In 1920, the introduction of concessions. War communism completely destroyed private property in Russia. This led to a deep economic crisis in the country. The introduction of concessions was supposed to improve the situation. However, many historians and journalists think differently. They believe that the policy of war communism was designed to “clear the field” for foreign capital. Like it or not, but foreign "non-capitalist" companies really began to receive broad rights to economic activity. The policy of "red terror", the surplus-appraisal, that is, the actual robbery of the population, is still hushed up in the West. However, after the liquidation of all foreign concessions, all foreign historians, politicians and public figures started talking about human rights, mass repressions, etc. What was the reality? It is still not known. However, the year the concessions were introduced is the year the country was completely destroyed. But first, a little theory.
What are concessions
“Concession” in translation from Latin means “permission”, “concession”. This is the commissioning by the state of a part of their natural resources, production capacities, factories, and factories to a foreign or domestic person. As a rule, such a measure is taken in times of crisis, when the state itself is not able to establish production on its own. The introduction of concessions allows you to restore the ruined state of the economy, gives jobs, cash flow. A large role is given to foreign capital for the reason that investors are willing to pay in international currency, and domestic citizens simply do not have money.
Introduction of concessions: a date in the history of Soviet Russia
In 1920, the SNK decree “On Concessions” was adopted. A year before the official proclamation of the NEP. Although the project was discussed back in 1918.
Theses on the concessions of 1918: betrayal or pragmatism
Some journalists and historians today talk about attracting foreign capital to Soviet Russia as national treason, and the country itself is called a colony of capital under the bright slogans of socialism and communism. However, one can analyze the articles of the theses of 1918 to understand whether this was actually so:
- Concessions must be surrendered so that the influence of foreign states is minimal.
- Foreign investors were required to adhere to Soviet domestic laws.
- Concessions can be redeemed from owners at any time.
- The state must receive a share in the management of enterprises.
The fact that the authorities carefully approached this issue, we can conclude on the draft of the first such companies in the Urals. It was assumed that under the authorized capital of the enterprise, the government would invest 200 million rubles, 200 would be invested by domestic investors, and only 100 by foreign investors. We agree that with this division, the influence of foreign bankers on economic sectors is minimal. However, the capitalists were not going to invest under such conditions. Germany with its enormous resources fell into the hands of the "predators". American and European bankers were so profitable for themselves to impose conditions on the Germans that such proposals from Russia were simply not interesting. The capitalists needed to rob countries, not develop them. Therefore, the theses of 1918 remained only on paper. Then the civil war began.
The deterioration of the situation in the country
By 1921, the country was in a deep crisis. The First World War, intervention, civil war led to the following consequences:
- ¼ all national wealth was destroyed. Oil and coal production halved compared to 1913. This led to a fuel, industrial crisis.
- Breaking all trade relations with capitalist countries. As a result, our country tried to cope with difficulties alone.
- Demographic crisis. Human casualties are estimated at 25 million people. This number includes the potential loss of unborn children.
In addition to wars, the policy of war communism was a failure. Food surplus completely destroyed agriculture. Farmers simply did not make sense to grow crops, as they knew that food detachments would come and take everything. Peasants not only ceased to give their products, but also began to rise in armed struggle in Tambov, the Kuban, Siberia, etc.
In 1921, the already disastrous state of affairs in agriculture was exacerbated by drought. Grain production also halved.
All this led to the introduction of a new economic policy (NEP). Which actually meant a reverse rollback to the hated capitalist system.
New Economic Policy
At the Tenth Congress of the RCP (B.), A course was adopted, which was called the "New Economic Policy." This meant a temporary transition to market relations, the abolition of the surplus appraisal in agriculture, and its replacement with a tax on taxes. Such measures significantly improved the situation of peasants. Of course, there were excesses then. For example, it was necessary to hand over 20 kilograms per cow in some regions every year. How could this be done every year? Unclear. After all, you can’t cut off a piece of meat from one cow annually without slaughter. But these were already excesses in places. In general, the introduction of a tax in kind is a much more progressive measure than a gang robbery of peasants by food detachments.
The introduction of concessions was active ( NEP period ). This term began to apply only to foreign capital, as foreign investors refused to jointly manage enterprises, and there were no domestic investors. During the NEP period, the authorities began the reverse process of denationalization. Small and medium enterprises returned to their former owners. Foreign investors could rent Soviet enterprises.
Active introduction of concessions: NEP
Since 1921, there has been an increase in enterprises leased or acquired by foreign investors. In 1922 there were already 15, in 1926 - 65. Such enterprises operated in the sectors of heavy industry, mining, mining, and woodworking. In total, the total number has reached more than 350 enterprises for all time.
Lenin himself had no illusions about foreign capital. He argued about the stupidity of believing that a "socialist calf" was embracing a "capitalist wolf." However, it was impossible to find ways to restore the economy under conditions of total destruction and plunder of the country.
Later, the introduction of concessions began on minerals. That is, the state began to give natural resources to foreign companies. Without this, Lenin believed, it would be impossible to implement the GOERLO plan throughout the country. Something similar we observed in the 1990s. after the
collapse of the USSR.Revision of agreements
The introduction of concessions is a compulsory measure related to the civil war, revolutions, crises, etc. However, by the mid-1920s. a rethinking of this policy is taking place. There are several reasons:
- Conflict situations between foreign companies and local authorities. Western investors are accustomed to full autonomy in their enterprises. Private property was not only recognized in the West, but also sacredly guarded. In our country, such enterprises were hostile. Even among the highest party workers, there was constant talk of "betraying the interests of the revolution." Of course, you can understand them. Many fought for the idea of equality, fraternity, the overthrow of the bourgeoisie, etc. Now it turns out that, having overthrown some capitalists, they invited others.
- Foreign owners are constantly trying to get new preferences and benefits.
- Many states began to recognize the new state of the USSR in the hope of receiving compensation for the nationalization of enterprises. Soviet authorities retaliated for destruction and intervention. These contradictions resulted in sanctions. Companies were forbidden to enter the Soviet market. By the mid-20s. XX century applications for concessions has become many times less.
- By 1926-1927, regulatory authorities began to receive balance of payments. It turned out that some foreign enterprises receive more than 400% of the annual capital profit. In the mining industry, the average percentage was low, about 8%. However, in processing, it reached over 100%.
All these reasons influenced the future fate of foreign capital.
Sanctions: history repeats itself
An interesting fact, but after 90 years, the story of Western sanctions repeated. In the twenties, their introduction was associated with the refusal of the Soviet authorities to pay the debts of tsarist Russia, as well as to pay compensation for nationalization. For the sake of this, many states recognized the USSR as a country. After that, many companies, especially technological ones, were forbidden to conduct business with us. New technologies ceased to come from abroad, and concessions gradually began to curtail their activities. However, the Soviet authorities found a way out of the situation: they began to hire professional specialists on individual contracts. This led to the immigration of scientists and industrialists to the USSR, who began to create new high-tech enterprises and equipment inside the country. The fate of the concessions was finally predetermined.
The end of foreign capital in the USSR
In March 1930, the last agreement was concluded with Leo Werke for the production of dental products. In general, foreign companies already understood how soon it would all end, and gradually left the Soviet market.
In December 1930, a decree banning all concession agreements was issued. Glavkontsesskom (GKK) was relegated to the position of a law office, which was engaged in consultation with the remaining companies. By this time, industrial goods of the USSR had finally fallen under the ban of Western sanctions. The only product that we were allowed to sell on international markets was bread. This is what led to the subsequent famine. Grain is the only product for which the USSR received currency for the necessary reforms. In this situation, a collective-state farm system is created with large-scale collectivization.
Conclusion
So, the introduction of concessions (the year in the USSR - 1921) occurs as a necessary measure. In 1930, the government formally annulled all early agreements, although some enterprises were allowed to remain as an exception.