NEP Flashcards
Give three reasons why NEP was introduced
1) To solve the food crisis
2) To stop resistance (e.g. Tambov, Kronstadt)
3) To show that Lenin was pragmatic and flexible
What were the six key features of NEP?
1) Central economic growth relaxed
2) Grain requisitioning abandoned
3) Peasants allowed to keep surplus grain and sell for PROFIT
4) Public markets restored
5) Introduction of a “tax in kind” - peasants would give up a fixed amount of produce
6) Reintroduction of money as a means of trading
What was the Scissors Crisis and how did it stem from NEP?
Agricultural prices fell to 89% of 1913 values as industrial prices rose to 276% of 1913 values
Supply and demand - more grain available so prices fell.
How did peasants respond to the Scissors Crisis and why?
Returned to subsistence farming as a short-term measure - no point producing surplus grain if the prices weren’t high enough for them to buy manufactured goods with the money
How did Trotsky describe NEP?
“The first sign of the degeneration of Bolshevism”
How did Lenin solve the issue of divisions in the Bolshevik Party over NEP?
Introduced the Ban on Factions - non-compliance would mean immediate expulsion
How much impact did NEP have on heavy industry?
Not much at all - remained in state hands - Lenin said the Party still controlled “the commanding heights of the economy”
Why were so many Bolsheviks uneasy about NEP?
It led to a mixed economy - features of capitalism existing alongside socialism
How did Lenin encourage Bolsheviks to support NEP?
He said it was only a temporary concession
What was the short-term impact of NEP in cities?
Rapid increase in industrial output
More food and consumer goods available in shops and markets
Who was the new breed of entrepreneur created by NEP?
Nepmen - wealthier peasants and merchants
How did Nepmen benefit from NEP?
They took advantage of free trade - fewer restrictions on what, when and where to trade - to make more profit
What % of retail trade were Nepmen responsible for by 1923?
60%
What was Bukharin’s position on NEP? Why was this significant?
Enthusiastic support - told peasants to “enrich yourselves under NEP”
He had previously been a supporter of War Communism - and he was a leading economist in the party, so his views carried great weight
What happened to a worker’s wage under NEP between 1921 and 1924?
Doubled
