Lenin Announces the New Economic Policy (Great Events from History II: Business and Commerce Series)
Article abstract: The New Economic Policy changed the implementation of communism, allowing more private entrepreneurship and giving greater incentives to individual farmers and businesspeople.
Summary of Event
In early 1921, the Soviet economy was in a deep crisis. Forced collection of grain and centralized control of the economy helped the Red Army fight its enemy, but such tough measures led to widespread discontent among peasants, workers, and soldiers. Bolshevik leader Vladimir Ilich Lenin was forced to reject what was known as war communism. Lenin persuaded his colleagues Joseph Stalin, Nikolai Ivanovich Bukharin, Grigory Zinovyev, and others to adopt the New Economic Policy. The New Economic Policy was a retreat from radical policy and an attempt to stabilize the economy and to consolidate the Soviet regime. The New Economic Policy reduced centralized control of the economy and gave farmers and small businesses access to the market. As a result, it helped Soviet economic recovery following the civil war. The New Economic Policy lasted for about seven years. It was finally rejected by Stalin in 1928, when he imposed an authoritarian central planning system.
In the early twentieth century, the Russian economy was predominantly agricultural rather than industrial. Treatment of peasants was thus a vital issue for any regime. When the Bolsheviks seized power after the October Revolution (1917), they had...
(The entire section is 2304 words.)
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