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As an economic concept, Communism represents the establishment of communes, where large numbers of people work for the collective good. For many people during the 19th century, an agricultural cooperative was seen as a good idea in theory. However, many of these cooperatives failed. Robert Owen's establishment of New Harmony in Indiana in 1825 was one of the best-known of these cooperative ventures, but it failed. There was then the influence of Charles Fourier, who promoted the concept of communes. Both Brook Farm and Fruitlands, run by the Transcendentalists during the 1840s, failed within a few years of their formation. A large number of similar cooperatives in Latin America during the middle of the 19th century also failed.

The Communist Manifesto of 1848 by Karl Marx advocated the idea that Communism would be the last stage of Socialism, at which time goods would be so abundant that they could be distributed on the basis of need rather than endeavor. It was in support of this idea that the Bolshevik wing of the Russian Social-Democratic Workers's Party, which came to power during the Russian Revolution of 1917, changed its name to the All-Russian Communist Party in 1918. Soon afterwards many of its allied parties in other countries also changed their name to Communist Party, although a few continued to operate under other names, but stated that their doctrines were “Communist.”

Soviet Union: The Ukraine

Communism in practice was very different to Communism as a theoretical construct. In the Soviet Union, the first task for the new government was to try to repair the damage during World War I and the Russian Civil War. Economically the country was in poor shape, and the industrial base, which was weak at the start of the Russian Revolution in 1917, was in tatters by the end of the wars. This led to what became known as War Communism, which lasted from June 1918 until March 1921, and the introduction of policies such as the expropriation of private business and also the nationalization of all industries, along with the forced requisition of surplus grain and other foods from peasant farmers. These measures damaged both agricultural and industrial production, reducing the incentives for people to grow surplus grain, and it also encouraged secret hoarding by many peasants. The result was that by 1921, industrial production had fallen to 20 percent of the level in 1913, with wages falling by one-third.

The resulting public discontent led to demonstrations and strikes, which were part of the cause of the Kronshtadt Rebellion of March 1921. This led to the Communists delaying their plans to introduce a socialist economic system by decree, and the introduction of their New Economic Policy. The Communists, therefore, had to embark on a massive campaign of industrialization. Vast factory complexes were built, the mining sector was expanded, and the plan was to build an economy based on coal, iron ore, and steel.

The workers who had supported the Communists coming to power in the Soviet Union also had to be housed after the Russian Civil War. The devastation that had taken place in the countryside had resulted in an influx of many people into the cities. To deal with the housing shortage quickly, many drab apartment buildings were erected on the outskirts of many of the main cities throughout the Soviet Union. This was combined with an upgrading of public transport to bring these people from satellite suburbs into work at factories and in cities. There was also the building of resorts along the Black Sea and other warmer regions.

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