Economy (1917-29)

  • Created by: NHow02
  • Created on: 29-04-19 16:09

1. NEP, 1921-4 (Economic)


- because Grain Requisitioning was replaced with 'tax in kind', peasants could sell grain on the open market via nep-men

- ban on Private Trade removed + the money economy returned (250,000 private traders migrated to Moscow)                                                                                                       1. a huge contrast to the famine of 1921, in which 7 million people died

- By 1923, factory output rose by almost 200% (planned revival of larger-scale industry was underway by 1924)


- In the first 2 years of the NEP, unemployment rose (wages remained low + workers had little protection in the market place)

- the 'scissors crisis' in 1523 caused food prices to drop while prices of industrial good rose (peasants were reluctant to sell grain if they were unable to buy consumer goods)

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2. NEP, 1921-4 (Political)

Lenin believed the Electrification of Russia was key to modernising + would lead the Soviet Union towards a Communist ideology...


- food production benefitted as grain harvests, cattle & pigs increased (however, industrialisation slowed as coal/iron production decreased or increased too slowly)


- the regime depended on peasant concessions + economic liberalism to survive (Bolsheviks had lost support of peasants due to policy of Grain Requisitioning)

- it caused splits within the party (Trotsky wanted to continue with War Communism by drafting the Red army into a militaried labour force to build socialism by coercion)

- Mensheviks & SR's gained popularity during strikes + revolts (excuse to arrest 5000 Mensheviks in 1921 for counter-revolutionary activities)

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3. NEP, 1921-4 (Social)


- workers were angry over food shortages + militarised factories (described as 'worse than a Tsarist prison camp' - imprisoned or shot is targets were not reached)

- revolts engulfed the countryside due to opposition to Grain Requisitioning (Antanov & Red Army failed to quell the Tambov region for almost a year)


- workers objected to the introduction of single managers + bourgeois 'specialists' with more priviledges (known as the 'New Exploitation of the Proleteriat')

- though the NEP restored some prosperity, many found it distasteful as the class system returned along with Capitalism (support for Lenin was not unanimous)              1. Restarants cost $25 per person for dinner & wine

- arbitrary imprisonment + death penalty continued to be applied after 1922 as an instrument of social policy (GPU e.g. Cheka, gained new significance during the NEP)

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