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? asked in Social ScienceEconomics · 1 decade ago

Centrally Planned Economy - russia?

"in early 1921 Russia was in ruins from years of wars. Bolsheviks had to rebuild a shattered country"

the only way for russia to recover was to set up a CPE

agree or disagree with this and give 3 points

for an exam i am writing (TOMORROW) i have payed attention in class but i still dont understand. all help is appreciated. SOS.

2 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    (1) It is correct that the Russian economy was in ruins in 1921.

    (2) Russia violently converted into a socialist/communist state in 1917. As a result, the government became the owner of all industrial property and land. Within that philosophy, it became necessary for the state to plan all production within the economy.

    (3) The first of these large state plans for the economy was the plan for the electrification of Russia, called the "State Commission for Electrification of Russia Plan". It was successful, and became the model for future 5 year plans.

    I would agree with the statement because within the communist system that was in power, the centrally planned economy was the only way to run the economy of the country. (The government owned all of the money, factories, land including all the minerals, ores, oils, etc. in the ground.) Therefore, it was incumbent upon the "owner" of the factors of production to plan for the production within the economy.

    However, you could also disagree with the statement because the Russians were not "required" to maintain the communist system. They could have set up a different economic system (such as a capitalist system, where land and factories would be sold to private owners). But given that Lenin firmly believed in socialism, he wasn't going to adopt other beliefs. To Lenin, all other forms of economy were inferior to communism.

    p.s. The "Soviet Union" was formed in 1922 after the conclusion of the Russian Civil War of 1917 to 1921. The Russian Revolution of 1917 converted Russia to communism.

  • 1 decade ago

    No, the CPE dug them deeper into the hole.

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