During the second period, called the construction of the foundations of socialism, agriculture was collectivized, and industry was diversified into mining, timber processing, and consumer goods production.
In the early 1930s over 91% of agricultural land was collectivized as rural households entered collective farms with their land, livestock, and other assets.
The government collectivized agriculture and it extracted profits from the country's farms to finance rapid expansion of heavy industry, which attracted more than 90% of total industrial investment.