Economy Flashcards
What were the negatives of war Communism?
The policies introduced during the Civil War (whilst saving the Red Army) were destroying the country
Industrial production had plummeted and food was scarce. Something had to be done to increase productivity
When did Lenin introduce the NEP?
At the 10th Congress of the Communist Party between 7-16 March 1921
How did Lenin describe the NEP?
State Capitalism
For Lenin he simply followed Karl Marx’s precepts that…
a nation must first reach ‘full maturation of Capitalism as the precondition for socialist realisation’
What percentage of Russia were peasants?
80%
What did the NEP abolish?
Grain requisitioning
What was grain requisitioning replaced by?
First act of the nep
a necessary incentive for increasingSovietagriculturalproduction .
Tax in Kind (prodnalog) - Requisition had forcibly taken food underWar Communism. Prodnalog taxed people at a lower level than the level set for requisition and allowed them to keep the rest of what they produced. Food that was left could be sold – hence, the peasants had an incentive to grow as much as they could knowing that they could keep what was not taxed.
The end of grain requisitioning led to…
Political and economic stability and increased productivity
Grain production increased from…
37 million tones in 1921
76 million tones 1926
How did Economic recover under the NEP help to consolidate the regime?
Improved living standards
How did the NEP improve living standards?
Raised food production
Increased average wages for Urban workers
Critiques of NEP
. Not introduced until 1921
NEPMEN grew rich by trading, whilst ordinary peasants and industrial workers stayed relatively poor in spite of their hard work
Lenin NEP Quote
Lenin had also been known to say about NEP, “We are taking one step backward, to take two steps forward later”
Suggesting that, though the NEP pointed in another direction, it would provide the economic conditions necessary for socialism eventually to evolve.
When was collectivisation introduced?
What was collectivisation?