NEP

• Overview of the NEP

  • Mixed economy.
  • Political and economic stability.
  • Industrial growth.
  • Scissors Crisis.
  • Inequality and Corruption.
• Mixed economy under the NEP

  • Factories and workshops with less than 20 workers were denationalised.
  • Money was reintroduced.
  • People expected to pay for public transport.
• Political and economic stability under the NEP

  • Grain requisitioning ended and free trade implemented; meant that grain harvests reached over 76 million tons by 1926.
• Industrial growth under the NEP

  • Lenin launched an electrification campaign.
  • NEP would lay the industrial foundations for socialism.
  • Lenin argued to build 'socialism with capitalist hands'.
  • By 1925, electricity production reached 160 units.
• Scissors Crisis under the NEP

  • Gap opened up between family incomes and industrial prices.
  • Industrial retail prices reached 170 units but agricultural retail prices were only 60 units.
• Inequality and corruption in the NEP

  • Rise of 'NEPmen' - these were profiteering businessmen who exploited gaps in the market such as luxury goods.
  • NEPmen arrested by Cheka for profiteering.
  • Gambling, prostitution, and drug dealing were common.