The Russian Revolution, NEP, and Stalinist Industrialization

The Political Regime and the October Revolution

Following the October Revolution, power in Russia was presided over by Lenin and the Bolsheviks, who dominated the political landscape although there was initially representation from other parties. The Bolshevik party was the most organized and active, controlling a major part of the soviets.

At the end of 1917, elections were held to choose a constituent assembly. The response to the Bolshevik party's lack of a majority was a coup d'état to prevent the assembly from meeting again. From this moment onward, the difficulties faced by the revolution served to increase Bolshevik power. These difficulties included:

• The Russian Civil War and foreign aggression.
• Boycotts by capitalists and kulaks.
• The elimination of all arguments for the opposition.

To secure the regime, the Cheka was created to purge members of conservative organizations, leftists (anarchists, Mensheviks, Social Revolutionaries), and disgruntled Bolsheviks. Any criticism of the government was classified as counter-revolutionary.

After the victory in the civil war, a civilian dictatorship was consolidated, establishing a single-party system under the Communist Party (named as such from 1918 onward). In this system, the party and the state formed a single entity; there was no suffrage for the opposition, and basic liberties were heavily restricted. This generated a fierce internal debate within the Bolshevik ranks, leading to the removal of those who opposed.

The NEP and the Death of Lenin

War Communism served to secure victory in the civil war, but by 1921 it became evident that it was not a sustainable system, leading to famine and economic collapse:

• It failed to stimulate agricultural productivity, resulting in low food production.
• It paved the way for the appearance of a black market.
• It largely alienated the peasants against the government, as the economic situation showed no signs of improvement.

All of this led to the adoption of the New Economic Policy (NEP), which mixed elements of capitalism and socialism:

• Agriculture: Peasants, after delivering a fixed part of their yield to the state, could sell the rest at market prices.
• Industry: The economy was demilitarized, the right to strike was recognized, workers were stimulated with productivity-based salaries, and business directors were ordered to operate based on market criteria—meaning they produced what the population demanded.

This policy had both positive consequences, such as population and economic growth, and negative ones from a socialist perspective, including price hikes that hurt the working classes and rising social inequalities, which enriched kulaks and enterprise managers.

Because industries operated on market criteria, heavy industry was neglected, hindering long-term growth. This sparked a major debate within the CPSU between supporters of continuing the NEP and those who argued for the elimination of all capitalist characteristics.

Forced Industrialization and Stalinism

Stalin achieved near-absolute power around 1928–1929, maintaining it until his death in 1953. The objective of his policy was to transform the USSR into a great military and industrial power. To achieve this economic objective, a new policy of economic planning was introduced, placing all sectors of the economy under state control in accordance with socialist theories.

The government decided where to invest and which sectors needed a boost during the following years, placing a strong emphasis on the promotion of heavy industry. The primary instruments used were the five-year plans, an idea that partially drew from Trotsky's early proposals. These plans were based on two major principles:

• Collectivization of Agriculture: This involved the abolition of private property in land. All peasants were forced to integrate into large collective farms (kolkhozes and sovkhozes). Resistance was met with strong and harsh repression. In the early years, organizational problems and a lack of agricultural machinery caused production to decrease, leading to periods of famine. Furthermore, the countryside was heavily exploited to extract food resources for industrial workers.
• Momentum in Heavy Industry: Industry passed into state hands, and a centralized direction system was established from the government. All efforts were channeled toward the development of heavy industry (arms, steel manufacturing, and electricity).

While this resulted in the spectacular development of heavy industry and turned the USSR into a global power, the negative consequences included uneven industrial growth that failed to improve the standard of living for the general population. Additionally, the exploitation of peasants was severe, as immense quantities of cereal were required to feed the industrial cities.

To sustain these immense sacrifices without widespread popular support, the regime relied heavily on repression and massive propaganda that justified the prioritization of heavy industry for the defense and development of the Soviet state.