Commanding Heights

Definition

The term 'commanding heights' refers to the key sectors of an economy that are essential for its overall stability and development, particularly in the context of state control and influence. In the Soviet Union, this concept was crucial during the New Economic Policy (NEP) as it highlighted the importance of state ownership and control over industries deemed vital for economic recovery and growth after the disruptions of the Russian Civil War. By focusing on these sectors, the Soviet leadership aimed to ensure that the economy could function effectively while allowing for some degree of private enterprise in less critical areas.

5 Must Know Facts For Your Next Test

1. The concept of commanding heights was first popularized by Lenin as a strategy to stabilize the economy post-revolution by focusing on key industries.
2. Under NEP, the Soviet government nationalized major industries like banking, railways, and heavy manufacturing while allowing small-scale private businesses to operate.
3. The idea was that control over the commanding heights would provide the state with resources necessary for investments in infrastructure and welfare.
4. Commanding heights reflects a broader ideological struggle between state control and market forces during a period of economic transition in the Soviet Union.
5. While NEP allowed some flexibility, ultimately, Stalin moved towards complete state control over all sectors, abolishing NEP's concessions.

Review Questions

• How did the concept of commanding heights shape economic policies during the New Economic Policy in the Soviet Union?
  • The concept of commanding heights significantly influenced economic policies during the NEP by emphasizing the importance of state control over critical industries. The Soviet government nationalized major sectors such as banking and heavy industry to stabilize the economy after years of turmoil. By focusing on these commanding heights, policymakers aimed to direct resources efficiently and lay a strong foundation for future economic growth while allowing limited private enterprise in other areas.
• Evaluate how the approach to commanding heights during NEP differed from Stalin's later policies regarding state control.
  • During NEP, the approach to commanding heights involved a balance between state control and private enterprise, allowing small businesses to thrive alongside nationalized industries. This pragmatic strategy aimed to rebuild the economy gradually. However, under Stalin's rule, there was a shift towards total state control, leading to rapid industrialization and collectivization. The abandonment of NEP's flexible policies marked a significant departure from its initial goals, reflecting a more rigid ideological commitment to communism.
• Critically analyze the implications of focusing on commanding heights for long-term economic stability in the Soviet Union.
  • Focusing on commanding heights had both positive and negative implications for long-term economic stability in the Soviet Union. On one hand, concentrating on key industries enabled the government to drive rapid industrial growth and mobilize resources effectively. However, this emphasis also led to a neglect of consumer goods production and agricultural development, resulting in chronic shortages and inefficiencies. Ultimately, while controlling commanding heights provided short-term benefits for recovery, it contributed to systemic issues that plagued the Soviet economy in subsequent decades.

Related terms

State Capitalism: An economic system in which the state has substantial control over production and capital, blending elements of capitalism with strong government intervention.

Nationalization: The process of transforming private assets into public ownership, often carried out by the government to control key industries or resources.

Mixed Economy: An economic system that combines elements of both capitalism and socialism, allowing for a mixture of private and public enterprise.