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Was NEP a success?, Restored economic stability and improved living…
Was NEP a success?
Due to NEPs drive for productivity, more work was to be completed by machines, this left to an increase in unemployment of nearly 1.5 million
Industrial production improved between 1921-23. Production doubled (in terms of roubles) and by 33% in coal production. Steel and Cotton production increased by over 600% in 2 years.
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NEPMEN so successful that a tax put on super profits and in 1926 they could be imprisoned for their success. Responsible for 75% of trade
250,000 private traders moved to Moscow where they spent $25 per head on meals
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By 1928, Russia's GDP had returned to 1913 levels
NEP was first time since revolution that peasants had been considered by government which had given extra incentive
Despite number of NEPMEN, only 25% of them had own premises, rest were market holders
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Despite improvements some areas of economy did not return to pre 1913 levels, coal, steel and agricultural grain output
Russia lacked behind in GDP when compared to other countries including Germany and France which had also suffered during WW1.
Technology had not improved in farms where 2% still used wooden plough and 50% of harvest cut by hand.
Agri growth outstripped industrial growth leading to scissor crisis, as surplus grain became worth less, industrial goods became more expensive. Led to inflation as industry took longer to recover than planting new crops
Key features: Rationing and grain requisition ended, GOSPLAN set up, Private ownership of small businesses allowed, Transport, banking and heavy industry still state owned. Introduction of wealthy NEPMEN due to permitted private trade.
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