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New economic policy - Coggle Diagram
New economic policy
Trade
This encouraged farmers and shopkeepers to produce more
Markets began to recover as goods became more available
Small businesses could reopen and trade for profit
Peasants and grain tax
Peasants could sell grain after paying the tax
This encouraged them to farm more and reduced famine
Grain requisitioning was ended and replaced by a tax
State control
This ensured Lenin still held power over most of the economy
The balance kept socialism but with flexibility
Heavy industries, banking and transport stayed under government control
Economic recovery
Cities grew again as people returned for jobs and opportunities
By the 1920s the economy was recovering strongly
Food production and trade increased leading to better living conditions
Opposition
“Nepmen” (private traders) became rich and unpopular
The policy was seen as temporary until socialism could be fully restored
Some Bolsheviks disliked NEP calling it a betrayal of socialism