Following the October Revolution
the Bolsheviks faced the awesome task of administering and directing a
national economy. As professional revolutionists they had little opportunity
or reason to concern themselves with problems of practical economic
administration. As Marxists they had definite ideas on current economic
questions and issues of the day but they disagreed heatedly among themselves
as to how Marxist doctrine should be applied to the problem of running and
administering Russia,s national economy.
Lenin then advocated state capitalism on the model of the German war
economy, but state capitalism controlled and directed by workers' and party
organs that had emerged during the revolution. Influenced by German Social
Democratic writers, Lenin believed that banks occupied a key position in the
modern capitalistic economy and that they offered successful revolutionists
a simple and convenient means to regulate an economy without resorting to
extreme and drastic measures to reshape its general structure and
In December 1917 banks were nationalized and foreign and internal loans
contracted by the tsarist and Provisional governments were annulled. Lenin
knew that many capitalists and plant managers were hostile to the Bolshevik
regime and wished to create for it economic difficulties; but he saw in
workers' factory committees, which observed management and actively
participated in the determining of basic factory policies, a means of
controlling management. From the time he wrote "State and Revolution" in the
summer of 1917 and until the spring of 1918, Lenin had great faith in what
could be accomplished through workers' control and the revolutionary
enthusiasm of the masses.
But the economic crisis and chaos produced by the uncontrolled and
indiscriminate nationalization of factories soon alarmed Lenin and caused
him to return to the instinctive distrust of all spontaneous mass movements
he had displayed earlier in "What Is To Be Done" and other works. His
growing concern about the unsatisfactory performance of Russia's economic
became particularly evident in March 1918, when he insisted on worker
discipline in the factory and called for increased productivity with the
help of bourgeois specialists and even of capitalists willing to cooperate
with the Communist government.
Left Communists were dissatisfied with Lenin's economic program throughout
the fall, winter, and spring of 1917-1918. Demanding the immediate
nationalization of basic industry and the radical transformation of old
Russia into a new socialistic society, they sharply criticized Lenin's ideas
on state capitalism. They also argued for central direction of the economy
and economic planning before Lenin did, and it was largely upon their
initiative that a Supreme Council of the National Economy was founded in
When Lenin emphasized the importance of worker discipline, they accused
him--and with some justification--of having betraying the ideals he had
formulated in his "State and Revolution". They denied the necessity of
discipline imposed on the workers from outside the factory; such discipline
was only required in dealing with such class enemies as bourgeois
technicians and specialists. Worker discipline, in their opinion, was
something that the workers should agree upon among themselves. The program
of War Communism adopted in the second part of 1916 was essentially a
compromise between the position of Lenin and that of the Left Communists.
In accord with the view of the Left Communists, the Soviet state pushed
ahead on the road to rapid nationalization and revolutionary transformation
of society and made every effort to subordinate the entire economy to
central guidance and direction. Under War Communism, however, the influence
workers' factory committees had attained in 1917 over internal
administration and management of factories was no longer viewed with favor.
By mid-1918 it had become clear to Lenin and others that that workers, if
left to their own devices, could not be depended on to practice labor
discipline and to maintain a level of production required to provide the
army with the arms and supplies it needed to conduct military operations.
Communist leaders therefore began to look more and more to unions, which by
this time had been thoroughly Bolshevized, as a means of subjecting workers
to the strict control of the state. The Left Communists continued to
question the need for such control; but the prevalent view among Communist
leaders during the Civil War was that unions should serve primarily as
instruments for the supervision and mobilization of labor. This attitude was
also reflected in the decision of the fall of 1918 to introduce compulsory
labor for all citizens between the ages of 16 and 50.
The Supreme Council of the People's Economy soon ceased to be a council and
rapidly evolved into a bureaucratic organ of the state. New organs
subordinate to the Supreme Council appeared in the second part of 1918 as
the needs of the war economy and the problems of nationalized industry
increasingly complicated the task of controlling and coordinating the
national economy. These subordinate bodies were established fall all the
principal branches of Russian industry-- chief oil committee, chief tobacco
committee, textile center, etc. -- and to a considerable extent Staffed by
former plant owners, mangers, and specialists.
The Left Communists naturally criticized the employment of bourgeois
specialists and experts in the industrial committees and centers as
dangerous bureaucratization of the administration of the national economy;
but such criticisms were necessarily ignored because the services of these
specialists were urgently needed to check the growing confusion and chaos in
the management and operation of Russian industry.
The control of the peasantry and delivery of food to the army and towns
proved to be equally vexing problems. Early in 1918 food shortages became
critical in Petrograd and Moscow. The Bolsheviks tried to meet this crisis
by going to the people in their own fashion. In mid-1918 Poor Peasants.
Committees were formed, and Bolshevik workers were sent out into the
countryside to lead the poor peasants in revolt against kulaks and to assist
in requisitioning food supplies for Petrograd, Moscow, and other towns and
Every effort was made to induce poor peasants to cooperate with the
government in the organization of collective farms and to participate in the
'.transition from small, individual farms to the socialized working of the
land." Bolshevik efforts during 1918 to promote class warfare and socialism
in the Russian village were not, however, very successful; for even
so-called poor peasants were then disinclined to accept Bolshevik plans for
collectivization. The peasantry as a whole had benefited from the division
of former private estates, and church and state lands; and that sending of
workers and party officials from towns into the village to requisition food
alienated almost the entire peasantry.
As long as the government could not provide the countryside with the
industrial goods it needed, there was no compelling economic reason for the
peasants to deliver foodstuffs for the towns and army. As Lenin admitted
later, the government for the most part took the peasants' surplus grain and
even food needed by their families "on credit, for paper money." Since this
paper money was practically worthless, the peasants naturally felt cheated
and therefore united in opposition to their enemies from the outside, the
principal one being of course the Communist government in Moscow.
In sum, War Communism failed to organize a productive, well-regulated
economy, but it succeeded in meeting the immediate and minimal needs of the
Communist state during the Civil War period. In regard to the countryside,
the requisitioning of grain and other products of the land was a defensible
and, temporarily, even a successful policy; however, it soon led to peasant
resistance in the form of a producers' strike and a reduction in the acreage
under cultivation. In regard to towns and industrial centers, official
policies under War Communism probably slowed the rate of decline in labor
productivity and helped to introduce an element of system and order into the
general picture of unmanageable economic chaos caused by local control in
the hands of workers, factory committees.
Now Russian industry was subordinated to the coordinating direction of the
Supreme Council, and millions of people were mobilized for compulsory labor
service. Supreme Council control over industry and the labor force was,
however, often more apparent than real, for many industries functioned
rather independently of Supreme Council directives by limiting their
production to items that could be bartered locally. Moreover, the Supreme
Council was powerless to counteract the effects of central Russia's having
been cut off from supplies of food, raw materials, and fuel from the
Ukraine, the Caucasus, and Central Asia. Total industrial production
continued to fall until 1920, when Russian industry produced approximately
l4% of what it had in 1913.
Nevertheless, the nationalization of industry and the efforts of the Supreme
Council to control and coordinate the economy and labor force gave the
Bolsheviks and overall view of available human and material resources, which
enabled them to organize munitions production and army supply much better
than could their White opponents. This in itself was a considerable
achievement and an essential ingredient of the Bolshevik's ultimate victory.
The year 1921 was a crucial turning point, for during this year Communist
leaders adopted a line of action that combined firm control from above with
a relatively non-doctrinaire economic and cultural policy calculated to
lessen tensions between the ruling party and the majority of the population.
At the end of February and early in March 1921 Kronstadt sailors revolted
against the Communist government in Moscow that ruled in the name of "the
dictatorship of the proletariat." The Kronstadt sailors had been the
Bolsheviks most loyal supporters in 1917; however, since then their
enthusiasm for Russia's new rulers had cooled as the Communists proceeded to
eliminate all competing socialist parties from politics and to rule Russia
no less harshly and authoritarianly than did the officials of the tsar prior
to the Revolution.
The Kronstadt insurgents, therefore, demanded, among other things,
reelections for the Soviets "by secret ballot," "freedom of speech and press
for workers, peasants, and left socialist parties," freedom of assembly,
liberation of political prisoners, abolition of the privileged position of
the Communist Party in Russian society, abolition of food requisitioning
squads, and the right of the peasants to utilize their own land as they saw
fit as long as they did not use hired labor. After March 2, a Provisional
Revolutionary Committee led the struggle of the Kronstadt garrison against
the Soviet government. Beginning on March 7 War commissar Trotsky had the
island shelled and ordered Red Army assaults .cross the ice of the Gulf of
Finland until the fortress finally fell on March 18.
The survivors of the garrison of some 14,000 men--except those who escaped
across the ice to Finland--were either imprisoned or shot. No public trial
was held because a proletarian revolt was an extremely delicate issue in a
self-styled workers' society. General unrest among Russian workers and
peasants helped to spark the Kronstadt revolt. In February 1921 a wave of
strikes had challenged Communist authority in Petrograd. These strikes
registered worker protest against the regimentation of labor and against the
use of force to prevent hungry urbanites from foraging for food in the
The peasants resented above all the Communists grain requisitioning, and
during 1920 and 1921 a number of violent peasant uprisings occurred in the
Central Agricultural Region of the Ukraine, the Urals, and western siberia.
suppression of peasant revolts in the Ukraine and in the Tambov region
southeast of Moscow required large concentrations of Red Army troops. Makhno,
now an enemy of the communist regime, held out in the Ukraine until August
1921, when he was finally forced to flee into Rumania.
The Communists had clearly failed during the first four years of their rule
to bridge the gap that had always separated the state from society in
Russia. In 1921 the state was still viewed by the overwhelming majority of
its citizens as an essentially hostile force that tyrannized over them with
bureaucratic red tape and police controls.
Lenin realized that the climate of opinion in Russia was hostile to the
government and that the populace, particularly the peasants, had to be
placated. Thus in the spring of 1921 he proposed the New Economic Policy (NEP)
, which replaced grain requisitioning with a tax in kind more acceptable to
the peasants and permitted privately owned small-scale industry and peasants
to market their products freely.
The partial revival of capitalism implied by NEP as well as increasing
concentration of power and decision making in the hands of a small number of
party leaders gave rise to widespread criticism in Communist and workers.
circles. From the very beginning Lenin and a few close associated decided
basic party policy' and they continued to do so after the Bolshevik seizure
of power in October 1917.
Indeed, the conquest and consolidation of Bolshevik power and the Civil War
emergency called for more, not less, centralized direction; and the
influence of workers over Russia's economy and political life could only
decline as Bolshevik leaders began to make wider and wider use of trade
unions as a means of mobilizing and regimenting labor. In March 1919 the
Eighth Party congress institutionalized control from above by approving the
creation of three new central party organs: The Politburo, the Orgburo, and
the Secretariat. The death of Sverdlov (on whose shoulders tasks of routine
party administration had primarily rested) on the eve of the congress and
the Civil War crisis seemed to justify such action at the time' but after
the Civil War had ended the bureaucratic apparatus of the central party
continued to grow.
The two chief Communist opposition groups in the early 1920's were known as
the Democratic Centralists and the Workers' Opposition. The democratic
centralists chose one of Lenin.s favorite slogans to describe their ideal of
party organization. Lenin had always, in principle at least, been concerned
with the furthering of inner-party democracy, but in practice he quickly
came to distrust the political maturity of Russian workers and therefore
almost invariably relied on central direction from above. The democratic
Centralists, on the other hand, emphasized the necessity of decentralizing
and minimizing bureaucracy within the party.
The second group, the Workers. Opposition, not only advocated more party
democracy but also objected to the subordination of workers and trade unions
to excessive control by the party. In addition, the Workers' Opposition
condemned NEP for its sacrifice of workers' interests for the sake of the
peasants. Within the frame of reference of Marxism, it was of course the
proletariat, not the backward peasantry, that was supposed to play a leading
role in the building of a future socialist society.
Lenin feared that such criticism would weaken party discipline and create
difficulties for party leaders in carrying out policies that seemed
essential for the further consolidation of Communist power in Russia.
Criticism of NEP was especially unwelcome because of this policy's assigned
role of lessening peasant hostility to Communist rule and of setting into
operation economic forces that were to restore agricultural and industrial
production to the level of pre-1914 tsarist Russia. Consequently, Lenin
considered it necessary to limit freedom of discussion within the party and
workers' groups; he particularly concentrated on the party because here was
the main center of power in Soviet Russia. Up to this time a certain degree
of democratic discussion had been encouraged. Until the Tenth Party Congress
of March 1921, party members had been permitted, "within the limits of
Communism," to form groups and canvas for votes; but the Kronstadt revolt
and the economic and political crisis of 1921, peasant dissatisfaction, and
opposition within the party persuaded Lenin that the organization of party
opposition groups could no longer be tolerated.
The key word at the Tenth Party Congress was "factionalism," which was
defined as "the rise of groups with special platforms with the aim to shut
themselves off to a certain extent and to create their own group
discipline." To meet the danger of factionalism, all party organizations
were ordered to keep a constant watch for factional activities, and the
Central Committee was, in a secret resolution, given "plenary powers" to
deal with cases of factionalism, namely, to expel rank- and-file members
from the party and to transfer members of the Central Committee to the
status of candidates.
As an "extreme measure," even members of the Central Committee could be
expelled. These measures, however, did not necessarily end all discussion
and criticism within the party. On the contrary, discussion of various
points of view continued to be encouraged up to the point that a definite
policy had been established in regard to a given issue. But after such a
policy had been formally accepted by the party, the organization of groups
in opposition to this policy was strictly forbidden.
These rules helped Lenin to surmount a serious political and social crisis,
to minimize opposition to NEP, and to proceed with the reconstruction of
Russian society after seven years of war, revolution, and internal discord.
The factionalism rules can therefore be easily justified and defended; yet,
they had a negative side, too, for these rules could be used for
illegitimate as well as legitimate purposes.
Once the crises of 1921 was overcome there was little to prevent one small
clique or another within the party leadership from using these rules as a
convenient means to seize power for itself and to silence honest opposition.
This, indeed, was exactly what happened as Stalin emerged as Lenin's
successor in the course of the 1920's.