COMMUNIST AND POST-COMMUNIST COUNTRIES. Karl Marx “Father of Communism” German Socialist The Communist Manifesto (1848)

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COMMUNISM

COMMUNIST AND POST-COMMUNIST COUNTRIES

Karl MarxFather of CommunismGerman SocialistThe Communist Manifesto (1848)

Principles of SocialismPrivate enterprise=unacceptable inequalityCapitalist elite exploit massesPeople as a whole should control economic enterprises.Equality of outcome (no hunger or poverty)

Principles of MarxismSociety passes through stagesPre-modern to industrialClass conflictBourgeoisie (Capitalist elite)Proletariat (working masses)Elite create a SUPERSTRUCTUREInstitutions to control the massesGOVERNMENTRELIGION

Principles of MarxismRevolution occurs in an industrialized societyProletariat masses rise upPost-RevolutionNo superstructureNo exploitation of workerNo private ownershipFrom each according to his abilities, to each according to his needs.Society w/no superstructure=Communism

Russian Revolution, 1917BOLSHEVIKS overthrew Russian government.Larger Faction of Social Democratic PartyActually: the minorityEventually call themselves COMMUNISTS

V.I. Lenin: Marxist leader of Bolsheviks

Solidified control in 1921.

Renamed Union of Soviet Socialist Republics

Leninism v. MarxismRussia was pre-industrialA VANGUARD of the REVOLUTION (small group of revolutionary leaders) was necessary to provoke revolution.DEMOCRATIC CENTRALISMRule by a few key leaders.Primacy of the Communist Party of the Soviet Union (CPSU)

New Economic Policy (NEP)Allowed some private property and businesses

Marxism-LeninismMarxs revolutionary anti-capitalism; Lenins reliance of communist party-state.1924: Lenin dies Named no successor1927: Joseph Stalintook control.

Stalins Two-Part PlanCOLLECTIVIZATIONEnded private ownership (NEP)Collective FarmsHuge, state-run farmsINDUSTRIALIZATIONForced society to industrialize.Surplus peasants farmers forced to cities.Five Year PlanDouble production of all major industries.GosplanCentral State Planning Commission created goals for entire economy.

StalinismCollectivization and industrialization by central planning, executed with force and brutality.PURGESMillions of citizens and party member killed.Obsessed with disloyalty within party.Millions more sent to labor camps (gulag)

Command v. Market EconomyCOMMAND ECONOMYMARKET ECONOMYResource use and productionOwnership of Industry

Property RightsEmployment

Determined by Central Planning

Determined by supplyand demand.

State owns most economic resources

Private ownership of resources.

Little to none

Fully Protected

State-controlled

Individual-controlledThe Party StateCPSU ran the state.Oversaw all people and institutions.CPSU only route to success.10% of adults were membersPower centered with POLITBURO & SECRETARIATDemocratic CentralismGENERAL SECRETARY was head of both

Recruitment of Party ElitesNomenklaturaLists of qualified CPSU members who could fill important party positions.Secretariat controlled appointmentsElite ruling classCommunism and the Cold WarNikita Khrushchev (1953-64)Loosened censorshipDenounced PurgesDecreased Cold War tensionsLeonid Brezhnev (1964-1982)Stagnating economyMassive military spending

Mikhail Gorbachev (1985-1991)New ProgramsGLASNOST: political opennessPolitical dissentPERESTROIKA:Economic restructuringIntroduce elements of market economyPrivate enterprise and private ownership (farms)

15Flaws in the Soviet SystemLack of incentive for workersThey pretend to pay us; we pretend to work.The system is not working because we are not working.

Flaws of Soviet SystemLack of innovationNomenklaturaInbred spoils systemEncourages status quoRAMPANT BUREAUCRATIC INEFFICIENCYPoorly planned/run economy

Flaws of the Soviet SystemExcessive Defense Spending40% of the Budget15-20% of GDP4 times greater than U.S.

Glasnost: Soviet Republics USSR15 republics92 different ethnic groups112 different languagesVarious republics (regions) pushed for independence.Baltic States: 1989Latvia, Lithuania, Estonia

191991 Coup AttemptCommunist hard-liners oppose Gorbachevs reforms.3-day coupGorbachev detained at dacha.

1991 Coup AttemptBoris YeltsinPresident of Russian RepublicUSSRs largest state.Rallied publicOpposed CoupGorbachev resignsUSSR disbandsDec 1991

Commonwealth of Independent States (1991-current)

22Yeltsin and Shock TherapyRapid shift to a market economyGovernment privatizes commanding heightsYeltsin and capitalist oligarchs vs. red directors

Power in hands of an elite fewCorruption

Impact of Shock TherapyMassive Inflation1986: 20 rubles=$11997: 5,500 rubles=$12011: 30 rubles=$1GDP: 1989=500 billion 1999=195 billionUnemployment: no govt. secured jobs.1998: 12%16% of population lived on $1-$2 a day.Huge gap between rich and poorPublic faith in a market economy dwindled.1997: Government defaulted on debt.Vladimir PutinFormer KGB spyPrime Minister under Yeltsin (1999)Acting president after Yeltsin resignedWon presidential election (2000 & 2004)

Putin & EconomyStabilized economy after Yeltsins 1990s.GDP1999=195 billion2009= 1.2 trillionIncrease of foreign direct investment (FDI) in RussiaMajor exporter of oil.Modernization

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