The new economic policy

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  • what was it?
    • peasants would pay a small amount of grain in tax each year
    • the new economic policy
      • promoted by the politburo as a 'temporary deviation' and a 'tactical retreat'
        • many thought it was a betrayal of the October revolution
      • war communism and the NEP
        • Denationalisation of small-scale enterprise and return to private ownership
        • continuation of state control of heavy industry
        • rejuvenation of trade
        • return to encouragement of forein trade
        • end to grain requisitioning
      • impact
        • industrial output increased rapidly NEPmen - responsible for 60% of trade
        • partial militarisation of labour, people forced to work purely to feed the war
        • rural areas starved due to forced requisitioning - didn't want to grow more than needed
    • Any surplus grain could be sold - leading to some becoming more wealthy (kulaks)
    • small factories allowed to make a profit
    • NEPmen: make and sell goods at a profit


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