New Economic Policy

New Economic Policy

The Enemy Within• While the Bolsheviks were able

to unite under the flag of patriotism due to external threats during the Civil War they were now confronted by the enemy within.

• The sailors use Marx’s directive that ‘you have nothing to lose but your chains!’ as an inspiration to fight against the communists.

• Huge threat to Bolshevism and Konstradt sailors had always been the vanguard of support since the 1905 Revolution.

• Tenth Party Congress focus was on ‘unity and cohesion of the ranks of the Party’.

The Enemy Within: Leadership

• Lenin most concerned about the opposition within the leadership of the party itself.

• Alexandra Kollontai led a ‘Workers Opposition’ movement – highlighted economic and political failures of party.

• Many believed that the suppression of the Kronstadt rebellion was conclusive proof that the Bolsheviks had turned into tyrants.

‘The workers ask – who are we? Are we really the prop of the class dictatorship, or just an obedient flock that serves as to support those, who having severed all ties with the masses, carry out their own policy and build up industry without any regard to our opinions and creative abilities…?’Kollontai published

pamphlet

• Under War Communism peasants had grown less grain, this meant that there were food shortages.

• Lenin had to accept international aid to ease the famine which resulted in an estimated 7 million deaths.

• There were a reported 118 uprisings in the countryside in February 1918.• War Communism also made the workers in the towns and cities unhappy as they

had to work longer hours and their rations were inadequate.• People were forced to barter on the ‘black market’ for food which was illegal,

those caught were shot.• Many workers in the cities left as they could not find food, this led to a

shortage of workers in industry.• Opposition groups were set up to campaign for an end to War Communism.• Ordinary soldiers were refusing to fire on strikers in the cities and so the

Cheka were forced to intervene.• In March 1921 the sailors at the Kronstadt naval base mutinied against their

government. • 20,000 men were killed during the three week rebellion at the Kronstadt naval

base.

Why did Lenin introduced the NEP?

New Economic Policy (NEP)

• The NEP was announced at the 10th Congress of the Communist Party – March 8-16 1921.

• Ironically some of the demands from the Kronstardt petition were satisfied by the new policy!

• Lenin described the NEP as ‘…an unfortunate but necessary step…’ and compared it to the Treaty of Brest-Litovsk.

• Lenin described the NEP as ‘State Capitalism’ whereby there was a temporary coexistence of private property with communist property.

• Lenin also described it as ‘bridled capitalism’ – capitalism that was restrained, controlled and exploited.

Does the NEP reflect communist ideology?

The NEP stated that:•The requisition of grain was ended. Replaced by ‘a tax of kind’, which amounted to a certain % of a farmers harvest. Peasants who grew surplus food could sell the surplus for a profit and pay 10% tax (by 1924 cash rather than grain) to the government on any profit made.•Markets and private trading were legalised. Factories with fewer than 20 workers were returned to private ownership to be run for profit. •Economic ties with foreign nations slowly resumed – trade agreement with British 1922.•Private enterprise was allowed. Anyone could set up a shop or business for profit.•Rationing and food distribution by Govt. was phased out.•Cash waged were introduced and new currency launched to reduce inflation•Vital industries such as coal, iron, steel, railways, shipping and finance stayed in State hands. But experts were brought in on higher salaries, and extra wages were paid for efficiency. Labour armies abandoned.

Lenin’s thoughts on the NEP

• Behind closed doors Lenin admitted this was a final and desperate attempt to respond to an economic crisis that limited the future development of the revolution.

• Lenin’s arguments for the NEP was that the Bolsheviks were forced into War Communism due to war and ruin and that the communists should not be afraid of learning from bourgeoisie specialists.

‘…the real meaning of the New Economic Policy is that we have met a great defeat in our plans and that we are now making a strategic retreat’.‘Please don’t try teaching me what to include and what to leave out of Marxism: eggs don’t teach their hens how to lay!’

Lenin speaking to party delegates

Do these responses from Lenin sound like he had a clear

economic blueprint for the Bolsheviks?

Review the source sheet – According to

Lenin how can the NEP be justified?

Electrification• Great advancement in

the electrification of Russia.

• Lenin enthusiastic about technological innovations and saw electrification as the key to modernisation.

• Wanted to put electric light in every home to replace the oil lamps and candles.

• He believed it would change Russia so much that Lenin stated ‘Soviet power plus electrification equals Communism’!

Pragmatism vs. Idealism

• Pragmatics – welcomed the policy alteration as the previous policy had failed.

• Ideologists – saw change as undermining the foundation of the party. For traditional communists, the NEP was nothing short of treason.

• Communists particularly dislikes the new traders (NEPmen) that appeared in the cities.

• Bought food and goods cheaply and made profit on trading them.

• Also set up restaurants and made money from gambling.

Success and Failure

Does the evidence from the source above prove that the NEP was a success?

Success and FailureThe NEP lasted until 1928 during which time Russia generally prospered. Still remained many issues:1.Peasants found prices of manufactured goods too high – after 1925 unwilling to sell grain for money that could not buy them anything.2.Some peasants became rich from buying up land – others remained poor.3.Unemployment was still an issue particularly with the youth – increase in crime.4.Concern over the NEPmen and the growth of a class of rich businessmen.Progress before 1925 was on very low level production – repairing and restoring old machinery. By 1926 economy had reached pre-1914 levels but now Russia needed a massive investment to take their economy forward.

How successful was the New Economic

Policy? Read and cut up the following slips. Re-order them into an ANALYTICAL answer to the above question. Remember that the argument you consider strongest should be explained last, to leave that memory in the reader’s mind. You can structure your argument into EITHER two clear interpretations, or into contrasting individual points. On one hand…..

On the other hand….

Use the sources on the next slides and what you have understood so far to flesh out your answer.

How successful was the New Economic

Policy?

How successful was the New Economic

Policy?