to what extent was the new-economic policy successful

grain requisitioning abolished (key features of NEP)

• replaced by “tax in kind”

• peasants had to give fixed proportion of their grain to the state

• could sell surpluses on the open market

small businesses reopened

• small scale businesses under private ownership were allowed to reopen and make a profit

• included business like small workshops and factories that made goods such as shoes, nails and clothes

• lenin realised that peasants would not sell their produce unless there were goods they wanted on sale

ban on private trade removed (key features on NEP)

• meant food and goods could flow more easily between the country side and the towns

• rationing was abolished and peopel had to buy food and goods from thier own income

• privately owned shops were reopened

state control of heavy industry ( key features of NEP)

• coal, steel and oil

• retained control of transport and the banking system

• industry organised into trusts that had to buy materials and pay workers from own budgets

• could not expect state to bail them out

strengths of NEP

• food in markets

• shops and cafes reopened

• industrial production made rapid recovery

• large scale industry recovering by 1924

• “nepmen” increased trade

• peasants did well- rapid recovery in villages

• “scissors crisis” did not last long

• industry reaching production levels of 1913 by 1926

• better living standards

• end to revolts

• 1922: trade agreements with germany

• 1924: trade agreement with Britain

1923 cereal production

increased by 23%

1920-23 factory output

factory output rose by 200%

“NEPmen”

grain, meat, eggs taken to cities, mail, shoes, clothes taken to peasants

“nepmen” trade

handled 75% of retail trade

grain harvests

1913: 80.1

1926: 76.8

weaknesses

• corruption with NEP

• bribery of officials

• prostitutions and crime flourished

• moscow municiple government got most of income from taxes on gambling and clubs

• 1923: so much food in cities, agricultural prices

• scissors crisis

• veshenka failed to formulate an effective industrial strategy

“scissors crisis”

dropped price of industrial goods began to rise due to increaed demand

countryside troubles

• grain prod higher than 1921 but not sufficient for needs of govt to finance industry (industrial capital)

• export of grain remained low, lacked foreign currency to develop it

• agriculture remained backwards and innefficient

• break up of landed estates- growth of substinance farming

• black markets (wep) pushed up prices

• grain prices worldwide low- fules feeding animals not selling grain

• peasants (1928) hoarding grain- to increase grain prices

• 1928 grain procurement crisis (requisitioning)

agriculture backwards

5 milion still using wooden ploughs

grain exports

3 million tonnes at best

never better than 33% of 1913 export levels

cities

• wages in 1928 still below 1913 levels

• unemployment

• high prices for consumer goods

• resented middle class managers

• women- did not benefit- low/no work

• shortage of housing

• young gang culture (war, revolution, war, nep unstable for 10 years

ideology building socialism

• land to be socialised through collectivisation- no longer owned by individual peasants

• industrialisation would lead to growth of proletariot

• build strong self- sufficient state