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The Russian Civil War and wartime communism had a devastating effect on the country's economy. Industrial output in 1922 was 13% of that in 1914. A recovery followed under the New Economic Policy, which allowed a degree of market flexibility within the context of socialism.
Under Stalin's direction, this was replaced by a system of centrally ordained "Five-Year Plans" in the late 1920s. These called for a highly ambitious program of state-guided crash industrialization and the collectivization of agriculture.
With no seed capital, little international trade, and virtually no modern infrastructure, Stalin's government financed industrialization by both restraining consumption on the part of ordinary Soviet citizens, to ensure that capital went for re-investment into industry, and by ruthless extraction of wealth from the kulaks.
In 1933, worker's real earnings sank to about one-tenth of the 1926 level. There was also use of the unpaid labor of both common and political prisoners in labor camps and the frequent "mobilization" of communists and Komsomol members for various construction projects. The Soviet Union also made use of foreign experts, e.g. British engineer Stephen Adams, to instruct their workers and improve their manufacturing processes.
In spite of early breakdowns and failures, the first two Five-Year Plans achieved rapid industrialization from a very low economic base. While there is general agreement among historians that the Soviet Union achieved significant levels of economic growth under Stalin, the precise rate of this growth is disputed.
Official Soviet estimates placed it at 13.9%, Russian and Western estimates gave lower figures of 5.8% and even 2.9%. Indeed, one estimate is that Soviet growth temporarily was much higher after Stalin's death.