How Far was the New Economic Policy a Success? (Cambridge (CIE) IGCSE History)

The NEP was a radical change from War Communism. The Bolsheviks introduced War Communism in June 1918 as a result of the Russian Civil War. War Communism was a communist approach to the economy. In Marx's vision of communism, there would be no private businesses. As a result, the Bolshevik government took control of all areas of production.

War Communism ended up having damaging impacts on the Russian economy. It was clear to Lenin that the government could not continue its policy of War Communism. This is despite the desire of many Bolsheviks (like Bukharin) to do so. Lenin had to introduce capitalist elements to the Bolshevik economy. This caused many benefits and costs to Lenin and the Russian economy.

The nationalisation of industry under the Vesenkha

Workers had production targets and lost control over factories

An increase in factory discipline

Workers lost the right to strike and could work longer than eight hours

The re-introduction of food rationing

Workers received the second largest ration

The banning of all private trade

Many workers still traded in illegal black markets

Grain requisitioning

This policy, combined with poor weather, caused the Great Famine of 1921-1922. Historians estimate that between five to eight million Russians died. The Bolshevik government did nothing to stop this famine

The re-introduction of food rationing

Peasants had very little food for themselves before the civil war. This contributed to the Great Famine

The banning of all private trade

Under the Tsarist governments, kulaks were encouraged to trade. The Bolshevik government politically attacked kulaks, beginning a process called dekulakization

The end of grain requisitioning

Grain requisitioning was replaced by a ‘tax in kind’. Peasants gave 50% of their grain to the state. This amount was much less than the amounts taken by requisitioning. They could sell any surplus on the open market. This created NEPmen

Changes to state control of industry

The state kept control of large-scale heavy industry. It also retained control of transport and the banking system. Lenin organised industries into trusts. Each trust had to buy materials and pay their workers from their own budgets. If they overspent, the state would not step in

Small businesses reopened

Lenin realised that peasants would not sell their products unless there were goods they wanted on sale. Small, privately owned businesses could reopen and make a profit if they made goods such as shoes, nails and clothes

End of rationing

Due to the end of the civil war, there was no need for rationing. People had to buy food and goods from their own income. This allowed food and goods to flow more easily between the countryside and the towns