Theme 2: NEP 1921-28
- Created by: ARQ
- Created on: 22-05-22 21:07
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- NEP 1921-28
- Compromise: mixed economy
- Farming left to the free market
- Grain requisitioning ended
- Replaced with tax in kind
- Grain requisitioning ended
- Denationalisation of small factories + workshops
- Allowed to trade freely
- Large factories + major industries remained nationalised
- Money reintroduced
- Farming left to the free market
- Reasons
- Economic compromise to retain political power
- Created a mixed economy
- To stimulate grain production
- End famine and revive economy
- To industrialise and modernise economy
- Build socialism
- Economic compromise to retain political power
- Consequences
- Unpopular within party, did not create rapid industrial growth
- Viewed as a compromise with capitalism
- Led to political and economic stability
- Farming
- Ending of grain req was extremely popular w peasants
- More incentive, famine ended, farming revived
- Peasant support of regime, increased regime's political security
- Free trade encouraged peasants to grow more food
- More incentive, famine ended, farming revived
- Ending of grain req was extremely popular w peasants
- Industry
- NEP lead to industrial growth
- But recovery remained slow
- Campaigns revived industries destroyed by CW
- Electrificationcampaign
- NEP lead to industrial growth
- Scissors crisis
- Agri fast, industry slow
- Food prices lowered whilst tools and machinery prices increased
- Gap between farmer's incomes and industrial prices
- Re-emergence of inequality
- Large farms prospered, small farms struggles
- "NEPmen" sold desirable goods and became rich
- Viewed as parasites
- Arrested by Cheka for profiteering
- Viewed as parasites
- Divisions within the Party
- Right-wing +
- agrued it was a necessary transitional stage
- Left-wing -
- argued that problems with capitalism were re-emerging
- Centre +
- argued it was helping to rebuild the economy
- Right-wing +
- Increased corruption
- Gambling
- Drug-dealing
- Prostitution
- Widespread poverty amongst women
- Unpopular within party, did not create rapid industrial growth
- Compromise: mixed economy
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