17.2.8

Economic Policies in USSR

Test yourself

New Economic Policy (1921-1924)

War communism failed. By 1921, Russia was facing economic collapse. The Bolsheviks introduced new economic policies to try to fix these problems.

Illustrative background for The failure of 'war communism'Illustrative background for The failure of 'war communism' ?? "content

The failure of 'war communism'

  • War communism failed.
  • Peasants destroyed their own crops so that the Cheka (secret police) could not seize them.
  • There were large food shortages, particularly in rural areas.
  • There was a peasant uprising in Tambov Province.
  • The Bolshevik leaders did not give workers an active role in decision-making and this caused discontent.
Illustrative background for New Economic PolicyIllustrative background for New Economic Policy ?? "content

New Economic Policy

  • The New Economic Policy tried to fix these problems.
  • Money was reintroduced and so were some other aspects of free markets (capitalism).
  • Small businesses flourished (did well) across Russia, and it was acceptable for private businesses to employ workers.
  • Peasants no longer had grain seized from them. They now had to pay taxes, first in goods, then in cash.
  • The peasants could then sell their grain and keep the money from this. Those who were successful were called the “NEPmen”.
Illustrative background for Opponents of NEPIllustrative background for Opponents of NEP ?? "content

Opponents of NEP

  • Some communists were disappointed with the NEP. They felt that it betrayed their principles.
  • Trotsky was one of these opponents.
  • There were more and more cases of suicide in the Bolshevik party.
Illustrative background for Effects of NEPIllustrative background for Effects of NEP ?? "content

Effects of NEP

  • There was growth in agriculture and industry (although it was slow).
  • The Scissors Crisis
    • Whilst food prices were affordable, the price of factory-made goods increased because of communist policies.
  • Inequality also increased. Some groups made more money than others from the new system and trade with other countries remained lower than 1913 levels.
  • As before, the ‘Commanding Heights’ (banks and major industries) stayed nationalised. Russia also remained a one-party state.

Jump to other topics

1Empires East & West: 1000 AD

1.1The Rise & Fall of Ancient China’s Empire

1.2The Medieval Greatness of the Byzantine Empire

1.3The Golden Age of the Islamic Empire

1.4The Politics & Power of the Holy Roman Empire

1.5Medieval Religion

1.6The Influence of the Church in Medieval Times

1.7How Religion Tested the Power of Kings

1.8Dynastic Challenges to Medieval Monarchs

1.9Challenges to Medieval Monarchs

1.10Revolts, Rebellions & Rights

1.11Medieval England & Her Neighbours

1.12European Renaissance

1.13Norman Conquest & Control

1.14Historical Skills

2The Medieval World: 450-1450 AD

2.1Anglo-Saxon England

2.2The Contest for the English Throne

2.3Conquering the Holy Land, 10-96-1396 AD

2.4King John

2.5The Magna Carta & Parliament

2.6The Black Death

3Worldviews

4The Empire of Mali: 1076-1670 AD

5The Renaissance & Reformations: 1500-1598 AD

6The British Empire: 1583-1960 AD

7The Peasants' Revolt: 1381 AD

8Religion in the Middle Ages

9Slavery: 1619-1833 AD

10The English Civil War: 1642-1660 AD

11The Industrial Revolution: 1750-1840 AD

12US Independence: 1775-1783 AD

13The French Revolution: 1789-1815 AD

14The British Empire: 1857–1930 AD

15Suffrage: 1840-1928 AD

16World War 1: 1914-1918 AD

17The Inter-War Years: 1919-1939 AD

18World War 2: 1939-1945 AD

19The Cold War: 1947-1962 AD

20Civil Rights in the USA: 1954-1975 AD

Unlock your full potential with Seneca Premium

  • Unlimited access to 10,000+ open-ended exam questions

  • Mini-mock exams based on your study history

  • Unlock 800+ premium courses & e-books

Get started with Seneca Premium