Economic Policies: New Economic Policy

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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