New Economic Policy (NEP) 1921

Created by: inthelakes1
Created on: 02-02-23 13:09


	New Economic Policy (NEP)
	Advantages - Small businesses flourished as they were able to sell their own goods at markets and all the money went to them - Consumer goods were booming - Rationing and requisitioning ended - Return to foreign trade which meant more opportunities for not only money, but catching up to foreign powers - The Nepmen emerged, and made up 60% of retail trade	Disadvantages - The Nepmen were criticised due to their disliked methods - 'The Scissors Crisis', whereby the supply of food increased at a rate which exceeded domestic demand and led to low prices, but the supply of manufactured goods increased at a slow pace which made their prices high. Peasants were forced to sell their crops at low prices for the industrialists. - Some argued that the introduction of Capitalism in this way was a betrayal of the October Revolution and Communism itself. - It split the party after Lenin's death in 1924, with the Leftists (in favour) and the Rightists (against)
	Evaluation The NEP was a great success for peasants and those who worked in industry and agriculture, as it had never been so easy to sell goods and make money for yourself as smaller industries were privatised. Life itself for peasants was easier and a bit better as rationing was gone and they could eat their own food. The ones who seemed to be negatively affected by it was those who firmly believed in Communist ideals (and maybe did not have to worry about rationing or money) and were horrified at Lenin who was introducing Capitalism in this way.It can be argued that Lenin was simply having to do what he had to to help his people and the economy. This is a very different approach to his successor- Stalin- who put his ideology ahead of the people's needs.

New Economic Policy (NEP)

Advantages

- Small businesses flourished as they were able to sell their own goods at markets and all the money went to them
- Consumer goods were booming
- Rationing and requisitioning ended
- Return to foreign trade which meant more opportunities for not only money, but catching up to foreign powers
- The Nepmen emerged, and made up 60% of retail trade

Disadvantages

- The Nepmen were criticised due to their disliked methods
- 'The Scissors Crisis', whereby the supply of food increased at a rate which exceeded domestic demand and led to low prices, but the supply of manufactured goods increased at a slow pace which made their prices high. Peasants were forced to sell their crops at low prices for the industrialists.
- Some argued that the introduction of Capitalism in this way was a betrayal of the October Revolution and Communism itself.
- It split the party after Lenin's death in 1924, with the Leftists (in favour) and the Rightists (against)

Evaluation

The NEP was a great success for peasants and those who worked in industry and agriculture, as it had never been so easy to sell goods and make money for yourself as smaller industries were privatised. Life itself for peasants was easier and a bit better as rationing was gone and they could eat their own food. The ones who seemed to be negatively affected by it was those who firmly believed in Communist ideals (and maybe did not have to worry about rationing or money) and were horrified at Lenin who was introducing Capitalism in this way.It can be argued that Lenin was simply having to do what he had to to help his people and the economy. This is a very different approach to his successor- Stalin- who put his ideology ahead of the people's needs.

Comments

NickiMinaj22

Report Mon 29th May, 2023 @ 07:36

Those who believed in Communist principles (and maybe did not have to worry about rationing or money) and were outraged at Lenin who was introducing Capitalism in this manner seemed to be the ones who were affected by it.

gold miner

MarkWood7

Report Thu 9th November, 2023 @ 07:59

NEP's success lies in economic growth, but criticism stems from perceived betrayal of Communist ideals, causing party division after Lenin's death.

Get Revising

New Economic Policy (NEP) 1921