Industry in Stalin's Russia

In the mid-1920s, Trotsky’s left opposition argued with Bukharin and Stalin’s centre party over the industry, with the Left campaigning for increased industrialisation, and the centre supporting maintaining Lenin’s legacy. However, by April 1925, Bukharin’s policies were becoming more rightist, and he was drifting away from Stalin.

In the 14th Party Congress in December 1925, Stalin had come around to accepting the need for economic modernisation, but the criticisms of the NEP made by Zinoviev and Kamenev were rejected. 

Having planned its first economic plan in August 1925, Gosplan – the Soviet Union’s state planning commission responsible for economic development, the organisation of social services, etc – released a second plan in 1926, focusing on the development of the Soviet economy. At this time, conservative non-party specialists were concerned about short-term economic development and possibilities, whilst party specialists believed in rapid industrialisation, which was being blocked by the New Economic Plan.

Although the existing industry had practically been restored to pre-war levels of production, in 1927, Stalin used the rising fear of war to spark policies for rapid industrialisation, for the Soviets to meet any possible invasion. Stalin began to adopt some of the economic policies that were proposed by the Left Opposition. These involved cutting administrative costs to increase funding for industrial development and introducing a ‘Hero of Labour’ medal to promote productivity and labour discipline. Despite this, there were no major targets put in place for industry, aside from the development of some hydroelectric projects and railway and canal routes.

It was not really until the grain crisis of 1927 and 1928 that Stalin came around to abandoning Lenin’s NEP and favouring rapid industrialisation. This caused a major conflict between Stalin and Bukharin, with Stalin’s supporters accusing opponents of having a lack of faith in the Soviet people and betraying the Socialism of the Bolsheviks. 

The Five Year Plans

After practically defeating the right faction, Stalin advocated for higher production targets from Vesenka – the superior state institution for management of the economy – and Gosplan. Together, they developed two five-year economic plans; the ‘basic variant’ and the ‘optimum variant’, which was accepted by Politburo.

• The Second Five Year Plan (1933 – 1937)

Despite the problems of the First Five-Year Plan, Gosplan drew up the Second Five-Year Plan in 1933, which initially had the main aim of transforming the Soviet Economy into a fully Socialist one. However, the final draft only called for progress on the first plan, an increase in production and an improvement in living standards. From 1934 to 1936, the successes of the plan included the rise in machine production, and iron and steel output, which allowed the Soviet Union to become self-sufficient.

Linked to the successes of the Second Five Year Plan, The Stakhanovite Movement represents the huge increase in labour activity from 1933 to 1937. Many industries had model workers who received higher bonuses, housing and other benefits, and ‘Heroes of Socialist Labour' medals, to drive labour productivity. This originated in August 1935, when a miner in the Donbas mining region, Aleksei Stakhanov, dug up 102 tonnes of coal in one shift, much higher than the usual 7 tonnes. Following this, production targets were increased and workers were encouraged to meet his example. Meanwhile, the worst effects of agricultural collectivisation were over, which allowed for rationing to end in 1935.

Despite the achievements made through the Second Five-Year Plan, industry ran into problems again in 1937, including the growing impact of Stalin’s purges of those in charge of Gosplan, and the escalating international situation. 

• The Third Five Year Plan (Disrupted)

The third plan was supposed to be in place from 1938 to 1942, but it was not officially approved until the 18th Party Congress in March 1939 and was even disrupted by the German invasion of Russia in June 1941. The plan undermined light industry and the increasing production of consumer goods as huge increases in production for heavy industry and defence were planned. Molotov believed that the third plan would complete the process of a transition to a fully Socialist economy, and aid the Soviet Union in becoming properly communist.