2nd Dec 1917 - Supreme
council of national economy
(central control of Russian
economy).
4th Dec 1917 - army used
to take control of banks.
21st Jan 1918 - declare all foreign debts incurred
by Tsar and PG were illegal and will not be paid.
All landowners lost their estates.
Money abolished at one stage.
State Capitalism - workers took
control of factories and set their
own hours of work and level of
production. Production slumped
- produced a black market.
Civil war - economy had to be
geared towards this.
Impact
Allowed
communists to
win civil war.
Failed to stop
fall in industry
production -
1921 end of
war
communism.
Allowed gov. to
concentrate on production
of military equipment.
1917 - 1920 = over half of
urban pop. disappeared - class
Lenin hoped to build new
socialist society.
Decline due to number of factor =
death in civil war, famine or back
to villages to find food.
As a result of civil
war and war
communism -
major famine in
1921.
Peasants stopped
producing so much grain,
combined with drought
and war = death of 2
million.
Peasant uprisings - force
Lenin to reappraise
economic policy.
What was War
Communism?
Supreme
economic
council to
run
economy.
Nationalisation of
industry - all large
industries liable to
nationalisation without
compensation.
Private trade banned.
Grain surpluses seized
from peasants.
Decline in use of money -
replaced by rationing
organised by the state.
Use of terror, slave labour and
seizure of good and grain by the
state.