The NEP

Under NEP, USSR had recovered from warfare (1914-1921) BUT by 1927 - ind hadn't developed much beyond pre 1914 levels, agriculture = still backwards... :(

Late 1920's - NEP causing econ & social problems, Stalin + majority of party feel it isn't delivering econ performance or society they'd envisaged. Want RAPID INDUSTRIALISATION to build a SOCIALIST SOCIETY. 1925 - Stalin + RW = support NEP, 1928 - position as leader = secure, turns on the RW, supports a plan to end the NEP and promotes Rapid Ind (LW policy he opposed in 1925!) 

Industrialisation - need to spend money on factories, machinery + equipment (called capital investment.) Initially, this would have been brought from foreign countries = expensive. USSR can't recieve loans from the West, few Western countries would invest in them, as they are a COMMUNIST STATE! USSR have gold, timber, oil + range of products to export but they couldn't generate money needed for heavy industrial equip required. Only source that could generate enough wealth for ind was agriculture - surplus grain could be exported to earn foreign currency to then buy the machinery etc. BURDEN UPON PEASANTS - they were also expected to produce extra grain to feed the workers in the cities. PROBLEM - this agricultural production in the hands of millions of peasants - if they don't co-operate or produce enough grain then push for ind CANNOT MOVE FORWARD - PEASANTS = KEY!!

NEP in the Countryside - grain prod had inc enormously and fear of famine had receded, but still not enough for gov to pay for ind. 1913 - Russia exported 12 mill tonnes of grain, in best years NEP hadn't resulted in 3 mill. > DEVASTATING EFFECT on foreign trade, 1926-27, exports =…