The New Economic Policy Flashcards
What were some of the reasons Lenin introduced the NEP?
To retain political power
To revive the economy
To build socialism
How could the NEP help Lenin retain political power?
Described NEP as an economic retreat which was designed to stop a political defeat (using economic compromises).
Why did Lenin want the NEP to revive the economy?
Needed a policy that would stimulate grain production in order to end the famine.
How could the NEP help Lenin build Socialism?
Hoped the NEP would generate wealth that could be used to industrialise and modernise the Soviet economy.
How did the NEP end War Communism?
Created a mixed economy
What is a mixed economy?
Economy in which the state and private enterprise both play a significant role
How was a mixed economy created to end War Communism?
Farming left to free market
Small factories and workshops were denationalised and allowed to trade freely
Large factories and industries remained nationalised
Money was reintroduced
What could happen now that farming was left to the free market?
Peasants could buy, sell and produce freely.
Grain requisitioning ended and replaced with tax in kind.
What is tax in kind?
Tax in which producers pay the government a proportion of what they make, rather than paying in money.
Why was the NEP not wholly popular within the Party?
It was a compromise with Capitalism
What did the NEP lead to?
Political and economic stability
What did the NEP not lead to?
Rapid industrial growth
What sections did the NEP divide the Communist Party into?
Right-wing
Left wing
Centre
What sections of the Communist Party supported the NEP?
Right-wing
Centre
What section of the Communist Party opposed the NEP?
Left-wing