The New Economic Policy

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History (1881 - 24) Mind Map on The New Economic Policy, created by charlotte151996 on 08/05/2013.
charlotte151996
Mind Map by charlotte151996, updated more than 1 year ago
charlotte151996
Created by charlotte151996 over 11 years ago
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Resource summary

The New Economic Policy
  1. Introduction of NEP
    1. Economic situation
      1. Industry production fraction of pre-war.
        1. Peasant uprisings.
          1. War communism and grain requisitioning.
          2. Tambov Uprising.
            1. So serious red army sent to restore law and order.
              1. First signs of major famine appearing.
            2. Growing opposition
              1. Mensheviks increasing support in local soviets.
                1. Workers opposition movement - disapproval of gov. control of trade unions.
              2. Kronstadt Reb. march 1921
                1. One of Lenins most loyal supporters.
                  1. Unhappy with conscription = relax economic control and freedom of speech.
                    1. Red army attacked naval base.
                2. Tenth party congress 1921
                  1. Announced end of war communism.
                    1. Replaced by NEP.
                      1. Peasants only give part of produce to gov, sell rest and pay tax.
                    2. Private trading allowed - increase availability of goods.
                      1. Gov still controlled 'heights of economy' - banks, transport foreign trade and heavy industry.
                      2. New currency 1922 - end inflation.
                    3. 'Democratic centralism' - ban on internal factions
                      1. NEP betrayal of communist ideas - Lenin aware it could split party.
                        1. Ban factions within communist party.
                          1. Decisions made by Lenin and the Politburo would be binding on all other communists - all other political parties banned.
                            1. Intro. of NEP - loosening of economic control but tightening of political control.
                              1. 1921 - governed by dictatorship more absolute than any gov. under Tsarist autocracy.
                            2. Impact of NEP on economy
                              1. Immediate effect.
                                1. Markets returned, more goods available, food shortages disappeared and famine of 1921 ended.
                                  1. By 1923, 85% of firms in private hands, peasants began cultivating more land and livestock increased. Coal and textile production doubled.
                                2. Scissor crisis - widening gap between agricultural prices and industrial prices.
                                  1. Agricultural production rose = price of goods fell.
                                    1. Industrial prices rose due to shortages.
                                      1. Peasants had to pay more at a time when they were getting less for their goods.
                                    2. Communists accused NEP of encouraging greed, independance and self-interest.
                                      1. For this group, the shorter the NEP lasted, the better.
                                        1. By Lenin's death in 1924 - debate over future on NEP was a serious issue for communists.
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