NEP New Economic Policy

Overview of the NEP March, 1921- civil war is pretty much over. Move towards more peaceful economic relations. System that gives peasants incentive to produce surplus. Abandoned the central idea of War Communism. It wasn't called the NEP at the time. NEP means small market.

What's the NEP mean Peasants? The NEP for the peasants means they can now sell there own farming after they give certain amount of tax. This makes the peasants want to make surplus as they all want to make some extra cash by selling their own produce. The produce is selling for big bucks at the local markets. The government is still getting tax and wheat production is increasing as farmers want to grow as much wheat as possible to sell. This makes the peasants happy, and the new system (NEP) is working for the government. Within 2 years the economy is fixed already, just from this new system.

Who owns what? The government still owns all the big infrastructure, where all the big money is at. E.g. Coal, steel, railroads and big factories. The workers were given back their private trading and manufacturing and small businesses were brought back to life. This made all the urban poor and workers happy as they got to own there own business again. It felt as if the people of Russia had a say, even though they really didn’t. The government was still earing all the big cash.

Different Strategies for NEP Lenin Wanted people to know what they were doing in his government. Ease up on the peasants. Fix the tax. Surplus left for the peasants to sell. Rest of the Bolsheviks Universal planning agency. Told the peasants what they had to do. Gave peasants no say. 20 million individual ‘sewing plans’ for all the peasants. This means peasants get told what and how much they need to grow. Lenin states that they don’t know what they’re doing But Lenin has to compromise with the ‘Rest’

Basic Overview Basically this new system brought life back to the soviet economy The NEP was necessary. By the end of 1921, 730,000 members in the party. Lenin was smart and made the NEP a success Overall the NEP was a successful and changed Russia. Many people called Lenin a small god, as people may say he “Fixed the whole economy of Russia”