Economic Systems of the World Review

1. What major historical developments caused some countries in Central Eurasia to have stronger cultural and economic ties to Western Europe than others? Does this background have significance today?

The mongol and Turkish conquests, Peter the Great and Russian expansion, emancipation and industrialization, Russian Revolution, WW1, war communism, the new economic policy, WW2. Yes, it affects how some cultures view one another. As well as if one country was occupied by another or it being part of another country greatly affects that countries culture and how they think today. Long lasting affect of culture and language still exist today.

2.  Describe Lenin's New Economic Policy.  Why was it established?  Why was it eventually replaced?

A temporary experiment in market socialism: designed to get the economy back on its feet toward full communism

1. Progressive agricultural tax: replaced the system of requisitioning

2. Private trade was legalized: farmers could keep/sell a larger part of any increase in their production; incentive to work restored, govt. rationing replaced with private trade

3. Small enterprises were leased to entrepreneurs. Larger enterprises operated as public trusts and expected to operate at profit. Only "the commanding heights of in­dustry" were kept under direct governmental control. (fuel, war industry, banking, foreign trade, trans)

4. Freer labor mobility, income equality with market-determined wages, and pro-labor legislation.

Performance—After 1921 drought, NEP supported rapid recovery, but with rising inequality…problems with agriculture prices led to decisions to all more farmer accumulated wealth which was inconsistent with socialist ideas

3. During the Soviet industrialization debate of the 1920s, what positions were taken by Bukharin and Trotsky, and what were their arguments?  What position did Stalin eventually support?

Bukharin position/argument: “right deviation faction” argued for continuation of...