What is the essence of the NEP - the economic policy of the USSR in the 1920s?

New Economic Policy (NEP) - a set of economic measures of the Bolshevik Party on the removal of the Soviet Union out of the crisis in the 20 years of the 20th century.If we talk about the NEP briefly, it is a revival of private initiative.

reasons NEP

policy of military communism has led to a complete rupture of economic ties between urban and rural areas.City residents have been very difficult in the sense that they did not receive adequate amounts of food from the village.It was disrupted traditional economic exchange, when the city bought the products in the village for the money.In addition, farmers have launched a series of uprisings against the policy of expropriation of food.

repeatedly documented cases in which the military called in pens in the village and took away all grain reserves.As you know, in 1921, it was a very great famine, so farmers protest movement was caused by objective reasons.

country was completely destroyed by World War I and the Civil War, it had been destroyed all economic relations with foreign countries.The same can be said of diplomatic relations.The Soviet leadership was aware that at this stage, without the restoration of relations with foreign states the country will be very difficult.

Another reason for the abandonment of the policy of War Communism was the understanding of the leadership that the abrupt transition to communism is impossible.

What is the essence of the NEP?

first economic transformation, which can be described as a manifestation of the NEP, began in 1922-1923.Main activities NEP (short) - are actions aimed at improving the lives of people.

first need was to restore the monetary system of the country by enhancing trade in food and industrial goods.The Bolsheviks had to make an unprecedented retreat from the planned program for the elimination of the economic situation in the country of his stupor.

To understand what is the essence of the NEP, compare it with the policy of War Communism.

Options	War Communism	New Economic Policy
objectives of economic	urgent construction of communist relations; cancellation monetary system; overcoming the consequences of the war	recovery of money turnover; permit private initiative in a limited amount of
Agriculture	requisitioning; establishment of consumers' communes, which regulated the order of the food distributed; there were committees of the poor as a class organs to fight with fists	replacement of the surplus tax that could be paid in cash; opportunity to sell their products; were first overall economy in rural areas, which are voluntary, the principle of education
Industry	complete nationalization of all businesses; objects directly manage the main control (in different years, there were 20 to 50)	derogation nationalization; free trade; able to attract investment by foreign companies

The main feature of the economic policy of the Civil War was the expropriation of the products from the peasants.In simple terms, the army or the representatives of government agencies could take bezoplatnoy products.The party leadership understood the need for the introduction of the NEP, the table comparison periods 1918-1921 and 1922-1929 years will show this clearly.

Events NEP

Under the new policy the government pursued some reforms.Consider what the essence of the NEP in the financial sector.

As you know, several years of commodity-money relations in the country have been virtually frozen.In 1922 he was a monetary reform.A new currency (ducat) recognized Western countries, so the opportunity to carry out foreign exchange transactions.Over time, it resumed trading both domestically and with foreign partners.

NEP in agriculture

Important changes have affected agriculture.Farmers finally felt relieved from the burden of military communism, because in 1921, abolished the requisitioning.Of course, the full tax is not released.Food tax was introduced, but it was less than 2 times the rate of the surplus.Allowed to pay this tax money.Most poor farmers exempted from tax.Farmers soon realized what the essence of the NEP.This form of relationship suits them, so many do not want to go to the farms in the years 1930-1932.

development of industry

In industry events NEP were too harsh.Private capital is once again able to work in different areas of production.In those areas where the government did not want to weaken their influence, there were cases of mixed capital enterprises.Control over the activity of enterprises has decreased, so to conduct economic activity has become easier.Such changes in the course of the state immediately felt foreign investors started to invest in new ventures.

Results of NEP in the USSR

Policy NEP, the table with the results of that before your eyes, but positive, had some negative results.

Positive results:	negative results of the NEP:
revival of trade between urban and rural areas; appeared conditions for the construction industry; stabilization of the monetary system of the country; revival of agriculture; cancellation policy of military communism will create conditions for the formation of large agricultural enterprises; attract private foreign investment	high unemployment; inflationary pressures associated with the global economic crisis; suppression of the opposition in society

Yet the importance of the period of the New Economic Policy in the development of the Soviet state is difficult to overestimate.The country was able to recover after severe events of 10-ies of the 20th century.