The New Economic Policy

In February 1921 in wake of much oppression from the Bolshevik government a surge of demonstrations erupted in the main industrial cities among the working classes over the repressive measures being taken by the Bolshevik government against both the industrial workers and the countryside peasantry. This became a serious problem for the Bolshevik leaders when the revolt and demonstrations spread to the area of Kronstadt where the former Bolshevik supporters, sailors at the naval base revolted as well. During their rebellion the Kronstadt sailors presented a list of demands to the Bolshevik government including the re-election of soviets, freedom of speech, the right for a peasant to do what he will with his land and his yield, and most importantly the right to free marketing.

Although Lenin crushed the rebellion and did not concur to demands immediately, he recognized that things must be changed to keep the lower working classes in favor of the Bolshevik regime. The passing of the New Economic Policy meant that some private ownership was restored to farms and small workshops/shops. This replaced the original War Communism policies that Lenin enforced during the Civil War, which consisted of state ownership of everything and compulsory requisitioning of grain by government agents. However large scale important industries such as coal and steel were kept under state control to ensure maximum production.The policy also allowed the peasants to sell surplus of grain instead of handing it over to government officials, this enabled better food distribution in the country. The NEP allowed peasants to hire manual labour – a more capitalist principle. With general loosening of restrictions on trade Russia began to gain previous trading alliances which were vital to the growth of Russia’s economy.

The NEP in general was a success; it succeeded in creating an economical recovery after the devastating effects of war. Agricultural production increased dramatically, now that peasants had chance of profit from their yield it provided an incentive for peasants to produce more. In total the grain production exceeded pre-war totals. Since the Bolshevik government did not employ any industrialisation techniques it provided an imbalance in the Russian economy, with the agricultural production exceeding the heavy industry production. To balance this out factories put prices up so peasants had to produce more grain to purchase these products. This was known as the Scissor Crisis. This led to peasants withholding surpluses for higher prices to sell them to “nepmen” middle class business men who went against the principles of communism and were disliked by the Bolshevik leaders. Eventually the Bolsheviks put an end to the scissor crisis by fixing factory and grain prices.

In conclusion I believe the NEP was generally a great success. It managed to restore Russia and to stabilise the economy on most accounts. Lenin’s quick thinking made the NEP it the success it was as he and the other Bolsheviks were able to combat difficulties as and when they came.