The Causes and Impact of New Economic Policy (NEP)

Question 1

What were the problems facing Russia in 1921?

Answer 1

• famine
• opposition from outside the party
• opposition from within the party

Question 2

How was famine affecting Russia?

Answer 2

• War communism resulted in peasants hoarding grain, 1921 widespread famine - caused rebellions

Question 3

How was opposition from outside the party affecting Russia in 1921?

Answer 3

• due to famine rebellions occurred against Communists e.g. Tambov Uprising
• most serious was March 1921 when Kronstadt Rebellion took place - many sailors from peasant backgrounds and knew impact of war communism

Question 4

What did the Kronstadt sailors demand from Lenin?

Answer 4

• end to the political domination of the Communists
• relaxation of War Communism and centralised economic control
• restoration of freedom of speech and press

Question 5

How was opposition from within the party affecting Russia in 1921?

Answer 5

• many communists viewed the NEP as a betrayal of communism as it allowed peasants to sell some of their produce for profit, also permitted owners of small factories to sell goods for profit

Question 6

What does NEP stand for?

Answer 6

New Economic Policy

Question 7

What was the NEP?

Answer 7

• more capitalism-oriented economic policy deemed necessary after the Russian Civil War to raise the economy of the country- almost ruined
• complete nationalization of industry, established during War Communism was partially revoked
• system of mixed economy was introduced -allowed private individuals to own small enterprises
• the NEP abolished forced grain requisition
• introduced farmers’ tax in the form of raw agricultural product.

Question 8

What 2 things did Lenin use to secure his and the Communist Party’s position in 1921?

Answer 8

Repression and Economic Reform

Question 9

How did Lenin use Repression to secure his and the Communist Party’s position in 1921?

Answer 9

• Ordered Trotsky to end Kronstadt Rebellion by force - 50’000 troops used to attack sailors - thousands were killed or sent to Gulags

Question 10

What were Gulags?

Answer 10

camps where people were forced to work - many of the political opponents of the communists were sent there

Question 11

How did Lenin use Economic Reform to secure his and the Communist Party’s position in 1921?

Answer 11

• Lenin ended War Communism in March 1921
• Announced Introduction of NEP - hoped it would strengthen Russian economy, in turn reducing opposition to communists
• Private trading would be allowed, resulting in emergence of the Nepmen
• new currency introduced in 1922

Question 12

What were the Nepmen?

Answer 12

Private traders who emerged after introduction of NEP in 1921

Question 13

What were the positive impacts of the NEP?

Answer 13

• food shortages stooped by end of 1921
• 1923 85% of companies owned privately
• Cultivated land and livestock increased
• 1926 economy almost returned to 1913 production levels

Question 14

What were the negative impacts of the NEP?

Answer 14

• production of more crops - price fell - income fell for peasants
• cost of industrial goods increased to level above peasants buying ability
• some communists saw NEP leading Russia towards capitalism - away from communism ideals

Question 15

Why did Lenin introduce a ban on factions?

Answer 15

realised there was danger that Communist Party would be weakened by divisions

Question 16

What was the ban on factions?

Answer 16

• members of communist party not allowed to form groups that were independent from Lenin’s control
• meant all other political parties were banned