1. The New Economic Policy
‘economic breathing space’

2. What was it? Policy intro’d by Bolsh. govt. at Tenth Party Congress
Brought an end to War Comm.
Intro’d to buy ‘breathing space’ for econ & country.
Return to small-scale capitalism – allowed some private trade & small-scale land ownership.
Grain requisitioning ended – peasants now paid ‘tax in kind’ (proportion of produce to govt.)
Famine-ravaged areas exempt 12 months.
Surplus could be sold.
State still controlled ‘the commanding heights’ – major heavy industries and banks etc.
Strict military measures of War Comm. removed.
Zinoviev – ‘I ask you comrades, to be clear that the New Economic Policy is only a temporary deviation, a tactical retreat’
Lenin – realised that "only by coming to an agreement with the peasants can we save the socialist revolution" and said “We are returning, going back as it were, but we are doing this so as to retreat first and then run and leap forward more vigorously. We retreated on this one condition alone when we introduced our New Economic Policy…so as to begin a more determined offensive after the retreat.”

3. Sources / Quotes
Zinoviev – ‘I ask you comrades, to be clear that the New Economic Policy is only a temporary deviation, a tactical retreat’
Lenin – realised that "only by coming to an agreement with the peasants can we save the socialist revolution" and said “We are returning, going back as it were, but we are doing this so as to retreat first and then run and leap forward more vigorously. We retreated on this one condition alone when we introduced our New Economic Policy…so as to begin a more determined offensive after the retreat.”

4. Page 137

5. Impact of the NEP Short-term econ & soc effects = dramatic
Food into cities
Starvation & famine receded.
Peasant opp ↓
Corruption, speculation, conspicuous consumption
NEPmen & Kulaks – richer peasants
Resentment amongst many Bolsheviks
Most econ. endeavour still not yet reached 1913 levels by end of NEP

6. The end of the NEP – Historian’s viewpoint
Ken Webb:
NEP posed a major problem for the young Communist state. It did not answer to Russia’s long-term development. In ideological terms, Russia was in the socialist stage of development which was to precede the ultimate stage of communism. Lenin knew that this stage would last a long time. Marx had a vision of a communist society based on abundance. However, Russia was very backward and so, to achieve the condition of abundance, it was necessary for Russia to modernize and industrialise. The problem with the NEP was that is was not creating the necessary capital that was essential for industrial development

7. The end of the NEP
Lenin & Trotsky had expected revolution to break out across Europe
Did not happen
Soviet Union alone
Country needed rapid industrial development, not only to build socialism, but to build up defence capability
Trotsky highlighted problem at 12th Party Congress in 1923
Scissors Crisis – increasing price ind goods, falling price rural goods
NEP had revitalized the econ and improved living standards, but long-term growth was impossible.
Realisation of the problem + food shortages = Stalin launches Five-Year Planes in 1928, bringing an end to NEP