At the behest of Vladimir Lenin, war communism, which was introduced during the civil war and sought to achieve full state ownership and operation of the economy immediately, was abandoned as unwieldy, unworkable, and premature. It was replaced by the NEP, under which state industry was divided into two categories: the commanding heights and a decentralized sector. The former industries, which included fuel, metallurgy, the war industries, transportation, banking, and foreign trade, remained under direct supervision of the government in the form of the Supreme Council of the National Economy (VSNKh). These industries continued as part of the central budget and were subject to centralized allocations of supplies and outputs.
The decentralized industries, consisting mainly of firms serving ordinary consumers, were encouraged to form into trusts. VSNKh created sixteen new departments, which replaced the fifty or so glavki, to supervise the largest and most important trusts. About a quarter of the trusts, mainly involved in light industry, were supervised at the decentralized level of the sovnarkhozy. By mid-1923 there were 478 trusts composed of 3,561 enterprises and employing about 75 percent of the total industrial workforce. Subsequently, many trusts were amalgamated into even larger units, known as syndicates.
The consolidation of industries into trusts and of trusts into syndicates was obviously intended to make control and coordination of the economy simpler and more effective. These large-scale organizations posed certain problems, especially when their managers sought to use the monopoly power they provided against consumers or other sectors of the economy. The Soviet trust disappeared with the beginning of rapid industrialization and the five-year plan era of the 1930s.
See also: committee for the management of the national economy; new economic policy
Maurice Dobb. (1948). Soviet Economic Development since 1917. New York: International Publishers.
Gregory, Paul R., and Robert C. Stuart, Soviet Economic Structure and Performance, 4th ed. New York: Harper-Collins.
James R. Millar
"Trusts, Soviet." Encyclopedia of Russian History. . Encyclopedia.com. (November 16, 2018). https://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/trusts-soviet
"Trusts, Soviet." Encyclopedia of Russian History. . Retrieved November 16, 2018 from Encyclopedia.com: https://www.encyclopedia.com/history/encyclopedias-almanacs-transcripts-and-maps/trusts-soviet
Encyclopedia.com gives you the ability to cite reference entries and articles according to common styles from the Modern Language Association (MLA), The Chicago Manual of Style, and the American Psychological Association (APA).
Within the “Cite this article” tool, pick a style to see how all available information looks when formatted according to that style. Then, copy and paste the text into your bibliography or works cited list.
Because each style has its own formatting nuances that evolve over time and not all information is available for every reference entry or article, Encyclopedia.com cannot guarantee each citation it generates. Therefore, it’s best to use Encyclopedia.com citations as a starting point before checking the style against your school or publication’s requirements and the most-recent information available at these sites:
Modern Language Association
The Chicago Manual of Style
American Psychological Association
- Most online reference entries and articles do not have page numbers. Therefore, that information is unavailable for most Encyclopedia.com content. However, the date of retrieval is often important. Refer to each style’s convention regarding the best way to format page numbers and retrieval dates.
- In addition to the MLA, Chicago, and APA styles, your school, university, publication, or institution may have its own requirements for citations. Therefore, be sure to refer to those guidelines when editing your bibliography or works cited list.