By 1927 economy had returned to pre-war production.
15th party congress Stalin calls for USSR to catch and overtake in industrial production.
Gosplan and Vesenkha Schemes to develop the economy.
15th party conference in 1926, Stalin called for USSR to catch up to west in industrial production and maintaining the worker-peasant alliance.
1925-26 Gosplan and Vesenkha were developed.
Stalin insisted that rapid industrialisation was necessary.
In December 1927 talks were still going on about maintaining the NEP.
This stressed Stalin as he felt the pressure to catch up and develop heavy industry.
Production in the USSR went as fast as pre-war production However, there was still lots of unemployment.
1927-28 grain crisis, Stalin said the NEP should be abandoned in favour of rapid Industrialisation which lead to a split between Stalin and Bukharin.
1928 higher demands from Gosplan and Vesenkha.
Stalin persuaded the Politburo to accept his plan to double production by 1932.
The first five year began in October 1st, 1928 focusing on coal, iron, steel, oil and machine production.
Plan was to increase production by 300%.
Electricity production was expected to increase by 600% .
Many workers were excited by the idea of a socialist economy and worked hard to fulfil the years target.
Reports were coming to Moscow claiming targets had been met (however this wasn’t entirely true).
By 1929 people were talking that the plan would be completed in 4 years (2+2=5 plan).
Significant achievements drastically changed the Soviet economy.
100s of new mines and factories were set up as well as rail links, hydroelectric schemes and industrial complexes.
Stalin’s drive for industrialisation was driven by fear of the international situation.
Stalin pointed out that the USSR’s economic backwardness was 50 to 100 years and planned to get rid of it in 10 years.
The successes caused problems which meant the 2nd five-year plan was devised.
Costs of the 2nd plan were much more expensive than predicted by Gosplan.
Increases in coal, iron and industrial goods proved too much for the railway systems to cope with.
Urban populations rapidly expanded causing housing shortages, as well as food shortages causing rationing and famine.
Workers who met the seemingly unobtainable demands got nicer housing and better wages.
In 1933 Gosplan drew up the 2nd five-year plan, intended to create a fully socialist economy.
Called for increased production and improved living standards.
In particular machine production and iron and steel output grew rapidly.
Success of the second 5-year plan due to increased labour productivity.
Workers managed stuff like (102 tons of coal when the average was just 7).
Stakhanovite’s example encouraged workers to work harder the follow his example.
Workers who worked hard received bonuses such as new housing.
From 1924 to 1926 NEP lead increase in agriculture.
Only 50% of what was supposed to be produced actually was.
Measures were taken to stop the Kulak (speculators) increasing grain and seizure of product were taken from the Kulak.
Increased industrialisation in towns increased hunger.
By 1927 the congress decided that continuing the NEP endangered agriculture and industrialisation,
In July 1928 the central committee and the Bukharin came to an agreement to increase the price of grain.
Stalin however didn’t want any more money going to the kulaks.
Increase in free markets in 1928 was due to crop failure and fall in the sale of grain, due to this rationing was in placed in winter of 1928-29.
however Stalin argued saying the problems could be over come by expanding co-operative farms.
