Describe the Main Features of the Nep and Explain Why It Was Introduced in 1921.Explain Why the Bolsheviks Thought It Was a ‘Step Backwards’.

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Describe the main features of the NEP and explain why it was introduced in 1921.Explain why the Bolsheviks thought it was a ‘step backwards’. The New Economic Policy (NEP) was introduced in March 1921 because in Russia the transport system was on the point of total collapse. Factories could not get the materials they needed and most industrial enterprises had ceased production. Grain production had fallen to disastrously low levels. Many people were starving with the lack of food being produced. Lenin realised that Russia had to rebuild its economy before moving to War Communism. Lenin made it clear that the NEP was temporary and that the vital heavy industries would remain in state hands. The NEP was also a way of forming an alliance with the peasants as by doing this Lenin thought stop any outbreaks of uprisings. The main features of the NEP were of the following: Enterprise: * Grain requisitioning was abolished which meant that it was replaced by a ‘tax in kind’. Peasants had to give a fixed proportion of their grain to the state, the amount of grain that was taken from them was much less than the amounts taken by requisitioning. They could also sell any extra surpluses in the open market and keep the money made from it. * The ban on private trade was removed meaning that food and goods could flow more easily between the countryside and the towns. Rationing was abolished and people had to buy food and goods from their own income. Privately owned shops were reopened. * Small businesses under privately ownership were allowed to reopen and make a profit. This included businesses like small workshops and factories that made goods such as shoes, nails and clothes. Lenin realised that peasants would not sell their produce unless there were goods that they wanted on sale. * The state kept control of large-scale heavy industries like steel, coal and

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