17.2 Project

Lenin's NEP

Lenin’s New Economic Policy is a modified version of old capitalism. This temporary change would boost Russia’s economy and revive the market. Industries with fewer than twenty employees could be privately owned under the NEP. Larger industries such as banks and mines would still to be in the hands of the government. Under the NEP, farmers could sell their produce, so they would have an incentive to produce and distribute food. This would help to stave off the famine that Russia’s citizens are facing. In 1922 Lenin formally created a new state known as the Union of Soviet Socialists Republics or the USSR. By this time, the revived market and good harvest brought an end to the famine and brought up Soviet agricultural production up by 75%.