AS FP2 : Economic and Social developments ; The NEP Flashcards
Implementation of the NEP
What was GOSPLAN, when was it established?
GOSPLAN was the State General Planning Commission, it was formally established in February 1921 at the Tenth Party Congress to advise on the NEP.
Implementation of the NEP
Did Lenin allow a vote on the NEP?
Lenin was supported by Bukharin, Zinoviev and most of the leadership but as he knew that many of the rank and fule would see the NEP as an ideological betrayal he did not permit a vote on the measures. Instead relying on the force of his personality.
Characteristics of the NEP
The NEP brought an end to war communism - how did it do this?
- Grain requistioning quotas were ended and replaced with a tax in 1923
- Ban on private trading removed, peasants could sell any surplus on the market
- The regime also promised that it would not try the forcible collectivisation of land
- Signal that the peasants would be allowed to work for their own benefits ; increase agricultural production.
Implementation of the NEP
When was the NEP introduced?
1921
Characteristics of the NEP
What did Russia’s economy become after the implementation of the NEP?
A “mixed economy”.
Characteristics of the NEP
What industries were still nationalised?
- The Banks
- Transport
- Large-scale heavy industries - the “commanding heights” of the economy
Characteristics of the NEP
What industries were privatised?
Small-scale industries and businesses, private trade allowed.
Characteristics of the NEP
What was re-introduced in the NEP?
Money. Rationing was ended and industries were forced to pay their employees out of pocket - managers could also pay-by-peice.
Implementation of the NEP
Why was the NEP introduced?
As a temporary measure to get Russia’s economy back on its feet, to end the discontent created by war communism - both political and social.
The Economic Impact of the NEP
What helped the Russian Economy to get back on its feet - besides the NEP?
The ending of the Russian civil war
The Economic Impact of the NEP
What were the immediate effects of the NEP?
- Private Businesses opened quickly and small manufacturing and service industries began to thrive in the cities.
- Money started to flow freely, although small businesses grew faster than state-owned industries.
The Economic Impact of the NEP - Agriculture
What was the impact of the re-introduction of the free market on the peasantry?
- The impact of the free-market incentivised peasants to grow more food ;
- Agricultural production recovered faster as peasants were more anxious to take advantage of the opportunity to sell their surplus;
- The Kulak class re-emerged.
The Economic Impact of the NEP - Agriculture
What did the growth in agricultural production effectively end?
The famine of 1921
The Economic Impact of the NEP
When was the scissor crisis?
1922-1923
The Economic Impact of the NEP
Describe what the scissor crisis was.
By 1923 an imbalance began to appear in the economy as large quantities of food that entered the cities caused food prices to drop. Before the spring of 1923 food prices had been above industrial prices, by the summer food prices had fallen below the prices of industrial goods because the factories were taking longer to build and expand their output.
The Economic Impact of the NEP
How much had industrial prices increased by compared to agricultural prices during the scissor crisis?
Industrial prices had increased by 276% whereas agricultural prices only increased by 89%
The Economic impact of the NEP
How did the government deal with the scissor crisis?
- The government capped industrial prices and replaced the peasants’ quotas with money taxes in 1923
- The crisis was short-lived and by 1926 the production levels of 1923 had been reached again.
The Economic Impact of the NEP - Industry
What was introduced in order to revive industrial growth?
A mass electrification campaign ; although industrial production was still slow.
The Economic Impact of the NEP - Industry
By 1925 how many private traders were there in Moscow alone?
25,000 private traders.
The Economic Impact of the NEP - Industry
What percent of trade were NEPMEN pontentially responsbile for?
75%
The Economic Impact of the NEP - Industry
Why did many dislike the nepmen?
Bolsheviks saw them as representations of capitalism - they flaunted their wealth openly with bribery, corruption, prostitution and gambling.
How did some Bolsheviks refer to the NEP?
As the “New Exploitation of the Proletariat”.
What was the NEP’s overall effect on the economy?
The NEP did not solve all the fundamental problems of the Soviet economy, however by the time of Lenin’s death the economy was on a much more secure fooring than it had been in the days of war communism.
Political impact of the NEP
How did both Lenin and Zinoviev describe the NEP in response to ideological criticism of it?
Lenin used the argument “one step backwards, two steps forward” and Zinoviev tried to appease the discontent by suggesting that the NEP was only a “temporary diversion, a tactical retreat.” It had to be done to keep the Bolsheviks in power.
