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The NEP

The NEP. By Sean and Austin. What is it?. The NEP stands for New Economic Policy Was Lenin's last economic decision before he died Was made in the 10th congress of the ‘All Russian Communist Party’ in March 1921 as a means of recovering from a ruined economy. Why did they form it?.

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The NEP

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  1. The NEP By Sean and Austin

  2. What is it? • The NEP stands for New Economic Policy • Was Lenin's last economic decision before he died • Was made in the 10th congress of the ‘All Russian Communist Party’ in March 1921 as a means of recovering from a ruined economy

  3. Why did they form it? • The previous policy (war communism) failed miserably • Lenin thought they did not meet meet the economic criteria necessary to be socialist • In his own words he said “We are not civilized enough”

  4. What were the policies? • Private ownership is returned to farmers • Employment is brought back for farmers • Large factories are under state control • Allowed foreign trade • Allowed peasants to keep part of their surplus after paying a small tax • Allowed peasants land tenure (land tenure is the right to own land) • Allowed the peasants to sell their surplus for profit

  5. What were the effects? • Initially there was a famine due to increased food prices which was a setback for the recovery • Eventually production of all goods were brought to above pre-revolution standards • Economy was brought back up after 1928 • Also in 1928 the average working hours went from 9.9 hours to 7.8 hours a day • By 1928 the number of women workers increased • The factories began to sell their products at higher products

  6. What were the effects? (cont.) • Because of this the peasants had to produce more of their product • The peasants began to withhold their surplus to sell for better prices to NEP-men (middle-class and traders) • The NEP men would sell them at even higher prices • Unemployment became common.

  7. What were the effects?(cont.) • There was a imbalance between the large industry (state owned) and agriculture (this was called a scissor effect) • The government fixed prices to stop the scissor effect • The gap between the classes narrowed- more equality and the richer farmers were called Kulaks • There was a split between the Bolsheviks, the Left Wing (Trotsky) who wanted the NEP gone and the Right Wing (Bukharin) who wanted the NEP there

  8. What were the effects?(cont.) • There was a imbalance between the large industry (state owned) and agriculture (this was called a scissor effect) • The government fixed prices to stop the scissor effect • The gap between the classes narrowed- more equality and the richer farmers were called Kulaks • There was a split between the Bolsheviks, the Left Wing (Trotsky) who wanted the NEP gone and the Right Wing (Bukharin) who wanted the NEP there

  9. The End of NEP • When Lenin died, Stalin filled the gap of power • Here he put an end to the NEP in January 1929 because ‘the capitalists will kill them’ “Either we do it, or they crush us” Joseph Stalin, 1928

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