The Democratic Soviet Union (DSR), or just the Soviet Union, is a Marxist state stretching over northern and central Asia and parts of eastern Europe. DSR is a democracy that combines multi-party parliamentarianism and council direct democracy. Countries that make up the union are: Russia, Ukraine, Belarus, Baltic States and Soviet Central Asia. The capital is Moskva in Russia.
The Democratic Soviet Union was formed in February 1917 by the Russian Provisional Government. The government decided together with the Soviets to construct a dual power. The Soviets would have the local power and be ruled by direct democracy in their respective regions, while the government would be elected as representatives and have control over national questions, like foreign policy, taxes, etc.
In order to avoid further conflict and chaos in the union, the cadets and the socialist revolutionaries formed a government together with the Mensheviks. In march the government signed the peace of Brest-Litovsk and thereby ending the war in the east. These three main parties realised that they needed to set aside their differences if the new democratic state were to survive. So they choose to compromise and pass their parties most important question.
In spring the soviets and the government passed an agrarian reform whom gave nobility-owned soil and land to the peasants, the socialist revolutionaries most important goal. This changed the wealth on the countryside dramatically, since the peasants now inherited much of the wealth from the nobility and was liberated from the taxes they had to pay to them. With larger amount of mark to farm, the peasantry could finally live of their own work.
In June, the mensheviks were allowed to create their land nationalisation. All large companies and industries came under workers control and state ownership. The workers had the direct control over their workplace and they decided together how much they should work, what they should produce, etc. The Russian state held somewhat power in companies vital for the country, such as oil and gas industry.
The Cadet Party passed several liberal reforms in autumn 1917. Free speech, free association, universal suffrage, freedom of press and economic support for small and medium-sized business. Due to the large support for labour unions, the workers of these companies enjoyed far-going rights and security. Ethnic and religious minorities were given rights of expressing their culture and religion in peace and without discrimination.
The competition between the workers owned and private owned companies were said to fuel the DSR's industrialisation and modernisation. The concurrents were said to increase the technological development of the nation. But in fear of losing their jobs, some workers owned companies refused to develop technology. In some cases, the state had to step in force the company to aid the development. Although as Russia stabilised, this action became increasingly rare, as the different worker-owned companies competed with each other, which forced technological and scientific improvements.
In order to prevent poverty and increase the welfare of the people, a strong welfare society were created with free education, healtcare, economic support for the poor etc. A federal, decentralised state were created in order to preserve direct democracy and the peoples influence.
Change from the real history
Since the government signed a peace treaty with the central powers and passed the land reform, which they in reality did not, Lenin and the Bolsheviks were never given an opportunity to use a massive discontent with the provisional government to their advantage, and therefore remaining in minority both in the provisional government and the soviets. Lenin never becomes a influential politician, just a regular party leader for a small party.
Absence of the Russian civil war
Since democracy remained and the anti-socalist parts of the Russian population saw their will being put forward by the cadets, a civil war between the government and the white army never occur in the same scale. The vast majority of the inhabitants of the union supports the new state. In the war that did occur, the White movement were significantly smaller and did not enjoy large support from the people, leading the civil war to end quicker and much less bloody and devastating. Without massive unrest and destruction the Soviet economy doesn't suffer any significant damage. The white movement doesn't receive any help from western countries either.
Relation with the west
Since Russia now is a democracy and not inherently a communist state, the west is more friendly to the new state. Without foreign intervention in Russia, there is never a gap between the Soviet Union and the west. After the end of ww1, the Soviets reclaim the territories they had lost in The Great War. Like in reality, this sparks a conflict with Ukraine. Since the Civil war never occurs, Russia can focus its entire army on Ukraine, leading to the peace of Kiev 1919, where all of Ukraine is annexed to the Soviet Union, instead of just parts of it. Due to Lenin not being in charge, the war on Poland to spread communism never occurs.