The New frugal Policy (NEP) was introduced in March 1921 because in Russia the transport formation was on the point of total collapse. Factories could not get the materials they ask and most industrial enterprises had ceased production. Grain production had fallen to disastrously low levels. M whatsoever people were starving with the lack of nutriment being caused. Lenin realised that Russia had to rebuild its economy before moving to War Communism.
Lenin make it clear that the NEP was temporary and that the vital voiceless industries would remain in state hands. The NEP was also a authority of forming an alliance with the peasants as by doing this Lenin thought stop both outbreaks of uprisings.
The main features of the NEP were of the following:
Enterprise:
* Grain requisitioning was abolished which meant that it was replaced by a tax in kind. Peasants had to give a amend proportion of their grain to the state, the amount of grain that was taken from them was a good deal less than the amounts taken by requisitioning. They could also sell any extra surpluses in the open market and keep the money made from it.
* The ban on private trade was remote meaning that food and goods could flow more easily amidst the countryside and the towns. Rationing was abolished and people had to buy food and goods from their own income. in camera owned shops were open uped.
* Small businesses under privately ownership were allowed to reopen and make a profit. This included businesses like small workshops and factories that made goods such as shoes, nails and clothes. Lenin realised that peasants would not sell their produce unless there were goods that they wanted on sale.
* The state kept require of large-scale heavy industries like steel, coal and oil. It retained rig of transport and the banking system. Industry was organised into trusts that...If you want to get a full essay, order it on our website: Ordercustompaper.com
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