The Industrialisation of Soviet Russia, Volume 4: Crisis and Progress in the Soviet Economy, 1931-1933

The profound economic crisis of 1931-33 undermined the process of industrialisation and the stability of the regime. In spite of feverish efforts to achieve the over ambitious first five-year plan, the great industrial projects lagged far behind schedule. These were years of inflation, economic disorder and of terrible famine in 1933. In response to the crisis, policies and systems changed significantly. Greater realism prevailed: more moderate plans, reduced investment, strict monetary controls, and more emphasis on economic incentives and the role of the market. The reforms failed to prevent the terrible famine of 1933, in which millions of peasants died. But the last months of 1933 saw the first signs of an industrial boom, the outcome of the huge investments of previous years. Using the previously secret archives of the Politburo and the Council of People's Commissars, the author shows how during these formative years the economic system acquired the shape which it retained until the collapse of the Soviet Union in 1991. In 1929-30, the 'spinal year' of the first five-year plan, a vast investment programme began the transformation of the Soviet Union from a peasant country into a great industrial power. This book, the third part of The Industrialisation of Soviet Russia, re-examines the breakdown of the mixed economy. In those days of heroism and enthusiasm, hunger and repression, crucial Soviet economic and political institutions were established, and are only now being effectively challenged by Gorbachev's revolution. While complementing the previous two volumes of this author's work, the book is designed to be read independently. It sheds new light on a dramatic moment in Soviet history and in the formation of the Soviet system. Planned as a number of independent volumes this work covers the years 1929-1937, the crucial period of the first two five-year plans, which saw the transformation of the Soviet Union from a peasant country into an industrial power. An examination of Soviet industrialization is seen as important in increasing an understanding of why the Soviet system took its present form; and as a case study of state-managed industrialization, should illuminate the economic problems of developing countries and questions of state planning generally