1. Chapter 3. War Communism and the New Economic Policy: 1918-1928

2. War Communism: 1918-1921 Q( critical question about War Communism):
Were these policies an ideologically-based attempt to move directly towards full communism?
Were they measures necessitated by the emergency of civil war?
Maurice Dobb and E. H. Carr argued that civil war forced War Communism on the Soviet leadership, and statements of ideological support were “no more than flights of leftist fancy.”
Lenin and Trotsky often referred to War Communism as measures of a “besieged fortress.”
Other scholars have argued that Lenin introduced War Communism as an essential step towards the creation of a communist economic system.

3. War Communism:
Forcibly requisitioning agricultural surpluses
The Cheka, and party activists were sent into the countryside to extract grain from the rich and middle peasants. The system of requisitioning (продразверстка) was initiated on May 9, 1918, through a Commissariat for Food with extraordinary powers to confiscate food products from the rural population. Requisitioning effectively broke the market link between agricultural deliveries and the rewards for those deliveries.
Nationalization
The speed, extent, and depth of nationalization appear to be primarily an ideological response, not one based upon the needs of a crisis situation. although there was to be central direction through the national industrial boards and the state budget, in fact central direction was generally lacking.
Abolition of private trade : it was viewed as incompatible with centralized requisitioning and allocation
Change in method of labor allocation : Semi-military controls were implemented, and the movement of industrial workers restricted.
Distribution: Under the "class ration" introduced in 1918, wages were based upon type of work.
Elimination of money as a means of exchange

4. War Communism:

5. How effective was War Communism?
War communism enable the soviet leadership to win the civil war and sustain its political position.
But, it revealed its long-run weakness:
estranged peasants from the Bolshevik leadership and encouraged dysfunctional behavior;
industry operated without coordination;
The lack of a general system of incentive wages led to problems of labor supply in industry.
By 1920, the crisis of civil war that had given rise to War Communism had ended, and the dangers of continuing the policies of this era were becoming more and more apparent.
The trade unions were revolting against the centralization of industry and the conscription of labor.
The alienated peasant population called for the elimination of the state grain monopoly.
Kronstadt uprising of March 1921  replacing War Communism with the New Economic Policy (NEP).

6. NEP:
War Communism was described as temporary expedients (Lenin) “War Communism was thrust upon us by war and ruin. It was not, nor could it be, a policy that corresponded to the economic tasks of the proletariat. It was a temporary measure.”
NEP was described as transitional, a step backward because of the Significant roles of "antisocialist" institutions such as private property, capitalist markets, and private initiative.
Key features of NEP: to combine market and socialism
Agriculture remained in the hands of the peasant, and industry, with the exception of the "commanding heights," was decentralized.
Market links between industry and agriculture and between industry and the consumer replaced state control of production and distribution.
But, the commanding heights of the economy(fuel, metallurgy, war industries, transportation, banking, and foreign trade) remained in the hands of nationalized enterprises
Political basis of NEP: alliance between the Soviet regime and the peasant

7. NEP:
Policies of NEP
Requisitioning of agricultural goods was abandoned, and market relationships were reestablished, freeing the peasant to sell surplus agricultural products and to buy industrial products freely.
Proportional agricultural tax(продналог);
Free trade to sell grain outputs in the market(appearance of Nepman);
The major of enterprises were permitted to make their own contract for the purchase of raw materials and supplies and for the sale of output;
Decentralization of industry;
Reintroduction of money with the reopening of state bank;
Attempt to reestablish relatively normal trading relations with the outside world

8. Economic Recovery during NEP
In 1928, on the eve of the first five-year plan, both industry and agriculture had surpassed their prewar levels.
The End of NEP
Perception of NEP as a temporary and unwelcome compromise with class enemies.
Growing strength of a Nepman and prosperous peasants was seen as a threat.
Conviction that economic recovery had reached its limits without further significant capital accumulation.