6. NEP and Rise of Collectives

6. NEP and Rise of Collectives - NEP and Rise of...

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2/8/11 NEP and Rise of Collectives 1. New Economic Policy [1921-1928] a. 10 th party congress: ban on factions i. no factions; once decisions made, it stands, need to unite ii. threatened to ban you from the party if you create a faction 1. not really enforced until Stalin comes to power iii. and created NEP b. NEP: Mixed Economy – “For a long time” 1. Lenin thought this policy would last for decades 2. U-turn from war communism ii. Industry: “Commanding Heights” 1. Large industrial enterprises, foreign trade, banking still all nationalized 2. Smaller scale enterprises could now operate as small scale enterprise a. Under pressure to operate profitably [suppose to be cost-efficient] b. Layed off works and unemployment really only problems in order to remain profitable iii. Agriculture: Fixed Tax – “Golden Age” [from NEP to 1929 [Stalin]] 1. Reversal of grain requisitioning = was ended 2. In its place was fixed tax a. Peasants enthusiastic and economy starts to revive b. But came too late for many peasants; drought in 1921 in Volga region cause famine; affected 20 million people c. Party man-made: peasants didn’t plant enough/soviets took their crops d. People tried to board train to elsewhere but government ordered stop of transportation to halt the spread of famine c. 1921 Famine: American Relief Administration 1. Headed by Hoover; Lenin spectacle for aid but allows it 2. Estimated deaths: 5 million due to famine d. Economic Recovery – Cadres vs. Nepman i.
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