NEP

• small businesses were allowed to operate so were allowed to produce consumer goods as they had realised that the state had neglected private consumer goods for state industries
• money was re-introduced as rationing and trade was proving to be too inefficient and time consuming. allowed entrepreneurs to buy and sell
• state kept control of big industries like steel, coal and banking but these now had to operate within budgets and set targets
• Nepmen

  A) sell foodstuffs at a profit in cities

  B) buy simple manufactured goods in cities

  C) take to a country and sell at a profit to peasants

  D) scoured villages buying up all produce

  
• the NEP was successful which annoyed the communists
• • there was a general revival in economy
  • production of most goods reached pre-war levels
  • production doubled between 1920 and 1923
  • small businesses recovered faster than heavy industry which was controlled by the government
  • unemployment increased in urban areas as workers were laid off
• the incentive to work returned as there were products to buy again meaning more reason to work, buy, sell or trade
• Nepmen controlled 75% of trade by 1925