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In literature, an allusion is an "indirect reference" to a person, place, event or idea. In Animal Farm , the allusions are plentiful. The setting of the story, for instance, is an allusion to the Soviet Union which experienced a revolution in 1917. The leader of this revolution was Vladimir...

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Lenin who inspired a group called the Bolsheviks to seize power, just as Old Major does in Chapter One.

Like the Bolshevik leaders, the pigs take charge of planning the revolution and its aftermath. Snowball is an allusion to Leon Trotsky, a revolutionary intellectual, who was famously exiled from the Soviet Union in 1929, just as Snowball is chased off the farm in Chapter Five. Similarly, Napoleon is an allusion to Joseph Stalin, the dictator responsible for Trotsky's exile. Through the character of Napoleon, Orwell alludes to many of Stalin's humanitarian crimes during his rule over the Soviet people. The Moscow Trials of 1936-1938, for instance, are represented through the rebellion and slaughter of the hens in Chapter Seven.

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A reader can interpret allusions in a literary work whether or not they were intended by the author. For instance, since Animal Farmis a satire about a communal or socialist society gone wrong, this could be interpreted as an allusion to the Cuban Revolution. Having written the book in 1949, Orwell was clearly not making references to the Cuban Revolution, although it did occur shortly afterward (1953-59). The point is that an allusion can be inferred from the reader's perspective. 

However, if you want the allusion that Orwell had in mind when he wrote Animal Farm, the most significant allusion is with the U.S.S.R. (now Russia). Napoleon represents Stalin and Snowball is Trotsky. Animalism began with great hopes but ended up being as oppressive as the regime the animals had revolted against. The allusion is to the failed communist project in the U.S.S.R. Orwell couldn't agree with Stalin's pact with Hitler, not to mention Stalin's deportation of hundreds of thousands (or perhaps millions) of Russians. 

Orwell meant this story to be an allegory as well as an allusion so it could serve as a warning against any potential subsequent oppressive states. 

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How is George Orwell's Animal Farm an example of an allegorical story?

George Orwell's novella Animal Farm is considered an allegorical tale because all of the characters and events in the story symbolically represent various people, places, and events that correspond to the Russian Revolution of 1917 and the early years of the Soviet Union under the leadership of Josef Stalin. Old Major symbolically represents Karl Marx or Vladimir Lenin and the school of thought known as Animalism represents Communism. Snowball represents Leon Trotsky, while Napoleon's character represents Josef Stalin. At the beginning of the story, Mr. Jones is expelled from his farm, which symbolically represents the initial Russian Revolution when Tsar Nicholas II was forced to abdicate. The Battle of the Cowshed represents the infighting during the Russian Civil War of 1917–1922, and the Battle of the Windmill allegorically represents the Battle of Stalingrad.

Other characters in the novella allegorically symbolize groups and aspects of the early Soviet Union. Boxer represents the proletariat workers, while Squealer stands for Stalin's propaganda machine. Molly symbolizes the bourgeoisie, the nine ferocious dogs represent Stalin's secret police force, and Moses allegorically represents the Russian Orthodox church. Overall, Orwell's Animal Farm is an allegorical tale that tells the story of the 1917 Russian Revolution and the early years of the Soviet Union.

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What is an example of the word allegory in the book Animal Farm?

There are many literary terms that are so closely related but are not the same. The word allegory is a lot like the word symbol because it's function is to represent. However, the difference between the two is that an allegory is a group of symbols that work together.

Napoleon symbolizing Stalin, Snowball symbolizing Trotsky, Boxer, the working class; Mollie, the vain; Mr. Jones, the Romanovs or Nicolas II; Manor Farm, Russia; and the Rebellion, the Russian Revolution. This group of symbols makes up the entire allegory.

This is similar to metaphor and extended metaphor if you know that concept.

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What is an example of the word allegory in the book Animal Farm?

Really, this whole book is an allegory.  Remember, an allegory is like a long metaphor.  In an allegory, something is being used to represent something else.  In this case, the characters and events are allegories for things that happened in Russia and the Soviet Union.

For example, the horse Boxer is an allegory for the working class of the Soviet Union.  He works hard and is completely dedicated to Napoleon (himself an allegory for Stalin).  Napoleon works him basically to death and then, essentially, sells his carcass for money.  This represents Stalin's ruthless exploitation of the working class in the Soviet Union.

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