50 Years Ago: Russia’s New Economic Policy

Why this new change of policy? Larin’s explanation is worth noting. A decree had been issued in November 1918 under which —

“Trading in the products of domestic craft and small private industry remained free both for individuals and for the co-operative societies . . . But here we met with political reasons which paralysed our policy in practice — and these reasons must be sought for, not amongst the peasantry, and not amongst the workers. The town bourgeoisie itself simply refused to trade and refused to carry on its small undertakings. The laws remained, but the stores and workshops became empty, as the owners would not any longer risk their capital under the Bolsheviks” (Labour Monthly, November 1921.)

Larin’s explanation, however, is to some extent contradicted by Lenin. In the weekly edition of the Manchester Guardian, for 11 November, is a report of a speech by Lenin, taken from two communist papers—the Berlin Novy Pont and the Riga Novy Mir. According to this report Lenin stated that

“their economic policy during the first period assumed the possibility of passing directly from the old economic system to the State control of production and to distribution on a communist basis.”

It will be seen that this statement contradicts Larin’s claims, while further on Lenin, after referring to their being compelled to wage civil war, continues :-

“Under the influence of this state of things and of the desperate situation in which the Republic then was, under the influence of other circumstances of which this is not the time to speak, we made a blunder; we decided to pass immediately to communist production and distribution.”

Despite the contradictions between Larin and Lenin, they are both agreed upon the fundamental fact—namely, that it was impossible to establish Socialism in Russia to-day, and that, therefore they must allow capitalism to operate, beginning with small industry and trading. Surely a striking tribute to Marx.

[From an article The Force of Conditions, by Jack Fitzgerald, SOCIALIST STANDARD, December 1921].