War Communism ended all forms private capitalism, and took complete control of the distribution of food. Under of War Communism, Banks and key industries in the country were nationalized. All factories with more than ten workers were also nationalized. Private trading and private property were banned, free market in grain was heavily penalized. All citizens had to work under the direction of the state. The government took over the distribution of food, clothing and fuel in the cities. Paper currency was replaced by payment in goods and services. Instead of receiving cash wages, people only got ration cards which stated how much food and other necessities they should obtain. Also, former civil servants were replaced by the members of the Communist Party who were uneducated and untrained. Discipline for workers was strict, strikers could be shot.
There was a great shift in policy when War Communism was replaced by the New Economic Policy. Compared to War Communism, the NEP was simply a contrast in terms of content, and a relaxation of the Communist control. Under the NEP, instead of grain requisitioning (in War Communism), peasant were allowed to sell their surplus after a fixed tax in grains was paid. The NEP re-introduced banking and paper currency, which were banned in War Communism. Private ownership was allowed and small private business of smaller industries was back. Yet, the state still maintained state ownership of heavy industries such as coal, iron and oil mining. Restrictions on political activity were somehow eased, after the absolute policy in War Communism.
As a result, the implementation of War Communism led to strong opposition of the peasants. They lost their incentive to work, and were unwilling to hand over the grain they produced to the state. Agricultural production dropped sharply, food shortage thus became acute. Great famine broke out in 1921, 7 million people died of starvation. Industrial production also declined rapidly. Corruption of the Bolsheviks members created an inefficient bureaucracy.
Nevertheless, the New Economic Policy succeeded in creating an economic recovery after the devastating effects of the First World War, the Russian Revolution and the Russian civil war. The agricultural and industrial production had been restored to the 1913 (pre-WWI) level. The government regained people’s confidence.
In conclusion, both War Communism and the New Economic Policy were implemented to resolve economic problems. In terms of content, War Communism was truly a set of policies under pure communism, while the NEP was against the principle of communism. However, eventually, War Communism led to an economic collapse, while the New Economic Policy resulted in an economic recovery.
