Socialism

One could say that the reason the Soviets could not get the same western investment is because of the differences between the soviet system and the Chinese system.

Specifically for our conversation, I would like to briefly introduce you—in outline form—to the contents of Yuri Nikolayevich Zhukov’s book, The Flip Side of NEP (Обратная Сторона НЭПа):

Crisis Phenomena: According to the researcher, the partial return to market mechanisms did not lead to the long-awaited economic boom; instead, it triggered a protracted economic crisis.

Political Struggle: The transition to the NEP (New Economic Policy) exacerbated latent conflicts within the USSR’s party elite (during the 1923–1925 period), resulting in a fierce struggle for power.

Social Stratification: Economic liberalization led to the rapid enrichment of a narrow social stratum—the "NEPmen"—a situation that stood in stark contrast to the dire plight of the majority of workers and peasants.

As you can see, there exists a radically different perspective on the events of that era. Zhukov is an archivist; his work relies primarily on archival documents. In his books, every claim is substantiated by the figures and statistical indicators of those years, which form the core of the economic analysis within his work. The political struggle is evidenced in the minutes of party meetings, while social stratification is clearly visible in criminal police reports. One such report, for instance, describes the formation of a student gang in Moscow that specialized in robbing NEPmen. A great number of such motley gangs sprang up, triggering a rampant surge in crime.

Indeed, we know that between 1919 and 1921, "War Communism" was implemented at the behest of Trotsky. Both Trotsky and Lenin indulged in fantasies of a global revolution; they fully expected that a wave of socialist revolutions would erupt across Europe at any moment, and that the Red Army would immediately rush to their aid. Consequently, the army was effectively transformed into a "labor army."

It was a truly terrible time for the workers and peasants. Soldiers were not demobilized from the army; instead, they remained under barracks conditions, working in factories and receiving no wages—only food and clothing. Yet, even these basic necessities the state was unable to provide in sufficient quantities. As the situation deteriorated, unrest and strikes began to erupt in the factories; workers refused to work. Measures had to be taken. To breathe some fresh life into the economy, War Communism was abolished and the NEP was introduced; however, as it turned out, this dawn was short-lived. As for the notion that the NEP was actually effective in the USSR—that was a myth later inflated by Gorbachev in order to push through his own hare-brained ideas.