NEW ECONOMIC POLICY Flashcards
The New Economic Policy
Despite significant opposition from communists who believed it represented a betrayal of Marxists ideals, Lenin convinced the party to accept the introduction of the NEP at the Tenth party congress in 1921. It was intended as a temporary measure
WHY WAS THE NEP INTRODUCED?
PEASANT ANGER:
- Grain requisitioning was violently opposed in the countryside by the peasantry, particularly after a poor harvest in 1920.
- Most famous example was the peasant revolt led by Alexander Antonov in the Tambov region (1920-21)
WHY WAS THE NEP INTRODUCED?
ANGER IN THE CITIES:
- At the beginning of 1921, the bread ration was cut by a third, leading to food protests in the cities.
- A serve winter (1920-21) combined with fuel shortages made people even more angry, strikes broke out throughout the winter.
- The workers wanted independant trade unions
- The workers complained about the militarised factories.
WHY WAS THE NEP INTRODUCED?
THE KRONSTADT REVOLT:
- The sailors at Kronstadt naval base ( Many of whom had supported the bolshevik seizure of power in 1917) mutinied in March 1921, demanding a multi-party government
WHY WAS THE NEP INTRODUCED?
PARTY FACTIONS:
- Factions developed within the Bolshevik party itself.
e.g The Worker’s opposition were angered by the leadership’s attempts to control trade unions
WHY WAS THE NEP INTRODUCED?
Lenin introduced the NEP in the aftermath of the ruinous Russian Civil war of 1917-22. The soviet state had pursued a policy of ‘War communism’, during the war in order to keep the Red Army well provisioned with food and weapons.
WHY WAS THE NEP INTRODUCED?
THE MAIN FEATURES OF WAR COMMUNISM:
- Grain requisitioning: Bolsheviks had been sending units of Red Guards and soldiers into the countryside to find grain for the hard-pressed cities. In May 1918, a Food Supplies Dictatorship was set up to establish the forcible requisitioning of grain as the standard policy.
- Banning of Private trade: All private trade and manufacture were banned. The state trading organisation was extremely chaotic and industry was simply not producing enough consumer goods. So an enormous black market developed, without which most people could not have survived.
- Nationalisation of Industry: All industry was brought under state control and administered by the supreme council of National economy. Workers’ committees were replaced by single managers reporting to central authorities ( which were often the old bourgeois managers now called ‘specialists’) to stop the chaos caused by the factory workers’ committees who had voted themselves huge pay rises, intimidated management and stolen materials for illegal goods.
- Labour discipline: Discipline was brought back to the work place, there were fines for lateness and absenteeism. Internal passports were introduced to stop people from fleeing to the countryside.
- Rationing: A class-based system of rationing was introduced. The labour force were given priority along with Red Army soldiers. Smaller rations were given to civil servants and professional people like doctors. The smallest rations, barely enough to live on were given to the middle classes- or as they were now called ‘ the former people’.
WHAT WERE THE KEY FEATURES OF THE NEP?
GRAIN REQUISITIONING WAS ABOLISHED:
- Grain requisitioning was replaced by ‘tax in kind’. Peasants had to give a fixed proportion of their grain to the state, but the amount they had to hand over was much less than the amounts taken by requisitioning. They could sell any surpluses on the open market.
WHAT WERE THE KEY FEATURES OF THE NEP?
BAN ON PRIVATE TRADE REMOVED:
- The removal of the ban on private trade meant the food and goods could flow more easily between the countryside and the towns. Privately owned shops were reopened. Rationing was abolished and people had to buy food and goods from their own income. The money economy was back!
WHAT WERE THE KEY FEATURES OF THE NEP?
SMALL BUSINESSES REOPENED
Small-scale businesses under private ownership were allowed to reopen and make a profit. This included businesses like small workshops and factories that made goods such as shoes, nails and clothes. Lenin realised that peasants would not sell their produce unless there were goods that they wanted on sale
WHAT WERE THE KEY FEATURES OF THE NEP?
STATE CONTROL OF HEAVY INDUSTRY
- The state kept control of large-scale heavy industries like coal, steel and oil. It also retained control of transport and the banking system. Industry was organised into trusts that had to buy materials and pay their workers from their own budgets. If they failed to manage their budgets efficiently, they could not expect the state to bail them out.
WHAT WAS THE EFFECT OF THE NEW ECONOMIC POLICY?
OVERALL EFFECT:
The NEP was effective in restarting
WHAT WAS THE EFFECT OF THE NEW ECONOMIC POLICY?
OVERALL EFFECT:
The NEP was effective in restarting & reviving the economy. This was due to incentive, people had the opportunity to make profit through exchanging, selling and buying goods.
WHAT WAS THE ‘SCISSORS CRISIS’ OF 1923?
The scissors crisis described the situation, where large amounts of food was flooding into the cities causing prices to drop, whilst the price of industrial goods rose since they were short in supply.
This imbalance was problematic because it made the peasants reluctant to supply food. However, the crisis didnt last for long as the government took action to bring industrial prices down by taking peasant tax in cash
WHY WAS THE NEP INTRODUCED?
Lenin introduced the NEP in the aftermath of the ruinous Russian Civil war of 1917-22. The soviet state had pursued a policy of ‘War communism’, during the war in order to keep the Red Army well provisioned with food and weapons.
