The End of the NEP

• Many peasants were hiding their grain and animals from the authorities in order to avoid paying taxes.

  • In 1927, the government only collected 80% of the expected tax revenue.
• Peasants also reduce the amount of land cultivated due to the high taxation.

  • Alongside bad weather and poor harvests of 1927, this led to the "Procurement Crisis" of 1927-28 when the supply of grain to the cities dropped by 30%.
• The problems of the state-run heavy industries had deepened.
• The Party was increasingly worried about reports of anti-social behaviour among young people as the capitalist aspects of the NEP encouraged selfish and decadent attitudes.
• Stalin's proposed rapid, centrally-directed industrialisation through a Five Year Plan and the collectivisation of agriculture.

  • One of his prime concerns was Russia's weakness.
• "If you are backward and weak, then you may be beaten and enslaved. But if you are powerful, people must beware of you. We are 50 to 100 years behind the advanced countries. We must make up this gap in 10 years. Either we do this or they crush us."