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Key Features of the NEP 1921 - Coggle Diagram
Key Features of the NEP 1921
Agriculture
end to requisitioning
- replaced by system of
taxation
→
allowed peasants to sell remaining food for profit
no forced programme of collectivisation
-
Mir
would stay as means of peasants self-regulating farm activities
measures a compromise to peasantry but without increased food production the economy would not recover
Industry
returned
small-scale industry to private hands
→ state still kept control of
heavy industry & banks
- allowed Lenin to claim he still had authority over economy
Piecework & bonuses
used in
state-owned factories
to
raise production
Reintroduction of currency
- used for wages but met w/ suspicion of capitalist techniques
legalisation of private trade
- hopes of stopping black market
saw a growth of
NEPMEN
- those who gained under the NEP
Was it Successful?
Industrial output
rose rapidly during first 3 years
→
due to road repairs & bridges & putting factories back into production
growth also due to
NEPMEN
- saw opportunities to set up small businesses due to return of
private trade
Limits of success
Black Market flourished
Prostitution & child thieves at an increase
imbalance between industry & agriculture - food prices fell & price of industrial goods rose
→ low prices
discouraged
peasants from selling grain & selling it
→
Scissor crisis
-
production figures essentially decreased overall