After the October Revolution, the Soviet government faced the task of creating various state institutions. Industry and the entire enterprise have been nationalized. What was needed was a governing body that would control and manage all the property of the new state. Explanation of the Supreme Economic Council - Supreme Council of the National Economy.
The creation of the Supreme Economic Council
The history of the Supreme Council of the National Economy of the USSR begins in 1923. The creation of this body was determined by the Treaty on the Formation of the Soviet Union. The first chairman of the Supreme Economic Council is the Russian revolutionary A. Rykov.
During the years of the initial stage of the Soviet Union, the Supreme Council of the National Economy was the first major central authority to regulate and manage the main economic sectors.
Board Functions and Rights
The main function of the Supreme Economic Council was the organization of the national economy and state finance. During the years of war communism, the terms of reference of the Supreme Economic Council was as wide as possible. In fact, the National Economy Council has become the economic force of the dictatorship of the proletariat.
In the initial Stalinist period, the task of the council was the development of a planned economy and its centralization. Also thanks to him, the national economy strengthened the sectoral nature of industrial management.
A special function of the Supreme Economic Council is the participation of the body in the activities of scientific and technical institutions. In the USSR, various educational institutions engaged in industrial services to the state.
The Supreme Council of the National Economy had the right to confiscation and the right to forcibly unite various industries into syndicates.
The structure of the Supreme Economic Council
The Supreme Council of the National Economy had a fairly ramified organizational structure. The main bodies were:
- Chairman of the board.
- Industry committees and departments for various types of industrial production.
- Subdivisions in science and technology.
- The main apparatus (included inspection, accounting, secretariat).
It should also be noted that branches of the Supreme Economic Council existed in all union republics of the country. Local economic councils were handed over to industry of local as well as republican significance.
Every day, the council issued the Commercial and Industrial Newspaper, which issued information on the industrial and agricultural achievements of the Soviet Union under construction.
All industry under the authority of the Supreme Economic Council was divided:
- on the Union;
- republican;
- local
Activities of the Supreme Council of the National Economy
At the beginning of 1918, the council paid wages to workers and also financed the developing industry. It was at this time that local councils of the national economy were formed. The Supreme Economic Council is an active activity with the total nationalization of all types of industry: from large to small.
From 1921 to 1928, the New Economic Policy (NEP) was implemented on the territory of the Soviet Union. During this period, the Supreme Economic Council carried out industrial management on the basis of cost accounting. Since individual property was allowed during the NEP, the council controlled the financial resources of the state, which were invested in various private joint-stock companies.
Since 1928, the situation in the country begins to change, the NEP is curtailed, and the Supreme Council of the National Economy is gradually losing its authority. The beginning of the Stalinist industrialization process marked structural restructuring. Now all the activities of the body were centralized, trying to concentrate all the resources in the hands of the state.
At the final stage of its existence, the Supreme Economic Council is a body that directed all its forces to forced industrialization, which began in the 30s. 1932 is the date of the abolition of the council as an independent body. It is believed that the Council of National Economy was transformed into the Commissariat of the USSR, which was engaged in heavy industry.
The Council of the National Economy was disbanded due to poor-quality management by nationalized and built enterprises.
In 1963, an attempt was made to revive the Supreme Economic Council, but the body lasted only 2 years. The problem of the existence of the Supreme Council of the National Economy consisted in the confrontation between the existing system, built on the basis of territorial administration, and the general trend towards industrial branch development.
Country Electrification
The main achievement of the council in the initial period was the formation of a commission for the electrification of the Soviet state. The GOERLO plan has become a promising and at the same time complex project, which was carried out under the conditions of the Civil War in the country. However, the goal was achieved, and already in 1926 a large part of the country was electrified. If at the beginning of the construction of the electric infrastructure there were about 10 power plants, then by 1935 there were about 100. According to this project, it was supposed to electrify the lives of ordinary citizens and mechanize large production processes.