1. Industrialization The First Five Year Plan: The First Five Year Plan: Top priority was given to heavy industry Top priority was given to heavy industry (iron, steel, chemicals, electric power, etc.); focus on production of weapons & military improvements (iron, steel, chemicals, electric power, etc.); focus on production of weapons & military improvements Low priority to light industry (consumer goods); enough to provide people with minimal living conditions Low priority to light industry (consumer goods); enough to provide people with minimal living conditions The State Planning Commission (Gosplan) determined all economic matters (wages, factories, products, etc.) The State Planning Commission (Gosplan) determined all economic matters (wages, factories, products, etc.)

2. Poster from 1930, translation reads: “We Will Turn the Five Year Plan into a Four Year One” Poster from 1930, translation reads: “We Will Turn the Five Year Plan into a Four Year One”

3. Industrialization (1 st FYP) To achieve production goals, the Communists: (1 st FYP) To achieve production goals, the Communists: 1) used propaganda  better days ahead 1) used propaganda  better days ahead Many young workers formed “shock brigades” Many young workers formed “shock brigades” 2) rewarded outstanding workers with pay differentials & social approval 2) rewarded outstanding workers with pay differentials & social approval 3) punished unsuccessful plant managers by demotion & arrest as saboteurs 3) punished unsuccessful plant managers by demotion & arrest as saboteurs Note: treat all statistics from this time with caution Note: treat all statistics from this time with caution

4. Industrialization Weaknesses of the 1 st FYP: Weaknesses of the 1 st FYP: 1) quantity put @ the expense of quality 1) quantity put @ the expense of quality 2) living standards remain low (no priority to consumer goods) 2) living standards remain low (no priority to consumer goods) 3) people could lose their jobs if they were sick; simple errors & accidents were labeled as “sabotage” 3) people could lose their jobs if they were sick; simple errors & accidents were labeled as “sabotage” 4) factory managers under enormous pressure, may be declared an enemy of the state 4) factory managers under enormous pressure, may be declared an enemy of the state 5) secret police deployed in the factory 5) secret police deployed in the factory

5. Industrialization Second & Third Five Year Plans: Second & Third Five Year Plans: 2 nd more realistic than the 1 st 2 nd more realistic than the 1 st problems of overproduction & underproduction problems of overproduction & underproduction Fierce competition in regions for supplies resulting in unproductive hoarding of resources Fierce competition in regions for supplies resulting in unproductive hoarding of resources No open criticism leads to flaws in final production;  search for scapegoats No open criticism leads to flaws in final production;  search for scapegoats

6. Industrialization Successes of the 2 nd & 3 rd Five Year Plans: Successes of the 2 nd & 3 rd Five Year Plans: Excellent growth rates in engineering & metal-working Excellent growth rates in engineering & metal-working # of tractors triple # of tractors triple 3 rd FYP focused on “luxuries” like radios & bicycles; overshadowed by the threat of Germany (defense spending increased from 4% in 1933 to 33% in 1940 3 rd FYP focused on “luxuries” like radios & bicycles; overshadowed by the threat of Germany (defense spending increased from 4% in 1933 to 33% in 1940