Economic and Social Developments

Question 1

What was Gosplan: why and when was it created?

Answer 1

Gosplan was the State General Planning Commission which helped to coordinate economic development. Created in February 1921 to advise on the NEP

Question 2

What happened to grain requisitioning under the NEP?

Answer 2

Requisitioning was ended, a quota of grain was still required to be given (from 1923 this became a tax) but peasants could sell remaining food for profit

Question 3

What happened to private trading under the NEP?

Answer 3

It was unbanned

Question 4

Which industries remained under control of the state and what was privatised?

Answer 4

State: large-scale heavy industry (coal, steel, oil etc), banks and transport

Privatised: small-scale industry (e.g. workshops with few employees)

Question 5

What happened to rationing and wages?

Answer 5

Rationing was ended and employers had to pay employees out of their own profits or could ‘pay by the piece’ (by how much was produced)

Question 6

What was the ‘scissor crisis’?

Answer 6

Price of agricultural goods sharply declined as peasants sold large quantities of surplus grain (peasants that cooperated with the NEP could make lots of money) whereas industrial goods prices rose as industries struggled to expand and rebuild