New Economic Policy. The Soviet state construction in region. Social and economic results of NEP. Lecture № 35+36

Brief contents:  1.Essence of NEP.  2. Social and economic results of NEP.

1.Essence of NEP.  The New Economic Policy (NEP) was introduced to replace the failed policy of War Communism on X congress of CP in march 1921 y.  Under War Communism, Lenin employed the communist belief that everybody had the right to a job and people were employed regardless of whether they were actually needed or not.

Main principles of NEP  Changes of food exaction( prodrazverstka) on food tax (prodnalog). The NEP transformed agriculture. War Communism had taken away any incentive to produce as the state requisitioned all surplus food. NEP brought back the incentive to farm productively as surplus food could be sold and profits were taxes. The introduction of a food tax – prodnalog – was a simple recognition that the food produced equaled private property.

Main principles of NEP  Cancellation of a rationing system and introduction of the commodity-money relations.  Permission of private trade and wage labor.  Cancellation of a labor and compulsory military service.  Land lease.  Return of small and medium-sized enterprises in private hands.

2. Social and economic results of NEP.  The new economic policy give results to the middle of the 20th yy. By 1925 the national economy was restored. The general level of production of an industrial output have about 2/3 pre-war levels, were entered into action of more than 60% of the enterprises. Transport is restored.

 The cultivated area came nearer to 3 million hectares, pre- war level of gross collecting grain was almost restored, and gross collecting cotton exceeded the pre-war. The livestock cattle doubled in comparison with 1922 and exceeded 26 million heads. Fairs, such as Uilskya, Temirskaya, Kuyandinskya and others were restored, and all them worked 128 with a total amount of trade of million rubles.

 Thank you of the attention!!!!