The New Economic Policy
- 1921: Lenin realized War Communism was not causing a recovery
- No incentive meant low production and lack of quality
- He then brought in the New Economic Policy (NEP)
- Some private trade was permitted
- Peasants could sell surplus
Small factories could be purchased by a co-operative for private ownership
- Some parts of the industry began to recover under the NEP
- Had to bring in small amounts of Capitalism to make Communism work
- Did this for a short period of time until the economy recovered and he then pulled it out
- No incentive meant low production and lack of quality
- He then brought in the New Economic Policy (NEP)
- Some private trade was permitted
- Peasants could sell surplus
Small factories could be purchased by a co-operative for private ownership
- Some parts of the industry began to recover under the NEP
- Had to bring in small amounts of Capitalism to make Communism work
- Did this for a short period of time until the economy recovered and he then pulled it out
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Summary
Lenin realized that War Communism wasn't causing a recovery because there was no incentive for the people to work hard and make quality products. He realized that in order to make Communism work, small amounts of Capitalism had to be implemented.