In 1920, concessions were introduced. 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 intended 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 the "Red Terror", surplus appropriation, 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, and so on. What happened in reality? Still not known. However, the year the concessions were introduced is the year the country was razed to the ground. But first, some theory.
What are concessions
"Concession" in Latin means "permission", "assignment". This is the commissioning by the state to a foreign or domestic person of part of its natural resources, production capacities, factories, plants. 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, provides jobs, the flow of funds. A large role is given to foreign capital for the reason that investors are willing to pay in international currency, while domestic citizens simply do not have money.
Introduction of concessions: a date in the history of Soviet Russia
In 1920, the decree of the Council of People's Commissars "On Concessions" was adopted. A year before the official proclamation of the NEP. Although the project was discussed back in 1918.
1918 Concession Thesis: Treachery or Pragmatism
Some journalists and historians today talk about attracting foreign capital to Soviet Russia as a national betrayal, 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 theses of 1918 to understand whether this was actually the case:
- Concessions should be leased in such a way that foreign influence is minimal.
- Foreign investors were required to adhere to domestic Soviet laws.
- At any time, concessions can be redeemed from the owners.
- The state must receiveshare in the management of enterprises.
The fact that the authorities carefully approached this issue can be concluded from the project of the first such companies in the Urals. It was assumed that with the authorized capital of the enterprise of 500 million rubles, 200 will be invested by the government, 200 by domestic investors, and only 100 by foreign ones. We agree that with such a division, the influence of foreign bankers on the sectors of the economy is minimal. However, the capitalists were not going to invest money under such conditions. Germany with its huge resources fell into the hands of the "predators". American and European bankers imposed conditions on the Germans so beneficially for themselves that such proposals from Russia were simply not interesting. Capitalists needed to plunder countries, not develop them. Therefore, the theses of 1918 remained only on paper. Then the civil war began.
Deterioration of the situation in the country
By 1921 the country was in the deepest crisis. World War I, intervention, civil war led to the consequences:
- ¼ all national we alth was destroyed. The production of oil and coal was halved compared to 1913. This led to a fuel, industrial crisis.
- Severance of all trade relations with capitalist countries. As a result, our country tried to cope with difficulties alone.
- Population crisis. Human losses are estimated at 25 million people. This number includes the potential loss of unborn children.
Besides wars, failedturned out to be the policy of war communism. Prodrazverstka completely destroyed agriculture. It simply didn't make sense for farmers to grow crops, because they knew that food detachments would come and take everything. The peasants not only stopped giving away their food, but also began to rise up in armed struggle in Tambov, the Kuban, Siberia, etc.
In 1921, the already catastrophic state of affairs in agriculture was exacerbated by drought. Grain production also halved.
All this led to the introduction of the New Economic Policy (NEP). What actually meant a rollback to the hated capitalist system.
New Economic Policy
At the X 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 surplus appropriation in agriculture, and its replacement with a tax in kind. Such measures significantly improved the situation of the peasants. Of course, there were kinks even then. For example, it was necessary to hand over 20 kilograms from each cow every year in some regions. How could this be done every year? Unclear. After all, it is impossible to cut off a piece of meat from one cow every year without slaughter. But these were already excesses on the ground. In general, the introduction of a tax in kind is a much more progressive measure than the bandit robbery of peasants by food detachments.
Concessions were actively introduced (NEP period). This term began to be applied only to foreign capital, as foreign investors refused tojoint management of enterprises, and there were no domestic investors. During the NEP period, the authorities began a reverse process of denationalization. Small and medium-sized 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 businesses leased or purchased by foreign investors. In 1922 there were already 15 of them, in 1926 - 65. Such enterprises operated in the sectors of heavy industry, mining, mining, woodworking. In total, the total number has reached more than 350 enterprises for all time.
Lenin himself had no illusions about foreign capital. He talked about the stupidity of believing that the "socialist calf" would embrace the "capitalist wolf." However, it was impossible in the conditions of total devastation and plunder of the country to find ways to restore the economy.
Later, the introduction of concessions began on minerals. That is, the state began to give natural resources to foreign companies. Without this, as Lenin believed, it was impossible to implement the GOERLO plan throughout the country. We saw something similar in the 1990s. after the collapse of the USSR.
Revising agreements
The introduction of concessions is a forced measure associated with civil war, revolutions, crises, etc. However, by the mid-1920s this policy is being rethought. There are several reasons:
- Conflict situationsbetween foreign companies and local authorities. Western investors are accustomed to complete autonomy in their enterprises. Private property was not only recognized in the West, but also sacredly guarded. In our country, such enterprises were treated with hostility. Even among the highest party workers, there was constant talk of "betraying the interests of the revolution." Of course, they can be understood. Many fought for the idea of equality, brotherhood, the overthrow of the bourgeoisie, and so on. Now it turns out that, having overthrown some capitalists, they invited others.
- Foreign owners were 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. The Soviet authorities issued a return bill for the destruction and intervention. These contradictions resulted in sanctions. Companies were forbidden to enter the Soviet market. By the mid-20s. Since the 20th century, applications for concessions have become much smaller.
- By 1926-1927, the regulatory authorities began to receive balances of payments. It turned out that some foreign enterprises receive more than 400% of the annual return on capital. In the extractive industry, the average percentage was low, about 8%. However, in the processing plant it reached over 100%.
All these reasons influenced the further fate of foreign capital.
Sanctions: history repeating itself
An interesting fact, but 90 years later, the story of Western sanctions repeated itself. In the twenties, their introduction was associated withthe refusal of the Soviet authorities to pay the debts of tsarist Russia, as well as to pay compensation for nationalization. Many states recognized the USSR as a country for this very reason. After that, many companies, especially technology companies, were banned from doing business with us. New technologies stopped coming from abroad, and concessions began to gradually phase out 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 sealed.
The end of foreign capital in the USSR
In March 1930, the last agreement was concluded with the Leo Werke company for the production of dental products. In general, foreign companies already understood how soon everything would end, and gradually left the Soviet market.
In December 1930, a decree is issued banning all concession agreements. Glavkontsesskom (GKK) was reduced to the position of a legal office that consulted with the remaining companies. By this time, industrial goods of the USSR were finally banned by Western sanctions. The only product 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-farm and state-farmbuild with large-scale collectivization.
Conclusion
So, the introduction of concessions (the year in the USSR - 1921) occurs as a forced measure. In 1930, the government officially canceled all previous contracts, although some enterprises were allowed to remain as an exception.
