Causes of the Great Turn

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Economic reasons: failure of the NEP in industry

  • Industrial production under the NEP  never exceeded pre-1914 levels and all factories were working at capacity
  • Stalin's new policy: build new factories to increase industrial output and replace the free market with economic planning to increase economic growth

Economic reasons: failure of the NEP in the countryside

  • Exports of grain under the NEP never exceeded 3 million tonnes and Russian imports were at 38% of 1915 levels
  • Production of grain and livestock fell, leading to the Grain Procurement Crisis of 1927-1928
  • Stalin's new policy: ended tax-in-kind and imposed the money tax so that the peasants would have to sell their grain; Stalin blamed the kulaks

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