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# Stalins Economic Changes ## Learning Objective * Explain the changes Stalin made to the Soviet Union's industry and agriculture. ## Background In 1917, Lenin transformed Russia into a communist dictatorship. Stalin, his successor, further consolidated control over Russia, often called the Sovi...

# Stalins Economic Changes ## Learning Objective * Explain the changes Stalin made to the Soviet Union's industry and agriculture. ## Background In 1917, Lenin transformed Russia into a communist dictatorship. Stalin, his successor, further consolidated control over Russia, often called the Soviet Union (SU) from 1922, transforming it into a totalitarian state. Lenin's initial communist policies failed to significantly improve the lives of the Russian people. Stalin implemented a new economic system, a centrally planned economy, to accelerate industrial growth and modernization. ## Planned Economy Stalin implemented a planned economy to significantly restructure the Russian economy. In a planned economy, the government controls all aspects of the economy—prices, production quotas, and wages—instead of the market. Key characteristics include: * **State Ownership:** Factories and farmlands were owned and controlled by the state. * **Fixed Prices and Wages:** Prices and wages were set by the government, ensuring no market competition. * **Five-Year Plans:** Series of plans outlining expected production and industrial goals over a five-year period. ## Industry Stalin prioritized industrial development, focusing on heavy industry, such as steel and machinery production. The goal was to create a powerful industrial base, which involved: * **Factory Construction:** Numerous factories were built to meet industrial targets. * **Expansion of Transportation Infrastructure:** Railroads, roads, and canals were expanded. * **Machine Production:** Factories focused on producing tools, machines and vehicles for industrial use. * **1929 Global Crisis and Soviet Union's Economic Growth:** Despite the global crisis, the Soviet Union's industrialization continued to grow quickly. ## Agriculture Agricultural changes were aimed at increasing efficiency and production for export. Stalin aimed to: * **Collectivization:** Transform small, privately owned farms into large, collective farms owned by the state. This was considered more efficient overall. * **Increased Yields:** Increase output in crops and livestock. * **Modern Farming Practices:** Introduce modern farm tools such as tractors. ## Outcomes While Stalin envisioned rapid industrialization and agricultural transformation, collectivization was a disaster, leading to: * **Resistance:** Farmers resisted giving up their land and livestock. * **Food Shortages:** Confiscation of crops and livestock resulted in vast food shortages and famine. * **Human Cost:** Millions died as a result of forced collectivization. **Image Description:** The image includes a picture that is likely a propaganda poster, possibly from the 1930s. The photograph seems to depict a heroic representation of Joseph Stalin, the Soviet leader. There’s text that discusses Soviet economic policies during Stalin’s tenure, including both the aims for modernization as well as the devastating consequences for the average Russian citizen.