New Economic Policy

State Emblem of the Soviet Union.svg
The New Economic Policy (NEP, Russian новая экономическая политика, НЭП) was an economic policy of Soviet Russia proposed by Vladimir Lenin, who described it as a progression towards "state capitalism" within the workers' state of the USSR. Lenin characterized "state capitalism" and his NEP policies in 1922 as an economic system that would include "a free market and capitalism, both subject to state control" while socialized state enterprises were to operate on "a profit basis".

The NEP represented a more market-oriented economic policy, deemed necessary after the Russian Civil War of 1918 to 1922, to foster the economy of the country, which was almost ruined. The complete nationalization of industry, established during the period of War Communism, was partially revoked and a system of mixed economy was introduced, which allowed private individuals to own small enterprises, while the state continued to control banks, foreign trade, and large industries. In addition, the NEP abolished prodrazvyorstka (forced grain requisition) and introduced prodnalog: a tax on farmers, payable in the form of raw agricultural product. The Bolshevik government adopted the NEP in the course of the 10th Congress of the All-Russian Communist Party (March 1921) and promulgated it by a decree on 21 March 1921 "On the Replacement of Prodrazvyorstka by Prodnalog". Further decrees refined the policy.

Other policies included the monetary reform (1922–1924) and the attraction of foreign capital.

The NEP policy created a new category of people called NEPmen (нэпманы), nouveau riches due to NEP.

Joseph Stalin abolished the New Economic Policy in 1928.

In November 1917, the Bolsheviks seized control of most of Russia. This led to the Russian Civil War, pitting the Bolsheviks against the Whites and other counter-revolutionary forces. During this period, the Bolsheviks attempted to administer Russia's economy purely by decree, a policy dubbed War Communism. Farmers and factory workers were ordered to produce, and food and goods were seized and issued by decree.

This page was last edited on 11 December 2017, at 23:13.
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