How did the state regulate industry under War Communism?

• A. Private ownership expanded with limited state intervention.
• B. Nationalization of industry, centralized planning, and requisitioning of goods.
• C. Fully free-market system with no wartime requisitions.
• D. Only small crafts were taxed; large industry remained private.

Answer: (B)

War Communism centralized the economy to support the war effort. Industry was taken into state hands, with factories and mines owned and run by the government rather than individuals. Production and distribution were guided by centralized planning, using a state apparatus to set targets, allocate resources, and coordinate what got produced where it was needed most. At the same time, the state forcibly requisitioned goods from peasants and elsewhere to stock cities and the army, ensuring a steady flow of essential supplies regardless of market conditions. Private ownership and free-market mechanisms were suppressed, and financial institutions were brought under state control to sustain the drive for resource extraction and allocation. This combination—nationalization, centralized planning, and requisitioning—best captures how industry was regulated during War Communism.