"The task was superhuman:
of bringing order out of the economic chaos"
Writeup in commemoration of the Great Socialist October Revolution
regarding the development of the Soviet Economy in its first few years
towards the implementation of the First Five-year plan
regarding the development of the Soviet Economy in its first few years
towards the implementation of the First Five-year plan
Admittingly speaking, it seems that based from old pictures and movies concerned, it shows that the earlier years of the Soviet Union meant restoring stability, creating a new order, as well as consolidating it further with developments "better" than its tsarist predecessor.
With its numerous projects, long term agendas, and means all in pursuit of surpassing capitalism and being an inspiration to the repressed peoples, the Soviet Union, in spite of its probems and shortcomings, and even its eventual demise in 1991 will always be an example of how a socialist country acted both pragmatically and idealistically in pursuit of "making an another world possible."
For sure not all would agree on that statement especially to those who unjustly equate socialism, or even communism to those of chaos and systematic disorder; but, come to think that the Soviet Union and other socialist countries stubbornly pursuing its goal of building a future far from capitalism, it also shows that how the power of an organised community, forged by a common vision and program, can beat the old order in spite of the latter's attempts to undermine its efforts be it martial or economic means.
That also somehow showed how class struggles can also be in a form of proletarian countries fighting against its plutocratic counterparts.
At first, one would think during those times that the political structure during the earlier days of the Soviet Union was considered temporary, as if like a scaffolding around a building that was preliminary to the erection of a permanent structure. Quite "weak" in its setting, and in it it requires to be stabilised as possible; and in spite that there were reports stated that those who studied Bolshevism under Lenin as being described as more than that a group of murderers, thieves, and bandits, Lenin, as well as the Bolshevik's view and its application of Marxism in a Russian setting worked out in much detail, with an organisation so quickly applicable and as others described, forcefully applied when the opportunity came that creates a control they has crystallised into something much more "permanent".
And in it one of the first difficulties encountered by the Bolsheviks in their consolidation was an economy whose tendency amongst producers to run their affairs solely without considering people's interests. Thus, the need for correlation and interlocking of industries was imperative and necessary.
To achieve the need for correlation, a need for a "Supreme Soviet of the National Economy" or Veshenka has to be created. According to an Asia Magazine article made by Wilfred Humphries last January 1918, that Veshenka started from a few representatives coming from the industrial unions, shop stewards committees, and technical experts, together met in a building overlooking the Neva. There numerous concerns like famine, lack of raw materials, sabotage, crippled railroads, counterrevolution and imminent invasions, made them compel to take the task of setting the foundations of a new economy under socialism.
Also by the thought of exploring and developing the forests from the north, the fisheries of Russia's seas, the oilfields of the Caucasus, the iron, copper, and gold mines of the Urals, and the existing railroads and bridges to repair and new ones to be built, such numerous concerns made then felt that the task was superhuman: "of bringing order out of the economic chaos."
However, Five months after its initial foundation, an all Russian conference of the newly-formed regional economic councils was organised, this time through a decree coming from the Council of People's Commissars (Sovnarkom) and from the All-Russian Central Executive Committee of Soviets of the Russian Socialist Federative Soviet Republic. In it, the Veshenka had become an institution serving as a center of the new economic life of the soviets. Its stated purpose was to "plan for the organization of the economic life of the country and the financial resources of the government", and was subordinated to the Sovnarkom with a representative that also served as a commissar of that said "ministry". And in it had rights of confiscation and expropriation of assets, particularly those from the enemy.
Due to its important role in administering the economy, the Vesenkha, along with the Sovnarkom, was being prominent as a political body, and was struggling to preserve the existence of the socialist state and of the revolution from its enemies, or as what Philips Price well puts it:
"The supreme council of public economy was the tool designed to create the new order in Russia; the Soviet was only the temporary weapon to protect the hands that worked that tool."
True indeed, but that Soviet, being a form of a collective practising direct democracy, turns out to be the permanent weapon to defend against the enemies of socialism, and a tool to build the country towards its socialist future. Sounds idealistic it may be, but Capitalists around the world were surprised in the sudden developments of the young Socialist state; that shows that contrary to what the article from Asia Magazine stated that the soviet order as a temporary scaffold, nope, it rather became a foundation to create an order far from what capitalists and reactionaries expected as "weak" and "likely to crumble." in fact, from that Soviet sprang an army sworn to defend and to build, creating examples to the struggling nations especially those from the third world.
There were numerous plans the Soviet Union did in its earliest days, some of which were agreeable, others were worth opposing. The War Communism policy for instance, was made in pursuit of stressing order as much as possible and at the same time trying to set foundations, all as if encountering birth pains that requires control. And such arduous task was superhuman enough for a single entity but the unity brought about by the worker and the peasant has brought numerous results ranging from defence, production, distribution, and other numerous developments that requires intervention. The Vezhenka's (as well as the Sovnarkom's) surgical action meant consolidation: it had to confiscate assets from the enemies of the revolution, taking take possession of goods coming from the peasants, enforcing order in the industrial bases to the point that it had been military-like, and ensure the needs of the workers with necessary goods; critics may insist that the policy was unjust if not full of flaws, but that task was superhuman enough especially in those times of war against the enemies of the revolution, who again thinks that their society be end crumbled and destroyed as what happened in Paris several decades ago.
But in speaking of that flaws, these were recognised knowing that in spite of trying to enforce order it alienated those who are meant to support with: peasants, and some of the workers as well as the military. Lenin saw that policy as much as possible "temporary" and meant to be shelved over as much as possible. for as according to the statement recognising the need for a "New Economic Policy" (NEP) and the need to reestablish relations with the peasantry:
"Up to now we have been adapting ourselves to the tasks of war; we must now adapt ourselves to the conditions of peace. The Central Committee is faced with this task - the task of switching to the tax in kind in conditions of proletarian power ... With the Civil War on, we had to adopt war-time measures. But it would be a very great mistake indeed if we drew the conclusion that these are the only measures and relations possible. That would surely lead to the collapse of the Soviet power and the dictatorship of the proletariat ... We must recognise the need to grant concessions, and purchase machinery and equipment to satisfy agriculture, so as to exchange them for grain and re-establish relations between the proletariat and the peasants which will enable it to exist in peacetime conditions."
Lenin as well as the entire Soviet authority even had to deal realistically and critically especially with the capitalists as part of the country's minimal improvements. The dictum "We are taking one step backward, to take two steps forward later" did showed a pragmatic move as necessary than pursuing literally a goal that may rather lead to failure. For as what he said:
"...tasks on the economic front are much more difficult than tasks on the war front, although there is a general similarity between the two elementary outlines of strategy. In attempting to go over straight to communism we, in the spring of 1921, sustained a more serious defeat on the economic front than any defeat inflicted upon us by Kolchak, Denikin or Pilsudski. This defeat was much more serious, significant and dangerous."
Such impressions hath pulled over the young Socialist state from the ashes of war and towards an era of development. There it removed social tension, strengthening the social base of Soviet power in the form of an alliance of workers and peasants as part of consolidating proletarian power; whilst its economic goal was to prevent further aggravation of the devastation, getting of the crisis and to restore the economy; and its social goal was to provide favorable conditions all prior to building a socialist society, without waiting for a world revolution. In addition, the policy was aimed at restoring normal foreign policy ties especially in non-socialist countries and to overcome international isolation.
All in all, that temporary policy was indeed "temporary" in spite of its numerous achievements. Basing on scenes from an old movie entitled "The Sixth Part of the World" by Dziga Vertov, the New Economic Policy invoked numerous developments as it tries to struggle against capitalism while at the same time accomodating some aspects from capitalism: but regulated and controlled by the state.
In regards to Agriculture and of the status of the peasantry, agricultural production increased greatly, but instead of the government taking all agricultural surpluses with no compensation as in the case of "War Communism", farmers, while paying a "Food Tax", now had the option to sell some of their produce, giving them a personal economic incentive to produce more grain. This incentive, coupled with the breakup of the quasi-feudal landed estates, surpassed pre-Revolution agricultural production.
However, as production increases, peasants, particularly Kulaks (Rich Peasants), began withholding their surpluses in wait for higher prices, or sold them to "NEPmen" (traders and middle-men) who re-sold them at high prices. Many Communist Party members considered this an exploitation of urban consumers. To lower the price of consumer goods, the state took measures to decrease inflation and enact reforms on the internal practices of the factories. The government also fixed prices, in an attempt to halt the scissor effect*.
In regards to Industry, trusts were created, in a form of associations of homogeneous or interconnected enterprises, which received full economic and financial independence, up to the right to issue long-term bonded loans. The trusts themselves decided what to produce and where to sell the products. The enterprises that were part of the trust were removed from the state supply and switched to purchasing resources in the market. Syndicates were also formed as voluntary associations of trusts on the basis of cooperation , engaged in sales, supply, lending, and foreign trade operations. And finished products, purchase of raw materials, materials, equipment was carried out in a full-fledged market, through wholesale trade channels. There was a wide network of commodity exchanges, fairs, trade enterprises.
But one of the significant parts of the policy was when foreign capitalist entities engaged through agreements. For example, the Ford Motor Company contributed in the development of USSR by allowing AMTORG (a purchasing company connected to Vezhenka) to purchase 20,000 Fordson tractors and enter joint partnerships with the young Socialist state in manufacturing automobiles and tractors. However, Ford, as what Douglas Brinkley writes in “Wheels for the World,” firmly believed that in introducing capitalism lies the best way to undermine communism.
But again, the "New Economic Policy" cannot be considered permanent. Even Lenin himself knew that the policy was a strategic retreat and it had to be replaced afterwards as the Soviet Union becomes a full-pledged socialist state. Numerous problems did occurred, and some became a factor to have the policy be replaced altogether with an agenda truly geared towards Socialism.
It was also during the NEP when Trotsky, supported by left-wing members of the Communist Party, believed that socialism in Russia would only survive if the state controlled the allocation of all output. He also believed that the state should repossess all output to invest in capital formation. On the other hand, Stalin supported the more conservative members of the Communist Party and advocated for a state-run capitalist economy. Stalin managed to wrest control of the Communist Party from Trotsky. After defeating the Trotsky faction, Stalin reversed his initial opinions about economic policy and implemented the First Five-Year Plan as part of completing the transition towards Socialism (that involved state control and collectivisation of agriculture).
Since the second half of the 1920s, the first attempts to curtail the NEP began. Syndicates were eliminated in industry, from which private capital was administratively squeezed out, a rigid centralized system for managing the economy was created. The failure of state grain procurements at the end of 1927 did also contributed to the stoppage of the policy. And at the end of December, measures for the forcible seizure of grain stocks were applied to the Kulaks for the first time after the end of "war communism". In the summer of 1928 they were temporarily suspended, but then resumed in the autumn of the same year.
In October 1928, the first five-year plan for the development of the national economy was launched, and the country's leadership took a course toward accelerated industrialization and collectivization. Legally and finally, the New Economic Policy was terminated only on October 11, 1931, when it was adopted a resolution on the complete prohibition of private trade in the USSR. And in 1932, the Vesenkha, originally served as a council overseeing the economy, was reorganized into three people's Commissariats: of the heavy industry, light industry, and forestry.
But in speaking of that flaws, these were recognised knowing that in spite of trying to enforce order it alienated those who are meant to support with: peasants, and some of the workers as well as the military. Lenin saw that policy as much as possible "temporary" and meant to be shelved over as much as possible. for as according to the statement recognising the need for a "New Economic Policy" (NEP) and the need to reestablish relations with the peasantry:
"Up to now we have been adapting ourselves to the tasks of war; we must now adapt ourselves to the conditions of peace. The Central Committee is faced with this task - the task of switching to the tax in kind in conditions of proletarian power ... With the Civil War on, we had to adopt war-time measures. But it would be a very great mistake indeed if we drew the conclusion that these are the only measures and relations possible. That would surely lead to the collapse of the Soviet power and the dictatorship of the proletariat ... We must recognise the need to grant concessions, and purchase machinery and equipment to satisfy agriculture, so as to exchange them for grain and re-establish relations between the proletariat and the peasants which will enable it to exist in peacetime conditions."
Lenin as well as the entire Soviet authority even had to deal realistically and critically especially with the capitalists as part of the country's minimal improvements. The dictum "We are taking one step backward, to take two steps forward later" did showed a pragmatic move as necessary than pursuing literally a goal that may rather lead to failure. For as what he said:
"...tasks on the economic front are much more difficult than tasks on the war front, although there is a general similarity between the two elementary outlines of strategy. In attempting to go over straight to communism we, in the spring of 1921, sustained a more serious defeat on the economic front than any defeat inflicted upon us by Kolchak, Denikin or Pilsudski. This defeat was much more serious, significant and dangerous."
Such impressions hath pulled over the young Socialist state from the ashes of war and towards an era of development. There it removed social tension, strengthening the social base of Soviet power in the form of an alliance of workers and peasants as part of consolidating proletarian power; whilst its economic goal was to prevent further aggravation of the devastation, getting of the crisis and to restore the economy; and its social goal was to provide favorable conditions all prior to building a socialist society, without waiting for a world revolution. In addition, the policy was aimed at restoring normal foreign policy ties especially in non-socialist countries and to overcome international isolation.
All in all, that temporary policy was indeed "temporary" in spite of its numerous achievements. Basing on scenes from an old movie entitled "The Sixth Part of the World" by Dziga Vertov, the New Economic Policy invoked numerous developments as it tries to struggle against capitalism while at the same time accomodating some aspects from capitalism: but regulated and controlled by the state.
In regards to Agriculture and of the status of the peasantry, agricultural production increased greatly, but instead of the government taking all agricultural surpluses with no compensation as in the case of "War Communism", farmers, while paying a "Food Tax", now had the option to sell some of their produce, giving them a personal economic incentive to produce more grain. This incentive, coupled with the breakup of the quasi-feudal landed estates, surpassed pre-Revolution agricultural production.
However, as production increases, peasants, particularly Kulaks (Rich Peasants), began withholding their surpluses in wait for higher prices, or sold them to "NEPmen" (traders and middle-men) who re-sold them at high prices. Many Communist Party members considered this an exploitation of urban consumers. To lower the price of consumer goods, the state took measures to decrease inflation and enact reforms on the internal practices of the factories. The government also fixed prices, in an attempt to halt the scissor effect*.
In regards to Industry, trusts were created, in a form of associations of homogeneous or interconnected enterprises, which received full economic and financial independence, up to the right to issue long-term bonded loans. The trusts themselves decided what to produce and where to sell the products. The enterprises that were part of the trust were removed from the state supply and switched to purchasing resources in the market. Syndicates were also formed as voluntary associations of trusts on the basis of cooperation , engaged in sales, supply, lending, and foreign trade operations. And finished products, purchase of raw materials, materials, equipment was carried out in a full-fledged market, through wholesale trade channels. There was a wide network of commodity exchanges, fairs, trade enterprises.
But one of the significant parts of the policy was when foreign capitalist entities engaged through agreements. For example, the Ford Motor Company contributed in the development of USSR by allowing AMTORG (a purchasing company connected to Vezhenka) to purchase 20,000 Fordson tractors and enter joint partnerships with the young Socialist state in manufacturing automobiles and tractors. However, Ford, as what Douglas Brinkley writes in “Wheels for the World,” firmly believed that in introducing capitalism lies the best way to undermine communism.
But again, the "New Economic Policy" cannot be considered permanent. Even Lenin himself knew that the policy was a strategic retreat and it had to be replaced afterwards as the Soviet Union becomes a full-pledged socialist state. Numerous problems did occurred, and some became a factor to have the policy be replaced altogether with an agenda truly geared towards Socialism.
It was also during the NEP when Trotsky, supported by left-wing members of the Communist Party, believed that socialism in Russia would only survive if the state controlled the allocation of all output. He also believed that the state should repossess all output to invest in capital formation. On the other hand, Stalin supported the more conservative members of the Communist Party and advocated for a state-run capitalist economy. Stalin managed to wrest control of the Communist Party from Trotsky. After defeating the Trotsky faction, Stalin reversed his initial opinions about economic policy and implemented the First Five-Year Plan as part of completing the transition towards Socialism (that involved state control and collectivisation of agriculture).
Since the second half of the 1920s, the first attempts to curtail the NEP began. Syndicates were eliminated in industry, from which private capital was administratively squeezed out, a rigid centralized system for managing the economy was created. The failure of state grain procurements at the end of 1927 did also contributed to the stoppage of the policy. And at the end of December, measures for the forcible seizure of grain stocks were applied to the Kulaks for the first time after the end of "war communism". In the summer of 1928 they were temporarily suspended, but then resumed in the autumn of the same year.
In October 1928, the first five-year plan for the development of the national economy was launched, and the country's leadership took a course toward accelerated industrialization and collectivization. Legally and finally, the New Economic Policy was terminated only on October 11, 1931, when it was adopted a resolution on the complete prohibition of private trade in the USSR. And in 1932, the Vesenkha, originally served as a council overseeing the economy, was reorganized into three people's Commissariats: of the heavy industry, light industry, and forestry.
******
All in all, from its almost disorganised beginnings, the Soviet Union did tried its best to bring order out of chaos. War Communism meant the consolidation and means to put order in preparation for socialism while the New Economic Policy meant stabilisation with its well-built foundations served enough as a basis to make the young Soviet Union a Socialist state with its first five-year and succeeding plans.
Admittingly speaking, in looking at movies showing production and progress in that young Socialist state meant serious efforts in steering further development even it requires minimal support from capitalist countries like Germany or the United States. Companies like Ford or Buick may think that through Capitalism may undermine Communism, but instead it helped in developing further the Soviet automotive industry from its small-scale pasts; and with people's will and vision numerous hydroelectric facilities like those in Dnipropetrovsk provided further electricity in rural and urban enclaves as part of its electrification agenda; while factories like in Magnitogorsk showcased production of steel making the country as one of the biggest iron and steel producers.
Yet still it did not undermine their aspiration to overturn the Capitalist order. Time and again the so-called "free world" underestimated the Soviet Union (and by extension, the Eastern Bloc) due to its endeavour to pursue its socialistic goal, they even called numerous programs as utopic no matter how the Soviet worker, both in the factory and in the field, succeeds in its tasks the way its statement saidth that "The plan is the law, fulfillment is duty, and over-fulfillment is honor!"
"Superhuman" indeed with all its enormous tasks and requires stronger will, but with those successes, showed how a once-backward, peasant-oriented country did steered to greater heights as part of the working class's continuous struggle; if not how the world sees how Post-Soviet Russia became as of today.
"Superhuman" indeed with all its enormous tasks and requires stronger will, but with those successes, showed how a once-backward, peasant-oriented country did steered to greater heights as part of the working class's continuous struggle; if not how the world sees how Post-Soviet Russia became as of today.