9. The New Economic Policy

Question 1

What did Lenin introduce in 1921?

Answer 1

New economic policy

Question 2

What was the NEP?

Answer 2

A radical shift from the strict controls of War communism to a more flexible system which allowed free enterprise. It was a temporary compromise with capitalism.

Question 3

What is free enterprise?

Answer 3

Economic activity not controlled by the government

Question 4

What were the main features of the NEP?(4)

Answer 4

• The peasants were allowed to sell any extra produce wherever they could the best prices, after they had paid a tax in grain to the state. This was to encourage them to produce more. Some farmers became wealthy, kulaks.
• The state kept control of large industries, but ordinary people could set up their own businesses. Those who became wealthy through private business were the nepmen.
• Workers were paid incentive and bonuses to encourage them to work hard and produce more, they were no longer forced to join trade unions
• The government made trade agreements with capitalist western countries

Question 5

How did the NEP help?

Answer 5

Helped restore the economy and gave government time to consolidate its control.

Question 6

However many ______ were unhappy about the compromise with capitalism and the social ________ it created.

Answer 6

Communists

Inequalities

Question 7

What did the NEP go against?

Answer 7

Against the Marxist belief in a classless society.

Question 8

Poorer people hated the success of the _____ & ______.

Answer 8

Kulaks

Nepmen