Economic contradictions of the NEP (briefly)

In the early 20-ies.the last century, Russia was in ruins.As a result of wars, epidemics and emigration have been lost many territories, the population decreased by 25 million, the plants stopped, the people impoverished and degradiroval.V such conditions is urgently required to move from a policy of war communism to a new stage of economic, aimed at getting the country's economic recovery and the revival of the socialsphere.The article presents the contradictions of the NEP and the results of economic reforms.

essence of the NEP

The New Economic Policy was announced at the 10th Congress of the Communist Party of March 1, 1921.She became a positive period of the reign of the Bolsheviks, which is the growth of the economy, liberalization and democratization of political life.After several years of stagnation, the transition to a new form of management will increase production, to bring the state of stagnation.Because of her, the Bolsheviks were able to gain a foothold in power and supported population.The components of the market economy slowly poured into the state, but could not be fixed, because this policy was a temporary solution, to deviate from the main direction of socialization was not planned.In such circumstances, the formation of the private sector was limited to small business and speculation that did not help the economy.This policy delayed the decline in all spheres of life, it seems to be revived and extended for another couple of years life of the country.In the beginning, we laid the main economic contradictions of the NEP.Briefly about the main ones are set out below.

Background NEP

reasons for the transition to the NEP:

  • social, financial and political problems in the country.
  • outrage in rural and urban areas, the army and the navy.
  • concept of building socialism and communism through the elimination of market relations has not been implemented.

government pursued such goals: mute the threat of civil war, the power saving mode, the modernization of the economic situation in the country.

Tools new policy in the agrarian sector

New Economic Policy (NEP) - a vector of internal areas of the Soviet state during the period from 1921 to 1928 It was a temporary retreat from the general line of the Bolshevik Party.The essence of the NEP was to use elements of market relations and different forms of ownership.The main measure of the NEP was the replacement of the surplus tax in kind in the country.In the first case, the peasants took away 70% of the grain harvest, the NEP period anticipated withdrawal of the tax in kind, only 30% of the grain.In the future, the tax was reduced to 10% of net agricultural products.-Kind tax was replaced by money.Such indulgence revived the agricultural sector of the country.On the other hand, they were to pay additional taxes on the rich peasants, which seriously hindered the development of agriculture in the USSR.Such contradictions are the result of the NEP economic illiteracy of power and desire for total centralization.

NEP industry

abolished cupola, instead of which trusts are created.They were united for the production of all homogeneous or related financial businesses.They were given more freedom - after paying a state tax in the amount of 20% of the profits they could dispose of their own resources.Also refused to planned production.Now trusts to decide what products and how much to produce, where to buy the feed, as well as marketing issues.Thus was born self-financing.

addition trestovogo management were allowed private enterprise to the number of salaried workers are not more than 20 people.Later this number increased.

Contradictions of the New Economic Policy

When educators offer students: "Describe the contradictions of the NEP" - must be answered, that the differences were laid in the beginning, when formed causes and lined purpose.On the one hand, the new policy is based on market relations, on the other - the purpose of the state remained unchanged - it is socialism.The Soviet state was an urgent need for industrialization and the establishment of military-industrial complex, but the program has not been provided for investment in these sectors.

Briefly describe the conflict as a possible discrepancy between the political and economic structure of the state.From this it follows all the other problems and crises.State control is not given the opportunity to realize all the planned economic reforms, which led to the relatively short existence of the NEP and its achievements.

results of economic thaw

NEP quickly bore fruit farming has resumed its work on 70% compared with 1913, and the industry - by 39%.The difference between the rate of development of industries contributed to overestimation of prices for industrial and agricultural products understatement.As a result, farmers gave their product almost for free, and buy industrial goods was virtually impossible because of the high cost.Agrarian ceased to produce for sale.Why give a gift?This has led to food shortages.The problem of the Bolsheviks decided to simply and rudely began compulsory withdrawal of grain and other agricultural products.

Inflation

difficulties with sales of manufactured goods led to shortages of money and provoked an increase in the release of depreciation of money, that only exacerbated the crisis.Inability to purchase manufactured goods has caused decrease in flow of funds into the sector.The circle is closed.

State intervention eventually led to the aggravation of the situation, since, on the one hand, there was the abolition of the nationalization of industry and small along with medium-sized enterprises were transferred to private individuals, and on the other hand, the bulk of the industry and all foreign trade remained in the hands of the state.

Social Issues

contradictions of the NEP, of course, reflected in the social sphere.The program was provided for in the course of creating an equal and just society, but as a result of societal differentiation.It increases bureaucracy due to the intervention of the state in the sphere of production, as well as due to low skills, which made serious miscalculations.And the tip is still fared better the working class - they were focused all the benefits of soldering and surcharges.

peasants exasperated because of the new tax, "wealth", which renders meaningless the increase in agricultural production.

All this shook the society, the tension grew.

problems NEP

To crisis in 1925 resulted in just the negative economic problems and contradictions.NEP has caused problems with the grain procurements, decreased export of grain.

In terms of lending mistakes were made that led first to the unjustified expansion and increased production.The growing number of workers in the factories has led to an increase in wages, which slightly improved the solvency of the population.There was a demand for the products.In agriculture also increased the flow of money, but the pace of output growth significantly lagged behind the rate of growth of incomes of the population.There is a new problem - the goods shortage.

a result of raising the standard of living of retarded high prices and shortages of essential goods.

new government's attempts to remedy the situation

government has applied a policy of "freezing" of unfinished projects, reduce imports, increase in indirect taxes.On the whole, it failed to correct the situation, but the main problem remains - a shortage of money for economic development.
problem contradiction was that small-scale industry, the village, retail fairly quickly adapted to the new conditions, can not be said of the heavy industry.She struggled to adjust to the new conditions, although it was a priority at the party.Occurred unfair exchange of goods between town and country, it was the basic economic contradiction NEP, thunderstorms with the acute social crisis.

Another major controversy, which was the brake to stabilize the situation, the political system was the discrepancy between what economic structure, which is trying to build.That political structure hampered all progress, to establish a monopoly on power.

result

What are the main contradictions of the NEP?The table clearly demonstrates the differences of economic and political course:

Positive aspects Negative points
observed economic recovery

lack of guarantees of private capital

raising living standards in rural areas

economic and political instability

industry development

reluctance of foreign investors to invest their money

increase welfare gap between the rate of development of agriculture and industry

Thus, the contradictions of the NEP reducedeffectiveness of new economic decisions that have a negative impact on all spheres - economic, political and social.