THE NEP

When was the NEP introdued?

1921

What are the six key features of the NEP?

get rid of grain requisitioning, private enterprise in small industries, state retained control of large industries, no ban on private trade, no rationing and cash wages.

What doe Lenin say about the NEP?

the new economic policy is an unfortunate but necessary step

How does Lenin describe the NEP?

state capitalism/bridled capitalism in a temporary coexistence

How did the stopping of the requistioning work?

introduce a fixed taz based off how much the individual makes and then the extra the peasants are free to sell with a 10% tax on their goods

How does the introduction of private industry help the government?

smaller industries (textiles) make less money so are privatised to allow for growth and investment, they then invest in the larger, more profitable state owned businesses (steel, mining, transport)

How successful was the introduction of private enterprise?

not wholly succesfull

What network did the NEP create?

a network of electric power stations

How much electricity was produced in 1921 vs 1925?

520KWH vs 2925KWH

What was the grain harvest like under the NEP?

it doubled, reaching 72.5kg in 1925

what happened to the average monthly wage under the NEP?

it more than doubled for workers from 1921 to 1925

How did providing workers with incentives to provide more grain help?

there was more grain and as such fewer food shortages

What kind of places reopened under the NEP?

restaurants and cafes

What did the soviet commisar for finance admit in. 1925?

the pay of people like miners, metal workers and engine drivers was still lower than pre 1914

Why did some Bolsheviks dislike the NEP?

saw it as a retreat from communist ideals

What did the introduce also see a spike in, not related to the economy?

sharp increase in terror and oppression, GPU (previously Cheka) had an increase in power and the tolerance of other parties decreased further, in 1921 there was a ban on factions

What was the scissors crisis?

economic event in the Soviet Union in 1923, occured when the price of industrial goods increased while the price of agricultural goods decreased, NEP helped russian agriculture recover and the industrial sector progressed more slowly

What were the causes of the scissors crisis?

the state brought bread grain at low prices, gov set agricultural prices too low, regime can’t keep up with demands, private traders charge high prices

What were the effects of the scissors crisis?

crisis led to a goods famine, peasants now had litle incentive to sell their grain to the state

What was the resolution of the scissors crisis?

gov set prices for agricultural goods higher

What is a nepman?

a private trader who travelled from city to city selling goods on the private market

What happened to currency under the NEP?

the old, discredited currency was replaced with a new, revalued ruble

Which famous Bolshevik saw the NEP as a betrayal?

Bukharin

What did the NEP provide?

breathing space so the country could begin an economic revival

What natural events threatened the NEP?

droughts in the south and blizzards to the north

What was famine like in 1921?

it threatened 36 million russians

How many were dead of starvation by 1922?

a million

How was the 1922 famine dealt with?

the central committee struggled with plans to mobilise the nations resources and it got so bad that as soon as harvests occured they were recquisitioned

Which foreign countries provided aid?

Us, France, Britain, Germany and Italy

What foreign aid was supplied?

food, medicine, clothing, American relief Administration rovided £20 million of aid

What happened to agricultural land in the NEP?

77.7 million hectares of cultivated land in 1922 to 90.3