Lenin and The New Economic Policy (Nep)
by A series of notes on Lenin and the New Economic Policy of Russia.
New Economic Policy
NEP is brought in, the war has ended, and there is no need for war communism any more. War communism was extremely unpopular, as seen from the Tambov revolt, the economy has broken down and there is mass famine.
Lenin describes it as a temporary measure needed to move forward.
Food is available almost instantly at the end of the civil war and war communism.
- Food requisitioning from peasants is ended
- Instead 10% of grain will be taken in tax and any surplus they have can be sold
- Encourages the growth of agriculture production
- The Kulaks, richer peasants able to employ other peasants
- State control over large heavy and new industries including electricity
- State control of the banks
- Industrial production increase
- In the cities Nepmen are created, middle class business owners.
NEP is argued a success, famine is ended by increase in agricultural output, industrial output has increased and people are content.
However industrial production in many areas such as coal, iron and steel has not reached the production levels reached under the Tsar by 1926.
Scissors crisis
Supply of goods is erratic, determined by the price they will get for their goods.
- When the supply of the goods is high the price goes down.
- Effectively the peasant controls the rate of the economy.
1921, there is an assassination attempt on Lenin and he is shot twice in the head and neck. Within a week he is photographed and filmed to show the people he is still alive.
Lenin is subject to a series of strokes, supposedly as a result of the shots. As a result in 1924 Lenin dies.
Red terror – The Bolsheviks and the Cheka, the assassination attempt on Lenin is used as an excuse to execute people of opposing political parties. The purging of anyone who is ever so slightly dubious takes place.
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