stalin
Dsteal its clothesD in #$('G .The never a*vocate* anthin" as
D)ltra>leftD as the -olicies Stalin a*o-te*,/ :h *i* all the vari>
o)s -otential o--ositionists fail so totall0 wh *i* StalinDs line
1,% Conclusion
tri)m-h so easilG :as Stalinism a nat)ral .or an )nnat)ral/ -ro"en
of 9eninism an* of Mar@ismG :as Stalin the e@ec)tor of 9eninDs
-olicies or the e@ec)tioner of 9eninDs comra*esG .It co)l* +e +oth0 of
co)rse,/ The n)m+er of s)ch -)+lications m)lti-lie* )n*er glasnosf,
es-eciall after #$'40 when not onl 6)8harinDs +)t also Trots8Ds
wor8s co)l* +e -)+lishe* an* *isc)sse*0 + in*ivi*)als of the most
varie* view-oints, :hat if0 "iven R)ssiaDs whole historical
e@-erience an* the irreversi+le fact of revol)tion0 there was in fact
no alternative -ath for herG 6 this is not meant that an one act of
cr)elt or o--ression was in some sense -re*estine*0 +)t rather that
mo*erniFation from a+ove0 + cr)*e an* sometimes +ar+aro)s
metho*s0 was ren*ere* hi"hl -ro+a+le + the circ)mstances of the
time, Mi"ht not some0 or man0 of the e@cesses0 st)-i*ities0 errors0
+e -art of the cost of in*)strialiFin" in this mannerG Most of the
*eformations of Soviet -lannin" co)l* +e o+serve* in the war
economies of :estern states, It *i* not follow that the wars sho)l*
have +een r)n on free>mar8et -rinci-les, In this case at least0 it m)st
+e conce*e* that the errors an* omissions inherent in +)rea)cratic
centraliFation were an inte"ral -art of the cost of r)nnin" a war
econom0 an* in this case at least most -eo-le acce-t the cost as
C)stifie*, Os8ar 9an"e *i* *escri+e the DStalinD economic sstem as Da
war econom s%i generis,-
For what is a rational wa of or"aniFin" the ra-i* *evelo-ment of
a +ac8war* co)ntrG :hat content can +e "iven to the wor*
DrationalDG S)rel not the achievement of a -)rel economic
o-tim)m which0 in an co)ntr0 is ren*ere* im-ossi+le + consi*>
erations of -olitical feasi+ilit an* social circ)mstances, One cannot
leave o)t of acco)nt the e@istence of classes an* "ro)-s0 the nat)re
an* E)alities of the a*ministrative machine0 the i*eolo" in the
name of which the -olitical lea*ershi- see8s to mo+iliFe itself an*
the masses for the *iffic)lt tas8 of chan"in" societ, Nor sho)l* the
more -)rel militar as-ect +e for"otten? to some e@tent Stalin
reall was en"a"e* in +)il*in" )- the in*)strial +ase of a war
econom in -eacetime,
No *o)+t *evelo-ment economists will st)* R)ssian e@-erience
for man ears, It a+o)n*s in lessons .an* warnin"s/ of the ver
"reatest interest, The ma well concl)*e that the -olitical
Conclusion 1,5
terror0 the -ace of economic *evelo-ment0 the -ro+lem of ca-ital
acc)m)lation an* of the -easants were ver intimatel intercon>
necte*, A DsofterD economic -olic wo)l* have "iven more sco-e for
the consi*eration of s-ecificall economic efficac0 reE)ire* fewer
sacrifices0 an* so wea8ene* the ar")ments for f)ll>scale -olice
terror, 6)t a sense of *an"er contri+)te* to the *ecision to "o all
o)t0 to in*)strialiFe ver E)ic8l0 to concentrate on heav in*)str
at an cost, Nor can one overloo8 the fact that there was no
-rece*ent0 that +itter lessons ha* to +e learnt from e@-erience0 an*
that the :estern econom was in sa* *isarra at the time when the
Dlea- forwar*D was +ein" effecte*, There was no eas -ath, The one
chosen was not the res)lt of acci*ent or -ersonal whim,
Historians ma also concl)*e that the sstem0 whatever its
ori"inal lo"ic or rationale0 ha* for some time .literall/ o)t"rown
itself, If the are Mar@ists0 the ma s-ea8 of -ro*)ctive forces
comin" into contra*iction with -ro*)ctive relations0 necessitatin"
chan"e in the *irection of a mar8et econom, The Soviet *evelo->
ment mo*el e@ercise* consi*era+le fascination, 6)t man0 incl)*in"
comm)nists0 who st)* its evol)tion0 es-eciall the 8e -erio*
which +e"an in #$('0 mi"ht well feel that somewhere in those ears
there was a wron" t)rnin", An* that no one sho)l* follow the trail
+laFe* + Stalin0 with its terri+le sacrifices0 )nless some overri*in"
set of circ)mstances ma8es other -aths im-ractica+le, It is sai* that
one cannot ma8e omelettes witho)t +rea8in" e""s, In that case0
-erha-s one sho)l* not ma8e omelettes0 if the men) ha--ens to
-rovi*e other choices, Perha-s it is R)ssiaDs tra"e* that these
choices were a+sent0 an* a meas)re of her achievement that0 *es-ite
all that ha--ene*0 so m)ch has +een +)ilt0 an* not a few c)lt)ral
val)es -reserve* an* han*e* on to a vastl more literate -o-)lation,
In the -revio)s e*ition of this +oo80 I en*e* as follows? DIt will
also +e R)ssiaDs tra"e* if0 in the name of the -reservation of
Kmat)re socialismK0 the a"ein" an* conservative lea*ershi- contin)e
to resist necessar chan"e0 since the res)ltant -aralsis wo)l* have
hi"hl )n-leasant conseE)ences,D
In fact a n)m+er of o+servers too8 the view that the sstem was
froFen0 -etrifie*0 inca-a+le of chan"e, It is this which !or+achev
<(' Concl)sion
so)"ht to *is-rove, R)ssian Dmo*erniFationD in the -ast has often
+een associate* with the stren"thenin" of )nfree*om0 with mo+il>
iFation of societ + an all>-owerf)l state, So it was with Peter *ie
!reat .DPeterDs metho*s were -)rel 6olshevi8D0 wrote the -hilo>
so-her Ni8olai 6er*aev/, So it was with Stalin, S)ch metho*s
will not serve an more,
6)t0 as we have seen0 #erestroi1a, glasnost, an* demo1rati2atsiya
have faile* economicall an* have le* to .or s-ee*e* )-/ the
-rocess of *isinte"ration of the Soviet em-ire, An* man Soviet
R)ssian critics have concl)*e* that Mar@ an* 9enin were tra"ic>
all mista8en0 that #5#4 was a national *isaster0 that millions of
lives ha* +een sacrifice* in vain0 there+ contri+)tin" to the
-artDs *emoraliFation an* the colla-se of the re"imeDs le"itimac,
This has +een reflecte* in s)ch sm+olic chan"e as the restoration
of R)ssiaDs ol* tricolo)r fla"0 the renamin" of ol* towns an*
streets .c)lminatin" in 9enin"ra* +ecomin" St Peters+)r" a"ain/0
an* in the felt nee* to *ro- the wor*s DsovietD an* DsocialistD,
:as it then all in vainG Is the onl sol)tion to restore ca-italism
as E)ic8l as -ossi+le0 an* .literall/ +)r 9eninG Socialism tooG
Or was the Soviet mo*el0 es-eciall in its Stalinist version0 a
*eformation of the socialist i*eaG An N7=3 officer at the hei"ht
of the -)r"es is alle"e* to have sai*0 DIf Mar@ fell into o)r han*s0
within a wee8 we wo)l* have him confess he is an a"ent of
6ismarc8,D :as the Soviet sstem a new sort of class societ0 with
the nomen1lat%ra as a s-ecies of r)lin" class0 its -ower +ase* not
on -ro-ert +)t on ran80 as I s)""este* in an article written over
twent ears a"oG
&
An* *oes the e@-erience of recent ears show
that *emocratiFation an* glasnost, have *estroe* not onl the
Soviet em-ire +)t elementar or*er0 witho)t which a shift towar*s
a mar8et econom .or in*ee* the im-lementation of any -olic/ is
im-ossi+leG No carrot if no whi-G
One co)l* also s-ec)late on the close relationshi- of economic
an* -olitical centraliFation0 economic an* -olitical -ower, :hat>
ever were its *octrinal or -ractical>em-irical ca)ses0 the fact
remains that the *omination of the -art>state ma*e -ossi+le the
centraliFation of economic control0 which also was a -recon*ition
of the *omination of the -art>state machine0 which controlle*0
allocate*0 em-loe*0 virt)all everone an* everthin", The Dcom>
1

*
Concl)sion <($
man* economD reE)ire* a comman*>-olit, The rose to"ether0
the have fallen to"ether, 6)t neither a *emocratic le"al or*er
nor a mar8et econom have re-lace* them0 or at least not et0
an* the a)")ries are not favo)ra+le,
Fort)natel0 it is not m tas8 to a*C)*icate0 an* certainl not
to forecast0 es-eciall as an forecast is ver li8el to +e -rove*
wron" +efore this e*ition reaches its rea*ers, It remains to
-rono)nce the *eath sentence? the Soviet sstem has e@-ire*0 it
has no more histor as s)ch, :hatever comes in its -lace will
have a *ifferent *esi"nation0 a *ifferent i*eolo"0 a totall *iffer>
ent str)ct)re, An* a E)ite *ifferent a)thor to *escri+e it,
Appendix? A 8ote on #ro$th Rates
How can it +e > someone is +o)n* to sa > that an economic histor
of R)ssia can +e written witho)t an answer to the E)estion which
everone as8s? how fast *i* -ro*)ction "rowG Soviet in*ices have
+een E)ote*0 it is tr)e0 +)t alwas with E)alifin" -hrases which are
clearl inten*e* to warn the rea*er a"ainst ta8in" them literall, 6)t
if the official claims are mislea*in"0 what can ta8e their -laceG
The -ro+lem mi"ht +ecome clearer if one were to "o a little more
caref)ll into the reasons for the ina*eE)ac of the official in*ices0
an* then consi*er the acce-ta+ilit of recom-)tations )n*erta8en +
vario)s :estern scholars, It will +e ass)me* that0 e@ce-t -erha-s in
a"ric)lt)re0 re-ortin" from +elow is reasona+l acc)rate, This *oes
not e@cl)*e the -ossi+ilit of cheatin" + officials an@io)s to claim
-lan f)lfilment0 +)t the tellin" of lies a+o)t o)t-)t of commo*ities
wo)l* *isr)-t -lans an* is therefore onl -ossi+le to a limite*
e@tent0 since a lac8 of availa+le "oo*s wo)l* s-ee*il +e notice*
.e,", in s)--lin" )sers/ an* ste-s ta8en a"ainst the a)thors of false
re-orts, 6esi*es0 it sometimes -as to conceal o)t-)t .e,", to +)il*
)- reserve stoc8s/0 as well as to overstate it, F)rthermore0 false
re-ortin" at two *ifferent *ates *oes not affect "rowth rates0 )nless
there is more false re-ortin" at one *ate than at another, This is what
co)l* +e calle* Dthe law of eE)al cheatin"D? )nless there is an
reason to ass)me it is )neE)al0 the mere -resence of cheatin" sho)l*
not affect statistics of "rowth,
An *o)+ts are not +ase* on false re-ortsI in fact all the
recom-)tations ma*e + :estern scholars )se Soviet -hsical
o)t-)t *ata as their raw materials, The -ro+lems +e"in when one
Appendix? A 8ote on #ro$th Rates 1!1
loo8s at how the *ata are a""re"ate*0 an* also at what the fi")res
re-orte* from +elow act)all mean,
Ever economist is0 or sho)l* +e0 acE)ainte* with the in*e@
n)m+er -ro+lem, =er +riefl it can +e ill)strate* as follows,
S)--ose that the in*)strial o)t-)t of Scotlan* consists of whis8
an* +a"-i-es an* has altere* as follows?
19(& i94&
-his,+ !thousnd $llons% /&& 1,/&&
B$pipes !thousnd% 1(& 1(&
O+vio)sl0 the increase in total Scottish o)t-)t will *e-en* on
the relative -rices of whis8 an* +a"-i-es, S)--ose in #$&5
+a"-i-es cost [#5 an* whis8 [#50 +)t in i$%5 +a"-i-es cost
[#55 an* whis8 [(5, Then in #$&5 -rices the res-ective val)es
were as follows?
!O
19(& i94&
-his,+ /,&&& 1/,&&&
B$pipes 1,(&& 1,(&&
9otl 4,(&& 14,(&& Index ' ./1
6)t in i$%5 -rices the answer wo)l* +e ver *ifferent,
!O
19(& i94&
-his,+ 1&,&&& (&,&&&
B$pipes 1(,&&& 1(,&&&
9otl .(,&&& 4(,&&& Index ' 101
Neither answer is Dtr)eD0 or rather +oth are, 6)t most statisticians
wo)l* chan"e the wei"hts as the +ecome o+solete,
In the Soviet Union0 there was a ver shar- chan"e in relative
-rices after #$(', The fastest>"rowin" sectors were hi"hl -rice*
in the twenties0 an* so the -reservation of Do+soleteD wei"hts
1!, Appendix? A 8ote on #ro$th Rates
ens)re* hi"h overall "rowth in*ices0 which is no *o)+t wh the
were -reserve* )ntil #$15, M)ch of the chan"e in relative -rices
was concentrate* into the *rama>fille* -erio* #$('>&40 an* 6er">
son0 in his ver thoro)"h calc)lations0 "ives some ver *ifferent
answers for these ears,
At D#$&4 ro)+le factor costD0 "rowth rates in #$('>&4 wor8 o)t at
1,1 -er cent -er ann)m .or <,' -er cent on an alternative
ass)m-tion/, Usin" #$(' -rices0 the "rowth rate more than *o)+le*0
to ##,$ -er cent -er ann)m, Since the "rowth in n)m+ers em-loe*
is a constant in +oth calc)lations0 6er"sonDs la+o)r -ro*)ctivit
fi")res *iffer even more wi*elI o)t-)t -er wor8er increases either
+ #,4 -er cent or + 4,$ -er cent -er ann)m0 *e-en*in" on the
-rices )se*, It is worth a**in" that0 if the share of investment in the
national income in #$&4 were com-)te* in #$(' -rices0 it wo)l*
e@cee* << -er cent0 whereas 6er"son ma8es it (1,$ -er cent in terms
of #$&4 ro)+les,
#
Nee*less to sa0 Soviet statisticians have never
cite* this hi"h investment -ercenta"e0 -referrin" in this instance to
)se c)rrent -rices,
So far we have +een *isc)ssin" onl the *istortion which mi"ht
+e *)e to )sin" o+solete wei"hts0 a -ractice which no lon"er a--lie*
to fi")res for -erio*s since #$15, 6)t this is far from +ein" the en*
of the stor,
All o)t-)t in*ices are conventional a""re"ations of constantl
shiftin" -ro*)ct mi@es not strictl com-ara+le with one another,
Th)s0 in an co)ntr0 statisticians have to com-are clothin"0 cars0
aircraft0 t)rret lathes0 etc,0 which have altere* in im-ortant
-artic)lars, :hat is the com-arison0 for vol)me in*e@ -)r-oses0
+etween a 3C& an* 3C$ aircraft0 or a #$15 an* a #$'5 2a")ar carG
O+vio)sl not #?#, If -rices ha* +een )naltere* then we co)l*
*e*)ce a ratio from the relative -rices at the two *ates, 6)t -lainl
we cannot *o that, Then we *eflate + a -rice in*e@G 6)t what -rice
in*e@G Clearl we cannot a--l some "eneral in*e@ of wholesale
-rices0 since aircraft an* cars co)l* well have risen .or fallen/ in
-rice + more .or less/ than the "eneral avera"e, So we nee* to
*evise an in*e@ for the items +ein" com-are*, 6)t we are then +ac8
where we starte*0 since no 3C& was ma*e in #$'5 an* no 3C$ in
#$15, Can we then *e*)ce the -rice *eflation from
Appendix? A 8ote on #ro$th Rates 1!!
chan"es in costs of -ro*)ction of analo"o)s o+Cects0 in this case
other forms of trans-ort eE)i-mentG 6)t this is *an"ero)s0 since
.es-eciall in machiner an* en"ineerin"/ man of the items ma*e
in +oth #$15 an* #$'5 were onl C)st +ein" *evelo-e* in #$150 an*
so ha* a hi"h initial cost0 later re*)ce* as the f)ll e@-an*e* into
mass -ro*)ction, The )se of s)ch a -rice *eflator wo)l* overstate
the rate of "rowth,
At this -oint one m)st intro*)ce *eli+erate DstatisticalD +ias0 an*
this +oth at the centre an* at the re-ortin" a"encies .ministries0
"lav8i0 enter-rises/, First of all0 whereas :estern statistical offices
face the same metho*olo"ical -ro+lems0 the tr to allow for them
an* are not )n*er -olitical -ress)re to a*o-t0 amon" a n)m+er of
-ossi+l vali* was of com-arin" the non>com-ara+le0 the ones
which "ive hi"h "rowth rates, Secon*l0 the metho*s of a""re"ation
are 8nown0 an* Soviet mana"ement tries to choose a -attern of
o)t-)t which res)lts in a hi"h "rowth rate, This is not the same as
cheatin"0 for it is -lain" accor*in" to the r)les, A "iven *esi"n0
-ro*)ct mi@0 material0 was often chosen with one ee on its effect on
the o)t-)t in*e@, Onl where the commo*it is totall homo"eneo)s
.for instance0 8ilowatt>ho)rs of electricit/ wo)l* this not matter, If
-artic)lar 8in*s of clothin"0 tractors0 "oo*s wa"ons0 aircraft or
-refa+ricate* cement +loc8s were chosen "eca%se of the effect of the
choice on the statistical meas%rement of the vol%me of o%t#%t, then
that vol)me wo)l* show a ten*enc to e@a""eration, In the :est the
enter-rises are )nintereste* in the statisticiansD meas)rementsI the
-attern which iel*s a hi"h -rofit ma or ma not +e that which fits
the conventions of meas)rin" o)t-)t statistics,
The -ro*)cin" enter-rises0 so lon" as the see8 to f)lfil a""re"ate
-lans in ro)+les0 are intereste* in hi"her -rices0 an*0 since there is
-rice control0 m)st *en that the have increase* -rices, Un*er the
)nreforme* sstem0 their c)stomers acce-t hi"her -rices0 either
+eca)se the have no choice0 or +eca)se the act)all welcome
themI hi"her>-rice* in-)ts ena+le them to inflate their costs an* so
claim a hi"her cost>-l)s -rice for their -ro*)ct? DEnter-rises0
o"yedineniya, even whole sectors of the national econom0 are
*irectl intereste* in the "rowth of costs of -ro*)ction,D
(
M)ch has
+een -)+lishe* a+o)t conceale* increases
1!1 Appendix? A 8ote on #ro$th Rates
in +)il*in" costs an* machiner -rices0 as well as in man
cons)mersD "oo*s, A -artial list of E)otations from Soviet so)rces
on this theme fills -a"e &4& of the thir* e*ition of m Soviet
Economic System- The evi*ence -oints concl)sivel to a ten*enc
to e@a""erate "rowth in*ices0 thro)"h )sin" too low a *eflator for
-rice rises,
I *evote* a -a-er to this to-ic0 )n*er the title DHas Soviet
!rowth Cease*GD
&
The title ma have seeme* over>*ramatic at
the time .#$'&/0 et -recisel this -erio* is now *escri+e* + all
Soviet -)+licists from !or+achev *own as one of sta"nation
42astof5, an* a recom-)tation + 7hanin an* Sel)nin 4Novy mir,
No, &0 #$'4/ -)ts the "rowth rate -er ca-ita in the earl ei"hties
at less than Fero,
In fact there is now a lar"e an* "rowin" Soviet literat)re a+o)t
how the sstem "enerates -rice increases which fin* no a*eE)ate
reflection in official -rice in*ices0 th)s ca)sin" a -ersistent over>
statement of "rowth rates, In the a+ove>cite* article0 7hanin an*
Sel)nin note* that the official in*e@ for national income0 if
Dchaine*D0 "ives a ninet>fol* "rowth rate from #$(' to #$'1, In
their view0 a more correct fi")re wo)l* +e a si@> or seven>fol*
"rowth, This is s)rel the +i""est *ownwar* amen*ment 8nown
in the histor of worl* statisticsH Their com-)tations have +een
criticiFe*0 an* their fi")res *o seem a little low, 6)t the official
claim is -lainl -re-ostero)s,
It ma +e )sef)l to refer a"ain to the E)otation from 6o"omolov
which we have note* alrea* on -, &''? he claims that the
D+as8etD of "oo*s cons)me* + an )r+an citiFen *o)+le* in -rice0
in*ee* Dmore than *o)+le*D0 since the en* of the fifties, Yet the
official retail -rice in*e@ for #$'1 shows a rise of less than 4 -er
cent, This "ives one some i*ea of the e@tent of the e@a""eration
of the vol)me of o)t-)t of cons)mersD "oo*s0 of retail tra*e
t)rnover an* of real wa"es,
An ill)stration of how these *is-arities occ)r? in an article in
Planovoye 1ho2yaistvo No, '0 #$'4 .--, %5>%#/0 it is state* that
Din #1 earsD the avera"e -rice of cotton cloth an* of footwear rose
+ %5 -er cent0 8nitte* o)terwear + 15 -er cent0 et there was no
chan"e in an liste* -rice0 an* the official in*e@ shows no -rice
increase at all0 or even a fall, In this an* other instances0 the
Appendix? A 8ote on #ro$th Rates 1!*
chea-er mo*els cease* to +e -ro*)ce*0 new an* m)ch *earer
ones a--eare*0 an* an im-rovement in E)alit was in no wa
-ro-ortionate,
Similar *istortions affect -rices of machiner an* eE)i-ment0
in*ee* of anthin" which is not of its nat)re homo"eneo)s, Th)s
o)t-)t of .sa/ electricit0 cr)*e oil0 +arle0 cannot +e affecte* +
chan"es of mo*el or + -se)*o im-rovements in E)alit0 whereas
7hanin an* Sel)nin0 an* some other Soviet critics0 estimate
that the vol)me fi")res of machiner o)t-)t nee* a *ownwar*
correction of a+o)t 1 -er cent -er ann)m to ta8e -rice increases
C%doro2hanie5 into acco)nt,
Another -oint concerns in*)strial -ro*)ction, The in*e@ )se*
was D"rossD0 in the sense of +ein" arrive* at + a**in" to"ether
the total val)e of the o)t-)t of an enter-rise0 an* then *eflatin"
+ the a--ro-riate -rice in*e@, This means that the in*e@ wo)l*
+e affecte* + the *ivision of an -rocess +etween enter-rises,
To ta8e an e@am-le? if a com-lete sewin" machine were ma*e in
one enter-rise0 an* its -rice was #55 ro)+les0 this eE)als #55
ro)+les of "ross o)t-)t .altho)"h the f)el an* materials )se* ha*
+een co)nte* as -art of the o)t-)t of other enter-rises/, 6)t
s)--ose enter-rise A ma8es the act)al machine0 enter-rise 6
ma8es the stan* an* -e*als0 an* enter-rise C assem+les the
sewin" machine, Then the "ross o)t-)t wo)l* +e somethin" li8e
this?
Enter-rise A .machine -arts/ %5
Enter-rise 6 .stan* an* -e*als/ (1
Enter-rise C .assem+l/ #55
#'1
Of co)rse this wo)l* not affect the rate of "rowth0 if the *e"ree
to which the -rocess was *ivi*e* .i,e, of vertical inte"ration or
*isinte"ration/ remaine* the same, 6)t the sstem ten*s to
enco)ra"e this 8in* of arran"ement0 while *isco)ra"in" inte"ra>
tion, Th)s all three enter-rises0 in the e@am-le "iven a+ove0 are
)n*er the same ministrI the ministrDs -lan is e@-resse* in val)e
of "ross o)t-)t, Th)s the a+ove arran"ement D-asD the ministr,
1!% Appendix? A 8ote on #ro$th Rates
This lea*s me to another -oint0 which mi"ht a--ear D-hiloso-h>
icalD +)t is in fact f)n*amental0 as ever Soviet reformer>economist
well 8nows, :hat is the val)e of o)t-)tG Can it +e +ase* merel
on costG :h *o we sa that "oo*s A0 6 an* C are worth [15
millionG S)rel +eca)se two factors are -resent in the -rocess of
-rice formation? costs an* a mar8et val)ation of the -ro*)ct,
This lea*s one strai"ht into the heart of recent Soviet *isc)ssions
on val)e an* -rice, Th)s an a*mira+le article + two lea*in"
mathematical economists E)otes Mar@ to the effect that )n*er
comm)nism Dtime s-ent on -ro*)ction wo)l* +e *etermine* +
the *e"ree of social )tilit of this or that -ro*)ctD0 an* that it is
o+vio)s anhow that two *ifferin" -ro*)ct mi@es that ha--en to
cost the same to -ro*)ce cannot0 in an meanin"f)l sense0 +e
hel* to +e of eE)al val)e or worth merel for that reason,
<
In other wor*s0 Soviet in*)strial or farm -rices0 which *o not
reflect .save + chance/ s)--l an* *eman* con*itions0 are in
-rinci-le rather ina*eE)ate Dwei"htsD0 a -oor meas)rin">ro* for
meas)rin" o)t-)t an* its "rowth, Of co)rse0 e@istin" :estern
-rices s)ffer from *istortions0 an* it wo)l* +e a+s)r* to *en
that n)mero)s im-erfections affect the -ict)re here too, 6)t
some sort of val)ation thro)"h a mar8et *oes more or less fin*
reflection in most of o)r -rices0 certainl in theor0 -artiall in
-ractice,
Then wh not )se a :estern recom-)tationG To this eas wa
o)t there are the followin" o+Cections?
105 Man of them .e,", 6er"sonDs/ )se Soviet -rices0 an* the
a*C)stment for s)+si*ies an* t)rnover ta@ *oes not eliminate the
D-hiloso-hicalD *o)+ts,
106 Even the most caref)l an* -ainsta8in" )se of Soviet
-rice lists R an* 6er"son0 Moorsteen0 N)tter an* other
American analsts are most thoro)"h an* )se ever scra- of
evi*ence availa+le R *oes not free them from the necessit of
*evisin" -rice in*ices to act as D*eflatorsD0 an* this is a tas8
fra)"ht with "reat *iffic)lt for reasons alrea* "iven,
107 Parts of the statistical *ata were sim-l missin", Some
were covere* + a sec)rit c)rtain .those for arms0 shi-s0
aircraft0 electronics0 even some non>ferro)s metals/, 6)t others
were availa+le in too a""re"ate* a form for effective )se in an
in*e@?
Appendix? A 8ote on #ro$th Rates 1!5
even s)ch sim-le thin"s as +rea*0 f)rnit)re0 clothin"0 wine0 or more
com-le@ items s)ch as instr)ments an* im-lements0 lathes0
refri"erators come in ver man *ifferent sha-es0 siFes an* E)al>
ities, A chan"e in -ro*)ct mi@ within each of these a""re"ate*
cate"ories o)"ht to fin* its reflection in an in*e@0 an* the
necessar information was not availa+le, In the case of national
income a +i" *ifference to the res)lt is ma*e + the wei"ht assi"ne*
to a"ric)lt)re0 which -)lls *own the "eneral "rowth in*e@, Owin" to
the -ec)liarities of a"ric)lt)ral -rices0 official in*ices ten* to
)n*erwei"ht this sector, 6)t what is the correct wei"htG
.</ There is some *isa"reement +etween e@-erts0 estimates of
in*)strial "rowth in the -erio* #$('R15 ran"in" from an in*e@ of
4(1 + Seton to &4% + N)tter .the incre*i+le official in*e@ fi")re is
#0#(&/,
For more recent ears0 the CIA has -)+lishe* estimates0 +ase* on
the most thoro)"h analsis of evi*ence0 +)t the evi*ence is
incom-lete0 an*0 interestin"l eno)"h0 some Soviet critics .not onl
7hanin an* Sel)nin/ ma8e a lar"er *ownwar* amen*ment of the
official claims than *oes the CIA,
:e co)l* -erha-s a"ree that the USSR *i* in*)strialiFe ra-i*l
after #$('0 that in *oin" so it ha* to overcome "rave *iffic)lties of a
8in* which the Unite* States *i* not have to face .social0 -olitical0
"eo"ra-hic0 ver *ifferent historical tra*itions0 etc,/ an* that the
wor* Dra-i*lD cannot +e "iven -recision, Other co)ntries a--ear to
have "rown as fast0 or faster0 an* to have recovere* from *isasters
too? 2a-an0 for instance, 6)t it ma8es little sense to *erive from this
a moral concernin" the efficac of sstems an* "overnment0 as if
2a-anese metho*s co)l* have +een a--lie* in R)ssia .or Pa8istan0 or
Me@ico/, Each co)ntrDs "rowth -ath an* *evelo-ment -otential are
a f)nction of man factors )niE)e to them0 an* co-in" is freE)entl
E)ite im-ractica+le0 or wo)l* lea* to ver *ifferent res)lts in an
)ncon"enial environment, Nor sho)l* reso)rce en*owment +e
overloo8e* as a factor? the hi"hest rates of all were achieve* in
7)wait,
If we reall wishe* to meas)re the s-ecificall Soviet contri+)>
tion to R)ssiaDs "rowth0 we wo)l* nee* to 8now what wo)l* have
ha--ene* if some other re"ime ha* -resi*e* over the -rocess of
1!& Appendix? A 8ote on #ro$th Rates
*evelo-ment, 6)t since0 for all we 8now or can 8now0 the
alternative to 9enin in the "iven circ)mstances was *isinte"ration0
the e@ercise co)l* scarcel +e meanin"f)ll attem-te*,
It is0 however0 a -oliticall si"nificant fact that n)mero)s
Soviet economists0 historians0 -)+licists0 loo8 at the recor* since
the revol)tion0 o+serve to*aDs *isastro)s *ecline0 an* concl)*e
that the roa* chosen + 9enin was f)n*amentall the wron"
roa*, The "i"antic scale of h)man losses an* s)fferin"0 the
sacrifices0 the enth)siasm of Fealots in the twenties an* thirties0
the terror0 -ro*)ce* in the en* a lo->si*e*0 inefficient an*
)nvia+le economic sstem0 which co)l* not even claim e@ce-tion>
all hi"h "rowth rates0 once the fi")res were revise* *ownwar*s,
It has +een claime* that the USSR in the ei"hties was as far
+ehin* the Unite* States as was the R)ssian Em-ire in #$#&, So
statistical revisions have ha* a -olitical role in *e>le"itimiFin" the
Soviet re"ime an* contri+)tin" to its colla-se,
2i+lio)raphy
The followin" is a short0 selecte* +i+lio"ra-h of wor8s in En"lish?
General /oo0s on +oviet 7istor-
E, H, CARR? A History of Soviet R%ssia .Macmillan/, Of the man
vol)mes alrea* -)+lishe* or -re-are*0 of -artic)lar im-ortance
to economic historians are the followin"?
RThe )olshevi1 Revol%tion, =O=J!EG, =ol, ( .#$1(0 also Pelican0
#$%%/
RSocialism in Nne 7o%ntry, =ol, # .#$1'/
R&o%ndations of a Planned Economy, =OED!>, =ol, # .with R, :,
3avies/ .#$%$0 also Pelican0 #$4</
!, HOS7IN!? A History of the Soviet Qnion .FontanaBCollins0
#$'1/
9, 7OCHAN? The Ma1ing of Modern R%ssia .2onathan Ca-e0 #$%(0
an* Pelican0 #$%&/
P, 9YASHCHEN7O? The History of the National Economy of R%ssia to
the igiy Revol%tion .Macmillan0 N,Y,0 #$<$/
M, MCAU9EY? The Soviet Qnion since Nineteen Seventeen .9on">
mans0 #$'#/
R, w, PETHY6RI3!E? A History of Postar R%ssia .Allen L Unwin0
#$%%/
99EF /i,lio&ra!h-
'he )cono$-D General
>. JOBBG So'iet ;conomic Ae'elopment since 34, (rd edition
.Ro)tle*"e0 #$%%/
M, E99MAN? Socialist Planning .Cam+ri*"e0 #$4'/
*. GE)S27ENK)ONG ;conomic >ackBardness in Cistorical Perspect,
i'e .Harvar* Universit Press0 #$%(I Prae"er0 #$%1/
P. ). G)EGO)O nd ). c. S9U*)9G So'iet ;conomic Structure and
Performance .Har-er L Row0 #$'%/
M, 9A=I!NE? The Socialist Economies .Martin Ro+ertson0 #$4</
A, NO=E? The Soviet Economic System, &r* e*ition .Allen L Unwin0
#$'4/
3Political ;conomy and So'iet Socialism !*llen ] Un5in, 1919%
*art- and Govern$ent
*. 7. B)O-NG So'iet Politics and Political Science !>c"illn,
#$4</ M, FAINSO3? Ho R%ssia is R%led .O@for* Universit
Press0
#$%&/ >. >2*U;EOG Politics and the So'iet State !Pelicn, 1911%
). S*K-*G Dorbache' and his Reforms !;ondon, 199&% ;. B.
S27*PI)OG Do'ernment and Politics in the So'iet @nion
.H)tchinson0 #$%1/ 30he Eommunist Party of the So'iet
@nion !E+re ] Spottis-
woo*e0 i$%5/ s. -7I9EG Political Eulture and So'iet Politics
!>c"illn, 1919% s, :HITE? (or"achev and After .Cam+ri*"e0
#$$#/
'he )cono$-- *articular *eriods
*. *S;UNJG Dorbache''s Struggle for ;conomic Reform !2ornell
Universit Press0 #$'$/ c. BE99E;7EI>G Elass Struggles in the
@SSR (34,*8 and
=>E@!GA5 .Harvester Press0 #$44 an* #$4$/
2i+lio)raphy 111
R, w, 3A=IES? The Socialist Nffensive: The 7ollectivi2ation of Soviet
Agric%lt%re, igEg!ig+o .Macmillan0 #$'5/
A, ER9ICH? The Soviet $nd%striali2ation 'e"ate .Harvar* Universit
Press0 i$%5/
E3 A, HE:ETT? Reforming the Soviet Economy .6roo8in"s0 #$''/
SI9=ANA MA99E? The Economic Nrgani2ation of War!7omm%nism,
=O=?!E= .Cam+ri*"e0 #$'1/
M, MCAU9EY .e*,/? ;hr%shchev and ;hr%shchevism .Macmillan0
#$'4/
C, R, MI99AR .e*,/? The Soviet R%ral 7omm%nity .Universit of
Illinois Press0 #$4#/
N, SPU96ER? Soviet Strategy for Economic (roth .In*iana Univer>
sit Press0 #$%</
9, S;AMUE9Y? &irst Models of Socialist Economic Systems .6)*a>
-est0 #$4</
Ideolo&- and *ersonalities
s, COHEN? )%1harin .:il*woo* Ho)se0 #$4&/ R, 3AY? Leon Trots1y
and the Politics of Economic $solation .Cam+ri*"e0 #$4&/ #,
3EUTSCHER? Stalin .O@for* Universit Press0 #$<$/ RTrots1y
.O@for* Universit Press0 #$1<0#$1$0#$%&/ A, MEYER? Leninism
.Harvar* Universit Press0 #$14/ A, NO=E? Stalinism and After
.Allen L Unwin0 #$'$/ A, NO=E .e*,/? The Stalin Phenomenon
.:ei*enfel*0 #$$(/ 9, 6, SCHAPIRO an* P, RE33A:AY .e*s,/? Lenin
.Pall Mall Press0
#$%4/ R, TUC7ER .e*,/? Stalinism: Essays in Historical
$nter#retation
.Norton0 #$44/ A, U9AM? The )olshevi1s
.Macmillan0 #$%1/ RStalin .Allen 9ane The
Pen")in Press0 #$4</
3a,our
E, c, 6RO:N? Soviet Trade Qnions and La"o%r Relations .O@for*
Universit Press0 i$%5/
11, 2i+lio)raphy
M, 3E:AR? La"o%r Policy in the QSSR .Roal Instit)te of
International Affairs0 #$1%/ A, 7AHAN an* 6, RU69E?
$nd%strial La"or in the QSSR .Per"a>
mon0 #$4$/ s. OXENS9IE)N*G 1rom 7abour Shortage to
@nemploymentF
.Stoc8holm0 #$$5/ s, SCH:AR;? La"o%r in the Soviet
Qnion .Cresset Press0 #$1&/
)cono$ic +ectorsD (e&ionsD %inance
1. BI)>*NG Secret /ncomes of the So'iet State >udget !>rtin
NiChoff0 The Ha")e0 #$'#/ R, CONJUEST? Harvest of Sorro
.H)tchinson0 #$'%/ ). -. J*?IESG 0he Ae'elopment of the So'iet
>udgetary System
.Cam+ri*"e Universit Press0 #$1'/ H, HUNTER? Soviet
Trans#ortation Policy .Harvar* Universit
Press0 #$14/ N. <*SNOG 0he Sociali(ed .griculture of the
@SSR !Stn#ord
Universit Press0 #$<$/ >. ;E-ING Russian Peasants and
So'iet PoBer !*llen ] Un5in,
#$%'/ ;. ?O;ING . Eentury of Russian .griculture !7r:rd,
191&% K. E. -*JEKING .grarian Policies in Eommunist ;urope
!*llnheld
Osm)n0 #$'(/
Geo&ra!h-
C, -, CO9E? (eogra#hy of the QSSR .Pen")in0 #$%4/
I. c. JE-JNEOG Studies in /ndustrial Deography: the @SSR
.:m, 3awson L Sons0 #$4%/ I, s, 7OROPEC7Y an* !ERTRU3E
E, SCHROE3ER .e*s,/ The Economics of So'iet Regions
!Pre$er, 1901%
+tatistics and Growth
*. BE)GSONG 0he Real "ational /ncome of So'iet Russia since
ig*: .Harvar* Universit Press0 #$%#/
2i+lio)raphy 11!
2, CHAPMAN? Real Wages in the Soviet Qnion .Harvar* Universit
Press0 #$%&/ N, 2ASNY? Soviet $nd%striali2ation =OE?!HE
.Chica"o Universit
Press0 #$%#/ R, MOORSTEEN? Prices and Prod%ction of
Machinery in the Soviet
Qnion .Harvar* Universit Press0 #$%(/ !, w, NUTTER? The
(roth of $nd%strial Prod%ction in the Soviet
Qnion .N6ER an* Princeton Universit Press0 #$%(/
References
ha!ter 1
i Those who want to st)* the metho*s an* to note the e@istence of
alternative fi")res are referre* to !ol*smithDs article in Economic
develo#ment and c%lt%ral change, =ol, IT0 No, & .A-ril #$%#/,
108 $storiya narodnovo 1ho2yaistva, e*ite* + F, Polans8 .Moscow0
i$%5/0 -, &%4,
109 Annales .Paris/0 Novem+er>3ecem+er #$%1,
110 N#yt, ischisleniya narodnovo do1hoda v Evro#eis1oi Rossii
.Moscow0 #$#'/,
111 Poslevoennye #ers#e1tivy R%ss1oi #romyshlennosti .7har8ov0
#$#$/0 -, 1&&.
112 See Pa)l R, !re"or? R%ssia,s National $ncome, =??H!=>=G
.Cam+ri*"e0 #$'&/0 an* M, E, Fal8)s? The $nd%striali2ation of R%ssia,
=JAA!=>=@ .Macmillan0 9on*on0 #$4(/ an* his DR)ssiaDs national
income0 #$#&0 a re>eval)ationD0 Economica .Fe+r)ar #$%'/,
113 !te* from R+ni8ov + 3, Sha-iro0 Pro"lemi e1onomi1i, No, 4>'
.#$($/0 -, #(%,
114 Materialy #o istorii SSSR, =ol, =I,
115 A, !erschen8ron? Economic )ac1ardness in Historical
Pers#ective .Harvar* Universit Press0 #$%(/0 -, #(1,
116 N, Timasheff? The (reat Retreat .New Yor80 #$<%/0 -, ($,
117 Jte* from 6, 7er+laDs article on Chaanov0 7ahiers d% monde
r%sse et sovieti0%e .Octo+er>3ecem+er #$%</0 -, <#<,
118 A, T)menev? 6estni1 ;omm%nistiches1oi A1ademii .hereafter
=7A/0 No, ' .#$(</0 -, (5$ ff,
119 !erschen8ron? -, #&5,
References 11*
ha!ter 2
120 Grine:ets,+G Posle'oennye perspekti'y Russkoi promyshlennosti
!Khr,o:, 1919%, p. ((.
121 ?. >u, in 2ommunist, No. 10, 1991, $i:es detiled ccount,
in n rticle si$ni#icntl+ titled C7l#-5+ to -r-2o""unis"C.
122 Grine:ets,+G p. 49.
123 i=id.
124 >rx, ?ol. (/ !)ussin edition%, pp. 1(4-1 !ori$inl in 6rench%.
125 6ull+ discussed in I. GetElerG Garto' !2"=rid$e Uni:ersit+
Press, i9
4
1%, PP- 1&.-(.
126 G. Vino:ie:G -. /. 7enin !Khr,o:, 19.4%, pp. 11,1(.
127 ;enin, ?ol. ./, pp. .11-0&, n Septe"=er 1911. !Unless
other5ise stted, ;enin 5ill =e Fuoted #ro" the En$lish trnsltion
o# the )ussin 4th editionU i# "r,ed s )ussin, the /th edition is
cited.%
128 i=id., ?ol. ./, p. 1.(.
129 i=id., ?ol. ./, p. .1.
130 Pra'da, 11 <une 1911.
131 ;enin, ?ol. ./, p. 44.
132 i=id., p. 49.
133 i=id., p. ((4.
134 i=id., pp. 4.4, 4.1.
135 ;enin, ?ol. .4, pp. 1&/-1.
136 i=id., pp. 11&,11.,11(.
137 Russian ;conomic Ae'elopment since the Re'olution !)outled$e,
19.0%, p. .0.
138 ;enin, ?ol. .4, p. (4/.
ha!ter 3
139 ;enin, ?ol. (., p. ...
140 9he text o# the decree is uncler =out 5hether pesnt
holdin$s 5ere ntionliEed.
141 /storiya narodno'o kho(yaist'a SSSR, igi$sg, edited =+ *.
Po$re-=ins,+ !>osco5, i94&%, p. 1(.
4E. 7. 2rrG 0he >olshe'ik Re'olution, ?ol. . !Pelicn, 1944%, p. .1.
142 6. S"o,h:lo:G So'ety narodno'o kho(yaist'a ' igi$,**
gg. !>osco5, 1944%, p. .1.
143 i=id., pp. (4, (/.
144 *. ?enedi,to:G 9rgani(atsiya gosudarst'ennoi
promyshlennosti ' SSSR !;enin$rd, 19/1%, ?ol. 1, pp. 10&-1.
11% References
145 =7A0 No, #$ .#$(</0 -, (%,
146 =ene*i8tov0 --, #'%>4I 9enin0 =ol, (%0 -, &1(,
#5 Eta#y e1onomiches1oi #oliti1i SSSR, e*ite* + P, =ais+er" .Moscow0
#$&</0 P> <$>
147 9enin0 =ol, (%0 -, 1#$,
148 i=id., pp. /&1-..
149 Po"re+ins80 -, &5,
150 E, Plima8? Novy mir, No, %0 #$%%0 -, #'&, The E)otation
within the E)otation is from a +oo8 + A, Mates on #4$&><,
151 9enin0 =ol, (40 --, (#(>#<,
152 M, 3o++? R%ssian Economic 'evelo#ment since the
Revol%tion .Ro)tle*"e0 #$('/0 -, <$,
153 En"lish translation .Mac!i++on L 7ee/0 -, (1',
154 =ais+er"0 -, 15,
155 H, !, :ells0 R%ssia m the Shados .9on*on0 #$(#/0 -, #&4,
156 =ene*i8tov0 -, <<10 E)otin" the con"ress re-ort,
157 =ene*i8tov0 -, <<%,
158 R, :, 3avies? 'evelo#ment of the Soviet )%dgetary System
.Cam+ri*"e Universit Press0 #$1'/,
159 Novy mir, No, #( .#$%%/0 -, (1$,
160 N, 6)8harin? E1onomi1a #ere1hodnovo #erioda .#$(5/,
161 9enin .R)ssian/0 =ol, &'0 --, #(#>( C;olcha1ovshchina refers
-eCorativel to A*miral 7olcha80 :hite comman*er/,
Ed Sovets1oe narodnoe 1ho2yaistvo, #$(#>10 e*ite* + I, !la*8ov
.Moscow0 i$%5/0 -, 1&#,
162 6)8harin an* Preo+raFhens8? A2"%1a 1om%ni2ma .#$#$/0 --,
#$1>%,
163 E*itorial note to 9enin .R)ssian/0 =ol, <(0 -, &$4,
164 =ais+er"0 -, $4,
165 i=id., p. 1&..
166 9enin .R)ssian/0 =ol, <50 -, &$10 e*itorial footnote,
167 E1onomi1a #ere1hodnovo #erioda .Moscow0 #$(5/0 -, #<4,
168 9enin0 =ol, &50 -, &#< .# Fe+r)ar #$(5/,
169 i+i*,0 =ol, &(0 --, <<>1,
170 See S, Pavl)chen8ov0 Arg%menty ifa1ty, No, #50#$$5,
171 i+i*,0 =ol, &#0 -, #(#,
172 9enin .R)ssian/0 =ol, <50 -, &($,
173 i+i*,0 =ol, <(0 -, #$&,
174 i+i*,0 -, #'1,
175 i+i*,0 =ol, <&0 -, <&&0 e*itorial notes,
176 i+i*,0 =ol, <(0 -, &<$,
177 9enin0 =ol, &50 -, &&(,
178 i+i*,0 =ol, &(0 -, #1%,
179 6estni1 Sotsialistiches1oi A1ademii .=SA/0 No, # .#$((/0 -, #&',
References 115
180 i+i*,0 -, #<%,
181 i+i*,0 --, #<'>$,
182 i+i*,0 No, ( .#$(&/0 -, #$1,
183 New Economic Polic, See ne@t cha-ter,
184 =SA0 No, ( .#$(&/,
185 =7A0 No, $ .#$(</0 --, #510#54,
186 =SA0 Nos, %0 4 .#$(&></0 P> &&(>
187 The 'efence of Terrorism .Allen L Unwin0 #$&1/0 --, $<>1,
188 Political Economy of 7omm%nism .6lac8well0 #$%&/,
189 P, Crai" Ro+erts? Alienation and the Soviet Economy .Holmes L
Maer0 New Yor80 #$$#/ an* 9, SFam)el? &irst Models of Socialist
Economic Systems .6)*a-est0 #$4</,
190 3o++0 o#- cit-0 E, !im-elson? 6oyenny 1omm%ni2m .Moscow0
#$4&/, Silvana Malle? The Economic Nrgani2ation of War!7omm%nism,
$O$?!E= .Cam+ri*"e0 #$'1/,
191 9enin0 =ol, &#0 -, &&$,
192 9enin .R)ssian/0 =ol, <50 --, &&4>$,
193 i+i*,0 =ol, <&0 -, &'1 an* a"ain -, &'4,
Chapter 1
194 9enin0 =ol, &(0 -, #1%,
195 !la*8ov .#$(#>1/0 -, (&$0 also !, 7on)8hov? ;PSS v "or"e s
1hle"nymi 2atr%dneniyami v strane .Moscow0 i$%5/0 -, &',
196 9enin0 =ol, &(0 -, #'1,
197 i+i*,0 =ol, &&0 -, #5<,
198 =SA0 No, ( .#$(&/0 -, #4&,
199 Samo8hvalov0 -, #(#,
200 !la*8ov .#$(#>1/0 --, #$&0 #$<,
201 i+i*,0 --, &#%>#4,
$Polans80 -, <'<I also e*itorial notes to 9enin .R)ssian/0 ?ol. <<0
P> 1<<>
202 =ais+er"0 -, %&,
203 Polans80 --, <'1>%,
204 !la*8ov .#$(#>1/0 -, (5',
205 i+i*,0 -, 1((,
206 i+i*,0 --, &4<0 &440 &'50 &'40 &'$,
207 9enin0 =ol, 1< .R)ssian/0 -, #&$,
208 =SA0 No, < .#$(&/0 -, ($,
209 Polans80 -, <$%,
210 E,", see =SA .#$(&/I O, Y), Shmi*t? DMathematical laws of
c)rrenc iss)eDI E, Preo+raFhens8? DThe theoretical +asis of ar")ments
on the
440 )e#erences
$old nd co""odit+ rou=leCU ?. BEro:G COn the "ethodolo$+ o#
currenc+ issue,C etc.
211 ;. N. Ouro:s,+G Aene(hnaya Politika So'etskoi -lasti
!>osco5, 19.0%, p. .91. So"e other sources Fuote so"e5ht di##erent
#i$ures.
212 9hese nd other detils h:e =een t,en #ro" Pol+ns,+, p. 490.
213 ?is=er$, p. /1.
214 ?S*, Nos. 4-1 !19.(-4%, pp. (14-11.
215 ;. Gto:s,+ in ?is=er$, p. 4&.
216 8uoted #ro" So'ety narodno'o kho(yaist'a i plano'ye organy '
tsentre inamestakh, 34,8* !>osco5, 19/1%, pp. 1(1-..
217 i=id., p. 1/4 nd S"o,h:lo:, p. 1/(.
218 E. 7. 2rr nd ). -. J:iesG 1oundations of a Planned
;conomy, i?*%,g !>c"illn, 1949%.
219 S"o,h:lo:, p. 91.
220 i=id., p. 1/9.
221 See in prticulr the :lu=le 5or, o# >l#e+e:, /storiya
tsenoobra,(o'aniya ' SSSR !>osco5, 1944%, 2hpter 1.
222 ;. Krits"nG Problemy ekonomiki, No. 4-/ !19(&%, p. 11.
223 Gld,o: !19.1-/%, p. 191.
224 Krits"n, pp. 1,9,11.
225 ?is=er$, p. 4(.
226 2ited #ro" >. ;e5inG 7a paysannerie et la pou'oir so'ietiHue
!>outon, Pris, 1944% nd Russian Peasants and So'iet PoBer !its
En$lish trnsltion, *llen ] Un5in, 1940%.
227 9. ShninG 0he .BkBard Elass: Political Sociology of Peasantry
in a Ae'eloping Society, Russia, igio,*# !2lrendon Press, 191.%.
228 . Cistory of So'iet Russia: Socialism in one Eountry, ?ol. 1, p.
99.
229 /storiya SSSR, No. (, 1909.
230 ?K*, No. 0 !19.4%, p. 4&.
231 Ou. >osh,o:G Ierno'aya problema ' gody sploshnoi
kollekti'i(atsii !>osco5 Uni:ersit+, 1944%, p. .(U <. KrcEG So'iet
Studies !*pril, 1941%U nd ). -. J:ies, in So'iet Studies !<nur+,
191&%, pp. (14-.9.
232 ?is=er$, p. (&0.
233 Pol+ns,+, p. 410.
234 Inamya, No. 1&, 1900 nd No. (,199&.
235 2ited #ro" S. Sch5rEG 7abour in the So'iet @nion !2resset,
19/(%, p. 4.
236 ?is=er$, p. .1(.
237 i=id., p. .14.
238 Jt re reprinted in >. Je5rG 7abour Policy in the @SSR
!).I.I.*., 19/4%.
239 S. Gi""el#r=G Problemy ekonomiki, No. 4/ !19(1%, p. (1.
References 11
240 Jetils in ?is=er$, p. .1/.
241 i=id., p. .14.
242 i=id., p. 190.
Chapter *
243 ;enin, ?ol. (., pp. 4.9-(&.
244 See Ou. *#ns+e:Cs nd >. Ge#terCs contri=utions to /nogo tie
dano !ed. *#ns+e:% !>osco5, 1900%, pp. (14, 499 nd lso *.
9sip,o in "auka i (hi(ri, No. 1.,1900.
245 En$lish trnsltion =+ Brin Perce, 0he "eB ;conomics
!Ox#ord Uni:ersit+ Press, 1944%.
246 CEcono"ic eFuili=riu" in the s+ste" o# the USS)C, pu=lished
in ?K* No. .. !19.1%. 9rnslted in N. Spul=erG 1oundations of
So'iet Strategy for ;conomic DroBth !Indin Uni:ersit+ Press, 1944%.
247 6or "ore s+ste"tic ccount, see *. No:eG CNe5 ;i$ht on
9rots,+Cs Econo"ic ?ie5sC, .merican Sla'ic Re'ieB !Jece"=er 190&%.
)eders should lso =e 5re o# ). J+G 7eon 0rotsky and the Politics
of ;conomic /solation !2"=rid$e, 191(%.
248 See 9rots,+ rchi:e, 9(&&1 !19.4%, 5here stroit' nd postroif
re distin$uished =+ hi" in n unpu=lished "nuscript.
249 PolitiHue des in'estissements et calcul economiHue !2uIs, Pris,
1944%.
250 i=id., p. ((.
251 E. Jo"rG ;ssays in the 0heory of ;conomic DroBth !Ne5
Oor,, 19/1%. PP- ..(-41.
252 6. 7olE"nG C9he So:iet Url-KuEnets, 2o"=ineC, 8urterl+
<ournl o# Econo"ics !*u$ust 19/1%U nd 7e de'eloppement du bassin
du 2ou(netsk, edited =+ 7. 2h"=re !2hiers de #l.S.E.*., Pris, No.
1&&%.
253 V. K. V:eEdin, in -oprosy istorii 2PSS, No. ( !1941%, p. //.
Chapter %
254 !6i:e-+er pln docu"ent% Pyatiletnii plan nar. kho(.
stroitelst'a SSSR !>osco5, 19(&%, ?ol. ., p. (4.
255 I cn #ind no laB erlier thn 19(..
256 O. Golnd, Inamya, No. (,199&, p. 141.
257 i=id., p. 144.
258 >,#e+c:, p. 1((.
259 G. Kon+u,ho:G 2PSS ' horbe s khlebnym =strndneniyami '
strtne !>osco5, i94&%.
260 ?. No:oEhilo:G -estnikfinanso', No. .,19.4.
1*- References
261 For a val)a+le *isc)ssion on these -ro+lems0 see =, Ma) in
6o#rosy e1onomi1i, No, %0#$$5,
262 Y), Nova8ovs8? Potre"itet,s1aya 1oo#eratsiya na =G god%
o1tya"r,s1oi revol%tsii .Tsentroso)F0 Moscow0 #$($/0 --, 1>#(,
263 9, Tro-arevs8aa0 in E1onomi1a i matematiches1ie metody, No,
%0 #$'$0 -, #55(,
264 E1onomiches1aya 2hi2ri SSSR, -, #'' .hereinafter E12h-5-
265 Planovoye 1ho2yaistvo, No, (0 -, #5 ff,
266 Yet Ma)rice 3o++0 in his #$%% e*ition of Soviet Economic
'evelo#ment since =>=J, contin)es to ar")e that the -lan mi"ht have
+een feasi+le +)t for s)+seE)ent chan"es in +oth the -lan an* the
sit)ation,
267 2, Stalin0 Wor1s .in En"lish/0 =ol, #50 -, &#(,
268 3etaile* fi")res + re"ions ma +e fo)n* in 7on)8hov0 --, %<>
1,
269 Cite* + 7on)8hov0 -, %%, The Smolens8 archives also -rovi*e
evi*ence,
270 i+i*,0 -, %',
271 Stalin0 =ol, ##0 --, 10 %,
272 7on)8hov0 -, 4(,
273 i+i*,0 -, 4',
274 i+i*,0 -, #(',
275 i+i*,0 --, #<%>Q4,
276 i+i*,0 -, ##$,
277 Stalin0 =ol, ##0 -, 4, Note that this was not #%"lished )ntil #$<$,
278 i+i*,0 =ol, ##0 -, #%%,
279 The lower fi")re is "iven in the five>ear -lan *oc)ment0 =ol, (0
P> &N>
280 Malafeev? $storiya tsenoo"ra2ovaniya v SSSR .Moscow0 #$%</0
-, ##$,
281 Pravda, (1 Ma #$($,
282 Stalin0 =ol, #(0 -, <&,
283 i+i*,0 -, #1(,
284 N, =alentinov? Sotsialistiches1ii 6estni1 .New Yor80 A-ril #$%#/,
Chapter 5
285 N, Ivnits8? 6o#rosy istorii ;PSS, No, < .#$%(/0 -, 1%,
286 Mosh8ov0 --, 1%0 1$0 %&>%,
287 i+i*,0 -, %1,
288 i+i*,0 -, %$,
289 M, 6o"*en8o0 in $storiches1ie 2a#is1i, No, 4%0 -, (50 an*
S, Tra-eFni8ov? $storiches1ii o#yt ;PSS--- .Moscow0 #$1$/0 -, #41,
290 All this from Ivnits80 --, %#>1, .Not -)+lishe* )ntil over thirt
ears after the event,/
)e#erences 4/1
291 =ltsan et al,0 -, %,
292 i+i*,0 -, 4,
293 Ivnits80 -, %<,
294 6o"*en8o0 --, (#0 (%,
295 N)mero)s citations ma +e fo)n* in 9ewin0 cha-ter #4,
296 Stalin0 =ol, #(0 --, #4%0#44,
297 N, Ivnits8? ;lassovaya "or,"a v derevnye i li1vidatsiya
1%lachestva 1a1 1lassa .Moscow0 #$4(/0 --, ($'>$,
298 Nedelya, No, #10 #$'',
299 =ltsan et ah0 -, #',
300 Stalin0 =ol, #(0 -, #$<,
301 I, Trifonov? Ncher1i istorii 1lassovoi "or,"y v SSSR v gody Ne#a
.Moscow0 i$%5/0 -, (&4,
302 See Cha-ter #( in M, Fainso*? Smolens1 %nder Soviet R%le
.Macmil>lan0 #$1'/, .The Smolens8 archives were ca-t)re* + the
!ermans an* then + the Americans,/
303 For e@am-le0 see !or*on an* 7lo-ov0 7hto eto "ylo .Moscow0
#$'$/,
304 Soviet St%dies .2)l #$%%/0 --, (5>&4,
305 6o"*en8o0 --, ((0 (<,
306 i+i*,0 -, ($,
307 Mosh8ov0 --, '(>&,
308 6o"*en8o0 -, (5,
309 Stalin0 =ol, #(0 -, #$$0 -)+lishe* in Pravda, ( March #$&5,
310 =ltsan et al,0 -, 4,
311 6o"*en8o0 -, (',
312 i+i*,0 -, &5,
313 i+i*,0 -, &%,
314 =ltsan et al,0 -, <,
315 This was criticiFe* in a central committee *ecision of (% >rch
19( +)t of co)rse was *)e to centrall im-ose* -olicies,
316 The Soil Q#t%rned .En"lish translation0 Moscow0 #$&</0 -, 1/..
317 A+lFheFin et al,0 6o#rosy istorii, No, 40#$'$,
318 Mosh8ov0 -, ##(,
319 i+i*,0 --, #11>%,
320 i+i*,0 --, #5#0#1%0#4%,
321 i+i*,0 -, #4%,
322 J)ote* from RS&SR, Qgolovnyi ;ode1s .#$&%/0 --, #(5>(#,
323 Pravda, #5 March #$%&,
324 Mosh8ov0 -, ((4,
325 i+i*,0 -, #&4,
326 i+i*,0 --, #$5>$#,
327 i+i*,0 -, (5#,
328 i+i*,0 -, (#10 E)otin" archive materials,
1*7 References
329 See Sla'ic Re'ieB, Sprin$ 1991, p. 04.
330 i=id., p. .1/.
331 VeleninG /storicheskie Iapiski, No. 14 !194/%,
p. /(. 40>osh,o:, p. .11.
332 Velenin, p. 44.
333 See S. >,sudo:G Poteri naseleniya SSSR !Ne5 Oor,, 1909%U
S. -hetcro#t in So'iet Studies, *pril 199&U ). 2onFuestG Car'est of
SorroB !7utchinson, 1904%U >. 9olCts in Rodina, No. 11, 1909, nd
"n+ others.
334 VeleninG /storiya SSSR, No. / !1944%, p. .4.
335 Jecree o# .& Jece"=er 19.9, ;k(k, pp. ..(-4.
336 VeleninG /storicheskie Iapiski, No. 14, p. /..
337 i=id., p. /0.
// In his speech i# .( 6e=rur+ 19((.
J% ;k(k, p. .14.
338 i=id., p. .04.
339 6or instnce >illrCs rticles in So'iet Studies !<ul+ 191&% nd
Sla'ic Re'ieB !Jece"=er 1914%, nd Ell"nCs Socialist Planning
!2"=rid$e, 1910%, 2hpter 4, nd ;conomic Kournal !Jece"=er
191/%.
340 )eports =+ 2irns, Pu=lic )ecord O##ice, 6.O. (11A14(.9
!19(.%, $i:es de:sttin$ picture o# the conditions o# the ti"e.
Chapter &
341 Stlin, ?ol. 1., p. (1.
342 i=id., p. 4&.
343 I. B=elG /(brannoe !>osco5, 1944%, p. .01.
344 P. S"its+nG "o'y tnir. No. 0 !1941%, p. 4.
345 Po$re=ins,+, p. 11..
346 I. Gld,o:G Postroenie fundamenta sotsialistkheskoi ekonomiki '
SSSR ig*LM8*.
347 >l#e+e:, p. 1(9.
348 i=id., p. 140.
349 Jecree o# .. No:e"=er 19(&.
350 >l#e+e:, p. 141.
351 i=id., p. 141.
352 G. Nei"nG Plano'oe kho(yaist'o, Nos. 4, 1 !19(.%, pp. 110-19.
353 >l#e+e:, p. 144. !*rchi:e "terils not pre:iousl+ pu=lished.%
354 i=id., pp. 11.-(.
355 i=id., pp. 14/,109.
356 i=id., p. 19(.
357 i=id., p. 4&..
References 1*!
358 i+i*,0 -, #$& .Dcom-)lsorD -ro*)cts were those which c)stomers
hd to +) as a con*ition for +)in" what the reall wante*/,
359 i+i*,0 -, #4<,
360 i+i*,
361 i+i*,
362 Stalin0 =ol, #&0 -, (5<,
363 3ecrees of (5 Octo+er #$&50 #1 Novem+er #$&(0 an* others, See
SchwarF0 -, $' ff,
EKE121,#- (&<,
364 Malafeev0 --, #'#>(,
365 i+i*,0 -, #'(,
366 Stalin0 =ol, #&0 -, ('&,
367 Samo8hvalov0 -, ('&,
368 All these -artic)lars are well set o)t in Samo8hvalov0 -, (&' nd
--, ('5>$(,
369 E,",0 *ecrees of #< 2an)ar0 (5 March0 an* (& 2)l #$&#,
370 Seventeenth -art con"ress0 stenotchet, -, %4,
371 i+i*,0 -, ((4,
372 i+i*,0 -, %(, 6rea8*owns therefore occ)rre* elsewhereH
373 i+i*,0 -, ((4,
374 Y, Ni8)li8hin? =7A No, #< .#$&&/0 --, 14>',
375 See !, Neiman0 o-, cit,0 Nos, #>( an* 1>% .#$&&/0 which *evotes
several articles to the railwa crisis,
376 i+i*,0 Nos, 1>% .#$&&/0 -, #1,
377 i+i*,0 Nos, 1>%0 --, (4&>4,
378 Stalin? 9etter to Proletars1aya revoly%tsiya, re-rinte* in his
Wor1s, =ol, #&0 --, '% ff,
379 7averinDs memoirs0 Novy mir, No, ## .#$%%/0 -, #&',
380 DConferencesD )se* to meet +etween Dcon"ressesD0 an* are of lo5er
stat)s,
381 Seventeenth con"ress0 stenotchet, -, (&',
382 i+i*,0 -, (15,
383 i+i*,0 -, (1',
Chapter
384 Sots- nor- 1ho2- v =>GG!@A, --, (5<>1,
385 i+i*,0 -, %(<,
386 i+i*,0 -, ((#,
387 i+i*,0 -, ((1,
388 i+i*,0 -, #(4,
389 i+i*,0 -, #(1,
4/4 )e#erences
390 "ar. kho(. SSSR !19/4%, p. ./1.
391 Sots nar- 1ho2- v =>GG!@A, -, 1&1.
392 i=id., pp. 1&0,1&9.
393 Re")lation cite* in A, 6a8ov? The 'evelo#ment of the Soviet
Economic System !2"=rid$e Uni:ersit+ Press, 1944%, p. .(1.
394 "ar. kho(. !19/4%, pp. 11., .&4.
395 Sots nar. kho(. ' 388,+!, p. /&4. 9hese Cton-,ilo"etresC
co"=ine #rei$ht nd pssen$er tr##ic =+ si"ple #or"ul.
396 i=id., pp. /14, /10.
397 i=id., pp. .&4-/.
398 i=id., p. .&4.
399 i=id., p. 01.
400 See Sotsiologiches1ie issledovaniya, Nos, %0 4 an* '0#$$5,
401 i=id., No. 4,1991.
402 Sots nar- 1ho2 v =>GG!@A, -, &41,
403 >l#e+e:, pp. 41,119.
404 Sots nar- 1ho2- v =>GG!@A, -, <1$,
405 i=id., p. (14.
406 I. VeleninG Ierno'ye so'kho(y SSSR !>osco5, 1944%, pp. 10-
19.
407 i=id., p. 1.4.
408 >l#e+e:, p. 4&(, citin$ rchi:es.
409 Sots nar- 1ho2 v =>GG!@A, --, &''>$,
410 i=id., p. 44&.
411 >l#e+e:, p. 19..
412 i=id., pp. .&(-/.
413 i=id., p. .&/.
414 <net 2hp"nG Real Nages in So'iet Russia !7r:rd
Uni:ersit+ Press, 194(%, p. 1/(.
415 Sots nar. 1ho2 v =>GG!@A, -, 1%1,
416 i=id., p. //0.
417 i=id., p. /4&.
418 =, Petrov et al,0 S#ravochni1 #o stav1am naloga s o"orota i
"y%d2het!nykh natsenok !>osco5, 19//%.
419 G. >r+,hinG "alogo'aya sistema SSSR !>osco5, 19/.%.
420 i=id., p. /9..
421 Sots nar- 1ho2 v =>GG!@A, -, (5,
422 i=id., p. /11 !Fuotin$ rchi:es%.
423 i=id., p. .1(.
424 i=id., p. (0&.
425 See, #or instnce, Sotsialisticheskaya (akonnost', No. 11
!194&%, pp. 4&-4..
426 Sots nar- 1ho2 v =>GG!@A, -, &'',
427 i=id., p. 411.
References 1**
428 SchwarF0 --, 1&4-1/.
429 Sotsialistiches1aya 2a1onnost,, No, $0 --, 9-14,(&,
430 i+i*,0 --, ##0#40 %%,
431 i+i*,0 --, #40%(,
432 i+i*,0 No, #50 -, 1#,
433 i+i*,0 No, $0 -, #&,
434 i+i*,0 No, #50 -, 1(,
435 i+i*,0 No, ##0 --, %%>4,
436 i+i*,
437 i+i*,0 No, (0 -, '#,
438 At some *ates a Chief S)--lies 3e-artment .!lavsna+/ ha* a
se-arate e@istence,
Chapter 1-
439 Ya, Cha*aev? E1onomi1a SSSR, =>@=!@H .Moscow0
#$%1/0 --, 1$>%5,
440 All this is f)ll *oc)mente* in the official $storiya veli1oi
otechestvennoi voiny, =>@=!H, =ol, I0 --, <#(>#<,
441 There is a fascinatin" *escri-tion of how the *efence in*)stries
o-erate* in the memoirs of =, Emelanov in Novy mir, No, # .#$%4/0 --,
1>'(,
442 $storiya---, =>@=!H, ?ol. II0 -, #<',
443 Cha*aev0 -, 41,
%E, 9o8shin? Promyshlennost, SSSR, =>@A!DG .Moscow0 1944%,
PP> <50<&>
444 Cha*aev0 -, %1,
445 9o8shin0 -, 15,
446 i+i*,0 -, 1&,
447 $storiya---, =>@=s, =ol, =I0 -, <%,
448 Cha*aev0 -, $&,
449 i+i*,0 -, #<&,
450 Malafeev0 -, (#',
451 $storiya---, =>@=!H, =ol, =I0 -, <',
452 i+i*,0 -, 4(,
453 i+i*,0 -, %(,
454 Sovets1oye 1restyanstvo v gody veli1oi otechestvennoi voiny
.Moscow0 #$45/,
455 Ar)t)nan0 --, (5&0 (5<,
456 I+i*,0 --, &&$0 &<5,
457 $storiya---, =>@=!H, =ol, =I0 -, $',
458 For a f)ll acco)nt0 see A, 3allin? (erman R%le in R%ssia, =>@=!
@H, A St%dy in Ncc%#ation Policies .Macmillan0 #$14/,
1*% References
459 N, =oFnesens8? 6oennaya e1onomi1a SSSR v #eriod
otechestvennoi voiny .Moscow0 #$<'/0 -, ##5,
460 Malafeev0 -, ((1,
461 $storiya,,,, =>@=!H, =ol, =I0 -, 41,
462 =oFnesens80 -, ##4>#',
463 Tr%d v SSSR .Moscow0 #$%'/0 #$&',
464 =oFnesens80 -, ##&,
465 $storiya,,,0 =>@=!H, =ol, =I0 -, 41,
466 Malafeev0 --, (('>$,
467 Cha*aev0 -, #5',
468 Malafeev0 -, (&1,
469 i+i*,0 -, (&<,
470 i+i*,0 -, (&1,
471 &inansy i 1redit SSSR .Moscow0 #$1%/0 -, #(&,
472 E1- 2h-0 --, &$40<5$0 <(#,
473 3ecree of #& 2)ne #$<&,
474 $storiya,,,, =>@=!H, =ol, =I0 -, 4$,
475 See for instance =, Pola8ov in Mos1va No, %0 #$'$0 -, &,
7)r"anov in Arg%menty ifa1ty, No, #&0 #$$50 -, 40 has a sli"htl hi"her
fi")re0 (',% million0 the *ifference +ein" *)e to a hi"her estimate of the
-o-)lation in 2)ne #$<#,
476 =oFnesens80 --, #%5>%#,
477 E1-21, -, <(# .E)otin" a *ecision of (4 Ma #$<</
478 !eneral !or+atov0 Ngonyo1, No, (50 #$'',
ha!ter 11
lE121yP- <&<,
479 M, Mac3)ffie? Red 7ar#et: =A,AAA Miles Thro%gh R%ssia on a
6isa from ;hr%shchev .9on*on0 #$11/,
480 Pravda, #5 Fe+r)ar #$<%,
481 E1onomi1a SSSR v #oslevoennyi #eriod, e*ite* + A, Efimov
.Moscow0 #$%(/0 --, #$0 #(1,
482 9o8shin0 -, in,
483 i+i*,0 --, #(#>(,
484 i+i*,0 -, #(<,
485 i+i*,0 -, #<',
486 E1-21,#- <%(,
487 Nar- 1ho2- .#$%1/0 -, &##,
488 Pravda, #5 3ecem+er #$%&, He also s-o8e of famine in his
memoirs0 ;hr%schev Remem"ers .9on*on0 #$4#/ --, (55>(#1,
489 E121,?- <1&,
References 1*5
490 3ecree of $ Novem+er #$<%0 E1-21, -, 44(.
491 i+i*,0 -, <14,
492 Malafeev0 --, (%%>Q4,
493 See -a"es &#1>#$ for more *etails of retail -rices,
494 F)ll *etails of so)rces in A, Nove? DR)ral Ta@ation in the USSRD0
Soviet St%dies .Octo+er #$1&/,
495 7hr)shchev? StroitePstvo 1omm%ni2ma v SSSR .Moscow0 1944%,
=ol, (0 -, <%&,
496 This is ta8en from an o+sc)re le"al te@t+oo80 S#ravochni1#o
2a1onoda!telstv% dlya s%de"no!#ro1%rors1i1h ra"otni1ov .Moscow0
#$<$/,
497 7hr)shchev0 =ol, #&0 -, 1($,
498 E12h-, -, <$%,
499 Pravda, < an* 1 March #$15,
500 Malafeev0 -, (11,
501 3, 7on*rashev? Tsenoo"ra2ovanie v #romyshlennosti SSSR
.Moscow0
#$1%/,
502 Malafeev0 -, (<<,
503 i+i*,0 -, (1',
504 The #$15 fi")re was -)+lishe* in Nar- 1ho2- .#$%1/0 -, 1%4, It
5s secret at the time, The #$<4 fi")re still nee*s to +e ro)"hl esti>
mate*,
505 Stalin0 =ol, #(0 -, &&(,
506 Malafeev0 -, <54,
507 The sstem is well *escri+e* + F, Pror? The 7omm%nist
&oreign Trade System .Allen L Unwin0 #$%&/,
508 $2vestiya, (1 2an)ar #$<$,
509 9o8shin0 -, #14,
510 2, Stalin? Economic Pro"lems of Socialism in the QSSR .Moscow0
#$1(/0 -, '#0 in En"lish,
511 i+i*,0 -, 41,
512 Malafeev0 -, (%1,
513 7hr)shchev0 Pravda, #1 2an)ar i$%5,
514 E1-2h-, --, 1(&01(<,1&&>
515 A, Nove? DR)ral Ta@ation in the USSRD0 Soviet St%dies !Octo=er
#$1&/, P> #%<,
516 S)ch increases are im-lie* in the ta+le cite* + Malafeev0 -,
(%4,
517 =, Ovech8in? DRaonne +)*niD0 Novy mir, No, $ .#$1(/0 pp. .&4-
.1.
Chapter 1,
518 F)ll list in Pravda, #% March #$1&,
519 Malafeev0 -, (%#,
4/0 )e#erences
520 S. 6i$urno:G Rea1naya (arabotnaya plata !>osco5, i94&%, p.
19..
521 >l#e+e:, p. 41..
522 6or #ull detils o# ll this, see Khrushche:Cs speech to the
Septe"=er 19/( plenu", Pra'da, ( Septe"=er 19/(U #or texts o#
decrees nd resolutions see Airekti'y 2PSS1 so'etsko'o pra'ite1st'a
po$eho(yaist,'ennym 'oprosam !>osco5, 19/0%, ?ol. 4, pp. 14-10,4.-
14..
523 ;k(h., p. (49.
524 Airekti'y ..., ?ol. 4, pp. 19(-.&/.
525 Jecree o# ./ Jece"=er 19/4, text in Airekti'y ..., ?ol. /, pp.
(19-.0.
526 2omsomol'skaya Pra'da, .. <une 19/4.
527 Speech t No:osi=irs,. See Stroite1st'o 2ommuni(ma ' SSSR
i ra(,'itie se1sko'o kho(yaist'a !speeches =+ N. Khrushche:%, ?ol. 4, p.
.&/.
528 ;k(h., p. /41.
529 Sources set out in *. No:eG C9he Inco"e o# So:iet
PesntsC, Sla'onic Re'ieB !<une i94&%.
530 N. Khrushche:, spe,in$ to the Jece"=er 19/0 plenu". 7e
did not ",e it cler t 5ht price the in-,ind inco"e 5s :lued.
531 SSSR ' tsifrakh ' 3%# godu, p. 1.4.
532 ;k(h., p. /9(.
533 Airekti'y..., ?ol. 14, p. 4/1 ##.
534 i=id., p. 4.1.
535 I. Kule:G ! da1neishem so'ershenst'o'anii planiro'aniya i
ruko'odst'a marodnym kko(yaist'om !>osco5, 19/1%.
536 6ull detils in the StenogrHfichesky otchtt !report% o# the
Supre"e So:iet session o# 1-1& >+ 19/1.
537 6i$urno:, p. 19..
538 SSSR ' tsifrakh ' 3%# godu, p. 1./.
539 See prticulrl+ N. Bul$ninCs speech, Pra'da, 11 <ul+ 19//,
nd Sotsialistichesky trud, No. 1 !19/4%, pp. .4 ##.U N. >slo: in
-oprosy ekonomiki, No. 0 !19//%.
540 ?. >+erG Iarabotnaya plata ' periode perekhoda k 2ommmu(mu
!>osco5, 194(%, p. 41.
541 Jecree o# 1/ *u$ust 19//.
542 Jecree o# 0 >rch 19/4.
543 Jecree o# .4 >rch 19/4.
544 ./ *pril 19/4.
545 4 <une 19/4.
546 *dopted =+ Supre"e So:iet, 14 <ul+ 19/4.
547 Jecree o# .( >rch 19/1.
(1 >l#e+e:, p. (1(.
*,* ;k(h., p. /94.
(( ;k(h., p. 41(, nd Pra'da, .& <nur+ i94&.
References 1*
548 See for e@am-le ;, P)8hova0 Pravda, E 2)l #$''0 an* T,
6ol*reva0 E,7,O, No, '0#$'',
549 E1-2h-, #- DE=-
550 See A, Nove? DSoviet In*)strial Reor"aniFationD0 Pro"lems of
7omm%nism .Novem+er>3ecem+er #$14/,
551 Pravda, E 2)l #$1$,
552 Partic)larl )sef)l is O, Antonov? 'lya vse1h # dlya se"ya
.Moscow0
#$%1/>
553 E1onomiches1aya ga2eta, #5 Novem+er #$%(0 -, ',
554 For a f)ll *oc)mente* acco)nt of the res)ltin" m)**le0
see A, Nove? DThe In*)strial Plannin" Sstem? Reforms in Pros-ectD0
Soviet St%dies .2)l #$%(/,
555 !, Shmelev? 6o#rosy e1onomi1i, No, < .#$%1/,
556 E1onomiches1aya ga2eta, No, #1 .A-ril #$%4/0 -, &(,
Chapter 1!
#For evi*ence see for instance =, 3o+rnin0 6o#- e1on-, No, ##0 #$4<0
an* S, 7heinman in E,7,O,0 Nos, 1 an* %0#$'5,
557 6o#rosy e1onomi1i, No, $0#$'#,
558 Nar- 1ho2-, #$450 -, #&#,
559 Literat%rnaya ga2eta, #% Se-tem+er #$'40 -, #(,
560 I, 6irman? Secret $ncomes of the Soviet )%dget .Martin
NiChoff0 The
Ha")e0 #$'#/,
%3isc)sse* in 6o#rosy e1onomi1i, No, #50#$$5,
Chapter 11
561 Pravda, (< A-ril #$'1,
562 Re-rinte* in S%rvey .9on*on/0 s-rin" #$'<,
563 Novy mir, No, %0#$'4,
564 !or+achev0 re-orte* in Pravda, ## 2)l #$$5,
565 Pravda, ( March #$$5,
566 Novy mir, No, 10#$$50 -, #$#,
567 Novy mir, No, <0#$'',
568 Pravda, < Fe+r)ar #$'4,
569 Pravda, (1 2)l #$$5,
570 Amon" n)mero)s so)rces0 see E, !ai*ar0 ;omm%nist, No,
.,1900U *. N)i8in in Novy mir, No, (0 #$''I 3, Ya8ova0 6o#rosy
e1onomi1i, No, (0#$'',
571 See E1onomi1a i 2hi2n, No, 10 #$$#, For a *etaile* s)rve0
see 3arrell Sli*erDs article in Soviet St%dies, No. /,1991.
9:0 (e1erences
572 Amon" the first were E, !ai*ar an* O, 9atsis0 in ;omm%nist,
No, #40 #$'', Fi")res were "iven in Pravitelstvenny vestni1, No,
#'0#$'$,
573 ;omm%nist, No, (0#$$50 -, (4,
574 6o#rosy e1onomi1i, No, <0#$$50 -, <,
575 Pravda, ( Octo+er #$'4,
576 Pravda, (& Fe+r)ar #$$5,
577 Pravda, & 2)l #$$5,
578 E, !ai*ar0 Pravda, (1 2)l #$$5,
579 Ngonyo1, No, <40#$$5, 7a*ar was associate* with the
intro*)ction of the Dnew economic mechanismD in H)n"ar in #$%',
580 ;omsomols1aya Pravda, (& 2an)ar #$$#,
581 $2vestiya, (5 Se-tem+er #$$5,
582 See her article in Rodina .Ri"a/0 No, #0#$$5,
583 E1onomi1a i 2hi2n,, No, 10#$$#,
584 E1onomi1a i 2hi2n,, Nos, #' an* (&0#$$#0 an* $2vestiya, &5
Se-tem+er #$$#,
585 E1onomi1a i 2hi2n,, No, #<0#$$#,
586 E1onomi1a i 2hi2n,, No, (#0 #$$#,
587 ;omsomols1aya Pravda, (& A-ril #$$#,
588 Re-rinte* in E1onomi1a i 2hi2n,, No, &50#$$#,
ha!ter 15
# See R, :, 3avies? DSome Soviet Economic ControllersD0 Soviet St%dies
5an)ar0 A-ril an* 2)l i$%5/ an* also review>article + !, Po-ov in
Na%1a i 2hi2n,, No, < .#$'4/,
( This was ar")e* + !, 9isich8in in Plan i ryno1 .Moscow0 #$%%/0 an*
more recentl + others,
& DHistor0 Hierarch an* NationalitiesD0 Soviet St%dies, 2)l #$%$,
A!!endiA
r A, 6er"son? The Real National $ncome of Soviet R%ssia since igE?, --,
(('0 (&4,
589 M, 9emeshev0 in 6o#rosy e1onomi1i, No, < .#$'%/0 -, $#,
590 A, Nove? Has Soviet (roth 7eased? .Manchester Statistical
Societ0
#$'&/,
< A, 7atsenehn+oi"en an* S, Shatalin0 in 6o#rosy e1onomi1i, No, <
.#$%4/0 --, $'>#5%,
#lossary
The followin" are some R)ssian wor*s )se* freE)entl in the te@t, The
are first "iven in italic in the te@t0 +)t some ver freE)entl re-eate*
terms0 li8e 8)la8 or 8ol8hoF0 have +een treate* as En"lish wor*s an*
"iven En"lish -l)rals,
Artel,: An coo-erative wor8 "ro)-0 +)t -artic)larl an a"ric)lt)ral
collective, (lav1 .-l)ral glav1i5: Chief *e-artment0 e,", in a
ministr or other
central instit)tion, (ose1onom1omissiya: State Economic Commission
for c)rrent -lannin", (os#lan: State Plannin" Commission .Committee/0
attache* to "overnment, ;%la1: Rich -easant,
;ol1ho2 41olle1tivnoe 1ho2yaistvo5: Collective farm, ;ho2raschyot:
Economic or commercial acco)ntin", MTS: Machine Tractor Station
.a+olishe* #$1'/, Nachalstvo: 6osses, Nar- 1ho2- 4narodnoe
1ho2yaistvo5: 9iterall DPeo-leDs .or national/
economD, Often )se* as title of a statistical han*+oo8 or ann)al,,
NEP: New Economic Polic .#$(#>$G/, Ne#man: 6eneficiar of
NEP0 -rivate tra*er or man)fact)rer, N"1om: Part committee
oio"last,- N"last,: Province,
N"yedineniye: DAssociationD containin" several enter-rises, Politotdel:
Political *e-artment in some instit)tion .e,", MTS0 railwas0
arm/, Polit"%rea%: Political +)rea) of central committee o# the
2o""unist ,
PartI to- a)thorit in -art .calle* -resi*i)m0 #$1(>%%/,
Prodra2verst1a: Com-)lsor *eliver to the $o:ern"ent o# CsurplusC
foo*st)ffs + the -easants, RS&SR: R)ssian Soviet Fe*erative
Socilist )epu=lic !)ussi proper%.
1%, #lossary
Rai1om: Part committee of a raion-
Raton: 3istrict,
Sovnar1ho2: Re"ional or re-)+lican co)ncil of national econom .e@ce-t
that a USSR sovnar8hoF e@iste*0 #$%(>1/,
STNB Co)ncil of 9a+o)r an* 3efence,
Travo#olye: Cro- rotation sstem,
Tr%doden, .-l)ral Tr%dodni5: :or8>*a )nits0 )se* for calc)latin" rem)>
neration in collective farms,
6SN;H 46ysshyi Sovet Narodnovo ;ho2yaistva5: S)-reme Co)ncil of
National Econom .3ecem+er #$#4>2an)ar #$&(0 also #$%&>1/,
"ndex of Su+Iects
=senteeis" .11,.(4,.4/,(/4
$riculture
=c,5rdness o# 1&1-(,114,111
eduction in 14
#"il+ contrct (9/
in 5r co""unis" /(-4
in -orld -r II .01-4
industr+, reltion 5ith 1.1,.1(,
.41-(
lnd settle"ent, e##ect o# 00,110
;enin on (.
"oderniEtion o# 1&.,1&4-1&
perestroika (9/
post-5r plnnin$ o# (&(-4,(.9
pre-re:olution 1.-14
prices 9&,(&4-1&
pri:te sector 1&&-1&1,1//
reco:er+ o# .41-N1, (10-0.
so5in$ co""ittees 11
txes on .91,(.9,(((
under Gor=che: 4&.
under Khrushche: ((4-41,(44
see also collecti:iEtionU $rinU horseU
kolkho(yO stte #r"sU trctors $ro-
to5ns (1.,(01 id #ro" -est
01,.14,.0&, .04,.9/ lcohol
14,.11,.04,(/4 llot"ents .44,.0/
see also pri:te plots "nest+ #or
politicl prisoners ((/ nti-prt+
$roup (/. nti-socilist :ie5s 4&9-1&
C*pril thesesC !1911% (. r""ents
industr+
r"s rce (&1,(.0,(11,(0/,(09
pre-5r 0,.1,110,19&,.1/,..4,
.(&,.(0,./0
-orld -r II.4&,.1/-01,.91
r"ed ser:ices 1&,..,114,..4,(.0
*r"eni 41/
erthFu,e in 4&/ arteli
!$riculturl collecti:es% 14.,
140,11&,101
ssocitions .1/,.11
B,u oil 4,91,.(.,.11,.0&,(&. =lnce
o# p+"ents 194,.1(,.44,
.9/ Bltic sttes
.4&,(&4,(49,41&,41.,
41(.41/ =n,in$
s+ste" 0, 9, (/, (4
=ud$etr+ $rnts ./0
credits 01,.11, (09
ntionliEtion o# 4(,0&
s:in$s 1(9,(00
Stte Bn, 4(,01,.11,(/0 =rter
dels 41/-14 =rterin$ /(,49 batrak
!lndless l=ourer% 1&. bednyak !poor
pesnt% 1&( =iolo$icl +ield see under
sttistics C=ipperis"C 01, 00 =lc,
"r,et 40,/(, //,1&,.&.-(,
.0. Bolshe:i,s ./-(&,1( =onds,
stte 1/1,.1.,./1-0,.9&,(14,
(.&,(((.(/4 Brest-;ito:s,,
tret+ o# !1910% (9,49 =ud$et de#icit
4&9 =ud$ets /1,01,./0,.9&,(.&,(((
under Gor=che: 4&4-H
=ureucrc+ 0.,.1.
c"ps see concentrtion c"ps. iG,,,
444 Index o# Su=Iects
censorshi- .94,&(%
71e1a .secret -olice/ 1&0 110$4
chemical in*)str (&&0(&10&(10&%(0
&450&4'0<550<#< Cherno+l
n)clear *isaster &$%04&/ chervonets
.c)rrenc/ '%0$5 Chief Economic
A*ministration
.!EU/$< China
%%0($%0&(&0&1' civil war <$
Dclose*D sho-s (5%0(## coal
forei"n -)rchases of '<
-ro*)ction #$50#$#0#$<0(&(0&110
&%&0<550<5< col* war
($<0($%0&(#0&('0&<# collective farms
see 8ol8hoF collectiviFation 1%0
#5#0#(10#&%0#<40 #1(>&0#%5>
''0((&0(($0&5%
a+)ses of #4(>&
*emonstrations a"ainst #%$
s#loshnaya .total/ #%& Comecon
.tra*in" +loc/ &((0 &1'0
&$#>(0<#& Dcomman* economD
<(& commercial acco)ntin" '(0(#10 (%$
DCommercialD stores (%&0('4
Commissariats
for In*)str an* Tra*e $&
of A"ric)lt)re #%&0(<4
of Finance '%0#(<
of Heav In*)str (#%
of Internal an* E@ternal Tra*e (#%
Peo-leDs (#40(110(%4>'0(440($10 &5#
S)--l 1( Commission of UtiliFation
%1 Dcommission tra*in"D &<% commo*it
e@chan"e '50(5&0(110&(4 comm)nal
fee*in" (1%0('10('%0 &4( Comm)nist
Part
*issol)tion <#'
mem+ers #&#0#&%0#%40#%'0((5
reor"aniFation of &450 &4'
role an* metho*s of (#'>(#
concentration cam-s #%%0#%40#'10
(&$0 (%50 &(1 confiscation 4#>(0
'50#5$0#4%0 &4(
see also #rodra2verst1a
cons)mer -rices <5%
cons)merDs "oo*s #($0(&&0(&'0&550
&#&0&#%0&(50&&<0&<(0&%%0&'10
&''0&$50<#<
contract "ro)-s <5#
coo-eratives #%0 &<0<'04$0$'0#510
#<50#4(0('40&5%0&<%0<5(>&
corr)-tion &'40&''
Co)ncils of 7ol8hoF Affairs &5< of
9a+o)r an* 3efence .STO/ %<0
$<0$10$'0#&'0(5& of Peo-leDs
Commissars <&0#<( of :or8ersD an*
PeasantsD 3efence %<
cre*its see %nder +an8in" sstem
crime rates ##(
Crimean :ar #
Criminal Co*e Article
1' #4% Article #54
#&10#15
cro- rotation schemes (%&0&510&#(0
&4& c)rrenc reform '1>
'0&5'0&#%0&14
see also inflationI ro)+le
c)stomer *eman* &$5
*e8)la8iFation see 1%la1s, liE)i*ation
of *emocratiFation <##0<#'0<('
*enationaliFation '# *e-ortations
#%1Q40#410#4$0(5#0((10
&5% 3e-ression .in :est/ ((1
*etente with :est &$#>(
*evelo-ment economics #(%>&(
3nei-er 3am #<&0#$10 &55
dolgostroi .lon"+)il*/ &'$ 3onets
6asin %0 %$0('#
economic theor 1$0&(%0 &%4
e*)cation #40 (150 (1$0 &1$>%(
fees for (%40&1%0 &%5
technical ##&0#$'0(&<0(150&%5
e"alitarianism (##0('& electrification
%<0(&(0(<%0&5%0&&4 em-loment $$>
#550#$4>(5#
see also )nem-lomentI wor8ers
enter-rise finance <51 enter-rise law
.#$'4/ <5# enter-rises
$(0(#10(#40(450&%4
,Zdex o# Su=Iects 44/
e:cution o# industr+ .1/-4
exports 1&, 14, 41, 0/
Cextin$uishin$ cur:eC 1(&
#ctor+ co""ittees 4.-(
see also 5or,ers, control =+
#"ine 01, 00, 119,.49
see also #ood short$es 6innish -r
!19(9-4&% .4& #i:e-hundred d+
pro$r""e 4&0 #i:e-+er plns
#irst 1((,14.-4,109-91
second ..1-(1,
third .41,./9
#ourth .94-(&1
#i#th (.1-(&
sixth (44,(49-0
ei$hth, ninth nd tenth (04-N1
t5el#th (90,(99 #ood
pil#erin$ 119
short$es .., /., /9-4&,11,0& 111,
101,.1&,.0(,.04,41.U see also
#"ine
tx on (prodnalog) 19
#orced l=our 19(,.4/, .04
see also concentrtion c"psU
deporttions #orei$n concessionries
04 #orei$n in:est"ents 04 #orei$n
specilists 199 #orei$n trde 0&, 04,
.(1,.9/,(.1-(,
(/0-9,(91-( 6orei$n 9rde, >inistr+
o# 4&( 6rnce 14,119 #ree "r,et,
prices 414 #reedo" o# trde 49,19,90-
1&1, no, 1/&,.&1-0 =olition o# 114
prices ./(,.4(,.01, (&0,(1/, (10,
(.1, (((
under Stlin .&4, .4/,.0.
see also Nep"en #uel short$es
..,41, 0.,.4& 6VU !#ctor+ trinin$
schools% .(/
$s production 414 C$enetic-
teleolo$iclC de=te 1(1,14( Geor$i
41&,41( Ger"n+
NEi-So:iet pct .44,.41,.1(,41&
occuption =+ 40(-4,
reprtions #ro"R9[rUUGr .G-
trde 5ith .44 s. Uo .SQG-SSSY..
glasnost (9/-4,411,4i0,4K4:4#rt
gla'ki !deprt"ents% 4/,4/,0N94,
.1/,.14-11,.1&,(&1
GOE;)O !electri#iction% 44
$oods #"ine 1(1,1(9,14(,141,
C// see also consu"erCs $oods
Dosekonomkomissiya !lon$-ter"
plnnin$ co""ittee% (/&,(/1,
(/( Dosekonomso'et !Econo"ic
science
council% (49 Dosplan !plnnin$
$enc+% 94-4,1(1,
1(4,14., .1/, .11, .19-.&,.40,
.49..9/,(B., ((., (44,(/&,(/(,
(4.,(44,(40,(04 =olished 410
Dossnab !Stte Supplies 2o""ittee%
(&., ((.,(10, (0(, (04 =eco"es
>inistr+ o# -holesle
9rde 410 Dostekhnika !Stte
2o""ittee on Ne5
9echniFue% (/&
$rin
s currenc+ 01
exports o# 110, (&(
#orei$n purchses o# 01,04
#ree "r,et in 110
hr:ests 11.,114,104, .4.-(,.4.,
.01, (11, (1/, ((4, (44, (1/,(10,
41. i"ports o# (0&, (9.
"r,etin$ o# 1&4-1 pesntsC
surpluses /( plnnin$ #or (&/,(.9
price polic+ 9&,1(9,.1&, .4.-(,
.44 procure"ents 144-/.,1//-
4,14&,
141,11/,.1(
seiEures o# 1/&,114
short$es o# 149 tx
19
understte"ent o# +ield .4. $ret
lep #or5rd 1(4,1/1,1/9-../,
4.(,4.1 $ross-output
indictor .40
444 Index o# Su=Iects
$ro5th
ccelertion under Gor=che: (90
$ret de=te on 1.9-(.
indices o# .
in:est"ent in .1.-14,.(1
pre-re:olution .-0
tr$ets see #i:e-+er plns
under Khrushche: (1&, (1/
under NEP 114,1.9-(&
$ro5th rtes 4(&-(0
t5el#th #i:e-+er pln (99
hndicr#ts .,0&
see also 5or,shops, s"ll-scle
Chrd o=li$tionsC 11/
see also procure"ents hr:ests see
under $rin helth ser:ices see "edicl
ser:ices he:+ industr+
in -orld -r II .1/-01
plnnin$ #or 1/1,19&,.14, .(&,(&.U
see also #i:e-+er plns
post -orld -r I 00-9
post -orld -r II.94-(&1,(&4, (49-
Si, (44
pre-re:olution (
under NEP 110
see also r""ents industr+
hordin$ 40,1&4,1/1,(0(.(00,4&4
o# l=our (9& horses 114,.4(,.9.,(&(
household "one+ inco"es 4&4 housin$
.&&,.&4,..9,./4,.04, .91, (/4,
(4.,(44,(1.
ideolo$+ 411
i"ports
r""ents ..,.0&
=loc,ded !1919-.&% 41
"chiner+ .(1,.4(-4,.01
under NEP 04
under Stlin 194,.14
see also #orei$n trde incenti:es
4&,.11-1.,.(( industriliEtion
11/,1..-(.,1(4,
141-4,1/1 industr+ see
he:+ industr+U
5or,shops in#ltion .4, 0/-
4,.&1,.1.,.9&,.90,
(00
input-output t=les 1(1, (.4
in:est"ent 114,1.4-(.,144-4,.&1,
.(0, ((/,((0,(4i, (/B, (44,(1&
ccelertion under Gor=che: (90
in:est"ent proIects 4&/-4
<pn 114,.9/,(91,4(1
kho(raschyot !co""ercil ccountin$%
0.,.1/,.49
Kol,hoE
*##irs, 2ouncil o# (&4
2on$ress .4(-1
2olkho(tentr !collecti:e #r" centre%
14.
2olkho(y !collecti:e #r"s% 1&1
"l$"tions o# (11-1., (44
=eco"e stte #r"s (4/,(41
#inncin$ o# (&4-1&,(&1,((1,(44-
1, (1.-1
"er$e 5ith so:,hoE+ (0(
"ethods o# .4(-1
or$niEtion o# 101
Stlin on 141, 1/.-(
under Khrushche: (4&,(4.
see aho,eo@ectssimaoa 2ombedy
!co""ittees o# the poor% /(,
4& kontraktatsiya !"r,et
contrcts% 141,
119 Koren
-r (..
Kronstdt "utin+ !19.1% 1.,10-9
kulaks !=etter-o## pesnts%
de#ined 1&(
;enin on 40,1&,14
liFuidtion o# 140,1/4,1/1,141-4,
144-1/, >/
re:iled 1&9, 1.( ,1(.
txtion o# 144,140-9,141
l=our
direction o# .44-/
in #i:e-+er plns 191-.&1,.((-4
"o=ilit+ o# (/1
see also e"plo+"entU une"plo+"entU
ur=n "i$rtionU 5or,shops Cl=our
reser:e schoolsC .4/,.41-N11 lnd
re#or" (&, (1,4&,1&1,1&4,110 literc+
11
Index o# Su=Iects 441
see also eduction
li:estoc,
expnsion o# production 1&1,..(,
..&,.41,(&4,((9
post-5r (&9, (.9,((4,(41
prices o# .44
seiEure o# 104
slu$hter o# 114,111,119
under Khrushche: (1(, (1/,(14
5r-ti"e pro=le"s .0. li:in$
stndrds 101, 194,.&1-9,
**/
i
..4,..9,.(1-0,./(-4, @(, @0S
corseness o# .&0,(10
i"pro:e"ents in (11,(4.
Cloclis"C (1&,(9&
>chine 9rctor Sttions !>9S%
10.-4, .4.,.41,.41,.0(,(&/,
(&4,(@1,((1,((9-41.(40,(1(
"chine-=uildin$ 4&&,4&/-4
"n$eril t,eo:ers 411
C"r,et cultureC (90
"r,et econo"+ 4&0
"r,et s+ste" (91-0
"r,etiEtion 410-19
>rshll Pln (.1
C"teril =lncesC 4/,.40,.10,(.4
"edicl ser:ices 11,./9,(41 see
also socil ser:ices
>enshe:i,s ./-(&,1&,94,1(1,1/0, .19
methoduukin !"en 5ith sc,s% //
"etl industries .4,141-.,(&&,(44,
(/C "ilitr+ coup, =orti:e
!199&% 411-1. "inisteril s+ste"
.11,.41-0,(&.,
((1-.,(44,(/KZ (/(,(B@, (@0.
(0(,4&.,4&( "tr !:ill$e co""unit+%
11,14,1&.,
C1(
"ixed econo"+ see NEP
"o=iliEtion #or 5r .10,.0(,.04
C"odel $enerl storesC .&4
"oderniEtion 4.0
>old:i 41/
"one+ =olition o# /0,4(,40,04,.&4
collpse o# rou=le /1-4( in
circultion .11,.9&,(00
st=iliEtion o# 19,0.,0/-0
see also =lnce o# p+"entsU currenc+
re#or"U in#ltionU rou=le "one+
suppl+, increse in 4&4 "onopolies,
stte 90 C"other heroinesC .91
nalogo'yi press !tx scre5% i0#
"arkomfin see 2o""issrit o#
6innce "arkomprod see
2o""issrit, Suppl+ "arkotn(em see
2o""issrit o#
*$riculture "arodnik
!prt+% (1 ntionl inco"e,
#din$ 41. ntionlis" 41&-
1.
rdicl 41/ ntionliEtion 4/-
1,/9,4(,40,1. CnturliEtionC o#
econo"ic reltion@
/0 NEi-So:iet pct
.44,.41,.1(,41& NE P see Ne5
Econo"ic Polic+ Nep"en 01,90
ttc,ed 1((-/, @41. RS1
dri:e $inst 19/
#reedo" to trde 114,1..,1(9
txtion o# 1(/,144
see also kulaks Ne5 Econo"ic Polic+
(9,1, 10-114
decline o# 1((-41,i4s, r0H, ..(
de#ined 91-1,11/
dile"" o# 119-.&
pri:te enterprise under 91-"
unions under 11.-1(
ur=n 5or,ers under 1&9-14
NK?J !police% .11
obshchina !:ill$e co""unities% 11, .4
obyedmeniya set ssocitions OGPU
!politicl police% 144,10( oil
production (,9,(4,19&,191,194,
(4&.(@(.(@/. Ri,4BR.4K>.4K4 one-
"n "n$e"ent 44,.14 O)SO
!deprt"ent o# 5or,ers@
suppl+% .//,.04 OS?OK
!econo"ic #orecsters% I<@
o:erst##in$ 9&
pesnts =Ers
.&(,.&4
440 Index o# Su=Iects
pesnts (contd.) collecti:iEtion see
collecti:iEtion 2on$ress !1911%
(.-( consu"ption =+ 1&,.40-9U see
also
scissors crisis de"orliEtion
114 exproprition o# 1..
Gor=che: on 11( incenti:es #or
4o, ./&-/4,.4., (&0 inco"e o#
.4,40,1/1,141,.&1-.,
.1&,.44, .40-9,.4.,(&4-1&,
(11.(.9,((4,(44-1
Cindi:idulistsC .41 ;enin on .1-
(&,1/1 li:estoc, o# 104-/,
.
4(Z
.
4/Z
.&I
Z
.0.,(&9,(1/,(14 "oti:tion o#
(0. pri:te plots see pri:te plots
pri:te trde o# 19,1&1,1..,1(1-
41,.41 riots =+ 1(,.(,1.,10 nd
S).S(1 str:tion o# 101,.49
strti#iction o# 1&.,1&0,1.&,140-
9
surpluses o# /(,40,49, 1&,10,119,
(14
txes on 9,1.,10,19,141,10/,
.44,.91,(&/,(&0,(1(,(.9
tri=ute on 1/4,1/0
see also kulaksO lnd re#or"
perestroika !restructurin$% 410,4.0
$riculturl (9/
econo"ic, #ilure o# (90-4&4
plnnin$
centrliEtion o# .41-11,(1(,(44-
9,(40,(9&
decentrliEtion o# (0.-(
in 5r co""unis" ((-0,41,4/,11
under NEP 9131,111,1.4-(.
see also #i:e-+er plns
podkulachnik (kulak supporter% 149
Polnd (9,49
see also stellite countries
polit=ureu 4/,(0.
under Gor=che: 411
politicl prties, =n on 11
popultion
census .4&-41
durin$ NEP no
post-5r (4.,(09 pre-re:olution
., 1. under Stlin 10& 5r losses
.01,.91,.9/,.99 populists (1
Pra'da 1/4,1/0, 11., (1.,((4 prices
co""ercil, .&4,.4(,.0.,(&0,
(1(, (1/U see also #reedo" to
trde control o# 91,91-0,.&.,./.-
(,.49 di:er$ence o# 9&-91,1/4,
110,.&/-
4,./1,(14,(((, (41,(00 in
5rti"e .0(,.04-9 policies 1(1-
41,141,1/1,141,104-
1,.&(-1&, (0&,(0.-( post-5r
(&4-1&,(1(-19,(.9 under
Gor=che: 4&4,4&1 under
Khrushche: ((1,(/4,(/1,
(14-/ under NEP 0( see also
scissors crisis Cpri"iti:e socilist
ccu"ultionC 1.1,
... pri:te plots 104-
4,.1&,.4/,.4&,.0(,
(&/, (&0,((4,((0, (41, (1/ pri:te
trde 19, 0(,1(4-/,411 see also
#reedo" to trdeU prices, co""ercilU
Nep"en pri:tiEtion 4&0,419
procure"ents /4,1(9,144-/.,1//-4,
141,111,10&,10(, 10/,.1&,./4,
.4.,.0(,.09,(&/, (&4, (&1,(((,
((4,(14. (14,4
.
4 see also $rin
prodnalog !#ood tx% 19
prodra'erstka !#ood distri=ution
s+ste"% /(, 40, 49,1.,1/&,141
producti:it+ 14-1/, 9(, 194, ..., ..1-
9 produktoobmen !co""odit+
exchn$e%
0&, .&(,.//,(.1 Promplan
!industril plnners% 94,.14
Pro:isionl Go:ern"ent .1-4,40
pur$es 11&, 10(,.(9,.4&, .41,.14,
(
.
/
ril5+s
=uildin$ ..,194,.(1
indeFuc+ o# .19,(91
Index o# Su=Iects 449
militar comman* 1#
nationaliFation of <%
-re>revol)tion (0$
-rivate "oo*s on #&1
wor8ersD control <&
:orl* :ar I0 effect of (&0&<
:orl* :ar II0 effect of ($(
see also trans-ort
rationin"
in :orl* :ar II ('%
-ost>war &#&0&#10&#$
)n*er NEP '(0$40 no
)n*er Stalin #110 #440#'40(5&0 (54>
'0(#(0(&<0(15>1#0(11
)nofficial (%&
war comm)nism0 )n*er <50<'0 110
%(0%' ra2"a2arivanie .+aFaar sellin"/
'& re*em-tion *)es n>#( reform0
ra*icaliFation of <54>#5 re-arations see
%nder :orl* :ar II re-)+lican
1ho2raschyot <5# retail tra*e (1<>%
Drevol)tion from a+oveD #11 ro)+le
colla-se of 14>%&
reval)ation i@0 &5'0&#%0 &14
transfera+le &$(
see also c)rrenc reform R)ssian
re-)+lic <#50<##0<#&0<#1
reform -ro-osal <#%
sa+ota"e &<0<$0#4%0#$$0(#$ satellite
co)ntries &((0&1(0&1' scissors crisis
''>$#0#540#(&0#(40
#&40 (<% Se&1ho2te1hnt1a
.a"ric)lt)ral
eE)i-ment committee/ &4<
serf*om (0$0#5>## seven>ear -lan &%(>
$ Sha1hty affair .#$('/ #<% Dshoc8
constr)ctionsD #$# smych1a
.wor8erB-easant alliance/ #5<0
##'>#$0#((0#<< social services
##(0(1<0 (1'0 (%40 ($#0
&11 Dsocialism in one co)ntrD
*e+ate #(&>
< Socialist Revol)tionar -art
.SRs/
(40 &#>&,&$,4#
Soviets (&><0<50<%0##5
sovnar1ho2y .economic co)ncils/ <10
$<0&1&,&%(0&%'0&4'0&'&
sov2na1 see ro)+le
sowin" committees 4#
s-ace -ro"ramme &%<0&4#
s#loshnaya see collectiviFation
sredne#oryshenye tseny .avera"e
increase* -rice/ (5%
Sta8hanovite movement (&10(15
state ca-italism 1#04<
State Committees of 3efence
(4'0($1 on Constr)ction &15>
1#0&%% on 9a+o)r an* :a"es &11
on Material S)--lies see (ossna"
on Proc)rements &4<
state farms 1%0%$0#'<0(<%>40('&0
&54, &<i, &4<,&'5 8ol8hoFes
+ecome &<10&<4 transfer to
1ol1ho2es (<4 Dstate or*ersD
4gos2a1a2y5 &$<0 &$10
<55 state trials
(#$0(<5 statistics
+iolo"ical iel* #'(0 #'%0 &&<0&&% Central
Statistical Office &5& )nrelia+ilit of
#1$0#'50(5<0(5'0 (<#0 (<'0 ($'0 &(%0
&&%0<&( STO see Co)ncil of 9a+o)r an*
3efence stri8es #$0 (<0##&
sn*icalism $0&<0%10'$0(#1
tariffs &0 '0#<
ta@ation
+)*"etar a**itions (14
*irect (450&140&4(
in 8in* 4'04$0#54
9enin on &4
of -easants $0#(0 (<<0 &51
on 1ol1ho2 mem+ers ($50&510&&&0
&<4 to +alance +)*"et '4>' t)rnover
(5&><0(#(>#&0(1%0.1&,
($50 &Z<,&I$0&14,<&% war ta@
($50&&# Territorial Pro*)ction
A*ministrations .TPA/ (14, (10 i
terror s-)r"es _
41& Index o# Su=Iects
te@tile in*)str %$0'$0$10(&&0(%(0
('#0&5# torgsin sho-s .for rt
treas)res/ (5%0
(#< TO;s .Associations for
2oint
C)ltivation of 9an*/ #<'0#1<0
#%50#%(0#%'0#'# tractors #4%0 #'(>
<0 U<&]($U, &N&,&N%0
&(10 &('0<#< tra*e treaties ($%
tra*e )nions <&0 1(0%1>%0###>#&0 (5$0
(#<0(%10&14 trainin"
schemes see e*)cation0
technical trans-ort '10#4%0 (&40
('5>'#0&(5>
.1 see also railwas travo#olye see
cro- rotation schemes Dtri+)teD #1<0 #1'
tr%dodni .wor8>*a )nits/ #'#0(<<0
(<'0(%#0 ('(0&5' Tr%dovi1i .-art/
&( tr)sts .mana"ement )nits/ '&0$(0$%>
40##(0#<#0#1&0(#1 Ts%g#rom
.in*)strial a*ministration/
$<
U8raine <#50<#&0<#1
)nem-loment ##(0#('0#$' Unite*
States of America
ai* from '#0('50 ('%0 ($1
as rival &4#
as threat &<#
UNRRA ($1
Urals>7)Fnets8 com+ine #&50(4<
DUrals>Si+erianD metho* #<$0#1<0
#%5 )r+an mi"ration #&>#<0#%0 #440#$10
#$'0 (<$0 (1<0 (4#>(0 &%40&'#
=SN7H see also tr)sts esta+lishe* <<>1
f)nction of $#Q40 #<#0(#1 in war
comm)nism 14>'0 %(><0 &1&
)n*er NEP'(0#&# wa"e
control <51 wa"es
*ifferentials ((&0&11
*)rin" five>ear -lans (5#>(0(5$>
#50(($0(&#0 (15>1<0(%&
*)rin" inflation '(
in wartime ('(>&0('<>1
norms (&1
-ament in 8in* 1'
-iece>rates #'#0(&<0&11
-ost>war &#&>#$0 &1<>10&''
)n*er NEP ##5>##
see also tr%dodni Dwa"es f)n*D limit
<51 :ar Comm)nism &$>Q44 :ater
Reso)rces0 Ministr of <5( :holesale
Tra*e0 Ministr of <#' women in
em-loment (550(&<0(1$0
('&0('<0 &%(
wor8ers
control + <(>&0<10 150 1(0%10##&
*isci-line of (%<
O--osition %%
-artici-ation + ##&
re>trainin" of ($$
shorta"e of ('40($10($$0 &'$
)r+an #5$>#< wor8in" ho)rs0 #$'0
(%10 ('(0 &&10
&11,&4
(

see
/lI
A
tr%dodni
wor8sho-s0 small>scale (0%0<40%&0
4(0 '50$$0#$1
:orl* :ar I #$ :orl*
:ar II
a"ric)lt)re in ('#><
effects of (41>'
finances in ($5>$#
la+o)r an* wa"es in ('<>1
losses in ($#>&
-re-arations for (1$0(4&>1
re-arations ($%0&5$0&(#0&1'
iel*s see "rain harvests
<ernotrest ."rain tr)st/ #1&
"ndex of 8ames
A+al8in0 9, <5' Afanasev0 Y),
##4 A"an+e"an0 A+el
&$10&$'0<5' Al8snis0 =, <#(
An*reev0 A, #1#0#%&0&##0&#(
An*ro-ov0 Y) &$# Ar)t)nan0
Y), 6, ('& Aver+a8h0 9, ((#
6airoch0 P, <0 #1
6a8atin0 =, <##
6arsov0 A, #'4
6aFarov0 =, #('0#&#
6el8in0 =, (4$0 &'(
6er*aev0 Ni8olai <('
6er"son0 A, <&(0<&%
6eria0 9, (4'0 &#%0 &&(
6ernstein>7o"an0 =, #('
6irman0 A, &450&'$
6o"*anov0 P, 4<
6o"*en8o0 M, #%$
6o"omolov0 O, &''0<&<
6reFhnev0 9, &4'>$&
6)8harin0 N, &40 1$0%(>&0##$>(&0
1.4,1(1,144,149,1/.,1/4,1//,
..&,..(,.4& 6)l"anin0
N, &<(0 &1<, &1$
Carr0 E, H, $10#5( Cha-man0 2,
(1&0 (%& Chaanov0 A, #%0&(0#&#
Che8hov0 A, #( Chelintsev0 A,
&(0#&# Chernen8o0 7, &$#
Ch)rchill0 Sir :inston #4%
Collette0 2,>M, #(40 #&5
ConE)est0 R, #'5
3an0 F, 45
3anilov0 =, #4(
3avies0 R, :, 1'>$0$10 #540141
3o++0 M, &40 1(
3omar0 E, #&5
3)rant0 :, (#<
3FerFhins80 F, $4
Ehren+)r"0 I, 1< Einstein0 A, &(%
Ellman0 M, #'%>' En"els0 F,
1'0#<'>$0 ((&04&9
Fal8)s0 M, E, 1
Fe*orov0 6, <#%
Fe*orov0 S, &%(
FelD*man0 !, #&5
Firsov0 =, 4<
!ai*ar0 E, <5(0<510<5'>$0410 !al+raith0
2, 7, (1 !anF0 H, #'>#$ !efter0 M, ##4
!ershen8ron0 A, #50(5 !im-elson0 E, 41
!inF+)r"0 A, #&# !la*8ov0 F, %#0450#5'
!ol*smith0 R,&0<0#1 !or+achev0 M, #4&0
&'40(94-0,4&(, <5<0<510<5'>
#(0410,4.1-0,
<&< !orev0 6, 4<
!re"or0 P,R, 10#&%
!rinD8o0 !, 14(-4,((9
+1el
15, "ndex of 8ames
Grine:ets,+, E. /,44
Grishin, ?. (94
Gro"n, ?. 1.9,1(1
GuiEot, 6. 119
7irsch"n, *. 1(1
7itler, *. ..9-(&
I:n I? !Cthe 9erri=leC% 11,4..
I:nits,+, N. 144
<sn+, N. ./(, .99
K$no:ich, ;. 14&,119, .19, .1&,
(.1.(./.(/..(//,4.4
Klinin, >. 144
K"ene:, ;. 1.1
K"ins,+, G. 144
KrcE, <. 1&1
Kuts,+, K. .0
Khnin, G. .&9,4(4,4(/.4(1
Khte:ich, >. 11&
Khrushche:, N. 114,.(&,.(4,(&(, (&/,
(&0-9, (1., (14, (./, ((., (((-
4.,(/1,(/.-4, (/4-0,(/9, (4&,
(4.-4,(49-1.,(1.-1
Kiro:, S. ..., ..4
Kl+",in, I$or 4&9
Kocstler, *. 101,4./
Kollonti, *. 44
Kondrshe:, J. (14
Kondrtic:, N. ., (.,1(1
Kossior, S. 1/1, 10(
Kos+$in, *. (94
Ko:rs,i, .19
Krcstins,+, N. 49
Krits"n, ;. 44,41, //,44,1.
KrEhiEhno:s,+, G. 44,94
Kucheren,o, ?. ((4
Kui=+she:, ?. 144, ..1
Kuli,, G. .14
Kus,o:, E. 01
Kutler, N. 1(1
KuE"in, I. (/(
KuEnetEo:, *. *. (&(
K:irin$, E. 114
;n$e, Os,r 4.4
;rin, Ou. 44,1/,4.1
;enin, ?. .(, ./-(&,(.-0,44,49, /&-
/R. /4-N1, /9. 44,1&,11, 14,10,
19, 0&, 0(, 04, 04,1&/,114-11,
140-9,1/1. <1.,.11,..(,41&,
4..,4.(,4.0
;e5in, >. 1&.,14&, 149,../
;e5is, -. *. 1.0
;itoshen,o, ;. 1(1
;o$ino:, ?. 4&/
.0as1c1%n&, 2. 9,14
.0s%n&, +. 263,305,326
>cdu##ie, >. .9/
>,hno, N. /4
>,sudo:, S. 10&
>l#e+e:, *. .&(, .&4, .&0, .(1,./.,
.4(, .09, (14,(11,(10 >len,o:,
G. .10, (1&-n, ((1-/,
(((-4,(/. >lle, S. 1/
>ne:ich, E. (01 >rto:, Ou. 4..
>rx, K. ./-(&,((,1.1-.,..(,(41,
4&9,4.0,4(4 >slo:, P. 1.0
>sl+u,o+, Ou. 4&0 >e,hlis, ;. .14
>cshchers,+, Prince ?. 44
>eshcher+,o:, N. 1&/ >i$rn+n,
*. 411 >i,o+n, *. 1/1 >illr, <. ).
104-0 >il+utin, P. 44, /., 14 >oloto:,
?. 14&,14(, .10,(.1,((1,
(/. >oorstein, ). 4(4
>osh,o:, Ou. 1&1,14&,11/,110
Nr,ie5icE, O. 140 Nehru,
<. (.( Nichols II
0,11,19,.1 No:oEhilo:, ?.
(.4 Nur,se, ). 1(1 Nutter,
-. 4(4,4(1
O=olens,+, ?. 44,11 OrdEhoni,idEe,
S. .14,.(9, .1&-11, (&.,(./,4.4
P:lo:, ?. 411
Pere:edentse:, ?. (0.
"ndex of 8ames 15!
Per:u,hin, >. (/1-.
Peter I !Cthe GretC% 4..,4.0
Petr,o:, N. 411
Popo:, G. 41&
Popo:, P. 1(1
Post+she:, P. 10(, .10
Preo=rEhens,+, E. 4(, 1(-4,04,9&,
1.1-(,1/(, ..(,4.1
Pro,opo:ich, S. 01,./(
P+shc:, ;ris 41.
P+t,o:, G. .(9
8uesn+, 6. 1(1
)de,, K. /1
)o"no:, G. (94
)+,o:, *. 1./,1/.,1//
)+Eh,o:, N. 414,411
S=uro:, >. (&(, (/.
Snin, *. (.1
Sch5rE, S. .44,.04
Sel+unin, ?. 41&,4(4,4(/,4(1
Seton, 6. 4(1
Shnin, 9. 1&.,1.4,1.1
Shtlin, S. 4&0
Shchden,o, E. .14
She:rndEe, E. 411
Shli,hter, *. 14(
Shl+pni,o:, *. 44
Sh"ele:, N. (94,4&1
Sholo,ho:, >. 114,114
So,olCni,o:, G. 04, 01,1.4-/
Solou,hin, ?. 41&
SolEhenits+n *. 11(
St,hno:, *. .(/-4
Stlin, <. 1&1,11(,111,119-.(,1./,
K(/. K(9, K4B. C44.144,149-//.
14&,111,101,10(,104,19&,199,
.&9, .11, .19, ..1,..(,..4,.(4,
.(9-4&,.40, ./4, .41-0,.14,
.19. .9(,.91..99,([Z(. (&/.(K4.
(&0,(&9, (..,(.(,(.4-1, (44,
(44,4..,4.(,4./,4.4 Strodu=tse:, ?.
4&1
Stol+pin, P. 1(,14,41,1&.,1&/
Strel+n+, *. 41& Stru"ilin, S
144,..& SE"uel+, ;. 1/
9u$er, >. 110
9o"s,+, >. 11.,1/.,..(
9ri#ono:, I. 140
9rots,+, ;. (&,44,41,1/,1.(,1./,
Z(9. Z44. Z/(. ..&,4..
9sip,o,*. 111,41&
?is=er$, P. 4/
?lo:oi, J. 4&&-4&1
?nderlip, 6. 04
?rei,is, 1.10(
?r$, E. (.4
?enedi,to:, *. /0
?enEher, ?. (.1
?i,ulo:, S. 4&1
?ilC+"s, ?. 194
?olC#, >. .19
?oroshilo:, K. .19,.14,.10
?oEnesens,+, N. .40, (&.-(,(14,(./
-ells, 7. G. 4&, /4,41
-hetcro#t, S. 10&
-iles, P. 1/
-itte, 2ount S. (,0,1&,1.,111
-itt#o$el, K. .4
O,o:le:, *. 411
O,o:le:, O. 14(,144
Osin, E. (44
O:lins,+, Gri$or+ 4&0,41(,414
Oeltsin, B. 41&,414,410
Vsl:s,+, 9tin (9/,(90
Vsulich, ?. .4
Velenin, I. 10(
Vhdno:, *. 1/1
Vi"in, N. .10
Vino:ie:, G. .9,1.1,1./
Voshchen,o, >. 114