Introduction: During the years 1928-34 Stalin established a totalitarian dictatorship where he controlled everything. Stalin brought in Economic Policies and introduced the idea of "The Planned Economy".

Stalinism
Stalin by 1928 began the process that was to establish a totalitarian dictatorship. Terror was used, both to revolutionise the economic and social system and to consolidate his own personal power.
Stalin's power was based on three institutions:

1. The Party organisation which he controlled at all levels.
2. The secret police, to track down and remove critics. Known as the OGPU and enlarged after 1934 into the NKVD
3. The Red Army, especially now that Trotsky was gone

Economic Policies 1928-41
The mixed system of private and state owned enterprises, introduced by Lenin as the New Economic Policy, in 1921, was abolished. The introduction of the first five-year plan, to run from 1929-33, changed the path of the USSR to the path of a centralised economic policy. The second five-year plan followed between 1933-37, while a third (1937-42) was disrupted by the outbreak of WWII. The Overall aim of these policies was to match and to surpass, in the shortest time possible, the economically superior Western Capitalist states. Gulags (prison camps) were used to intimate those who resisted CPSU control of their employment and to encourage everyone to work harder for the good of the State.BR> The main tool of the government in theses tasks was to be the central planning committee (GOSPLAN)
In industry; the planned economy meant an expansion in output, an improvement in communications and the discovery and exploration of new resources to predetermined quotas.
In Agriculture it meant, not only the forced grain quotas of 1928-29, but also a fundamental change in the Agrarian life of the USSR.
The way out of Russia's agrarian backwardness, Stalin declared to the Party in December 1927, "is to turn the small and scattered peasant farms into large united farms based on collectivisation of the land in common.

The Planned Economy: Agriculture No branch of the Soviet economy was as sensationally affected by the policy of centralisation, as was agriculture. Food requisitions might do in the short term but Stalin believed collectivisation to be the real answer: that is, peasants' land would be taken from them to make up huge mechanised farms (Kolkhozes). Collectivisation, Stalin hoped would serve a number of purposes: Collectives, using modern methods and machines would produce far more than the thousands of tiny inefficient farms they replaced Peasants not needed on the collectives would be sent to work in the new industries Collectives would be easier for the party to supervise and control. Its agents would be based in the Motor Tractor Stations (MTS) that contracted out with the farm machinery Stalin was determined to dominate the 'kulaks', the rich peasant. Stalin saw them as stopping Russia's path to socialism and industralisation Make the country more self-sufficient in case of war

Was against the countryside
Collectivisation in the countryside has been described as a 'war between the peasants' Stalin sent agents into the countryside to stir up hatred against the 'kulaks'. With the aid of Party officials, police and the Army a class war was waged against the countryside between late 1928 and March 1930, involving the dispossession, deportation and often murder of those designated as 'kulaks'.
The ruthless elimination of the private farmer continued. In 1938, the Soviet Union boasted 242,000 collective farms (kolkhozes). Ninety percent of the produce that a kolkhoz produced was to be sold to the state. The remaining 10% was used to feed the members of the collective.

Results
These were mixed. There were certain failures as well as a degree of success

1. The destruction of crops, livestock and homes by rebellious peasants, the loss of Kulak expertise, and the inexperience of many collective farm managers resulted in a sharp decline in many areas of production. Grain shortages combined with forced procurements, led to rural famine. This was especially severe in the Ukraine and Caucasus region, where between 1933-38 approximately 5 million people died.
2. Not until 1940 did the figures for grain production match those of 1914
3. What gains there were in from collectisivisation in the short term were enjoyed by the soviet industry, which benefited from a flow of surplus peasant labour into more attractive factory occupations and by industrial workers who gained a reliable, if not always a plentiful supply of cheap grain
4. Collectivisation did ensure political control of the peasants as Stalin had intended
5. A crucial part of the basis of soviet industrial power at the cost of the peasantry.

The Planned Economy: Industry The aim of the First Five Year Plan, commenced in 1929 was nothing less than to lay the foundations for the transformation of soviet society into a industrial workforce comparable to the United States. Its main emphasis, therefore, fell upon the production of energy, construction material, coal, oil, electricity, iron, steel and cement. Increases of around 20% were hoped for, but this was highly unrealistic. However, machinery output increased four times, oil production doubled, and electrical output in 1932 was 250% of the 1928 figure. One major problem that prevented the targets being met was that many soviet workers were inefficient. The most effective solution was to encourage workers to complete against one another - called 'Stahhmovites' (Star) workers, who were rewarded with extra pay and privileges. The Second Five Year Plan (1933-37) avoided some of the mistakes of the first. The second plan concentrated more upon the improvement of soviet communications. This Plan produced some Soviet "show pieces" such as the Moscow-Volga canal and, most famous of all, the palatial Moscow Metro. Before the end of the second five-year plan the international situation called for more state investment to be diverted to rearmament. For example in 1948 rearmament accounted for 32.6% of government investment.

Results

1. There can be little doubt that the pre-WWII 5-year plans achieved their primary aims. They may be critized for lack of realism, administrative inefficiency, and for the human cost. Yet the goal of making the Soviet Union an industrial power, and able to withstand conflict with a major capitalist state was, within the space of 10years undoubtedly achieved.
2. Large Industrial cities like Magnitogarsk and Novosibrish literally rose from the ground
3. Huge hydroelectric dams such as the Dneipar were monuments to the largely unskilled workers who built them. However huge mistakes were made such as the Bebmar Canal
4. There was increased security as heavy industry was the basis for USSR military strength. Much of the new industry was located east of the Urals. This was a factor enabling the USSR to survive WWII
5. The product of consumer goods was reduced and as a result the standard of living remained poor
6. There was a reduction in personal freedoms and the regimantation of the Soviet people.