Between The Two World Wars: The Russian Revolution And The Great Depression PDF

100 Social Science - 10 8 Between the Two World Wars The Russian Revolution and the Great Depression As the First World War came to a close, a revolutionary wave swept across Europe, toppling the dictatorships and old m...

100 Social Science - 10 8 Between the Two World Wars The Russian Revolution and the Great Depression As the First World War came to a close, a revolutionary wave swept across Europe, toppling the dictatorships and old monarchies. The process started in 1917 with the Russian revolution that forced Czar Nicholas to abdicate. The wave slowly engulfed Germany, Austria-Hungary, Bulgaria, Turkey and other countries, leading to the dismantling of their monarchies. Russia experienced a second revolution in October 1917, which saw the establishment of a communist government. No other European country embraced communism or socialism, but they all opened the door to democracy. Germany adopted the Weimar constitution (prepared in the city of Weimar), which gave all adults - male and female, rich or poor - the right to contest elections and vote. But the Weimar Republic remained under constant tension because, on the one hand, the victorious Allied Powers kept pressurising it to implement the terms of the Versailles Treaty, while, on the other, the seething anger of the German people against the humiliating terms of the treaty kept boiling over. In Turkey, a democratic and secular government was installed on October 29, 1923 under the leadership of Mustafa Kemal Ataturk, toppling the old Ottoman Sultanate (which considered itself to be the Caliphate of the Muslim world). Ataturk began industrialising his country, introducing democratic law instead of Muslim shariah law, and setting up a modern education system for boys and girls instead of the religious madrassas. These progressive steps laid the way for transforming Turkey from an Islamic empire into a modern nation state. But most countries of the world were soon engulfed by an economic recession that began in 1929, disrupting their economies and causing mass unemployment. Germany, which was already grappling with the damage done by the Versailles Treaty, faced an economic crisis because Figure 8.1: Mustafa Kemal Ataturk (1881-1938), of the depression. Taking advantage of the crisis, Hitler and his Nazi the founder of modern party came to power and soon began brutally suppressing the opposition Turkey and ‘father of the Turks’. Note his Western parties and other workers’ organisations in the country. He launched a dress with Turkish cap vicious pogrom against the Jews and slowly began violating the terms of the Versailles Treaty, stepping up his preparations for a war to establish his sovereignty over the world. In those days, Britain and America were experimenting with a new economic concept called the welfare state. This concept, based on democratic governance and protecting the fundamental rights of  The Russian Revolution and the Great Depression 101 citizens, visualised the welfare of the people as the primary responsibility of the state. In the welfare state, democratic rights - universal franchise, a multi-party system, free and independent media, etc - were extended to include equal opportunity for all citizens, the right to education and health, providing employment for the people, helping the elderly, sick and destitute, etc. Britain and America were able to survive the Great Depression of 1929 by adopting these welfare measures. What impact do you think the war had on the old empires? Were democratic revolutions successful in these countries? Why is universal franchise important in democracy? How and when did the rule of kings and emperors come to an end in India? 8.1 The Russian revolution Pre-war Russia: By 1914, Russia had become a vast empire that spread across the European and Asian continents. The Russian government ruled over diverse regions inhabited by people of different languages, religions and ethnicity. Power in this empire lay in the hands of the elite, land-owning class, who were led by the autocratic czar, Nicholas II, who belonged to the Romanov dynasty. Most of the high officials in this empire were wealthy landowners from noble families. In Russia, the peasants who cultivated the land lived in serfdom until 1861. These serfs were bonded vassals who were prohibited from pursuing an alternate occupation or leaving their village without the permission of their landlord. If a landowner sold his land, the serfs were also transferred to the new owner. The czar issued a proclamation in 1861 freeing the serfs from their bondage. However, the ownership of land remained with the landlords, so the freed peasants were now forced to pay high rents to farm the land. Figure 8.2: A Russian peasant family circa 1900 102 Social Science - 10 The landowners did offer some land to the peasants under the czar’s initiative, but they charged exorbitant sums for this land, which was mostly less fertile or barren. The government gave loans to the peasants to pay the landowners, recovering the amount from them in instalments. The peasants were prohibited from leaving their villages until they had repaid their loan. They were, thus, straddled with debt in 1917, even after repaying for several generations. In this way, the 1861 land reforms benefited the landowners Figure 8.3: Inside an old Russian factory the most, leaving the now legally free peasants in an even more pitiable economic condition. In the absence of democracy and the right to freedom of expression, they could not voice their grievances or seek redressal. The czar, supported by the noble landowners, was, thus, able to run an autocratic government that benefited a select class but left the peasants impoverished. Many peasants migrated to the cities to look for work in the factories and many more enlisted in the czar’s army. So there were organic links between the Russian peasants, workers and soldiers. In what way is the condition of slaves and serfs similar or different? Discuss in class. Serfdom was abolished in 1861 but who actually benefited from this reform? Industry and workers: In the 1880s, the Russian government realised that the country needed to industrialise to supply the army, which needed modern armaments and railways that only large factories could manufacture. So the czarist regime took the initiative to industrialise. In Britain and France, it was the wealthy middle class merchants who invested in setting up small and medium industries. Russia, on the other hand, invited foreign investors to set up large factories, attracting them with incentives and concessions. Russian industrialisation was, thus, controlled by the elite class, which prevented the emergence of an independent middle class or strong capitalist class. With industrialisation, the process of urbanisation also picked up pace. The cities soon teemed with large numbers of industrial workers who lived in abominable conditions and survived on low wages. The factories established in Russia were huge, employing thousands of workers. These workers began to form their labour unions and build their collective strength to fight for their demands. Most of them were from peasant households so they were also familiar with the problems of rural Russia. What were the similarities and differences in the industrialisation of Germany and Russia? If the middle class of any country is weak, what impact does it have on the politics of that country? Discuss in class. Would workers’ organisations be more effective in big or small factories? Explain with reasons. What impact do you think did their links with villages and peasants have on industrial workers? Do you see any examples of this impact in your neighbourhood? The events of 1905: In the absence of democracy and democratic rights in czarist Russia, people could not criticise the government or agitate to resolve their problems. They began to form secret organisations and launch secret movements in many places because they could not openly challenge  The Russian Revolution and the Great Depression 103 the state. They even launched terrorist attacks from time to time. The prominent secret organisations in Russia at the time were the socialist and communist parties, the revolutionary peasants’ party and the liberal party. In 1905, a war broke out between Russia and Japan in which Russia was defeated by the small Asian country. The defeat weakened the clout of the czar. At the same time, workers in different cities began to stage demonstrations to demand better working conditions and more democracy. More than a thousand workers were killed when the police opened fire on one such peaceful march the workers undertook to the czar’s palace in Petersburg (the capital) to voice their complaints. Angered by this mass killing, protests broke out across the length and breadth of Russia. Seeing the rage of the people, the czar announced a few political reforms. An elected assembly (called the Duma) was established. But this proved to be a controlled reform because elections to the Duma were conducted in a complex indirect process to ensure that the majority of those elected belonged to the wealthy classes. The czar also had the authority to reject any proposal of the Duma or to call it to session at his convenience. Even as it announced the reforms, the government began to brutally suppress the people’s movement. Over 10,000 people were killed and more than 75,000 were imprisoned in jails or exiled to the very cold region of Siberia. Do you think the Duma of 1905 was a genuinely democratic assembly? Explain with reasons. 8.1.1 The war and the revolutions of 1917 The cycle of repression and reform brought a limited peace to Russia for a few years. But, after 1912, the workers’ strikes and peasant’s revolt again began to pick up steam. However, when Russia was drawn into the First World War in 1914, a wave of patriotism flooded the country, with the people rallying behind the czar. But the support for the war effort began fizzling out within two years as the horrors of war and the continuous defeats the Russian army faced on the battlefield became evident. Disillusioned and exhausted, the soldiers, workers and peasants began demanding peace, food and land. On Women’s Day on February 23, 1917, the women took out a procession in Petrograd (the new name of Petersburg), demanding food and peace. (There is a difference of 13 days between the Russian calendar and the modern calendar so the event occurred on March 8 according to the modern calendar.) Soon after, workers and soldiers began taking out rallies across the city in support of these demands. The police and army were restrained from intervening. Workers’ assemblies were also organised in every factory in which the workers chose their representatives for an apex city-level workers assembly. These assemblies Figure 8.4: A demonstration organised by Russian women in February 1917. The women look happy. were called Soviets (a Russian word similar to Why do you think they are happy? panchayats). The factory Soviets took over the management of their factories from the owners, taking all decisions and implementing them. 104 Social Science - 10 Their elected representatives were expected voice the views of the factory Soviet in the city Soviet, which came to be known as the Petrograd Soviet. If they failed to do so, they could be recalled and another representative elected in their place. The soldiers, too, formed their Soviets in their units, taking over control from their officers or forcing them to act on their orders. Peasants also formed their Soviets in the villages, where they began looting shops and the palatial houses of the landowners. Figure 8.5: A meeting of the Soviet in a factory in 1917 Within days, the czar was stripped of all power as the people in all sectors took over control through their Soviets. In this way, the power structure of the czarist regime was dismantled, with the people taking power into their own hands. Look carefully at Figure 8.5 and 8.6. Do you think the workers are engrossed and actively participating in these meetings or do they look passive? How would their mood impact the politics of the time? Can you identify many women in these pictures? If there were more women, how would their presence impact the flow of events? How do you differentiate between a Soviet and an assembly? Figure 8.6: A meeting of the Petrograd Soviet in March 1917  The Russian Revolution and the Great Depression 105 2.1.2 Abdication of the czar: Seeing the mood of the people and the pressure from the Petrograd Soviet, the Duma urged the czar to abdicate and allow it to constitute a new cabinet of ministers. The rebellion had by now spread to the czar’s army. Faced with this situation, the czar was forced to abdicate on March 2, 1917 (March 15 according to the modern calendar). The chain of events leading up to the abdication is called the February Revolution. The Duma members, largely belonging to the middle class, chose a ministerial cabinet to constitute a provisional government. This was seen as an interim arrangement because the people wanted to elect a constitutional assembly by universal suffrage that would legally constitute a permanent government. The interim government was totally dependent on the Soviets, which controlled every sector and region. At that time, the leadership of the Petrograd Soviet was largely in the hands of the representatives of three-four socialist parties. They believed that the middle class should provide the leadership of the revolution that would bring democracy and peace to the nation and institute land reforms. They believed that the role of the Soviets was to ensure that the middle class did not shirk its responsibility and would remain in the vanguard of the revolution. Their role was also to prevent the ousted rulers from returning to power. It soon became clear that the provisional government was not serious about land reforms and was in favour of continuing the war. It also became clear that it could not stop the rampant black marketing in food supplies to ensure food for everyone. It made all sorts of excuses to delay the formation of the constitutional assembly. Figure 8.7: Lenin addressing a congregation in 1917 As matters came to a head, the communist party, under the leadership of Vladimir Lenin, began a public campaign against the interim government, inciting the workers and soldiers to rebel against it. Lenin believed that the Russian middle class was too weak and incapable of establishing democracy in the country or returning the land to the peasants. He believed the Soviets, which constituted the real strength of the country, should seize power under the leadership of the communist party. The workers and soldiers were initially not in favour of such a course of action, but when the ineffectiveness of the interim government became more apparent and the spectre of defeat in the war faced the nation, they began to accept the communist line of reasoning. We had seen earlier how the Russian peasants, workers and soldiers had come together because of their common problems. So it was natural for them to have a shared understanding to fight for their rights. On October 25, 1917 (November 7 by the modern calendar), the Petrograd Soviet under the leadership of the communist party toppled the interim government and set up a revolutionary government. The next day, Lenin proclaimed the formation of the new government before an All Russian Congress of Soviets and made two important announcements. The first was the declaration of an armistice and an appeal for democratic peace (Decree on Peace). The second was the decision to nationalise the land 106 Social Science - 10 belonging to the landlords and redistribute it among the peasants. The peasant committees in every village were authorised to re-distribute the land among the cultivators. At the same time, the workers’ committees were authorised to run the factories. Within days, the old administrative system, bureaucracy and police were dismantled and the Soviets took over the reins of government. The Soviet government sought to ensure that all people living in the cities got food and accommodation. Russia also announced that all nations annexed by the Russian empire under the czarist regime were now free and could themselves decide whether they would like to remain in the Soviet state or become independent nations. Finland, Latvia, Estonia, Ukraine and other countries thus gained their freedom. However, none of the warring nations paid heed to Russia’s appeal for world peace and continued fighting their war. For its part, Russia withdrew from the war after signing an agreement with Germany in March 1918. But the country had to cede a significant portion of its territory to Germany under this treaty. The Russian revolution began with three main demands. Do you think these demands were realised by 1918? If yes, then to what extent? The landed gentry and army generals incited a civil war against the new government from 1918 to 1922 and gained the support of Britain, France, America and other countries. These countries were apprehensive about the spread of communism across Europe. The Russian government finally defeated internal opposition to its rule in 1922. By then, many of the newly independent countries in the former Russian empire decided to align with Russia to form the Union of Soviet Socialist Republics (USSR). Stalin: Following the death of Lenin in 1924, Josef Stalin assumed the leadership of the communist party and soon became the all-powerful leader of the Soviet Union. Many leaders who sought to oppose his policies were executed. He remained the principal leader of the Communist Party nd the dictator of the Soviet Union until his death in 1953. Industrialisation: After the revolution, all private property was abolished and all the banks, factories and mines were nationalised, declared government property and administered by the government. Soviet Russia faced the challenge of economic development and industrialisation after 1924. The economy had been ravaged by war, revolution and civil strife and had to be brought back on track. The country went in for planned development from 1928, the focus being on industrialisation. But it lacked capital and technical expertise. So experts were invited from abroad to help build up industry. But capital was not available from any foreign sources so Russia had to raise the money it required from its internal resources. The government Figure 8.8: A steel plant in Magnitogorsk in 1936 mobilised domestic savings,  The Russian Revolution and the Great Depression 107 reduced the wages of workers and taxed the peasants to generate additional resources for investment, promising the workers and peasants that they would benefit from industrial growth. The pace of industrialisation picked up after 1928, the emphasis being on developing heavy industry (iron and steel, electricity, machine manufacture etc). By 1940, the Soviet Union had become a major global industrial power. Collectivisation of agriculture: Following the re-distribution of land owned by the landlords after 1917, the majority of peasants became medium farmers, with a few becoming big farmers. But traditional farming techniques continued to be followed and output was low. Stalin took steps to raise productivity by adopting modern agricultural techniques. The farmers were instructed to merge their holdings into huge collectives to enable the use of farm machinery and modern techniques. The big farmers and a few medium farmers opposed collectivisation, which was widely supported by small and medium farmers. However, they were forced into collectivisation, with thousands being jailed, exiled to Siberia or even executed. Russian agriculture remained in crisis for several years because of this repression. It led to acute famine from 1932 to 1934, with lakhs of people dying of starvation. The process of collectivisation was completed by 1936, practically putting an end to private farming in the country. After 1937, Russian agriculture developed rapidly and land productivity rose, benefiting from the industrialisation of the country. From which sources did Britain mobilise capital for industrialisation? Is it possible to mobilise capital for industrialisation from any other sources? Is large-scale farming essential for developing agriculture? What problems would small-scale farming face in mechanising agriculture? Why do you think the big farmers of Russia opposed collectivisation? Can collectivisation be achieved gradually with the consent of the farmers? There has been considerable debate about economic development in Soviet Russia after the revolution, with many historians drawing attention to its inherent contradictions. For the first time in world history, workers and peasants created a new society without landed gentry, capitalist traders and noble aristocrats. In this society, everyone had equal access to basic necessities such as food, education, housing etc. Unemployment was almost eradicated and everyone got work. The Great Depression that swept across the world from 1929 to 1932 had little impact on Russia. Woman enjoyed equal rights as men in society. There was a sharp drop in illiteracy and a common school system was established where everyone received the same education and where, along with the teaching of subjects, emphasis was put on productive activities that involve physical labour. Russia’s neighbours were all capitalist countries. They constantly strove to stall its efforts, putting all kinds of obstacles in the path of its growth and development. Despite these efforts, Soviet Russia became economically strong by 1940, emerging as a modern world power. However, the political system that was established in Soviet Russia was not a multi-party system. It recognised only a single communist party. So people had no political alternatives to choose from. Also, criticising the government or proposing alternative ideas were strictly prohibited and people found opposing the government’s policies were labelled traitors, arrested and executed, even if they belonged to the communist party. Thus, although the poor got the opportunity to participate in the political process, the absence of an alternative ensured that democracy did not develop fully. 108 Social Science - 10 The Soviet revolution had a profound effect on the world. In far-flung countries, and especially in the colonies, it proved to be an inspiration for those fighting for independence and for the rights of the poor. They tried to follow the path pioneered by Russia. An international communist organisation was formed under the leadership of the Russian communist party and similar parties were established in every country. The pressure these parties exerted on governments helped ensure that laws were passed for the welfare of workers and systems to protect their rights were put in place. If you had to create systems to protect the poor in your village or town, what would you have to do? You read about the role of political parties in a democracy. Do you think a multi-party system is essential for democracy? Discuss with reasons. If there is no freedom of expression and people do not have the right to air their views, what effect would it have on democracy? Is it necessary or ethical to arrest or execute people who criticise the policies of the government? 8.2 The Great Depression and the welfare state In the previous section, we saw that Russia adopted planned industrialisation in place of capitalist industrialisation and Soviet-style democracy instead of parliamentary democracy. It did not have multi- party elections and severely restricted personal democratic rights. At that time, Britain and America placed greater emphasis on parliamentary democracy, multi-party elections and personal democratic rights. Their system was built on market-based capitalism and industrialisation. The underlying understanding was that the democratic government would refrain from interfering in economic matters, letting market forces determine the course the economy takes. This understanding was severely shaken by the Great Depression of 1929 and these nations were forced to re-examine their ideological positions. When the First World War ended, the hope was that all countries would grow rapidly. This did actually happen after 1919. But after 1923, development slowed down and by 1929, the world was in the grip of the Great Depression, which continued for four years until 1933. Development again picked up steam after that but the impact of the recession was felt for many more years until 1939. What is an economic recession? In a capitalist system, development doesn’t occur at a constant, unchanging pace. It goes through cycles of rapid growth and recession or slowdown. In the phases of rapid growth, capital investment rises, production rises and workers get more work and wages. So they are able to buy more goods, which raises the demand for these goods in the market, leading to a rise in their prices. More capital is then invested to produce more goods … and in this way the cycle of rapid growth continues. Inevitably, this happy phase leads to a situation where there is excessive production of goods that cannot be sold, so prices fall. If some unforeseen Figure 8.9: Thousands of unemployed queuing up for free economic incident occurs during this coffee and yoghurt phase, it shakes people’s confidence  The Russian Revolution and the Great Depression 109 and the danger of a recession increases. The capitalists then cut back on production, which means less work available for the workers and greater chances of them remaining unemployed. They can now buy fewer goods, which intensifies the recession. Normally, an economic recession does not persist for long and there is always the hope that growth will pick up. But in 1929, the impact of the recession continued for several years and shook the entire world. The signs of a slowdown were evident in Figure 8.10: A crowd queuing up to withdraw their savings deposited in an insolvent bank America as early as 1925. During the First World War, when agriculture in Europe was badly hit, the American farmers stepped up production in a big way, for which they required bank loans. But after the war, agriculture once again picked up pace in Europe so purchases of food-grain from America dropped substantially. This led to a sharp fall in the price of agricultural produce, leaving the American farmers in distress and unable to repay their bank loans. The Great Depression began with a drastic fall in the American stock market on October 29, 1929. The shareholders of listed companies buy and sell their shares in the stock market. If a company is making profits, more people buy its shares, leading to a rise in the price of its shares. But if a company makes losses, its shareholders begin selling their shares in the market but there are few buyers for these shares. The price of the company’s shares then begins to fall. On October 29, all companies listed on the American stock exchange experienced a rapid drop in their share prices. Those holding the shares were keen to sell them but there were no buyers. Banks were unable to recover their loans, which left them with less liquid cash. In such a situation, those with deposits in the bank began withdrawing their cash but the banks did not have enough cash to repay them. The banks became insolvent, and those who had deposited their money in them lost their savings. The reason for this crisis was that during the boom years in America from 1925 and 1929 there was no increase in the prices of farm produce or the wages of workers but the profits of the capitalists soared. As a result, the buying power of the common man was low while the production of goods was high. Demand continued to fall and unsold goods were stocked in warehouses. Prices fell 32% as goods remained unsold. Industrialists cut back on production, leading to workers being laid off. About 27% of the workers ended up unemployed. The demand for raw materials in factories began to fall. Simultaneously, the largescale unemployment led to a fall in demand and prices of agricultural produce. Farmers were forced to sell their produce at below the cost of production and they were reduced to penury, as were companies dependent on agriculture. The continuing crisis in industry and agriculture led to a sharp drop in national income. How the American crisis affected the whole world: In those days, America was the largest trading nation in the world. It was the biggest exporter and second only to Britain for imports. It was also the largest lender to war-ravaged Europe and the continent’s biggest investor. As a result, the entire world economy depended on American prosperity. 110 Social Science - 10 Figure 8.11: This classic photograph of a Figure 8.12: A notice on a farm: worried mother from a depression-era family Evacuation sale, furniture homestead captured the anguish of the times But with its economy in crisis, America reduced the quantum of loans it had been extending to Germany, Britain and other countries. It reduced imports from around the world to protect its domestic agriculture and industry. As a result, the American crisis quickly enveloped the entire global economy after 1930, especially the countries whose trade and investment was highly dependent on America. International trade fell by 60% between 1929 and 1933. Farmers around the world who grew commercial crops were bankrupted because there were no buyers for their farm output. In America and many other countries, they sold their land and migrated to the cities. But there were no jobs for them in the city either. In Britain, 23% of the working population was unemployed, the figure being as high as 44% in Germany. What determines the purchasing power of common people in any country? How do wage increases of workers impact the economy? Then why do factory owners pay them less? How does recession impact the farmers? How did the American crisis affect the global economy? Why did the Great Depression affect Germany the most? The Great Depression had the least impact on Russia, where the five-year plan was leading to rapid industrial progress. There were two reasons for this. First, Russia was economically self-reliant because the country was less linked to the global economic system. So the recession in the global market did not affect it. Second, the country’s development was guided by socialist planning, hence market fluctuations had no long-term effects on its economy. It is necessary for a country to enter the global market to earn profits and progress. But in doing so, it is exposed to market fluctuations in the countries it trades with and can be badly affected by these fluctuations. Is there any other path to progress? 8.2.1 People’s movements and the government response People affected by the Great Depression of 1929 began agitating as they began to lose faith in capitalist development. In colonies like India, nationalist movements against the ruling governments gathered  The Russian Revolution and the Great Depression 111 momentum. Mahatma Gandhi launched the Civil Disobedience movement in the sub- continent and peasants and poor people who had been badly affected by the depression joined it in large numbers. Under pressure from such widespread unrest, the depression-affected governments and leading economists began discarding their old economic theories and formulating new concepts of economic development. Earlier, it was widely accepted that Figure 8.13: ‘We Demand Work or Wages’ – a demonstration of white and non-white workers to protest against economies should follow the dictates of a unemployment. Do you see any women in this procession? free and open market without any intervention by governments. Now, the view gained ground that governments should intervene to protect the interests of their country’s agriculture and industry by controlling exports and, when necessary, giving subsidies to farmers and ensuring employment for workers. The famous economist John Keynes stated that the government of a country should invest in welfare projects to ensure employment for all its people during recessionary periods. People would then have the buying power to purchase goods from the market, which, in turn, would stimulate demand for goods. In this way, a state-initiated demand push would help catalyse economic growth. Franklin Roosevelt became the American president in 1933. He announced a ‘New Deal’ that promised to provide relief to people affected by the economic slowdown, reform financial institutions and initiate government public works construction projects. The real impact of the new deal was felt after the start of the Second World War in 1939, when the American government had to shoulder military responsibilities and produce armaments for the war. Factory output grew as did the demand for agricultural commodities. America also implemented a social security programme under which a pension scheme was formulated for workers too old to work. In addition, it instituted unemployment insurance and welfare schemes for the handicapped and needy children (whose fathers were not present). Countries such as Britain and Germany had already initiated steps in this direction even before the onset of the depression. After the Second World War, America formulated further social security programmes, including health insurance for the sick and infant security-related programmes. They were based on the concept of a welfare state in which the state promised all citizens a good life, paying especial attention to their basic needs such as food, housing, health, education and care of children and the elderly. The state also shouldered the responsibility of providing employment for all able-bodied citizens. In this way, the state sought to counter and minimise the adverse impacts of market fluctuations on the lives of people. It obtained the money for financing these welfare activities by raising taxes. Many governments adopted such policies after the Second World War. Figure 8.14: Franklin Roosevelt, The Great Depression ended with the outbreak of the Second president of the United States of 112 Social Science - 10 World War in 1939. Demand for war resources grew in every country and their governments raised the capital to fulfil these requirements. Employment in factories geared to the war effort rose. Simultaneously, lakhs of people enlisted in the army. In this way, these countries reversed the impact of the recession. How can government expenditure stimulate demand for goods in the market? Have you come across any similar people’s welfare programmes in your neighbourhood? If yes, tell the class about them. Many economists believe that state support makes people dependent on the government and stifles self- initiative. Hence, governments should not take up people’s welfare programmes. Do you think this is right? Do you think that waging war was an economic necessity? Exercises 1. Give short answers to the following questions: a. Who established democracy and secularism in Turkey? b. Who ended serfdom of peasants in Russia and in which year? c. Who led the industrialisation of Russia – the capitalists or artisans or the government? d. Whose interests did the Duma established after 1905 represent? e. What were the main demands of the peasants, workers and soldiers of Russia in 1917? f. What were the main provisions of Lenin’s Decree on Land? 2. What were the main changes in the condition of the Russian peasants between 1861 and 1940? 3. Why did the Duma fail to emerge as a sucessful democratic institution? Analyse the reasons. 4. What were the main steps taken by the revolutionary governement of Russia immediately after the revolution in 1917? 5. How did Russia mobilise the capital needed for industrialisation? 6. Discuss the development of democracy in Russia between 1905 and 1940. 7. Why did the prices of commodities decline during the Great Depression? What impact did it have on industries? 8. Did the Great Depression have the same impact on peasants and workers? 9. Why did the American depression of 1929 impact the whole world? 10. What was the role of Welfare State in Britain and USA?