Everything But The Weed

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Mikhail Gorbachev (1931- ) wasn’t the first to introduce Perestroika – the economic liberalization of the communist system along capitalistic lines.

Throughout the Russian civil war (1918-1922) the Bolsheviks implemented what they known as “War Communism” (1917-1921), the militarization of the economy. Between 1916 and 1920, industrial output plunged by around four fifths. Grain harvests in both 1920 and 1921 disastrously lost, triggering widespread starvation, claiming five million lives. A number of rebellions of sailors broke out, most famously in the Krohnstadt naval base.~In the years from 1918 to 1922, in the midst of the civil war in Russia, the Bolsheviks implemented a system referred to as “War Communism” in which businesses and industries were nationalized from 1917 to 1921. The policy had a negative result in the economy and during 1916 to 1920, the industrial result declined significantly. Grain production in 1920 to 1921 severely dropped which led to wide famine that also claimed millions of lives. Rebellions and protests started; several sailors headed one of the most known uprisings in the naval base of Krohnstadt.~It was in the course of Russia’s Civil War that the Bolsheviks started what was called “War Communism”; it was an economic plan expropriating all businesses, implemented in 1917 until 1921. This plan resulted in the dramatic drop of the economy.  The production and also growing of crops from 1920 to 1921 were badly affected as well as its resulting shortage resulted in country wide famine and the death toll hit to 5 million. Riots and protests were everywhere; with the Krohnstadt rebellion being one of numerous uprisings led by Soviet sailors.

To keep power and avoid the economy from falling apart, Vladimir Lenin (1870-1924) suggested a New Economic Policy or the NEP. Under the NEP, trading was permitted and even production in the industrial and agricultural sectors. The peasants were still required to turn over a percentage of their output but any surplus were theirs to keep or even to sell for profit.

In stark departure from communist belief, farmers could rent land and employ laborers. The state started on an ambitious privatization program of small and also medium size enterprises, though it maintained control of the finance, transportation, heavy industry, and foreign trade sectors (the “commanding heights”, as they were referred to as during the time).

In 1921-2, Lenin re-introduced money to re-monetize the economy that’s consisted of barter, quotas, and centrally issued economic directives. Within lower than seven years, production in a lot of areas of the economy reverted to pre-revolutionary levels. Nor did the NEP die with Lenin. It continued for 4 years after his death in 1924.

The NEP had its own share of flaws.

NEP was characterized by inflation and the demand to cap the prices of non-agricultural goods. Peasants hoarded grain for speculation purposes. A black market in goods was made by Nepmen – private traders. Communist party General Secretary Joseph Stalin (1879-1953), reinstated agricultural production quotas in 1929, collectivized all arable land, and criminalized private trading in 1930. In 1928, he promulgated the first Five-Year Plan (1928-1932) and also central planning replaced market mechanisms. The NEP was dead.

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