The New Economic Policy

1920s - is unique in the history of the Soviet period.At this time, the Bolsheviks were forced to allow the existence of market relations and the reforms included in history as the New Economic Policy (NEP or).What has caused these changes?

Home and prerequisites

By the beginning of 1921 the authorities had in fact been in the hands of the Bolsheviks.Foreign invaders were driven out, the White movement and the national army defeated.But to complete tranquility in the country was far away.In different regions and then flashed the anti-Soviet uprising, endangering the existence of the Soviet regime.One of them, Kronstadt, occurred in March 1921, right during the Tenth Congress of the RCP (b).The policy of War Communism, which was convenient for the Bolsheviks themselves, led to the impoverishment of the rest of the population.

to think about the changes to the Soviet leadership had also because of hope for global revolution faded, like last year's snow.Making the world proletariat to rise up in arms could not, in fact, even had to sacrifice a part of the territory of pre-revolutionary Russia by recognizing the independence of the Baltic republics, Poland and Finland.Therefore, it was necessary to strengthen the power in their own territory, not hoping for revolutionary new campaigns.

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All these factors led to the adoption of the Tenth Congress of the RCP (b) The decision to move to a new economic policy.The Bolsheviks had to soften the tax policy and allow private enterprise.It rebuilds and operation of state enterprises, which were to focus not on the targets and profit.Thus, the essence of the NEP was the fact that the economy began to exist, albeit very limited, but still a market economy.

essence of reform

Now, briefly about what exactly is all of these reforms.In agriculture, the requisitioning was abolished, looking more like extortion, rather than the tax.Instead, it introduced a food tax levied on particular peasant economy.Its size was much smaller.Later, farmers were allowed to lease land and use hired labor.But the New Economic Policy in the village did not immediately bear fruit.This prevented and famine of 1921-1923 in the Volga region and in southern Ukraine, and a large number of taxes levied on the peasants.In March 1922, the taxation of rural streamlined by introducing a single tax in kind is estimated at poods of rye.

In the cities the new economic policy, too, has brought many changes.In particular, to allow free trade.There are numerous commodity exchanges and fairs.It is now possible to create private enterprise - homemade or artisan production.Small and medium-sized industrial enterprises partly returned to their former owners.It has also been allowed to lease state owned factories.The right to lease the company received not only Soviet citizens but also foreign businessmen.As for the public sector, there were created combining state-owned enterprises - trusts.But in the cities of reform also did not immediately went smoothly.After all, together with market relations came money and rising prices and unemployment.Therefore, in the cities of the USSR and in the capitalist countries, the strike began to arise in the workplace.The first serious crisis erupted in the spring of 1923 because of the so-called price scissors when the cost of manufactured goods was higher than agricultural.As a result, the peasants began to hoard their products so as not to give it away for nothing.In order to prevent unrest in the country, the Bolshevik leadership decided to reduce the prices of manufactured goods.

successes and contradictions

Yet, despite a number of contradictions, a new economic policy has borne fruit.By 1925, large-scale industry was able to reach pre-war production rates.And increased rates of agricultural production.The introduction of a stable currency - secured gold pieces - helped to strengthen the economy.

However, throughout its existence, the new policy differed contradictions and limitations.The political structure of the state has remained unchanged: the power, as before, remained in the hands of the Bolsheviks.Entrepreneurs emerged during the NEP, had no political rights.Yes, and their activity was very limited: all large enterprises, foreign trade, banking, transport, remained under the control of the state.It became increasingly obvious that the NEP - it's just a temporary measure of the Bolsheviks, not a stable and long-term policy.