The conversion of our country from an agrarian into an industrial country able to produce the equipment it needs by its own efforts – that is the essence, the basis of our general line. We must so arrange things that the thoughts and strivings of our business executives are directed precisely towards this aspect, the aspect of transforming our country from one that imports equipment into one that manufactures this equipment. For that is the chief guarantee of the economic independence of our country. For that is the guarantee that our country will not be converted into an appendage of the capitalist countries.
– Joseph Stalin
(14th congress of the CPSU(B), 1925)
One of the great achievements of Socialism was the industrialisation of the USSR under the leadership of comrades Lenin and Stalin. Russia was mainly an agrarian economy before the revolution. In 1913, the contribution of industries was 42.1% of the gross output. After the first few months of revolution, the seizure of power was completed. The process of socialist construction could not be taken up immediately because Russia was struggling to recover from the World War I while facing all-sided attack by imperialist countries.
Production in every sector of agriculture and industry had significantly declined during World War I. The only way out of this critical situation was to end the war, restore the war-ravaged national economy, and organize production not to serve capitalism, but in the interest of the workers and peasants. After the revolution, land, large industries (e.g., oil, coal, sugar, etc.), factories, railways, and other means of transport, mines, and banks were brought under socialist state control. Landlord and capitalist classes were abolished by the nationalisation of land and industries. Land was given to peasants, and control of workers over production and distribution was established.
New Economic Policy and Reconstruction of the Economy
After the end of the civil war, at the Eighth All-Russian Congress of Soviets (December 1920), a plan for the electrification of Russia (the GOELRO plan) was accepted to reconstruct the whole national economy on the foundation of a modern, large-scale, electricity-operated industry. Thus, the economic conditions for attaining the historical stage of socialism depended economically on the expansion of heavy industry. In the 10th Congress of the CPSU (March 1921), Lenin proposed the New Economic Policy (NEP) to stimulate economic recovery and prepare for building socialism. Under the NEP, private ownership continued in small industries, shops, and farms, but all the large industries, factories, etc., remain nationalised. NEP led to the rapid recovery in both agriculture and industry, and by 1925, both industrial and agricultural output reached or exceeded 1913 pre-war levels across most sectors- faster than the initial projection, which anticipated recovery by 1930 or later. Grain output increased from 50 million tons in 1921 to 82.6 million tons by 1926. Output of different industries increased by ~200% in different industries (194.2% in Metal industry, 250% in Chemical industry, 258% in building materials, etc.) between 1921 and 1925. Wages for industrial workers doubled between 1921 and 1924. By reconstructing the economy, the NEP provided the material base for industrialisation of Soviet Union.
Fourteenth Party Congress and Socialist Industrialization
After Lenin, Stalin continued the socialist construction. The Soviet Union was at that time still a relatively backward agrarian country with two-thirds of the total production coming from agriculture and only one-third from industry. Further, being the first socialist state, the question of being economically independent of imperialism was of central importance. The development of agriculture and national security depended entirely on its industries. Therefore, Stalin concentrated on the industrialization of the Soviet Union. The main focus was on heavy industries, which would produce machines for other industries and for agriculture.
While Trotsky and his followers were loudly proclaiming that a socialist society could not be established in one country, Stalin came up with the plan of socialist industrialisation of the USSR to make the country self-reliant and strengthen it politically, socially, economically, and militarily. In December 1925, in the 14th Party Congress of CPSU(B), Stalin identified that the conditions for socialist industrialisation were present in the Soviet Union, and industrialization was possible with the existing resources. The nationalisation of land and industries, and its transformation into the collective property of the entire people created a powerful source for socialist capital accumulation for the development of industries.
Socialist industrialization fundamentally differs from capitalist industrialization. Capitalist industrialization is based on the plunder and exploitation of sub-ordinate countries, military conquests, and the ruthless exploitation of people. In contrast, socialist industrialization is based on the social ownership of the means of production, the accumulation and management of wealth generated through the conscious efforts of workers and peasants, and the continuous elevation of the living standards of the working class as an essential and ongoing process.
Stalin outlined that socialist industrialization does not merely mean increasing industrial output, it involves developing indigenous heavy industry, that can provide the material resources required for agriculture and other industries. The construction of factories and power stations began with great enthusiasm. Workers from different industries were finishing their work and voluntarily taking part in Socialist Construction by establishing newer factories and industries with great enthusiasm. They called it ‘Social Work’. Due to the successes achieved, Stalin confidently declared without hesitation: “We must catch up to the level of the most advanced capitalist countries and surpass them in the shortest possible time.” By December 1927, when the fifteenth party Congress was held, the task of reconstruction had been completed. By the end of 1927, production figures had surpassed the peak of those of imperialist Russia (1913). Compared to 1913, the agricultural output increased by 8%, and in industries, the output increased by 12%. 77% of industries were collectively owned. Contribution of industries became 54.5% of the gross output. The yearly increase in industrial output was 25% in 1926-27. National income had risen to 22.5 billion rubles, and the Soviet Union was second only to the United States, and more than England, Germany, France and other developed capitalist nations.
Under Stalin’s leadership, the Bolsheviks achieved victory once again, defeating the opportunists and taking the first step towards a socialist economy. This was a victory of socialism and planned economy. This success led to the another remarkable achievement of Soviet Union, the Five-Year Plans.
