The History of the ‘New Economic Policy’ in the Soviet State in the 1920s of XXth century

Abstract

Drawing on a wide range of sources, the author examines the implementation of the “New Economic Policy” in the Soviet state during the 1920s. Using historical documents and various official resolutions, the author demonstrates that after the Civil War, a political crisis began in Soviet Russia, which forced the Bolsheviks to move from “War Communism” to the “New Economic Policy”. Under the “New Economic Policy” (NEP), the previous food requisitioning was replaced by a food tax that allowed peasants to sell their surplus on the market, lease land, and use hired labor. At the same time, the state gained control over large-scale industry, leased small-scale industry, permitted foreign concessions, and reorganized enterprises on the principle of self-financing, with salaries differentiated based on qualifications. Financial reforms were introduced to resolve these issues. The article concludes that the NEP functioned as a transitional policy that allowed the Bolsheviks to retain political power.