The New Economic Policy

Kyle, Connor, Luka, Campbell, and Robin

The New Economic Policy

Lenin created the NEP (new economic policy) around the 1920's, attempting to restore the market economy and private enterprise in Russia. Essentially, large industries, banks, transportation, and communcations facilities remained under state control, but the government gave the ownership of small-scale industries to private parties. Lenin also began to allow peasants to sell their surplus at free market prices. However, Lenin died in 1924 after suffering multiple strokes.
Big image

Politburo

Politburo is a shortened name of the Political Beareau of the Russian Communist Party. Originally consisting of Lenin, Trotsky, Krestinsky, Kamenv, and Stalin. The party held immense power over all Russian affairs, and becoming a member of the party was not by democratic decision, but by the sole choice of members of the party itself. This made the party extremely elite and powerful.
Big image

Free Enterprise

With the civil war in Russia came the shift of power, going from Tsar Nicholas II, to Vladimir Lenin, who consequently overthrew him. As Lenin came to power, he abolished all traces of privately owned businesses, and rid the country of free enterprise, making the land completely subject to socialism. However, this led to much peasant revolt, as well as the refusal to work efficiently and productively. As a result, production fell to one tenth of what it was before the shift in power. In response, Lenin instated the New Economic Policy, which still gave the state control over large industries, but allowed those with privately owned businesses to once again regain control. However this was only applied to companies with less than 20 workers. In addition peasants were also allowed to sell items at free market prices, thus partially reviving the lost ideals of free enterprise. These systems remained in position until years later when Joseph Stalin rose to power and began implementing his Five-Year Plan.