1. COMMUNIST AND POST-COMMUNIST COUNTRIES

2. Karl Marx “Father of Communism” German Socialist
The Communist Manifesto (1848)

3. Principles of Socialism
Private enterprise=unacceptable inequality
Capitalist elite exploit masses
People as a whole should control economic enterprises.
Equality of outcome (no hunger or poverty)

4. Principles of Marxism Society passes through stages Class conflict
Pre-modern to industrial
Class conflict
Bourgeoisie (Capitalist elite)
Proletariat (working masses)
Elite create a SUPERSTRUCTURE
Institutions to control the masses
GOVERNMENT
RELIGION

5. Principles of Marxism Revolution occurs in an industrialized society
Proletariat masses rise up
Post-Revolution
No superstructure
No exploitation of worker
No private ownership
“From each according to his abilities,
to each according to his needs.”
Society w/no
superstructure=“Communism”

6. Russian Revolution, 1917 BOLSHEVIKS overthrew Russian government.
“Larger Faction” of Social Democratic Party
Actually: the minority
Eventually call themselves “COMMUNISTS”
V.I. Lenin: Marxist leader of Bolsheviks
Solidified control in 1921.
Renamed Union of Soviet Socialist Republics

7. Leninism v. Marxism
Russia was pre-industrial
A VANGUARD of the REVOLUTION (small group of revolutionary leaders) was necessary to provoke revolution.
DEMOCRATIC CENTRALISM
Rule by a few key leaders.
Primacy of the Communist Party of the Soviet Union (CPSU)
New Economic Policy (NEP)
Allowed some private property and businesses

8. Marxism-Leninism
Marx’s revolutionary anti-capitalism; Lenin’s reliance of communist party-state.
1924: Lenin dies
Named no successor
1927: Joseph Stalin
took control.

9. Stalin’s Two-Part Plan
COLLECTIVIZATION
Ended private ownership (NEP)
Collective Farms
Huge, state-run farms
INDUSTRIALIZATION
Forced society to industrialize.
Surplus peasants farmers forced to cities.
Five Year Plan
Double production of all major industries.
Gosplan
Central State Planning Commission created goals for entire economy.

10. Stalinism
Collectivization and industrialization by central planning, executed with force and brutality.
PURGES
Millions of citizens and party member killed.
Obsessed with disloyalty within party.
Millions more sent to labor camps (gulag)

11. Command v. Market Economy
COMMAND ECONOMY
MARKET ECONOMY
Resource use and production
Ownership of Industry
Property Rights
Employment
Determined by Central Planning
Determined by
supply
and demand.
State owns
most economic
resources
Private
ownership of
resources.
Little to none
Fully Protected
State-
controlled
Individual-
controlled

12. The Party State CPSU ran the state.
Oversaw all people and institutions.
CPSU only route to success.
10% of adults were members
Power centered with POLITBURO & SECRETARIAT
Democratic Centralism
GENERAL SECRETARY was head of both

13. Recruitment of Party Elites
Nomenklatura
Lists of “qualified” CPSU members who could fill important party positions.
Secretariat controlled appointments
Elite ruling class

14. Communism and the Cold War
Nikita Khrushchev ( )
Loosened censorship
Denounced Purges
Decreased Cold War tensions
Leonid Brezhnev ( )
Stagnating economy
Massive military spending

15. Mikhail Gorbachev (1985-1991) GLASNOST: PERESTROIKA: New Programs
political “openness”
Political dissent
PERESTROIKA:
Economic “restructuring”
Introduce elements of market economy
Private enterprise and private ownership (farms)

16. Flaws in the Soviet System
Lack of incentive for workers
“They pretend to pay us; we pretend to work.”
“The system is not working because we are not working.”

17. Flaws of Soviet System Lack of innovation Nomenklatura
Inbred spoils system
Encourages status quo
RAMPANT BUREAUCRATIC INEFFICIENCY
Poorly planned/run economy

18. Flaws of the Soviet System
Excessive Defense Spending
40% of the Budget
15-20% of GDP
4 times greater than U.S.

19. Glasnost: Soviet Republics
USSR
15 republics
92 different
ethnic groups
112 different
languages
Various
republics (regions)
pushed for
independence.
Baltic States: 1989
Latvia, Lithuania, Estonia

20. 1991 Coup Attempt Communist hard-liners oppose Gorbachev’s reforms.
3-day coup
Gorbachev
detained at
dacha.

21. 1991 Coup Attempt Boris Yeltsin Rallied public Opposed Coup
President of Russian Republic
USSR’s largest “state.”
Rallied public
Opposed Coup
Gorbachev resigns
USSR disbands
Dec 1991

22. Commonwealth of Independent States (1991-current)

23. Yeltsin and “Shock Therapy”
Rapid shift to a market economy
Government privatizes “commanding heights”
Yeltsin and capitalist “oligarchs”
vs.
red directors
Power in hands of an elite few
Corruption

24. Impact of Shock Therapy
Massive Inflation
1986: 20 rubles=$1
1997: 5,500 rubles=$1 2011: 30 rubles=$1
GDP: 1989=500 billion =195 billion
Unemployment: no govt. secured jobs.
1998: 12%
16% of population lived on $1-$2 a day.
Huge gap between rich and poor
Public faith in a market economy dwindled.
1997: Government defaulted on debt.

25. Vladimir Putin Former KGB spy Prime Minister under Yeltsin (1999)
Acting president after Yeltsin resigned
Won presidential election (2000 & 2004)

26. Putin & Economy Stabilized economy after Yeltsin’s 1990s. GDP
1999=195 billion
2009= 1.2 trillion
Increase of foreign direct investment (FDI) in Russia
Major exporter of oil.
Modernization