70456
Ideology - New Economic Policy
- Economic and ideological problems
- Communists had anticipated that
first successful revolution would take
place in advanced industrial
economy - Russian economy agricultural.
- Left wing view: High taxes for peasants to fund
industrialisation, encourage collectives and rapid
state-funded industrialisation
- Right wing view - NEP: Low taxes for
peasants to fund gradual
industrialisation, allow free market trade
to ensure popularity of regime and slow
state funded industrialisation
- Communists had anticipated that
first successful revolution would take
place in advanced industrial
economy - Russian economy agricultural.
- Trotsky argued passionately for left wing
solution of rapid industrialisation, believing it
a fully Communist policy compared to the
semi-capitalist NEP. Bukarhin was leading
advocate of NEP and initially had Stalin,
Zinoviev and Kamenev's support..
- In 1921 introduced NEP and private
trade, after Lenin died Trotsky,
Kamenev and Zinoviev disagreed with
the measure. Stalin and Bukharin
initially stayed silent - to their
advantage.
- Grain
requisitioning
stopped,
instead
tax-in-kind,
buy an sell
goods,
smaller
factories
returned to
owners.
- Many Communists angry about
something they saw as return to
capitalism - did not like making profit as
encouragement for business.
- Nepmen made
high profits as
'middlemen' who
made money out of
others' labour but
caused goods to
be in shops in
quantities not seen
in years.
- Electrification - Lenin envisaged
network of power stations and electric
light in every home, believing "Soviet
power plus electrification equals
Communism"
- Foreign trade: NEP
encouraged countries that had
refused to trade with Soviet
Russia before 1921 to resume
trade with Western countries
hoping it would mean failure of
Communist ideas. Anglo-Soviet
trade agreement of 1921 -
increased trade with west.
- Successes and failures of the NEP
- Was extremely popular in early 1920s, many Communists unwilling
to increase taxation as feared backlash from peasants. Created
economic growth and increasing production of consumer goods.
However in 1927 growth declined (grain 1926 77mn tonne, 1927
72mn) - support decreased
- Much of the growth in prosperity can be attributed
to peace after seven years of war and civil war
(1914-1921)
- Peasants found prices for manufactured goods high
and after 1925 unwilling to sell grain for money. Some
became rich buying land and animals but many
remained poor and continued using backwards
farming methods.
- Many angry about profits of Nepmen (1925 -
steps to curb profit)
- Industrial workers better off but
unemployment high especially
among young - rise in crime
- By end of 1920s food supply issue again
- By 1926 economy had reached pre-1914
levels through investment
- Was extremely popular in early 1920s, many Communists unwilling
to increase taxation as feared backlash from peasants. Created
economic growth and increasing production of consumer goods.
However in 1927 growth declined (grain 1926 77mn tonne, 1927
72mn) - support decreased
- Food shortages in cities after 1927.
- Impact on leadership struggle - Initial success ensured popularity of
right wing; between 1924 and 1925 all but Trotsky supported policy;
Trotsky's arguments did not appeal - NEP was helping Rusisan economy
to grow and his idea was untested. Undermined him.
- 1925 Zinoviev and Kamenev abandoned NEP to attempt to win support
of left wing. Continuing success of NEP - this attempt was doomed to
fail
- Stalin abandoned NEP in 1928 once it was learly failing. In this way, his move from right to left wing increased his popularity while Bukharin continued arguing
for NEP and lost credibility.
- Stalin abandoned NEP in 1928 once it was learly failing. In this way, his move from right to left wing increased his popularity while Bukharin continued arguing
for NEP and lost credibility.
- 1925 Zinoviev and Kamenev abandoned NEP to attempt to win support
of left wing. Continuing success of NEP - this attempt was doomed to
fail
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