The difference between capitalist and socialist industrialization.
First – Stalinist industrialization.
Socialist industrialization: challenges and ways of overcoming them
Features of socialist and capitalist industrialization
The main feature of the industrialization of the USSR was that it was impossible to make it a “template” of the capitalist countries, e.g., USA. It was necessary to create a new, “socialist” pattern of development of the industry.
It was a lot “but”, in which it was impossible to use those or other factors of development. Such factors include the fact that the Soviet Union had a lot of debts from the time of Imperial Russia. Therefore not had to rely on the assistance of other States: we were “head over heels” in debt. So, we had to find the strength in domestic reserves, not counting on the help of other countries. The country had to find its own path of development; had many UPS and downs, both in domestic and foreign policy of industrialization.
In the late 20’s-early 30-ies of the first five-year plan was in full swing. The country is gradually shifting to a centralized economy where there is no private initiative, and all enterprises are state-owned.
However, in the 1930s the Soviet leadership was faced with certain difficulties. The cost of development of heavy industry than expected. Domestic savings in heavy industry did not reach the planned volumes. He was found out.
In town and village placed new loans. Increased the amount of money, despite the fact that the number of goods remained the same (issue of money). This has led to higher prices.
Increased grain exports and various natural raw materials: coal, ore, oil, timber.
Raised the price of alcoholic beverages and also increased their production. “Drunk” money, in a sense, helped to overcome some economic difficulties, but were subsequently negative effects.
The media launched a massive operation, under the unofficial name “the propaganda of manual work”. The Stakhanov movement arose as a result of ideological inspiration, produced through the press. For overtime work the workers were underpaid, hung their portraits on the Board of honor. “Glory to the working man!” – this slogan is still associated with the Soviet time.
The industrialization of the USSR and industrial breakthrough in other countries is far from identical concepts, as is commonly believed. On the contrary, it is largely the polar concepts. Provide some distinguishing features of capitalist and socialist industrialization, depending on factors.
Form of ownership. You need to understand who owns the production in that and other case. In the capitalist countries (USA, UK) enterprises owns a small group of people. ultimately, the profit goes only to them. Interaction with government agencies takes place through market relations. Companies have the right to sell their products. There is a healthy competition. The number of produced products is growing.
However, this has its downside. Remember that one time with the socialist industrialization of the Soviet Union, the United States begins the Great depression that occurred as a result of the crisis of overproduction. Offer many times over exceeded demand. Prices for food skyrocketed, and many poor working families could not afford to buy them. Products were very much, however, the state could not distribute them to the needy: it would lead to a decrease in the money supply and the collapse of the economy. So unsold goods were destroyed: oranges doused with kerosene to the needy could not eat it.
It is – the question that capitalist industrialization involves the strengthening of market relations. Here the interests of the state in many ways at odds with the interests of “private traders”: first it is profitable to buy goods at low rates and sell it at a higher, while the second is advantageous to sell goods at high prices. The increased supply could have a negative impact on the economy, trigger a crisis of overproduction in the event of a collapse of the dollar.
In contrast, advocated a socialist society. If market relations do not exist as such, and all nationalized enterprises (i.e. state-owned), there is a command or centrally controlled economy. Prevalent here are not the private interests of certain groups of individuals and state interests. The increase in the number of products, on the contrary, will contribute to the prosperity of the country.
It happened in the case of industrialization of the USSR in the 1930-ies. The establishment of industries in the fields of engineering and automobile industry, black and nonferrous metallurgy, aircraft and tractor made the Soviet Union economically independent government in the future.
The process of nationalization of enterprises, establishment of collective farms (collectivization) was held according to a special scenario.
First, many have decided the personal enthusiasm of the workers, which is heated as the print media, and a variety of incentives (increase in wages for most of the processing). The working man – it sounded good.
Secondly, work on the farm gave some advantages. Of course, it was necessary to put more efforts than private land. However, the kolkhoz was directly associated with the state. A collective work protected people from the many difficulties they encountered alone (a poor harvest, the plowing of the land, the difficulty in selling the crops, etc.).
Funds. Also important question, what means should undergo industrialization.
Capitalist industrialization took place at the expense of workers (wage withholding) and through tax increases.
Socialist industrialization was carried out through grain exports and natural resources in the form of oil, coal and gas. There is a transfer of resources from light industry to heavy, from agriculture to industry.
At a certain stage of socialist industrialization, the Soviet Union did not avoid some mistakes that led to creation of money (increasing the money supply when the shortage of goods). However, the results of the first and second five year plans were really grandiose.
Production in heavy industry (machine building, ferrous and non-ferrous metals) increased by 4.5 times. Built in Moscow metro.
Actively developed new technology: synthetic rubber, cement, carbide and tool steels.
As a result of development of mechanical engineering and the automotive industry in the country started to operate the largest plants: Moscow, Gorky, Kharkov, and Chelyabinsk tractor Ural wagon and many others. Most of them still works. For example, the plant Gorky automobile plant, which is now called “GAZ Group” and cooperates with the largest foreign companies.
Capitalist and socialist industrialization represent diametrically opposite models. Of course, this division is rather arbitrary. Both market and command economies “work” not in the context of conditionally specified tasks, and in real life. The number of “produced units:” depends, how there will be a separate group of people, and from “the growth of heavy industry” depends on the welfare of the country and every human being as a whole.
– Material-technical base of socialism.
– Public ownership of the means of production – the basis of production relations of socialism.
– The basic economic law of socialism.
– The law of balanced (proportionate) development of the national economy
– Social labor under socialism.
– Commodity production, the law of value and socialism
– Wages under socialism.
– Cost accounting and profitability, cost and price.
– The socialist system of agriculture.
– Turnover under socialism.
– The national income of socialist society.
– The state budget, credit and money circulation under socialism.
– Socialist reproduction.