Stalin and the Communist party believed that the way to develop industry and run the economy was through state [?]. The state would determine not only what should be produced, but also how, when and where it would be produced. It also determined [?] and wages. To organise this sort of planning, the idea of the Five Year Plans was adopted. The detailed planning of the economy was carried out by [?], the state planning agency.

The plans set production targets, which industries had to reach. For example, the coal industry was set the target of producing 75 million tons of coal by 1932. To achieve this, coal-producing areas and local managers were given their own special [?]. The first Five-Year plan ([?]) emphasised heavy industries - coal, oil, iron and [?], electricity - to lay the foundations for future industrial growth. The targets set were unbelievably high and unrealistic, but remarkable results were achieved. Coal and iron both doubled their output; [?] power production almost trebled; 1,500 new industrial plants were built. The building of over 100 new towns, some carved out of nothing, was started. The second Five Year Plan ([?]) gave heavy industry top priority, but communications, especially railways, became important to link cities, and industrial centres. New industries such as chemicals and metallurgy grew enormously. The third Five Year Plan ([?]) ran for only three years, up to 1941, when Russia entered the Second World War. As war approached, more resources were put into developing armaments - [?], planes and weapons.

Stalin brought in specialist advisers from other countries to help develop industry. There were a lot of British and American engineers. The [?] dam project was carried out under the supervision of an American, as was the building of the Soviet asbestos industry. The Ford motor company helped the Soviet car industry to build 140,000 cars in 1932. Stalin also reintroduced single-managers to run state enterprises and factories. The idea of workers’ control was left far behind. Stalin thought he would get better results from individual managers who were directly responsible for the targets they had to fulfil. Trade unions were told not to interfere. Managers who did well were richly [?], many receiving large houses and motor cars.