Stalin aimed to modernize the Soviet economy through collectivization and industrialization, taking control of the nation's economy. This led to falling agricultural production as collectivization was forced. Stalin believed modernization was needed for the USSR to develop and surpass Western economies. Ideology played a dominant role in economic policy from 1929-1941, as Stalin sought to achieve a perfect communist society through five-year plans focusing on heavy industry, state control of prices, and production targets.

1. Stalin Group 6
Molly Cros, Manuela Mur,
Natalie Viera

2. Stalin’s Economic Aims
● Stalin’s economic policy had one essential aim, which was to modernize the
Soviet economy in two ways; collectivization and industrialization. By
introducing these two methods from 1928 and on, the Soviet state took
complete control of running the nation’s economy. Stalin had become
convinced that the needs of Soviet Russia could only be met through
modernization. Stalin eventually wanted to bring his economically backwards
nation up to par and eventually take over the advanced economies of the
United States and Western Europe. This would be known as the first Five Year
Plan.

3. Economic Problems Russia was Facing in
1929
● As Soviet agriculture is forcefully collectivized production levels fall by 30%.
The peasants who revolted against collectivism did so between December 1929
and March 1930. There were 30,000 arson attacks and they organized mass
rural disturbances.

4. To What Extent Were Stalin’s Economic Aims
Relevant to the Needs of Russia in 1929?
● In the late 1920s Stalin decided to impose on the USSR a crash programme of
economic reform
● Agriculture and industry were to be revolutionized
● The cue for the great change had been provided in 1926 by a critical resolution
of the Party Congress “to transform our country from agrarian into an industrial
one, capable by its own efforts of producing the necessary means”
● His economic policy had one essential aim- the modernization of the Soviet
economy- and two essential methods: collectivization and industrialization
● From 1928 onwards, with the introduction of collectivization and
industrialization, the Soviet state took over the running of the nation’s economy

5. To What Extent Were Stalin’s Economic Aims
Relevant to the Needs of Russia in 1929?
● Stalin’s crash programme for the reform of the Soviet economy proved such a
dramatic development that it has been referred to as the “second revolution”, a
way of equating it in importance with that of the 1917 Revolution itself. It is
also frequently referred as a “revolution from above”

6. To what extent did ideology play the dominant part
in deciding economic policy in the years 1929-41?
● NEP was established in 1921 until 1928 when Stalin abolished it. His main
reason for abolishing the NEP was that it was not totally Marxist nor
Communist. Stalin believed the NEP was too far right and it went in the
opposite direction of what Russia was trying to achieve.
● Towards the end of 1928, Stalin set in motion a series of five-year plans. The
five-year plans integrated short-range planning into a longer time frame. These
plans helped the Soviet Union go from a mainly agrarian society to a major
industrial power.
● What the plans did was delineated the chief thrust of the country’s economic
development and it specified the way the economy could meet the desired
goals of the Communist Party, which was Stalin’s goal all along.

7. To what extent did ideology play the dominant
part in deciding economic policy in the years
1929-41?
● Everything done once Stalin took power was to try and achieve a perfect
Communist society. His economic policies were no exception. He believed the
state should set prices, instead of like in the NEP where the Kulaks had the
power to control grain prices. Also with Stalin’s plans peasants also received
land they could use to farm. They received a wage to do this and 90% of the
produce would be sold to the state cheaply and the 10% was to feed them; they
were not allowed to be sold privately for profit.

8. To what extent did ideology play the dominant part
in deciding economic policy in the years 1929-41?
● The first five-year plan from 1928 to 1933 was focused on heavy industry. Coal,
steel, oil, gas, etc. With this new plan everyone and everything had a Target.
These targets were set by GOSPLAN which was the state planning commission.
Targets were set for every industry, region, factory, worker, etc. This was
necessary to make sure everyone was working at the speed the country
needed.
● The second five-year plan from 1932-1938 was still focused on heavy industry
but it also branched out into new areas. Women were allowed and encouraged
to work. This helped create a greater equality between men and women, which
was not very common during that time. The development of new industries was
a bit undermined but still trying to happen. Also the inequality to society came
back. Managers, scientist, and party bosses were given higher standards of
living as incentives for improving production.

9. ● The third five-year plan from 1938 to 1941 tried to produce more consumer
goods to raise the quality of life in Russia. Another goal was to improve the
quality of the goods since before they were more focused on quantity than
anything. Some economic improvements, such as rationing that came to an end,
free education and free medicine became available to more of the population.
● Economic growth was interrupted in June 1941 when the German army
invaded Russia.
To what extent did ideology play the dominant part
in deciding economic policy in the years 1929-41?

10. So to what extent?
Ideology played the dominant role in deciding the
economic policy for Russia from 1929 to 1941.
Everything that was done or that was
implemented was following their communist
ideology and trying to achieve the perfect state in
their eyes. Stalin (and the rest of the state on his
side) had one goal in mind and that was to achieve
full communism.
To what extent did ideology play the dominant part in
deciding economic policy in the years 1929-41?