War Communism

In late 1917 / early 1918, the Bolshevik government which had just seized control of Russia was faced with a civil war to retain power. To combat the difficulties faced in the war, to keep the collapsing economy moving, and to impose socialist ideology, a new economic policy was introduced in June 1918; it was later (1921) called War Communism. Historians are divided over the weight to give these factors: left leaning writers often say it was pragmatic, right leaning ones a result of Lenin’s ideology. War Communism involved massive centralization and nationalization, as the state took control of private business and the requisition of foodstuffs, instead of allowing a market economy. In two years all the major industry was under central government control.

The results of War Communism were a disaster. As all surplus food was taken by the government – troops were sent in to take it when necessary - peasants had no incentives to produce more than they needed and production collapsed, causing starvation in the urban areas. The Bolsheviks blamed hoarding and tried to overcome it through execution. US aid was used to feed millions and five million may have starved to death. Meanwhile in the cities industrial output fell thanks to the new, and thus untrained and inexperienced, government bureaucracy which was put in charge of production. Money became practically worthless, and free trade was almost entirely banned. Some of these effects were desired by the top level Bolsheviks, as they intended War Communism to be part of their civil war, targeting internal class enemies.

Opposition to War Communism became crystallised in early 1921 after the end of the civil war, with strikes and rebellions. Consequently, Lenin introduced a more pragmatic ‘New Economic Policy’ despite high ranking Bolshevik economists wanting it to continue.