After the October Revolution of 1917, the country lay in ruins Soviets.Everywhere reigned hunger and poverty.This led to social tensions.Louder voice was dissatisfied people everywhere started uprisings.
In this situation, it was necessary first of all to revive the country's economy, for which the Bolsheviks introduced a new economic policy.The article set out what were the main activities of the NEP.Also briefly presented the results of contradictions and a new course in the economy.
Background transition to NEP
Before you answer the question of what were the main activities of the NEP, it is necessary briefly to identify the main causes of economic transformation of the Bolsheviks:
- huge losses as a result of the civil war were at least50 billion gold rubles;
- collapse of heavy industry, which gave the product 7 times less than in 1913;
- human losses amounted to more than 10 million people as a result of war, famine, epidemics and emigration;
- terrible famine in 1921 as a result of the surplus.Hunger drove the people in the village, as a result of the city were deserted, in the factories there was an acute shortage of labor;
- brewing peasant war;
- great danger represented by focal uprising of workers, soldiers and sailors.
government issued a series of harsh decrees, but to hungry and pissed people was not impressed.They had not been fulfilled.Then the Bolsheviks understood that the economic disaster of their power over, and promptly at the X Congress of the Communist Party in March 1921, was taken a new course.
What were the main events of the NEP in agriculture
First of all it was necessary to feed the hungry people, which required to revive the village and the agrarian sector.Replace the surplus tax in kind, that exemption does not mean 70% of the grain, but only 30%.Subsequently, the rate was reduced to 10% of pure product, and after all replaced with cash.
Wealthy farmers were taxed unified agricultural tax.This measure is seriously slowed down the development of agriculture.
was allowed to take land out, the use of hired labor.
The revision of the pricing policy were raised grain prices and the basic agricultural products.This enabled farmers receive adequate compensation for their work and purchase manufactured goods.
lion's share of the peasant households were involved in various forms of simple co-operation.
Influence of the NEP in the industry
What were the main events of the NEP in the industry?First of all, it will also cover co-operative movement.
reviving small and medium private enterprises.Private producers were allowed to lease the company and hired workers up to 20 people.Later, the possible number of salaried persons increased.
The country has deployed a wide network of trade companies, who organized the wholesale marketing of finished products.
central boards took place trusts, which were merged in uniform on the type of production and financial-related industries.After the income tax they had the right to dispose of the remaining funds.
Bolsheviks temporarily abandoned the planned production, giving the trusts to decide what and how much to produce, how much to buy raw materials and where to sell products.Such a system is called self-financing.
basic economic contradictions of the NEP
How much thought have been the event of the NEP?The table outlines the main negative results of a new course:
| agricultural sector | Industry |
| overproduction, resulting in too low prices for agricultural products. | underproduction of more than 60%, resulting in prices of manufactured goods soared very high. |
| taxed wealthy farmers, as a result it became unprofitable to develop the economy. | main part of industry and foreign trade were all controlled by the state, which greatly hindered the recovery of the sector. |
| Withdrawal of products to create food reserves in the country has led to famine. | lack of guarantees of private capital has led to the exodus of investors. |
Such decisions overshadowed the positive actions of the NEP.The table above confirms that economic decisions are illiterate Bolsheviks caused a new crisis in the country and social tensions.
Results New Deal
economic activities of the NEP were quite contradictory.On the one hand, they were aimed at stabilizing the economy, stimulated the revival of the countryside and industry, provide short-term welfare of the population.On the other hand, a new economic policy based on market relations, while the political purpose of the state - the building of socialism - has not changed.Nationalization led to the complete withdrawal of foreign investment.
In the years of the NEP to ensure the country's food Bolsheviks again began to withdraw "surplus" of food in the village, as a result farmers have reduced acreage.What to make, then we were taken to?
"price scissors" between the agricultural and industrial sector provoked a surplus of consumer goods on a background of food shortages.Difficulties sales of manufactured goods led to loss-making industries.To cover the shortfall in funds, the Bolsheviks released into circulation new money, which immediately led to hyperinflation.
All these contradictions have led to collapse of the NEP in 1928.
