During this period Russia’s economy was completely transformed. It became a Communist economy. This meant that the state rigidly controlled and planned all economic activity. This was done through Gosplan, the State Planning Commission. A large number of ministries or government departments were established. These issued orders or instructions: commands that were passed down to the local factories, businesses and farms. Gosplan drew up a series of plans known as the Five Year Plans. There were three Five Year Plans. These set targets or goals that industries and agriculture had to achieve. In practice the emphasis was on over-fulfilling – achieving more than the set targets, rather than only meeting them. Such a system discouraged individual initiative. For instance a factory manager received his instructions (commands) and simply carried them out. The state or government controlled the resources it needed to achieve the economic targets. Factories, mines, transports and farms were owned by the state. The government exercised tight control over the labour force. Ordinary workers were harshly disciplined. There were heavy punishments for poor workmanship and absence. The state told workers where to work. Millions of peasants were directed into the towns and cities to work in the factories and mines. Heavy industries were given priority. Consumer industries were almost totally neglected. Agriculture was reorganised for the benefit of industry.
Each plan had particular objectives and targets so that the overall aims of transforming Russia into a powerful industrialised country could be achieved. The first Five Year Plan 1928 – 1932 aimed to expand and modernise existing industries, establish new industries and relocate industries in the west further eastward so they would be more secure from a possible attack by the West. Unrealistic targets were set: a 250% increase in total industrial output and a 350% increase in heavy industry. The plan concentrated on heavy industry. The second Five Year Plans 1933 – 1937 aimed to build on the first plan as well as give more attention to improving the quality of goods. The targets were still very high but more realistic than before. The second plan was carried out more smoothly as the unskilled workers were becoming more competent and the state increased its control of the labour force. The third Five Year Plan 1938 – 1942 was interrupted by the outbreak of the Second World War in 1939 and the German invasion of Russia in 1941. At first the plan put most emphasis on consumer industries such as clothing, footwear and household appliance but with the threat of war it concentrated very heavily on defence industries as Stalin wanted to modernise and expand Russia’s military.
Even though the official government figures were greatly exaggerated, the plans did achieve quite spectacular results. Stalin declared that the first two plans achieved their targets in four, not five year's. Most historians dispute this, though they acknowledge that the plans were remarkably successful. By the end of the 1930s Russia had become a great industrial nation. By 1940 it had overtaken Britain, a leading industrial country, in iron and steel production. Massive projects using a huge labour force led to the creation of three new industrial centres east of the Ural Mountains - secure from the West. Two notable examples are the iron and steel works at Magnitogorsk (Urals) and Komsomolsk (Siberia). There was a huge expansion in energy production as the new factories and towns required more energy. The Dnieper Dam (Donbass) was Europe's largest hydroelectric dam. It produced electricity, provided irrigation for the surrounding farmland and made the Dnieper River more easily accessible for shipping. Other major projects led to the improvement of Russia's communications system. Roads, railways and canals were built linking mines with the factories and the factories to the main centres of population. The 500-km Belomar Canal from the White Sea to the Baltic Sea was constructed almost entirely without machinery. The USSR was better able to defend itself in a long war as a result of the plans. Factories produced iron and steel that could be used for manufacturing tanks, planes and weapons. However the Five Year Plans were not entirely successful. They placed enormous demands on the people. The unrealistically high targets meant millions of workers lived in extreme hardship, working on the vast projects in the interior of Russia. The state tightened its control over the work force. For instance in 1937 workers found guilty of absenteeism were dismissed and deprived of their living accommodation which meant, in effect, starvation. The emphasis on heavy industry meant Russia's economy was unbalanced. There was a serious shortage of Consumer goods. Shops were empty; clothing was in short supply and what was available was dull and badly made; many basic household items were unavailable. The lack of consumer goods was one example of the fall in the standard of living. Because of the huge movement of people into the cities, there were not enough houses, schools and medical facilities. The workers in general were poorly paid. However by the mid- to late- 1930s things did improve as better education, medical care and paid holidays became more widely available. Worker productivity Russia was able spectacular results directed millions of unskilled workers, especially peasants from the countryside, to the various projects. Russia had a vast pool of human labour. But the amount that each worker produced compared to his counterpart in other industrial countries, was low. Overall, from the government's point of view the Five Year Plans were a great success. Russia was transformed into an industrial power. Its economy was transformed into a Communist economy. The state controlled the resources and the people.
Nauman Shahid
11.3 DXR