Hi! Here are some notes about N.E.P (New Economic Policies). Hope these revision notes help!
Why was it introduced?
At the end of the War, the people were demanding two different things from Lenin;
- Share of power
- and reforming the economy
Lenin wasn't prepared to share power, but he thought that if he reformed the economy, it may make them less irritating about the power-sharing issue.
The economy was in a complete mess, grain was not being produced, factories were not working efficiently, and money was worthless.
Lenin created the New Economic Policy (N.E.P) to sort this out, from 1921 to1928.
- State requisitioning (taking by force) of grain was ended
- Peasants (80% of the population in Russia) had to pay a set tax in grain, but they could sell their surplus, and make a small profit
- Buying and selling…