1921-1928
The NEP was Lenin’s plan to help Russia’s economy back on track after seven years of war. He allowed private enterprise to some extent and concentrated on stimulating production.
The Co-Operative Shop in Baltsev in the 1920s. Photographer And Date Unknown
Background
By 1920 Russia had been at war for seven long years. Although The civil war had been won the country was in a catastrophic state.
All through the civil war the economy ran on war communism, which meant taking everything from its people by force. Along with all the crops, seed for the next year was confiscated, which resulted in large-scale hunger.
Famine
The Famine of 1921-22 took the lives of estimated 5 million people. Industrial production sank to 20% of 1913. Peasant revolts took place. The Kronstadt Rebellion (1921) shook up Soviet leaders and made them very cautious.
New Economic Policy
Lenin realized that seven years of war and despair must be followed by another seven years of recovery. In February 1921 the New Economic Policy (NEP) was declared in the Tenth Party Congress.
The NEP was a step backward to capitalism. Private enterprises were allowed again. Reparations were replaced by taxes. Peasants were allowed to sell their goods on the market.
Results
The New Economic Policy had a positive effect. By 1928 the economy was back to a pre-war state.
New Economic Policy
1921-1928
The NEP was Lenin’s plan to help Russia’s economy back on track after seven years of war. He allowed private enterprise to some extent and concentrated on stimulating production.
The Co-Operative Shop in Baltsev in the 1920s. Photographer And Date Unknown
Background
By 1920 Russia had been at war for seven long years. Although The civil war had been won the country was in a catastrophic state.
All through the civil war the economy ran on war communism, which meant taking everything from its people by force. Along with all the crops, seed for the next year was confiscated, which resulted in large-scale hunger.
Famine
The Famine of 1921-22 took the lives of estimated 5 million people. Industrial production sank to 20% of 1913. Peasant revolts took place. The Kronstadt Rebellion (1921) shook up Soviet leaders and made them very cautious.
New Economic Policy
Lenin realized that seven years of war and despair must be followed by another seven years of recovery. In February 1921 the New Economic Policy (NEP) was declared in the Tenth Party Congress.
The NEP was a step backward to capitalism. Private enterprises were allowed again. Reparations were replaced by taxes. Peasants were allowed to sell their goods on the market.
Results
The New Economic Policy had a positive effect. By 1928 the economy was back to a pre-war state.
Kronstadt Rebellion