4.1.1

Full Employment Benefits

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War Communism and the NEP

The USSR's economic policy was largely shaped by political conditions. During the civil war, Lenin implemented war communism. This was very strict. The New Economic Plan (NEP), which replaced war communism, was more liberal.

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Communist aims

  • Lenin and Stalin wanted all in society who could work to do so.
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War communism

  • Under war communism, everyone aged 16-50 had to fight in the army or work.
  • In the early years, everyone received a work card in return for their work and this gave them access to benefits.
  • Rationing was imposed for food and fuel.
  • This was regulated through Prodrasped (Section of General Distribution).
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Impact of war communism

  • War communism failed to meet workers’ needs because the rations were too small.
  • This led to many workers leaving their factories in search of food.
  • One quarter of people left the cities.
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The NEP (New Economic Plan)

  • The NEP, with its more liberal economic policies, led to higher unemployment.
  • 1924: 18% of the urban workforce was unemployed.
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NEP social benefits

  • The Soviet Union had an incredibly well-developed system of social benefits for its labour force. It was arguably the most thorough in the entire world.
  • Social insurance included maternity pay, unemployment benefits and medical benefits too. Disabled people also received benefits through this system.
  • Urban families also received education, which the state paid for.
  • Peasants did not have access to such welfare benefits.
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Historical assessment

  • Orlando Figes, ‘A People’s Tragedy’:
    • ‘Under the NEP, some of the trappings of the modern world began to trickle down to the villages. Electric power came. Even Andreevskoe [a village outside Moscow] had its first electric cables in 1927. [...] Lenin extolled the new technology as a panacea (solution) for Russia’s backwardness. “Communism equals Soviet power plus the electrification of the entire country”, his famous slogan went.’

Employment Under Stalin

Stalin pursued Five Year Plans to develop the USSR's economy and focus it on heavy industry. This demanded more workers.

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Compulsory labour

  • Stalin introduced compulsory work as a way to get more people back into the labour force.
  • Five Year Plans created enough jobs for full employment among urban men and more jobs for females.
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Working conditions

  • Conditions in industrial jobs were often incredibly dangerous.
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Social benefits

  • More social benefits were also introduced under Stalin, such as:
    • Food rations.
    • Better public transportation.
    • Vaccinations against common diseases including typhus and malaria were universal from 1947.
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Specialist jobs

  • During the 1920s and 1930s, the country was able to increase the number of specialist jobs.
  • This included more midwives and engineers.
  • From 1926 to 1939, the number of specialists rose from half a million to 12 million.
  • More and more jobs were created outside agriculture.
  • By 1939, 33% of people worked outside agriculture.
  • After 1931, the government turned away from a system of egalitarian pay and a stricter hierarchy was introduced.
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Historical assessment

  • Stephen Kotkin (1999): 'Soviet workers were not passive objects of the state’s design[...].' We should not assume that Soviet workers were brainwashed into working or enjoying their work.
  • For many people, especially those who moved to large cities from small villages, the security, and rewards of being a Soviet worker were genuinely appealing and satisfying. Being a soviet worker gave people an identity.

Jump to other topics

1Communist Government in the USSR, 1917-85

2Industrial & Agricultural Changes

3Control of the People, 1917-85

4Social Developments, 1917-35

5Historical Interpretations

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