“THE GRAIN PROBLEM” in “Foundations of Soviet Strategy for Economic Growth”
INDUSTRIALIZATION OF THE COUNTRY AND RIGHT DEVIATION
Our theses proceed from the premise that a fast rate of development of industry in general, and of the production of the means of production in particular, is the underlying principle of and the key to the industrialization of the country, the underlying principle of and the key to the transformation of our entire national economy along the lines of socialist development.
But what does a fast rate of development of industry involve? It involves the maximum capital investment in industry. And that leads to a state of tension in all our plans, budgetary and nonbudgetary. And, indeed, the characteristic feature of our control figures in the past three years, in the period of reconstruction, is that they have been compiled and carried out at a high tension. Take our own control figures, examine our budget estimates, talk with our party comrades—both those who work in the party organizations and those who direct our Soviet, economic, and cooperative affairs—and you will invariably find this one characteristic feature everywhere, namely, the state of tension in our plans.
The question arises: is this state of tension really necessary for us? Cannot we do without it? Is it not possible to conduct the work at a slower pace, in a more “restful” atmosphere? Is not the fast rate of industrial development that we have adopted due to the restless character of the members of the Political Bureau and the Council of People’s Commissars?
Of course not! The members of the Political Bureau and the Council of People’s Commissars are calm and sober people. Abstractly speaking, that is, if we disregarded the external and internal situation, we could, of course, conduct the work at a slower speed. But the point is that first, we cannot disregard the external and internal situation, and second, if we take the surrounding situation as our starting point, it has to be admitted that it is precisely this situation that dictates a fast rate of development of our industry.
Permit me to pass to an examination of this situation, of these conditions of an external and internal order that dictate a fast rate of industrial development.
External conditions. We have assumed power in a country whose technical equipment is terribly backward. Along with a few big industrial units more or less based upon modern technology, we have hundreds and thousands of mills and factories in which the technical equipment is beneath all criticism from the point of view of modern achievements. At the same time we have around us a number of capitalist countries whose industrial technique is far more developed and up-to-date than that of our country. Look at the capitalist countries and you will see that their technology is not only advancing, but advancing by leaps and bounds, outstripping the old formsof industrial technique. And so we find that, on the one hand, we in our country have the most advanced system, the Soviet system, and the most advanced type of state power in the world, Soviet power, while, on the other hand, our industry, which should be the basis of socialism and of Soviet power, is extremely backward technically. Do you think that we can achieve the final victory of socialism in our country so long as this contradiction exists?
What has to be done to end this contradiction? To end it, we must overtake and outstrip the advanced technology of the developed capitalist countries. We have overtaken and outstripped the advanced capitalist countries in the sense of establishing a new political system, the Soviet system. That is good. But it is not enough. In order to secure the final victory of socialism in our country, we must also overtake and outstrip these countries technically and economically. Either we do this, or we shall be forced to the wall.
This applies not only to the building of socialism. It applies also to upholding the independence of our country in the circumstances of the capitalist encirclement. The independence of our country cannot be upheld unless we have an adequate industrial basis for defense. And such an industrial basis cannot be created if our industry is not more highly developed technically.
That is why a fast rate of development of our industry is necessary and imperative.
The technical and economic backwardness of our country was not invented by us. This backwardness is age-old and was bequeathed to us by the whole history of our country. This backwardness was felt to be an evil both earlier, before the revolution, and later, after the revolution. When Peter the Great, having to deal with the more highly developed countries of the West, feverishly built mills and factories to supply the army and strengthen the country’s defenses, that was in its way an attempt to break out of the grip of this backwardness. It is quite understandable, however, that none of the old classes, neither the feudal aristocracy nor the bourgeoisie, could solve the problem of putting an end to the backwardness of our country. More than that, not only were these classes unable to solve this problem, they were not even able to formulate the task in any satisfactory way. The age-old backwardness of our country can be ended only on the lines of successful socialist construction. And it can be ended only by the proletariat, which has established its dictatorship and has charge of the direction of the country.
It would be foolish to console ourselves with the thought that, since the backwardness of our country was not invented by us and was bequeathed to us by the whole history of our country, we cannot be, and do not have to be, responsible for it. That is not true, comrades. Since we have come to power and taken upon our^ selves the task of transforming the country on the basis of socialism, we are responsible, and have to be responsible, for everything, the bad as well as the good. And just because we are responsible for everything, we must put an end to our technical and economic backwardness. We must do so without fail if we really want to overtake and outstrip the advanced capitalist countries. And only we Bolsheviks can do it. But in order to accomplish this task, we must systematically achieve a fast rate of development of our industry. And that we are already achieving a fast rate of industrial development is now clear to everyone.
The question of overtaking and outstripping the advanced capitalist countries technically and economically is for us Bolsheviks neither new nor unexpected. It was raised in our country as early as in 1917, before the October Revolution. It was raised by Lenin as early as in September 1917, on the eve of the October Revolution, during the imperialist war, in his pamphlet “The Impending Catastrophe and How to Combat It.”
Here is what Lenin said on this score: “The result of the revolution has been that the political system of Russia has in a few months caught up with that of the advanced countries. But that is not enough. The war is inexorable; it puts the alternative with ruthless severity: either perish, or overtake and outstrip the advanced countries economically as well ....Perish or drive full steam ahead. That is the alternative with which history has confronted us.” (Vol. XXI, p. 191.)
You see how bluntly Lenin put the question of ending our technical and economic backwardness.
Lenin wrote all this on the eve of the October Revolution, in the period before the proletariat had taken power, when the Bolsheviks had as yet neither state power, nor a socialized industry, nor a widely ramified cooperative network embracing millions of peasants, nor collective farms, nor state farms. Today, when we already have something substantial with which to end completely our technical backwardness, we might paraphrase Lenin’s words roughly as follows:
“We have overtaken and outstripped the advanced capitalist countries politically by establishing the dictatorship of the proletariat. But that is not enough. We must utilize the dictatorship of the proletariat, our socialized industry, transport, credit system, etc., the cooperatives, collective farms, state farms, etc., in order to overtake and outstrip the advanced capitalist countries economically as well.”
The question of a fast rate of development of industry would not face us so acutely as it does now if we had such a highly developed industry and such a highly developed technology as Germany, say, and if the relative importance of industry in the entire national economy were as high in our country as it is in Germany, for example. If that were the case, we could develop our industry at a slower rate without fearing to fall behind the capitalist countries and knowing that we could outstrip them at one stroke. But then we should not be so seriously backward technically and economically as we are now. The whole point is that we are behind Germany in this respect and are still far from having overtaken her.
The question of a fast rate of development of industry would not face us so acutely if we were not the only country but one of the countries of the dictatorship of the proletariat, if there were a proletarian dictatorship not only in our country but in other, more advanced countries as well-Germany and France, say.
If that were the case, the capitalist encirclement could not be so serious a danger as it is now, the question of the economic independence of our country would naturally recede into the background, we could integrate ourselves into the system of more developed proletarian states, we could receive from them machines for making our industry and agriculture more productive, supplying them in turn with raw materials and foodstuffs, and we could, consequently, expand our industry at a slower rate. But you know very well that that is not yet the case and that we are still the only country of the proletarian dictatorship and are surrounded by capitalist countries, many of which are far in advance of us technically and economically.
That is why Lenin raised the question of overtaking and outstripping the economically advanced countries as one of life and death for our development.
Such are the external conditions dictating a fast rate of development of our industry.
Internal conditions. But besides the external conditions, there are also internal conditions which dictate a fast rate of development of our industry as the main foundation of our entire national economy. I am referring to the extreme backwardness of our agriculture, of its technical and cultural level. Iam referring to the existence in our country of an overwhelming preponderance of small commodity producers, with their scattered and utterly backward production, compared with which our large-scale socialist industry is like an island in the midst of the sea, an island whose base is expanding daily, but which is nevertheless an island.
We are in the habit of saying that industry is the main foundation of our entire national economy, including agriculture, that it is the key to the reconstruction of our backward and scattered system of agriculture on a collectivist basis. That is perfectly true. From that position we must not retreat for a single moment. But it must also be remembered that, while industry is the main foundation, agriculture constitutes the basis for industrial development, both as a market which absorbs the products of industry and as a supplier of raw materials and foodstuffs, as well as a source of the export reserves essential in order to import machinery for the needs of our national economy. Can we advance industry while leaving agriculture in a state of complete technical backwardness, without providing an agricultural base for industry, without reconstructing agriculture and bringing it up to the level of industry? No, we cannot.
Hence the task of supplying agriculture with the maximum amount of instruments and means of production essential in order to accelerate and promote its reconstruction on a new technical basis. But for the accomplishment of this task a fast rate of development of our industry is necessary. Of course, the reconstruction of a disunited and scattered agriculture is an incomparably more difficult matter than the reconstruction of a united and centralized socialist industry. But that is the task that confronts us, and we must accomplish it. And it cannot be accomplished except by a fast rate of industrial development.
We cannot go on indefinitely, that is, for too long a period, basing the Soviet regime and socialist construction on two different foundations, the foundation of the most large-scale and united socialist industry and the foundation of the most scattered and backward small commodity economy of the peasants. We must gradually, but systematically and persistently, place our agriculture on a new technical basis, the basis of large-scale production, and bring it up to the level of socialist industry. Either we accomplish this task-in which case the final victory of socialism in our country will be assured-or we turn away from it and do not accomplish it-in which case a return to capitalism may become inevitable.
Here is what Lenin says on this score: “As long as we live in a small-peasant country, there is a surer economic basis for capitalism in Russia than for communism. This must be borne in mind. Anyone who has carefully observed life in the countryside, as compared with life in towns, knows that we have not torn out the roots of capitalism and have not undermined the foundation, the basis of the internal enemy. The latter depends on small-scale production, and there is only one way of undermining it, namely, to place the economy of the country, including agriculture, on a new technical basis, the technical basis of modern large-scale production. And it is only electricity that is such a basis. Communism is Soviet power plus the electrification of the whole country.” (Vol. XXVI, p. 46.)
As you see, when Lenin speaks of the electrification of the country he means not the isolated construction of individual power stations, but the gradual “placing of the economy of the country, including agricolture, on a new technical basis, the technical basis of modern large-scale production,” which in one way or another, directly or indirectly, is connected with electrification.
Lenin delivered this speech at the Eighth Congress of Soviets in December 1920, on the very eve of the introduction of NEP, when he was substantiating the so-called plan of electrification, that is, the GOELRO plan. Some comrades argue on these grounds that the views expressed in this quotation have become inapplicable under present conditions. Why, we ask? Because, they say, much water has flowed under the bridges since then. It is, of course, true that much water has flowed under the bridges. We now have a developed socialist industry, we have collective farms on a mass scale, we have old and new state farms, we have a wide network of well-developed cooperative organizations, we have machine-hiring stations at the service of the peasant farms, we now practice the contract system as a new form of the bond, and we can put into operation all these and a number of other levers for gradually placing agriculture on a new technical basis. All this is true. But it is also true that, in spite of all this, we are still a small-peasant country where small-scale production predominates. And that is the fundamental thing. And as long as it continues to be the fundamental thing, Lenin’s thesis remains valid that “as long as we live in a small-peasant country, there is a surer economic base for capitalism in Russia than for communism,” and that, consequently, the danger of the restoration of capitalism is not an empty phrase.
Lenin says the same thing, but in a sharper form, in the plan of his pamphlet, “The Tax in Kind,” which was written after the introduction of NEP (March-April 1921): “If we have electrification in 10 to 20 years, then the individualism of the small tiller, and freedom for him to trade locally, are not a whit terrible. If we do not have electrification, a return to capitalism will be inevitable anyhow.”
And further on he says: “Ten or twenty years of correct relations with the peasantry, and victory on a world scale is assured (even if the proletarian revolutions, which are growing, are delayed); otherwise, 20 to 40 years of the torments of white guard terrorism.” (Vol. XXVI, p. 343.)
You see how bluntly Lenin puts the question: either electrification, that is, the “placing of the economy of the country, including agriculture, on a new technical basis of modern large-scale production,” or a return to capitalism.
That is how Lenin understood the question of “correct relations with the peasantry.”
It is not a matter of coddling the peasant and regarding this as establishing correct relations with him, for coddling will not carry you very far. It is a matter of helping the peasant to place his husbandry “on a new technical basis, the technical basis of modern large-scale production;” for that is the principal way to rid the peasant of his poverty.
And it is impossible to place the economy of the country on a new technical basis unless our industry and, in the first place, the production of means of production, are developed at a fast rate.
Such are the internal conditions dictating a fast rate of development of our industry.
It is these external and internal conditions which cause the control figures of our national economy to be under such tension.
That explains, too, why our economic plans, both budgetary and nonbudgetary, are marked by a state of tension, by substantial investments in capital development, the object of which is to maintain a fast rate of industrial development.
It may be asked where this is said in the theses, in what passage of the theses. (A voice: “Yes, where is it said?”) Evidence of this in the theses is the sum total of capital investment in industry for 1928/29. After all, our theses are called theses on the control figures. That is so, is it not, comrades? (a voice: “Yes.”) Well, the theses say that in 1928/29 we shall be investing 1,650 million rubles in capital construction in industry. In other words, this year we shall be investing in industry 330 million rubles more than last year.
It follows, therefore, that we are not only maintaining the rate of industrial development, but are going a step farther by investing more in industry than last year, that is, by expanding capital construction in industry both absolutely and relatively.
That is the crux of the theses on the control figures of the national economy. Yet certain comrades failed to observe this obvious fact. They criticized the theses on the control figures right and left as regards petty details, but the most important thing they failed to observe.
THE GRAIN PROBLEM
I have spoken so far of the first main question in the theses, the rate of development of industry. Now let us consider the second main question, the grain problem. A characteristic feature of the theses is that they lay stress on the problem of the development of agriculture in general, and of grain farming in particular. Are the theses right in doing so? I think they are. Already at the July plenum it was said that the weakest spot in the development of our economy is excessive backwardness of agriculture in general, and of grain farming in particular.
When people complain of our agriculture lagging behind our industry, they are, of course, not talking seriously. Agriculture always has lagged and always will lag behind industry. That is particularly true in our conditions, where industry is concentrated to a maximum degree, while agriculture is scattered to a maximum degree. Naturally, a united industry will develop faster than a scattered agriculture. That, incidentally, gives rise to the leading position of industry in relation to agriculture. Consequently, the customary lag of agriculture behind industry does not give sufficient grounds for raising the grain problem.
The problem of agriculture, and of grain farming in particular, makes its appearance only when the customary lag of agriculture behind industry turns into an excessive lag in the rate of its development. The characteristic feature of the present state of our national economy is that we are faced by the fact of an excessive lag in the rate of development of grain farming behind the rate of development of industry, while at the same time the demand for marketable grain on the part of the growing towns and industrial areas is increasing by leaps and bounds. The task then is not to lower the rate of development of industry to the level of the development of grain farming (which would upset everything and reverse the course of development), but to bring the rate of development of grain farming into line with the rate of development of industry and to raise the rate of development of grain farming to a level that will guarantee rapid progress of the entire national economy, both industry and agriculture.
Either we accomplish this task, and thereby solve the grain problem, or we do not accomplish it, and then a rupture between the socialist towns and the small-peasant countryside will be inevitable.
That is how the matter stands, comrades. That is the essence of the grain problem.
Does this not mean that what we have now is “stagnation” in the development of agriculture or evenite “retrogression”?That is what Frumkin actually asserts in his second letter, which at his request we distributed today to the members of the Central Committee and of the Control Commission. He says explicitly in this letter that there is “stagnation” in our agriculture. “We cannot and must not,” he says, “talk in the press about retrogression, but within the party we ought not to hide the fact that this lag is equivalent to retrogression.”
Is this assertion of Frumkin’s correct? It is, of course, incorrect! We, the members of the Political Bureau, absolutely disagree with this assertion, and the Political Bureau theses are totally at variance with such an opinion of the state of grain farming.
In point of fact, what is retrogression, andhow would it manifest itself in agriculture? It would obviously be bound to manifest itself in a backward, downward movement of agriculture, a movement away from the new forms of farming to the old, medieval forms. It would be bound to manifest itself by the peasants abandoning, for instance, the three-field system for the long-fallow system, the steel plough and machines for the wooden plough, clean and selected seed for unsifted and low-grade seed, modern methods of farming for inferior methods, and so on and so forth. But do we observe anything of the kind? Does not everyone know that tens and hundreds of thousands of peasant farms are annually abandoning the three-field for the four-field and multi-field system, low-grade seed for selected seed, the wooden plough for the steel plough and machines, inferior methods of farming for superior methods? Is this retrogression?
Frumkin has a habit of hanging on to the coattails of some member or other of the Political Bureau in order to substantiate his own point of view. It is quite likely that in this instance, too, he will get hold of Bukharin’s coattails in order to show that Bukharin in his article, “Notes of an Economist,” says “the same thing.” But what Bukharin says is very far from “the same thing.” Bukharin in his article raised the abstract, theoretical question of the possibility or danger of retrogression. In the abstract, such a formulation of the question is quite possible and legitimate. But what does Frumkin do? He turns the abstract question of the possibility of the retrogression of agriculture into a fact. And this he calls an analysis of the state of grain farming! Is it not ludicrous, comrades?...
What ways and means are necessary to accelerate the rate of development of agriculture in general, and of grain farming in particular?
There are three such ways, or channels: (a) by increasing crop yields and enlarging the area sown by the individual poor and middle peasants; (b) by further development of collective farms; (c) by enlarging the old and establishing new state farms....
What is required in order that our work should proceed along all these three channels, in order that the rate of development of agriculture, and primarily of grain farming, should be raised in practice?
It is necessary, first of all, to direct the attention of our party cadres to agriculture and focus it on concrete aspects of the grain problem. We must put aside abstract phrases and talking about agriculture in general and get down, at last, to working out practical measures for the furtherance of grain farming adapted to the diverse conditions in the different areas. It is time to pass from words to deeds and to tackle at last the concrete question of how to raise crop yields and to enlarge the crop areas of the individual poor and middle peasant farms, how to improve and develop further the collective farms and state farms, how to organize the rendering of assistance by the collective farms and state farms to the peasant by way of supplying them with better seed and better breeds of cattle, how to organize assistance for the peasants in the shape of machines and other implements through machine-hiring stations, how to extend and improve the contract system and agricultural cooperation in general, and so on and so forth. (A voice: “That is empiricism.’’) Such empiricism is absolutely essential, for otherwise we run the risk of drowning the very serious matter of solving the grain problem in empty talk about agriculture in general....
It is necessary, in the second place, to ensure that our party workers in the countryside make a strict distinction in their practical work between the middle peasant and the kulak, do not lump them together, and do not hit the middle peasant when it is the kulak that has to be struck at....
It is necessary, next, to give further incentives to individual poor and middle peasant farming. Undoubtedly, the increase in grain prices already introduced, practical enforcement of revolutionary law, practical assistance to the poor and middle peasant farms in the shape of the contract system, and so on, will considerably increase the peasant’s economic incentive. Frumkin thinks that we have killed or nearly killed the peasants’ incentive by robbing him of economic prospects. That, of course, is nonsense. If it were true, it would be incomprehensible what the bond, the alliance between the working class and the main mass of the peasantry, actually rests on. It cannot be thought, surely, that this alliance rests on sentiment. It must be realized, after all, that the alliance is on a business basis, an alliance of the interests of two classes, a class alliance of the workers and the main mass of the peasantry aiming at mutual advantage. It is obvious that if we had killed or nearly killed the peasant’s economic incentive by depriving him of economic prospects, there would be no bond, no alliance between the working class and the peasantry. Clearly, what is at issue here is not the “creation” or “release” of the economic incentive of the poor and middle peasant masses, but the strengthening and further development of this incentive, to the mutual advantage of the working class and the main mass of the peasantry. And that is precisely what the theses on the control figures of the national economy indicate.
It is necessary, lastly, to increase the supply of goods to the countryside. I have in mind both consumer goods and, especially, production goods (machines, fertilizers, etc.) capable of increasing the output of agricultural produce. It cannot be said that everything in this respect is as it should be. You know that symptoms of a goods shortage are still far from having been eliminated and will probably not be eliminated so soon. The illusion exists in certain party circles that we can put an end to the goods shortage at once. That, unfortunately, is not true. It should be borne in mind that the symptoms of a goods shortage are connected, first, with the growing prosperity of the workers and peasants and the gigantic increase of effective demand for goods, production of which is growing year by year but which are not enough to satisfy the whole demand, and, second, with the present period of the reconstruction of industry.
The reconstruction of industry involves the transfer of funds from the sphere of producing means of consumption to the sphere of producing means of production. Without this there can be no serious reconstruction of industry, especially in our Soviet conditions. But what does this mean? It means that money is being invested in the building of new plants, and that the number of towns and new consumers is growing, while the new plants can put out additional commodities in quantity only after three or four years. It is easy to realize that this is not conducive to putting an end to the goods shortage.
Doesn’t this mean that we must fold our arms and acknowledge that we are impotent to cope with the symptoms of a goods shortage? No, it does not. The fact is that we can and should adopt concrete measures to mitigate, to moderate the goods shortage. That is something we can and should do at once. For this, we must speed up the expansion of those branches of industry which directly contribute to the promotion of agricultural production (the Stalingrad Tractor Works, the Rostov Agricultural Machinery Works, the Voronezh Seed Sorter Factory, etc., etc.). For this, further, we must as far as possible expand those branches of industry which contribute to an increase in output of goods in short supply (cloth, glass, nails, etc.). And so on and so forth....
I should like to draw your attention to the collective farms, and especially to the state farms, as levers which facilitate the reconstruction of agriculture on a new technical basis, causing a revolution in the minds of the peasants and helping them to shake off conservatism, routine. The appearance of tractors, large agricultural machines, and tractor columns in our grain regions cannot but have its effect on the surrounding peasant farms. Assistance rendered the surrounding peasants in the way of seed, machines, and tractors will undoubtedly be appreciated by the peasants and taken as a sign of the power and strength of the Soviet state, which is trying to lead them on to the high road of a substantial improvement of agriculture. We have not taken this circumstance into account until now and, perhaps, still do not sufficiently do so. But I think that this is the chief thing that the collective farms and state farms are contributing and could contribute at the present moment toward solving the grain problem and strengthening the bond in its new forms....
Pravda, No. 273, November 24, 1928, reprinted in Works, Vol. 11, Foreign Languages Publishing House, Moscow, 1954, pp. 255-302. Speech delivered at the Plenum of the Central Committee, November 19,
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