Lenin

and the
New Economic Policy
 INTRODUCTION

•The New Economic Policy (NEP) was an economic policy of Soviet Russia proposed
by Vladimir Lenin, who described it as a progression towards "state capitalism" within
the workers' state of the USSR.

•The NEP represented a more market-oriented economic policy, deemed necessary after
the Russian Civil War of 1918 to 1922, to foster the economy of the country, which was
almost ruined.

•Lenin characterized "state capitalism" and his NEP policies in 1922 as an economic system
that would include "a free market and capitalism, both subject to state control" while
socialized state enterprises were to operate on "a profit basis".

•A lot of changes were made during implementation of NEP.

•It
is said that, NEP was a bold and historic decision taken by Lenin which shaped Soviet
Russia’s economy.
BACKDROP : RUSSIAN CIVIL WAR
 The Russian Civil War broke out in late I9I7 shortly after the Bolsheviks had
established their then precarious hold on the main centers of Russia.
 Lenin’s most pressing problem after the November Revolution was to deal
with his opponents, who had mounted a full-scale civil war.
 The non-Bolshevik left and the rightist whites were opposing Lenin and his
party which led to civil war.
 The war continued almost for three years.
 Finally, The Bolsheviks led by Lenin won the war.
 As it was right after the revolution, The war caused heavy damage to Russia.
 Also, due to the civil war the plight of the people continued.
WAR COMMUNISM
 War Communism was the name given to the economic system that existed in Russia from
1918 to 1921.

 Measures introduced in 1918 to restore order and discipline to the economy.

 Included these main policies:

 Nationalization of industries
 State control of foreign trade
 Strict discipline for workers →strikes were forbidden
 Requisition of food, grain, from peasants to feed the army
 Rationing of food
 No Private enterprise
 Military control of Railroads

 The implementation of war communism is a matter of controversy and debate

LENIN AND NEP

● New Economic Policy (NEP), the economic policy of the government

of the Soviet Union from 1921 to 1928, representing a temporary
retreat from its previous policy of extreme centralization and
doctrinaire socialism.
● Lenin saw the discontinuation of War Communism as
temporary but necessary for the Bolsheviks to remain in
power.
● Lenin was willing to compromise (?) ideology due to the two
revolts that had happened in 1920-1921.
REASONS FOR THE NEP

 Increase food production by giving peasants an incentive to grow

more.
 Get the economy going after the Civil War→ private ownership
provides motivation for small businesses and helps increase
industrial production and trade.
 Reduce opposition to the Bolsheviks.
 Relax the unrest of the people.
 Relax economic policies, especially the ones associated with War
communism.
War Communism
- Communist fundamentals; the
people have no control/ no say
Government overrides all
- Focused on the armies needs
with no consideration for the
peasants
- Gave the government complete
control of the economy
- Government has control of
production
- Ended private businesses
- Control of agriculture from
peasants
- Banned private trade
- Economy began to fail under this
New Economic Policy
– Peasants could now make money
with the new system of taxation.
allowing the sale of any remaining
food; no more requisitioning
– Private trade Ban is removed-
food can now move easily and
people now buy goods with
money.
– Small Businesses are reopened
which gave peasants another
opportunity to make a profit
– Proves to be successful and helps
benefit the economy
SUCCESS OF NEP
 It was needed in order to save the state from collapsing.

 Got the economygoing again.

 Gave farmers incentives to grow their crops.

 Fixed the starvation problem

 Kept Bolsheviks in rule.

 Necessary to move forward toward a m ore socialist system

 By 1928 the economy had been restored to the pre-World War I level.
CONCLUSION

 The New Economic Plan conceived and

implemented under Lenin created a stable
economic environment through integrating
systems of both Communism and Capitalism.