In 1924, Russia faced significant economic, political and social changes. In the next 17 years, a relatively short period of time, Russia, under Stalin would undergo domestic measures. During this period we would see rapid industrialisation, enormous growth in agriculture and a tripling in the workforce, resulting in a modernised Russian economy. Without exception, all of the economic policies introduced were ruthless and designed to transform the economic face of Russia forever.
In 1928, Stalin introduced the first Five Year Plan whereby the New Economic Policy of Lenin was abandoned and a centrally planned economy was put in its place. This idea would ensure forced economic growth. A number of factors contributed to this huge change in the soviet planned economy: Stalin wanted greater control of the economy so that he would have greater control over the Soviet Union as a whole. Stalin also wanted to modernise Russia so that it would match the economies of the western world, saying that ‘Russia was 50 to 100 years behind the west’. The first Five Year Plan was directed by Gosplan who decided to focus on industry in Russia. Gosplan decided to focus on production in manufacturing, transport and raw materials. The first plan concentrated on heavy industry – coal, iron and electricity. The expansion of heavy industry in Russia formed the basis for Stalin’s transformation of the Russian economy. The overall targets were far too high but significant progress was made as machinery production increased by four, electricity almost trebled and oil production doubled. However, there was also poor quality in the production of consumer goods due to concentration on amplifying heavy industry production. The first Five Year Plan was only the start of Stalin’s transformation of the Russian economy.
Stalin’s second Five Year plan was implemented from 1933-38. In this plan the concentration on heavy industry was still