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What is NEP?

January 25, 2015
What is NEP?

After revolutions and wars, the new state represented literal ruins. Some areas were taken over by other states. The population living in the country barely exceeded 135 million people (losses amounted to 25 million, according to estimates of modern specialists). The Urals, the Donbass, and Siberia were particularly affected. The mines and mines were destroyed, the factories stopped, the workers moved into the villages. The volume of industry has declined significantly, and agriculture has been depleted by numerous exactions of the new government. Most of the intelligentsia was forced to leave Russia. The country was shaken by peasant and military uprisings.


As a way out of the current difficult situation, the government of the young country adopted the New Economic Policy of the USSR (March 14, 1921). She changed tough War Communism — a policy pursued during the Civil War. The goal is to restore the national economy as a whole and move on to the construction of socialism. In addition, social goals were pursued - without waiting for a revolution in the whole world, to organize the conditions for socialism in the country.And yet - the NEP was oriented towards overcoming international isolation and restoring foreign policy relations.


  • The surplus is replaced with a more progressive food tax (from 70% of the grain given to the state up to 20-30%, respectively).
  • Development of market relations and various forms of ownership, attracting foreign investors (concessions). Also - the reform of currency (1922). The ruble becomes stronger and becomes convertible.
  • What is NEP in industrial production? This is primarily - the legalization of trade and private entrepreneurship, the possibility of accumulating capital and increasing production.

Lenin and NEP

Actually, the new policy was the brainchild of the politburo, in general, and Lenin in particular. The leader of the world proletariat initially pointed to the temporary nature of NEP, but then was forced to acknowledge the actual restoration of capitalism for the survival of Bolshevism. The introduction of free trade instead of the announced exchange of goods was the reason for the discontent and disappointment of part of the CPSU (b). So, Trotsky even declared that the days of the Country of the Soviets are numbered.


The result of such reforms was the achievement of powerful successes in various spheres of the national economy, which certainly "saved the life" of the young state. The NEP, as a policy, was actually discontinued by 1928, when the first five-year plan appeared, and legally by 1931, when private trade was completely prohibited.


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