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The Civil War was not just a military struggle against the White armies: it was a revolutionary war against the private interests of the old society. To fight the Whites the Bolsheviks developed their first version of the planned economy (War Communism), which would become a model for Stalin’s Five Year Plans. They tried to stamp out private trade and property (there were even plans to replace money with universal rationing); seized the peasants’ grain to feed the cities and the troops; conscripted millions of people into labour armies, which were used on the ‘economic front’ to cut down trees for fuel, build roads and repair railways; imposed experimental forms of collective labour and living in dormitories and barracks attached to factories; waged a war against religion, persecuting priests and believers and closing hundreds of churches; and silenced all dissent and opposition to the Dictatorship of the Proletariat. On the ‘internal front’ of the Civil War, the Bolsheviks unleashed a campaign of terror (the ‘Red Terror’) against ‘the bourgeoisie’ – former tsarist officials, landowners, merchants, ‘kulak’ peasants, petty traders and the old intelligentsia – whose individualistic values made them potential supporters of the Whites and other ‘counter-revolutionaries’. This violent purging of society, the Bolsheviks believed, offered a short-cut to the Communist utopia.

By the spring of 1921, the policies of War Communism had ruined the Soviet economy and brought much of peasant Russia to the brink of famine. One-quarter of the peasantry in Soviet Russia was starving. Throughout the country the peasants rose up against the Bolshevik regime and its grain requisitionings in a series of rebellions which Lenin himself said were ‘far more dangerous than all the Whites put together’. In much of rural Russia Soviet power had virtually ceased to exist, as the peasants took control of the villages and cut off grain supplies to the cities. Hungry workers went on strike. The sailors of the Kronstadt naval base, who had helped the Bolsheviks seize power in nearby Petrograd in October 1917, now turned against them in a mutiny whose Anarchist-inspired banners of revolt called for free elections to the Soviets, ‘freedom of speech, press and assembly for all who labour’, and ‘freedom for the peasants to toil the land as they see fit’. It was clear that the Bolsheviks were facing a revolutionary situation. ‘We are barely holding on,’ Lenin acknowledged at the start of March. Trotsky, who had called the Kronstadt sailors the ‘pride and joy of the Revolution’, led the assault against the naval base. Military might and ruthless terror were used in equal measure against the peasant uprisings. An estimated 100,000 people were imprisoned or deported and 15,000 people shot during the suppression of the revolts. But Lenin also realized that to stem the tide of popular revolt and get the peasants to resume food deliveries to the cities, the Bolsheviks would have to abandon the detested policies of War Communism and bring back free trade. Having defeated the White armies, the Bolsheviks surrendered to the peasantry.8

The New Economic Policy (NEP), which Lenin introduced at the Tenth Party Congress in March 1921, replaced food requisitioning with a relatively lenient tax in kind and legalized the return of small-scale private trade and manufacturing. It favoured agriculture and the production of consumer goods over the development of heavy industry. As Lenin saw it, the NEP was a temporary but necessary concession to the smallholding peasantry – wedded to the principles of private family production – to save the Revolution and get the country on its feet again. He talked about it lasting ‘not less than a decade and probably more’. The restoration of the market brought back life to the Soviet economy. Private trade responded quickly to the chronic shortages that had built up in the years of Revolution and the Civil War. By 1921, the Soviet population was living in patched-up clothes and shoes, cooking with broken utensils, drinking from cracked cups. Everybody needed something new. Traders set up booths and stalls, flea-markets boomed, and peasant traders brought foodstuffs to the towns. Licensed by new laws, private cafés, shops and restaurants, night clubs and brothels, hospitals and clinics, credit and saving associations, even small-scale manufacturers sprang up like mushrooms after the rain. Moscow and Petrograd, graveyard cities in the Civil War, suddenly burst into life, with noisy traders, busy cabbies and bright shops lighting up the streets just as they had done before 1917.

To many Bolsheviks the return to the market seemed like a betrayal of the Revolution. The introduction of the NEP was met with deep suspicion by the Party’s rank and file (even Lenin’s ‘favourite’, Nikolai Bukharin, who later became the main defender of the NEP, warmed to it only slowly during the course of 1921–3), and Lenin had to use all his powers of persuasion and authority to force it through at the congress. Among the urban workers, in particular, there was a widespread feeling that the NEP was sacrificing their class interests to the peasantry, which was growing rich at their expense, because of higher food prices. It seemed to them that the boom in private trade would inevitably lead to a widening gap between rich and poor and to the restoration of capitalism. They dubbed the NEP the ‘New Exploitation of the Proletariat’. Much of their anger was focused on the ‘NEPmen’, the private traders who thrived in the 1920s. In the popular imagination, formed by Soviet propaganda and cartoons, the ‘NEPmen’ dressed their wives and mistresses in diamonds and furs, drove around in huge imported cars, snored at the opera, sang in restaurants and boasted loudly in expensive hotel bars of the dollar fortunes they had wasted at the newly opened race-tracks and casinos. The legendary spending of this newly wealthy class, set against the backdrop of mass unemployment and urban poverty in the 1920s, gave rise to a bitter feeling of resentment among those who thought that the Revolution should end inequality.

On the ‘internal front’ the NEP entailed a reprieve for the vestiges of ‘bourgeois culture’ which Communism had promised to eliminate but could not yet do without. It brought a halt to the war against the old middle class and the professional intelligentsia, whose expertise was needed by the Soviet economy. Between 1924 and 1928 there was also a temporary relaxation in the war against religion: churches were no longer closed or the clergy persecuted at the rate that they had been before (or would be afterwards); although the propaganda war against the Church continued apace, people were allowed to observe their faith much as they had always done. Finally, the NEP allowed a breathing space for the old domestic habits and family traditions of private life, a source of real concern among many Bolsheviks, who feared that the customs and mentalities of Russia’s ‘petty bourgeoisie’ – the millions of small-scale traders and producers whose numbers were swollen by the NEP – would hold back and even undermine their revolutionary campaign. ‘Imprisoning the minds of millions of toilers,’ Stalin declared in 1924, ‘the attitudes and habits which we inherited from the old society are the most dangerous enemy of socialism.’9