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New Economic Policy (NEP)


Reasons for the NEP

  • The Krondstadt Rebellion: they had been the Bolsheviks' most feverent supporters and Lenin had to send Trotsky to put down the rebellion. However, he was worried that if they rebelled, the rest of the country might too.
  • Frequent strikes in cities
  • People in bread lines getting quite angry
  • Factional criticism within communist party
  • Frequent peasant revolts

Effects of the NEP

  • There was a fixed tax on produce, so peasants could now sell or retain the surplus as they wished. This meant they now had more motivation to produce, and agricultural production increased.
  • Agricultural town markets were allowed to re-open, so people got more money and higher wages
  • Some peasants became quite rich as a result of the new policy, so the class of Kulaks re-emerged. They had previously been demonized in Bolshevik propaganda, and this led to some opposition within the party.
  • Some became rich, while others didn't, so there was tension between classes.
  • Russia's production remained very low in 1921, during the Great Famine, but jumped up again in 1922 as a result of the NEP.
  • In november, 1921, they introduced currency reforms that revived the Rouble and reduced the effects of inflation



  • Became difficult to attract workers back to cities
  • Did not have an immediate effect on Russia's economy (i.e. it didn't save it immediately)
  • Industrial recovery was much slower than agricultural recovery

Opposition to the new policy

  • Many Communist hard-liners thought it was a step backwards because it re-introduced capitalist features and ideas
  • Many saw it as a confirmation that earlier policies had failed and left the party
  • Viewed as a retreat away from Socialism

"The terms in which Lenin defined the relationship between the old economic policy (war communism) and the new (NEP) were of offensive and retreat, construction and pause, leaving no room for a positive acceptance of the NEP in Bolshevik minds. The NEP was never conceived as a path to socialism but as a detour, a temporary obstacle to overcome. The Bolshevik Party desperately needed a role to play; it needed reaffirmation that it was leading Russia and not simply waiting for the conditions to arise when the socialist offensive could resume."
- Vladimir Brovkin, Historian


Death of Lenin

  • January 21st, 1924
  • Lenin's body was embalmed and Petrograd was temporarily re-named 'Leningrad'.
  • His embalmed body was put on display
  • Contrary to his instructions, there were various memorials built, including the construction in the Red Square
  • He wrote a 'political testament' before he died. This offered quite harsh opinions on individuals, especially Stalin.
  • Because it was not only harsh on him, but on other Bolshevik individuals, Stalin got enough support to make sure that the testament only reached a select few. This would allow him to take charge of the party later.
  • As a result, his testament did not have the effect he desired - he wanted Stalin to be removed as secretary-general.
  • Glorified against his will


"Stalin is too crude and this defect, although quite tolerable in our midst and in dealing among us Communists, becomes intolerable in a Secretary-General. That is why I suggest that the comrades thing about a way of removing Stalin from that post and appointing another man in his stead who in all other respects differs from Comrade Stalin in having only one advantage, namely, that of being more tolerant, more loyal, more polite and more considerate to the comrades.  This circumstance may appear negligible in detail.. but it is a detail which can assume decisive importance."
- From a letter written by Lenin


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