Question
New Economic Policy
Answer :
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The New Economic Policy (NEP) was introduced by Vladimir Lenin in Soviet Russia in March 1921 as a response to the severe economic and social crisis created by the Russian Civil War and the policy of War Communism. War Communism had involved state control over industries, forced requisitioning of agricultural produce, restrictions on private trade, and centralized distribution. These measures helped the Bolsheviks survive the Civil War, but they caused a sharp decline in agricultural and industrial production, food shortages, famine, and widespread popular discontent. The Kronstadt Rebellion of 1921 further demonstrated the growing opposition to the existing economic system. The NEP represented a temporary retreat from strict socialist economic policies. Its principal objective was to revive the devastated Soviet economy while preserving Bolshevik political control. Under the new policy, the government ended the compulsory requisitioning of agricultural surplus and replaced it with a fixed tax in kind.
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