Exam code: 9HI0
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Define state capitalism.
State capitalism was a transitional phase in which the state would control and manage key parts of the economy while building the foundations for socialism.

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Why did Lenin decide that workers' control was unsuitable for running industry?
Lenin decided workers' control was unsuitable because the workers lacked the expertise to run industry efficiently.
True or False?
Nationalisation in 1917–18 meant that the workers gained control of the economy.
False.
It was the Bolsheviks who gained control of the banks and factories, centralising power in the hands of the new government.
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Define state capitalism.
State capitalism was a transitional phase in which the state would control and manage key parts of the economy while building the foundations for socialism.
Why did Lenin decide that workers' control was unsuitable for running industry?
Lenin decided workers' control was unsuitable because the workers lacked the expertise to run industry efficiently.
True or False?
Nationalisation in 1917–18 meant that the workers gained control of the economy.
False.
It was the Bolsheviks who gained control of the banks and factories, centralising power in the hands of the new government.
Define Vesenkha.
Vesenkha was the Supreme Council of the National Economy, created in December 1917 to coordinate production and oversee the economy.
What did the Decree on Land of November 1917 do?
The Decree on Land abolished private ownership of land and redistributed it to the peasants.
The Decree on Nationalisation, passed in , declared that all large-scale industry would come under state control.
The Decree on Nationalisation, passed in June 1918, declared that all large-scale industry would come under state control.
Define workers' control.
Workers' control was a system in which factory committees directly managed production, setting their own targets, hours, pay and rules.
Why did Lenin argue that state capitalism was necessary in Russia?
Lenin argued state capitalism was necessary because Russia was a backward country compared to the West and not ready to move directly into communism.
True or False?
Lenin nationalised industry mainly to satisfy what the workers wanted.
False.
Nationalisation went against what most workers wanted, as many preferred workers' control; Lenin used it to consolidate Bolshevik control.
Define command economy.
A command economy is one in which the state directed all major economic decisions.
What did the creation of Vesenkha symbolise about Bolshevik economic policy?
The creation of Vesenkha symbolised the move from decentralised workers' control to central state planning.
Why did the Bolsheviks introduce War Communism?
The Bolsheviks introduced War Communism mainly to supply the Red Army with food and weapons in order to win the Civil War.
Define War Communism.
War Communism was the economic policy introduced in June 1918 during the Civil War, involving state control of industry, grain requisitioning, rationing and a ban on private trade.
True or False?
Under War Communism, peasants were paid a fair price for the grain requisitioned from them.
False.
The Cheka seized grain from peasants and they received no money for it, creating widespread hostility.
How was food rationed under War Communism?
Food was rationed according to class, with workers and soldiers receiving the largest rations and the bourgeoisie the smallest.
Define grain requisitioning.
Grain requisitioning was the policy under which the Cheka seized grain from peasants, without payment, to feed the cities and the Red Army.
What had happened to industrial output by 1921 under War Communism?
By 1921, industrial output had fallen to only 20% of its 1913 level.
By 1921, famine, particularly in the Volga region, killed an estimated people.
By 1921, famine, particularly in the Volga region, killed an estimated 6 million people.
Define the Tambov Rebellion.
The Tambov Rebellion (1920–21) was a major peasant uprising against grain requisitioning, led by Alexander Antonov, which was suppressed with extreme brutality including poison gas.
What did the Kronstadt rebels' demand for 'Soviets without Communists' reveal?
It revealed that even loyal Bolshevik supporters had turned against the regime.
True or False?
Historians agree that War Communism was purely a necessary emergency measure.
False.
Historians debate the issue: some see it as essential to Bolshevik survival, while others view it as a premature and damaging push towards socialism.
Define the Kronstadt Rebellion.
The Kronstadt Rebellion (1921) was an uprising by naval sailors demanding 'Soviets without Communists', which was crushed by the Red Army under Trotsky.
What proportion of people's food came from the black market under War Communism?
Around 60% of people's food came from the black market.
Why did Lenin introduce the New Economic Policy (NEP)?
Lenin introduced the NEP to recover from the economic collapse and political unrest caused by War Communism and the Civil War.
Define the New Economic Policy (NEP).
The NEP was the policy introduced in 1921 that reintroduced private trade and small-scale capitalism while keeping state control of large-scale industry.
True or False?
Under the NEP, all industry was returned to private ownership.
False.
Only small businesses with fewer than 20 workers were privatised; larger industry, banking and transport remained under state control.
Which medium of exchange was reintroduced under the NEP?
Money was reintroduced under the NEP, and people once again had to pay for public transport.
Define tax in kind.
The tax in kind replaced grain requisitioning, requiring peasants to give the state a portion of their produce while keeping the rest to sell for profit.
By what year had production almost returned to 1913 levels under the NEP?
By 1926, production levels had almost returned to those of 1913.
Lenin funded a mass programme using money raised by taxing the peasants under the NEP.
Lenin funded a mass electrification programme using money raised by taxing the peasants under the NEP.
Define Nepmen.
Nepmen were the new class of private traders and entrepreneurs who profited under the NEP and were condemned by the government as 'parasites' and 'class enemies'.
Which group of peasants benefited most from the NEP?
Richer peasants, known as kulaks, benefited most, which increased inequality.
True or False?
Historians agree that the NEP was simply a betrayal of communist ideology.
False.
Historians debate the issue: some see the NEP as a pragmatic 'breathing space', while others argue it was a retreat from socialist principles.
Define the Scissors Crisis.
The Scissors Crisis (1923) was the widening gap between falling agricultural prices and high, scarce industrial prices caused by uneven recovery under the NEP.
Who created the nickname the 'scissors crisis'?
Trotsky created the nickname to describe the widening gap between industrial and agricultural prices on the graph.
What did the Left argue for in the Great Industrialisation Debate?
The Left argued for rapid, state-led industrialisation and forced collectivisation, accepting that this would anger the peasants.
Define Vesenkha.
Vesenkha, the Supreme Council of the National Economy, was established in December 1917 to manage industry and finance and to set production targets.
True or False?
The Left in the Great Industrialisation Debate was supported by Trotsky, Zinoviev and Kamenev.
True.
The Left, backed by Trotsky, Zinoviev and Kamenev, wanted rapid industrialisation and forced collectivisation.
Which leaders supported the Right in the Great Industrialisation Debate?
The Right was supported by Bukharin, Rykov and Tomsky, who wanted to continue the NEP.
Define the Great Industrialisation Debate.
The Great Industrialisation Debate was the 1920s Party dispute over the pace and method of industrialisation, which divided the Party into Left, Right and Centre.
What position did Stalin and the Centre take in the debate?
The Centre, led by Stalin, took a pragmatic 'whatever works' approach before shifting towards the Left position.
The Great Industrialisation Debate laid the groundwork for the First Plan of 1928.
The Great Industrialisation Debate laid the groundwork for the First Five-Year Plan of 1928.
Define the grain procurement crisis.
The grain procurement crisis of 1927–28 occurred when peasants hoarded grain rather than sell it at low state prices, causing shortages in the towns.
What roles made Vesenkha the most important economic institution?
Vesenkha reorganised industry, nationalised banks, transport and large-scale industry, and coordinated long-term economic planning.
True or False?
Fear of war with the West made rapid industrialisation seem urgent to many Bolsheviks.
True.
Self-sufficiency through industrialisation was seen as essential to defend the USSR from capitalist powers.
Define a command economy.
A command economy is one in which the state directs all major economic decisions, including production targets and the distribution of resources.
How did Stalin use the failures of the NEP?
Stalin used the failures of the NEP to discredit the Right, win over the Left and Centre, and consolidate his own authority.
In which year did Stalin introduce the Five-Year Plans?
Stalin introduced the Five-Year Plans in 1928 to rapidly industrialise the USSR.
Define Gosplan.
Gosplan, the State Committee for Planning, set the ambitious and usually unachievable production targets for each region, factory, manager and worker.
True or False?
Gosplan and Vesenkha were the same organisation.
False.
Vesenkha managed nationalised industries, while Gosplan drew up the targets and quotas for the Five-Year Plans.
What was the focus of the First Five-Year Plan, 1928–1932?
The First Five-Year Plan focused on developing heavy industry such as coal, iron, steel and electricity.
Define the Stakhanovite movement.
The Stakhanovite movement, begun in 1935, celebrated 'shock workers' who massively exceeded their quotas in order to inspire higher productivity.
Which major transport projects were completed under the Second Five-Year Plan?
The Second Plan completed the Moscow Metro (1935) and the Moscow-Volga Canal (1937).
The First Five-Year Plan built the huge steelworks at , a new industrial city in the Urals.
The First Five-Year Plan built the huge steelworks at Magnitogorsk, a new industrial city in the Urals.
Define Magnitogorsk.
Magnitogorsk was a new industrial city built in the Urals from 1929 that became one of the USSR's largest steel-producing centres and a propaganda symbol.
Why was the Third Five-Year Plan abandoned?
The Third Plan was abandoned because the Second World War forced the USSR to switch to war production.
True or False?
The Five-Year Plans neglected consumer goods in favour of heavy industry.
True.
Everyday needs like clothing, housing and food were neglected because heavy industry always came first.
Define 'Socialism in One Country'.
'Socialism in One Country' was the aim of building a self-sufficient socialist USSR through rapid industrialisation, removing the need for foreign goods.
What did Aleksei Stakhanov reportedly achieve in 1935?
Stakhanov reportedly mined 102 tons of coal in less than six hours, fourteen times his quota, becoming the model 'shock worker'.
Why did Stalin launch collectivisation?
Stalin launched collectivisation to modernise farming, secure grain supplies and strengthen state control over the countryside.
Define collectivisation.
Collectivisation was Stalin's policy, launched in 1928, of merging small peasant farms into large collective farms to modernise agriculture and increase state control.
True or False?
Collective farms were more productive per hectare than private farms.
False.
Collective farms produced only 320 kilos of grain per hectare, compared with 410 kilos on private farms.
What was the difference between a kolkhoz and a sovkhoz?
A kolkhoz was a collective-owned farm whose members shared its profit, while a sovkhoz was a state-owned farm where peasants were paid a wage.
Define dekulakisation.
Dekulakisation was Stalin's 'liquidation' campaign against the kulaks as a class, executing thousands and deporting around 1.5 million to Siberia or labour camps.
How did grain exports change as a result of collectivisation?
Grain exports rose from under 1 million tons in 1928 to 5 million tons by 1931, helping to finance industrialisation.
During dekulakisation, around kulaks were deported to Siberia or to labour camps.
During dekulakisation, around 1.5 million kulaks were deported to Siberia or to labour camps.
Define the Holodomor.
The Holodomor (1932–33) was the man-made famine in Ukraine, meaning 'death by hunger', caused by the state seizing all food from peasants who could not meet their quotas.
By 1939, what proportion of peasant households had been collectivised?
By 1939, 99% of peasant households had been collectivised.
True or False?
Historians agree that collectivisation was a necessary and successful modernisation.
False.
Historians disagree: some see it as necessary modernisation, while others view it as a catastrophic policy causing famine and millions of deaths.
Define Machine Tractor Stations (MTS).
Machine Tractor Stations provided shared machinery to collective farms and, along with Party officials, were used to monitor the villages.
How did many peasants resist collectivisation?
Many peasants resisted by attacking officials, destroying or hiding crops and killing their livestock.
Roughly how many people did the USSR lose in the Second World War?
The USSR lost around 27 million people, which devastated its labour force.
Define the Fourth Five-Year Plan.
The Fourth Five-Year Plan (1946–50) focused on restoring heavy industry and infrastructure after the devastation of the Second World War.
True or False?
During the Second World War, Stalin allowed some private farming.
True.
Stalin allowed private farming during the war, but afterwards he reimposed collective farming and strict discipline.
What did the Fourth and Fifth Five-Year Plans prioritise?
They prioritised the recovery of heavy industry, together with increased military spending.
Define the Fifth Five-Year Plan.
The Fifth Five-Year Plan (1951–55) continued growing Soviet industry, with some limited investment in consumer goods.
By 1952, how much of the government budget went to the military?
By 1952, the military accounted for around a quarter of the government's budget.
During the Second World War, over 1,700 towns and villages were destroyed.
During the Second World War, over 1,700 towns and 70,000 villages were destroyed.
Why did agriculture recover only slowly after the war?
Agriculture recovered slowly because it was not prioritised in the Plans, leaving it underfunded and inefficient.
True or False?
Historians agree that the USSR had fully recovered from the war by the early 1950s.
False.
Historians debate this: some stress rapid industrial recovery, while others point to lagging agriculture and low living standards.
Define a scorched-earth policy.
A scorched-earth policy involved destroying towns, villages and resources so the enemy could not use them, a policy Stalin adopted during the war.
What happened to consumer goods production under the post-war Plans?
Consumer goods production doubled, but it received only 12% of government money, so shortages continued.
Why did Khrushchev shift investment towards light industry and consumer goods?
He wanted to raise living standards and increase loyalty to the regime, moving away from Stalin's focus on heavy industry.
Define the Seven-Year Plan.
The Seven-Year Plan, launched in January 1959, set out Khrushchev's economic vision to develop light industry, chemicals and consumer goods.
True or False?
Khrushchev's consumer goods were high quality and met consumer demand well.
False.
Many products were low quality, breaking down or lacking spare parts, because production met targets rather than consumer needs.
By 1965, the USSR was producing about pairs of shoes per year.
By 1965, the USSR was producing about 800 million pairs of shoes per year.
Why did Khrushchev invest heavily in the chemical industry?
He invested in chemicals to modernise agriculture and industry, especially through fertiliser production to boost crop yields.
Define the sovnarkhoz reforms.
The sovnarkhoz reforms (February 1957) decentralised economic planning by creating 105 regional economic councils to replace central ministries.
True or False?
Khrushchev's shifts between decentralisation and centralisation left the planning system unstable.
True.
Officials joked that the Seven-Year Plan was 'three plans a year', making industrial targets hard to meet.
How did fridge ownership change under Khrushchev's consumer goods reforms?
Fridge ownership rose from just 4% of families in 1955 to 44% in 1968.
In 1962, the Party announced that the USSR would reach communism by .
In 1962, the Party announced that the USSR would reach communism by 1980.
Define 'socialist abundance'.
'Socialist abundance' was Khrushchev's promise of plentiful consumer goods intended to rival Western consumer societies.
True or False?
Khrushchev reduced military spending as a share of GDP between 1955 and 1958.
True.
He cut military spending from 12% of GDP in 1955 to 9% in 1958 to help minimise Cold War tensions.
What did the sovnarkhoz reforms cause in practice?
They caused chaos and duplication of work, as factories were unsure whether to follow regional councils or Gosplan.
Why did Khrushchev make agriculture a central focus of his leadership?
He wanted to end food shortages and modernise the countryside, having defeated Malenkov on agricultural issues.
Define the Virgin Lands Scheme.
The Virgin Lands Scheme (1954) ploughed previously uncultivated land in Kazakhstan, Siberia and the Volga region to grow grain and raise agricultural output.
True or False?
The Machine Tractor Stations were expanded under Khrushchev's agricultural reforms.
False.
The Machine Tractor Stations (MTS) were abolished, causing a lack of modern farming machinery.
Khrushchev promised to raise agricultural investment by over % between 1954 and 1959.
Khrushchev promised to raise agricultural investment by over 250% between 1954 and 1959.
By 1956, how much of the USSR's grain did the Virgin Lands Scheme produce?
By 1956, the Virgin Lands Scheme produced half of the USSR's grain.
Define the Corn Campaign.
The Corn Campaign, from September 1958, aimed to grow maize, especially in Ukraine, to feed livestock and boost meat and dairy supplies.
True or False?
Farm workers' incomes rose sharply in the mid-1950s under Khrushchev.
True.
There was a 400% increase in income for farm workers as output rose in the mid-1950s.
Why did the Corn Campaign fail?
It failed because many farms had an unsuitable climate for maize, and equipment and storage remained inadequate.
Agricultural production in 1964 was only % higher than in 1958, well below Khrushchev's target.
Agricultural production in 1964 was only 15% higher than in 1958, well below Khrushchev's target.
Define Khrushchev's use of price incentives.
Price incentives were Khrushchev's policy of reducing quotas and raising the prices paid for crops in order to motivate farmers to produce more.
True or False?
Historians agree that the Virgin Lands Scheme was the single biggest reason for Khrushchev's downfall.
False.
Historians debate this: some stress agricultural failure, while others point to his erratic leadership, foreign policy failures and alienation of Party elites.
What forced the USSR to import grain from the USA and Canada in the early 1960s?
A disastrous harvest in 1963 caused severe food shortages, forcing the USSR to import grain.
Who introduced the 1965 economic reforms?
Alexei Kosygin, the new Soviet Premier, introduced the 1965 economic reforms.
Define the Kosygin reforms.
The Kosygin reforms (1965) aimed to improve efficiency by shifting the focus from quantity of production to profitability and quality, giving managers more power.
True or False?
Andropov admitted the USSR's economic problems but focused on labour discipline rather than structural reform.
True.
He launched anti-corruption and anti-alcohol campaigns and Operation Trawl, but prioritised efficiency over deeper structural reform.
Why were the Kosygin reforms abandoned by 1968?
They were abandoned because Party officials resisted losing control and the focus on profit seemed too much like capitalism.
Define 'developed socialism'.
'Developed socialism' was Brezhnev's claim that the USSR had already achieved a stable socialist society, which encouraged a conservative, risk-averse approach.
What did Brezhnev prioritise in his economic approach?
Brezhnev prioritised stability over radical change, while massively increasing military spending.
By 1970, military spending accounted for % of Soviet GDP under Brezhnev.
By 1970, military spending accounted for 13% of Soviet GDP under Brezhnev.
Define the 'second economy'.
The 'second economy' was the widespread black market under Brezhnev, trading scarce goods and providing illegal private services outside state control.
What was the state of Soviet agriculture by the early 1980s under Brezhnev?
Despite continued investment, inefficiency remained and the USSR was importing huge amounts of grain from the USA and Canada.
True or False?
Andropov's anti-alcohol campaign successfully ended alcohol abuse in the USSR.
False.
The measures had limited impact, and many turned to illegal home-brewing known as 'Andropovka'.
Define Operation Trawl.
Operation Trawl was Andropov's campaign to reduce absenteeism and alcohol abuse in the workplace, using the KGB to monitor and punish workers.
Which senior official was prosecuted during Andropov's anti-corruption campaign?
Nikolai Shchelokov, Minister of Internal Affairs, was prosecuted for corruption and abuse of office.
Define 'developed socialism'.
'Developed socialism' was Brezhnev's approach that favoured stability and resisted major economic reform.
Why did managers in the command economy have little reason to improve quality?
Managers met their quotas but had no incentive to improve efficiency or quality.
True or False?
High oil revenues in the 1970s meant the Soviet economy had no serious underlying problems.
False.
High oil revenues masked severe economic issues; when oil prices fell in the early 1980s, the underlying weaknesses were exposed.
Soviet oil production rose from 243 million tons in 1965 to million tons in 1980.
Soviet oil production rose from 243 million tons in 1965 to 603 million tons in 1980.
Define economic stagnation (late Brezhnev era).
Economic stagnation was the state of the late-Brezhnev economy, marked by slowing growth and falling productivity.
What share of GDP did the USSR spend on the military by the early 1980s?
By the early 1980s the USSR spent an estimated 15–17% of GDP on the military, compared with around 6% in the USA.
Define private plots.
Private plots were small, privately farmed areas that supplied a disproportionate share of the USSR's food.
Why did the USSR increasingly import grain from the USA and Canada?
Because collective farms underproduced and harvests were often poor, the USSR increasingly imported grain from the USA and Canada.
True or False?
Historians agree that the Soviet economy was doomed and could not have been saved.
False.
Historians disagree: some, like Orlando Figes, argue the regime could have 'soldiered on', while others, like Alec Nove, saw the structural problems as fatal.
Economic growth fell from around 5–6% a year in the 1950s to less than % by the early 1980s.
Economic growth fell from around 5–6% a year in the 1950s to less than 1% by the early 1980s.
Define the arms race (economic impact).
The arms race with the USA diverted massive Soviet resources into defence, starving consumer goods and infrastructure of investment.
What happened to Soviet income when global oil prices fell in the early 1980s?
When global oil prices fell in the early 1980s, Soviet income collapsed, exposing the weakness of its wider economy.
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