Soviet Economic Transformation: The Five-Year Plans

The Soviet Five-Year Plans

The Soviet Union established an economic program based on Five-Year Plans. The first plan ran from 1929 to 1933.

The First Five-Year Plan (1929-1933)

During this period, private industry was nationalized, and private agricultural property was abolished. The agricultural landscape was reorganized into:

• Peasant proprietors and land cooperatives: Known as collective farms.
• State Lands: Known as state farms, these were worked by employees and became centers for farm experimentation.

In addition, rich farmers and traders disappeared. This plan foresaw a doubling of total production, giving preference above all to heavy industry, electrical power, and the production of raw materials. It mandated that industry be concentrated in large units, or trusts, located in the eastern territories of the country. While some results were not as expected, the production of coal, iron, steel, and electricity doubled. These increases were substantial, though minor provisions remained a challenge.

The Second Five-Year Plan (1933-1937)

The second plan placed emphasis on the development of light industry (textiles and food), as well as technical education and an improved standard of living. Significant progress was made in education through the creation of specialized schools and colleges for workers, which stimulated the productivity of the workforce.

The Stakhanovist Movement

In 1935, the Stakhanovist movement spread across the USSR. It was named after the miner Alexei Stakhanov, who, through a series of personal initiatives to streamline work, managed to increase productivity 14 times. This led to an upgrading of workers' skills compared to previous years, due to an increase in wages, a new bonus system, a decline in commodity prices, and the abolition of ration cards.

The Third Five-Year Plan (1938)

The Third Plan began in 1938 with the goal of developing specialized industries, especially chemistry. This plan was interrupted by the war and shifted to war production on the eve of World War II.

Economic Results and Global Standing

By the start of the war, the Union presented a very different physiognomy than it had during the first plan. It became the third-largest world power, and hunger was eliminated. The nation ranked second worldwide in the production of iron, oil, and gold, and first in steel, electricity, and cotton. Transport improvements enabled better communication between different parts of the country, expanding the network of canals and improving ports and main railway traffic. However, some sectors still remained below those of other European countries.