The New Economic Policy: Aims and Impact Flashcards

Who introduced the NEP and in which year?

Lenin introduced it in 1921.

Why did Lenin introduce the NEP?

To revive the economy after War Communism, raise food output and keep peasant support.

What policy replaced grain requisitioning under the NEP?

A tax in kind.

How did the tax in kind work?

Peasants gave a fixed share of their crop to the state and could sell the rest.

Under the NEP, which businesses could be privately owned?

Small shops and workshops; private trade and markets were allowed.

Which sectors did the state keep control of under the NEP?

The commanding heights: heavy industry, banks, foreign trade and transport.

Who were NEPmen?

Private traders and small business owners who made profits under the NEP.

What was the Scissors Crisis of 1923?

Farm prices were low while factory goods were costly, so peasants held back grain.

What happened to agriculture under the NEP?

Food output rose quickly and markets revived, easing shortages; some peasants grew richer (kulaks).

What happened to industry under the NEP?

Small industry recovered fast, while heavy industry grew more slowly.

How did life in towns change under the NEP?

Rationing ended and wages were paid in money again, but some unemployment appeared.

How did the NEP affect the Communist Party and power?

It reduced unrest and helped the Bolsheviks keep control, but some in the party said it was a step back from socialism.

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