On the 8th of June
Central Committee made a decree on the formation of a new autonomous oblast
- Karelian Labor Commune (KLC) including parts of Archangelsk and Olonets provinces inhabited by the Karelians. In February 1921 the First All-Karelian Congress was held. April, 26 Sovnarcom RSFSR
made a decision on the main trends of economic development of KLC. Karelia was given economic independence. But peaceful development of the economy was violated by peasant rebellion in 1921.
The reason for the rebellion was lack of food and resentment of mass labor mobilization.
Finnish troops joined the peasants` rebellion. February, 1922 the rebellion was suppressed by the Red
July, 25 1923 Karelian Labor Commune was transformed into Karelian ASSR by the Central Committee
decision. The process of rebuilding Karelian economy had been generally completed by 1925. Logging had been increased and some saw mills were reconstructed in the course of industrialization developed in 1920-1930. New branches of industry such as pulp and paper, furniture, mining, economy of power appeared. In Kondopoga (1929) and in Segezha (1938) pulp and paper mills were built. Former Alexandrovsky plant was rebuilt into Onega Tractor Plant produced equipment for forest industry.
By the end of 1930 Karelia had produced 5% of forest production(15% of forest export), 5 % of paper,
25% of skis, 80% of quartz, 30% of granite. The population of the Republic made 0,2% of the total USSR
population. But the development of industry was achieved by extensive type of economy development
including raw resources and the lack of social financing. The important role played "the so called labor camp sector of economy". In Karelia were built many of labor camps - SLON, Byelbaltlag,
Soroklag. By the prisoners` hands Byelomorsko-Baltiysky channel, Segezhsky PPM, Pindushskaya
shipyard and others were built. By 1940 Byelbaltlag produced more than 50% of logged forest. 1929-1933 brought negative change in the peasants` life - these were the years of collectivisation. Forced collectivization (1929-1933) lead to agricultural redundancy.
From the history of Karelia | the most important historical dates and events