Economic Policies: New Economic Policy

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New Economic Policy

  • Lenin realised that change was necessary, but had to persuade other leeading bolsheviks.
  • They saw that war communism had put into practise some of the basic ingredients of communism.
  • Lenin had to persuade them that Russia was not ready for this.
  • He had to change the harsh policy to win back support of the peasants and industrial workers.
  • Therefore in March 1921, the New Economic Policy was introduced. It involved taking a step back from communist ideas.
  • The government stopped taking surplus crops.
  • Peasants could sell their surplus food for a profit, with the peasants paying a 10% tax in kind- to be paid in crops.
  • The government let  most industry be run privately but kept control of the largest industries.
  • Private owners were allowed to make a profit.
  • People could buy and sell, and money became important in the economy again.
  • Lenin argued that the NEP should be seen as a temporary measure.
  • The government should aim to regain contol of the economy when it was more secure.
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