In the 1920s, Stalin inherited Russia's frozen economy and immediately set out a series of ruthless economic reforms to catapult Russia into one of the world's strongest economic powers. But what were these reforms, how successful were they, and how did they impact the Russian people? Let's examine Stalin's economic policies!
Explore our app and discover over 50 million learning materials for free.
Lerne mit deinen Freunden und bleibe auf dem richtigen Kurs mit deinen persönlichen Lernstatistiken
Jetzt kostenlos anmeldenNie wieder prokastinieren mit unseren Lernerinnerungen.
Jetzt kostenlos anmeldenIn the 1920s, Stalin inherited Russia's frozen economy and immediately set out a series of ruthless economic reforms to catapult Russia into one of the world's strongest economic powers. But what were these reforms, how successful were they, and how did they impact the Russian people? Let's examine Stalin's economic policies!
When he came into power in 1929, Stalin had a vision to improve the Russian economy radically. He wanted to transform it into a thoroughly modern economy that could compete with and out-produce the capitalist economies of the West.
Even before the Russian Revolution of 1917, Russia's economy had failed to equal those of Western countries, particularly in heavy industry. Stalin felt it was particularly important to boost heavy industry during the 1930s and 40s with the advent of the Second World War and the beginning of the Cold War.
Heavy Industry
An economic sector that manufactures raw materials on a massive scale, using large machinery and facilities and vast areas of land. Examples include the manufacturing of iron and coal, as well as building vehicles such as ships.
To achieve this, Stalin introduced the economic concept of "Five Year Plans". For the First Five-Year Plan, Stalin initiated two key policies - Rapid Industrialisation and the Collectivisation of Agriculture.
To achieve the level of industrialisation that Stalin wanted, he needed to create a planned economy for the USSR. This meant that the state would decide production goals and the methods through which those goals would be achieved.
The State Planning Committee (known as Gosplan) created the First Five-Year Plan in 1928, which set out an extremely ambitious plan for the Soviet economy from 1929 to 1933. The Plan set out the following agenda:
In 1932, Stalin declared that the First Five-Year Plan had been a success and achieved all its goals a year earlier than planned - but how accurate was that statement? Well, the First Five-Year Plan certainly had its successes - production in electricity trebled, while coal and iron output doubled. Soviet engineering developed in line with industry demands, and thousands of people moved into cities to join the industrial workforce.
A reputable source?
It must be noted that the Soviet government very likely inflated the output figures to make the USSR seem more impressive and superior to the capitalist West.
The reality was that the quotas set at the beginning of the plan were not fully achieved, and the immense pressure and restriction on workers made life very difficult for most of the population. Furthermore, the focus on heavy industry meant other sectors, like consumer industries, were neglected.
The USSR would continue with these economic plans until the collapse of the Soviet Union in 1991, as the First-Five Year plan had proved so successful. Throughout Stalin's tenure as leader, the focus of these plans remained broadly the same, with industrialisation and collectivisation as the main policies.
Of course, the restructuring of the economy to improve industrialisation also had a big impact on how people lived their lives. Education changed significantly as hundreds of new schools were built to improve literacy rates and encourage a more skilled labour force. These schools' lessons mainly focused on engineering and mechanical skills, in line with the desire for industrialisation under the First Five-Year Plan.
Did you know? In 1928, 55% of the Soviet population was literate. This was already a significant improvement since 1914 when literacy rates were at 38%. After the First Five-Year Plan, Soviet literacy had increased to 68%, and by 1939 literacy rates were at a staggering 94% of the entire Soviet population.
Due to the push for industrialisation, towns and cities expanded, with some springing up around the newly built factories. Transportation also became a key focus for industrialisation to ensure that materials, food, and workers could be transported easily.
The other central policy of the First Five-Year Plan was the collectivisation of agriculture. This involved stopping the individual farms that had created the Kulak class and making peasants work in large collective farms, known as kolkhoz. This policy was implemented firstly to reduce the economic power of the Kulaks. Soviet officials also thought it would increase grain yields, a goal of the Five-Year Plan.
Kulaks
A class of wealthier, land-owning peasants which emerged after the Emancipation of the Serfs in 1861 and had particularly benefitted from selling their extra produce under Lenin's New Economic Policy in 1921. This was Lenin's compromise by allowing a form of capitalism to enter the socialist USSR. Stalin wanted to enforce socialism and eliminate this class which he regarded as greedy and a problem to the USSR.
However, collectivisation had significant drawbacks. The peasants had no choice and were forced to join these collective farms. In particular, many Kulaks objected to it, even going as far as slaughtering their livestock and destroying their machinery, so the government could not seize them. The systems of collectivisation also meant that the government could requisition as much grain as they wanted to support industrial workers in the cities, often not leaving enough for the rural working peasants themselves.
Holodomor (1932-3)
Stalin used collectivisation policies to punish Ukrainians who wanted their own identity separate from the USSR. He increased the Ukrainian grain quotas to unachievably high rates and requisitioned nearly all the grain to feed other parts of the Soviet Union. As a result, Stalin created a man-made famine known as Holodomor between 1932-3. An estimated 3.9 million people died in the famine, demonstrating how Stalin was prepared to push collectivisation to the extreme to punish deference from the USSR.
While it did have some successes, Collectivisation had a severe negative impact on the people in the Soviet Union. Here is an overview of how the Collectivisation policy was detrimental:
Stalin's Economic Policies had both big successes and terrible failures. Let's look at how the Soviet economy and people were helped or hindered by Stalin's policies.
Early successes were seen with Stalin's First Five-Year Plan.
Despite the initial successes, Stalin's economic policies had some significant failures.
Stalin's key economic policies focused on rapid industrialisation and the collectivisation of agriculture. He enacted these through the Five Year Plans.
Stalin significantly increased the Soviet economy through his policies, elevating the USSR to the world stage able to compete with capitalist giants such as the US. According to Soviet sources, electricity production trebled and coal and iron output doubled in the First Five Year Plan. However, as these are USSR figures, they are most likely inflated to further support for the economic policies.
The USSR published the results of the first Five Year Plan, claiming that production in electricity trebled, while coal and iron output doubled. However, as these come directly from USSR sources, it is likely these statistics were inflated.
Although economically the USSR appeared to soar with rapid industrialisation benefitting from the requisition of grain under collectivised agriculture, the lives of citizens were not always a happy story. Literacy rates increased massively from 38% in 1914 to 94% by the end of 1939. However, forceful requisition of grain by the Soviet Union meant that rural, grain-producing regions such as Ukraine suffered greatly. A significant event is the man-made genocide of Holodomor, whereby Ukrainian farmers were given unachievable grain quotas and had nearly all of their grain requisitioned. This facilitated the deaths of around 3.9 million people between 1932-3 in Ukraine alone. Other regions suffered too, with a USSR-wide famine killing around 6-9 million people from 1930-3.
Stalin wanted the Soviet Union to improve its economy quickly. In order to enact his policies of rapid industrialisation and collectivisation, he created Gosplan (the State Planning Committee) which set quotas and goals for all industries in order to maximise output. These goals were set every 5 years with different agendas for each - as such they were known as the Five Year Plans.
What was Holodomor?
A man-made famine created by the Soviet Union to purge the Ukrainian peasantry and elite.
When did Holodomor take place?
Between 1932 and 1933.
Approximately how many people died during Holodomor?
3.9 million
Who was leader of the Soviet Union during Holodomor?
Joseph Stalin
When did Ukraine become the Ukrainian Soviet Socialist Republic?
1922
What was Lenin's policy of indigenisation?
An effort to promote national and cultural liberalisation in Ukraine.
Already have an account? Log in
Open in AppThe first learning app that truly has everything you need to ace your exams in one place
Sign up to highlight and take notes. It’s 100% free.
Save explanations to your personalised space and access them anytime, anywhere!
Sign up with Email Sign up with AppleBy signing up, you agree to the Terms and Conditions and the Privacy Policy of StudySmarter.
Already have an account? Log in
Already have an account? Log in
The first learning app that truly has everything you need to ace your exams in one place
Already have an account? Log in