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Developments in the USSR
Russia’s involvement in World War I and the Russian Revolution led to a civil war, followed by foreign military intervention. These events caused the collapse of the Russian economy, resulting in widespread food shortages and a significant decline in industrial output.
Lenin was forced to implement harsh measures. The Soviet government confiscated surplus food from wealthier farmers (Kulaks) to feed the rest of the population, and markets were shut down—nothing could be bought or sold.
Industrial products were distributed to workers instead of wages, and people were urged, even coerced, to work for the collective good rather than personal gain. This bleak period, lasting from 1918 to 1921, became known as “War Communism.”
Faced with strong resistance, particularly from peasants and some members of his own party, Lenin introduced the New Economic Policy (NEP) in 1921. The harsh measures of War Communism were relaxed, allowing peasants to keep most of their produce after paying a one-tenth tax and sell it in the open market. While larger industries remained state-owned, smaller industries were returned to private ownership. Cash wages were reinstated.
In 1924, a new constitution created the Union of Soviet Socialist Republics (USSR), solidifying the socialist framework.
After Lenin’s death in 1924, a power struggle broke out within the Communist Party. Disagreements over policies led to Joseph Stalin’s rise. He defeated his rivals, becoming General Secretary of the Communist Party and quickly accumulating vast power.
Stalin then launched an aggressive industrialization program through a series of Five-Year Plans, starting in 1929. The first plan aimed to transform agriculture, which had been disrupted by the redistribution of land to peasants, resulting in inefficient, small-scale farming.
To address this, the government promoted the collectivization of farms. Peasants were forced to abandon private ownership and join collective farms, with land pooled for communal use. Those who resisted, particularly the Kulaks, faced brutal repression, with thousands dying during this period.
Industrialization was a key focus of the plan, and it achieved significant success. Within a few years, the USSR became a major industrial power on the global stage.
While capitalist economies faced a deep economic crisis during this period, the Soviet model of socialism proved effective and was later adopted by many newly independent colonies.
Despite this, most Western countries, including the United States, refused to recognize the Soviet Union until 1933, and it did not join the League of Nations until 1934.
Hostility towards the Soviet Union persisted. As fascist powers began to rise in the 1930s, the USSR was the only major nation to actively oppose them