Significance Of The New Economic Policy 1921
" 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 retreatâ€¦ Before we are utterly smashed, let us retrace our steps and …show more content…
This issue was badly apprehended by many Bolsheviks and even though Lenin stressed that it was only a temporary concession to capitalism." We must take one steps back in order to take two steps forward." But what was temporary and should the party abandon the New Economic Policy? If yes, then when?
The NEP was successful, but it was only a limited success. By 1926 the government could claim with some justification that it had achieved its immediate aim. Production in all sections of economy had improved quite significantly and in most merchandise it was not far off the 1913 levels. Especially remarkable were the sown area and the electricity output, which almost doubled. In 1924-1925, according to Nove, 18 private companies employed between 200 and 100 workers each. By 1924 all wages were paid in money, compared to 1921 where only 7% of wages were in money and the rest in kind. A number of agricultural measures , like reduce of agricultural taxes, allowance for peasants to hire labour and to lease land from other peasants, benefited richer peasants. The agriculture developed rapidly; by 1923 the sown area …show more content…
Even though the crisis had partially solved itself by 1924, as a result of peasants having stopped releasing their grain and buying manufactured goods, which initiated the fall of the return of the balance, this crisis had left an impact on people.
Even though the NEP had some successes (as well as some problems) they were only temporary and in general- a set of fragmented responses to a series of desperate situations. It was far from being a matter of structured economic planning and raised a lot of bitter arguments between the "right" and "left" wings of the Party. Especially against NEP was the "left" wing , the representatives of which believed that NEP was necessary in 1921, but by 1924 it was time for change. They thought that NEP was creating bourgeoisie in the countryside - the "kulals" and "Nepmen" in the town. They were for a heavier burden on peasants and introduction of a national economic plan.
By the end of 1928 Stalin was a dominant figure in the Communist Party and the State. After having eliminated his enemies on the "right" and "left", he now was in a position to decide what tactics to