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Industrial and agricultural problems of the nep

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The document discusses the New Economic Policy (NEP) implemented in the Soviet Union in the 1920s as an emergency measure to rescue the struggling economy. The NEP allowed some private enterprise in agriculture and small-scale industry while larger enterprises remained state-controlled. However, the NEP faced criticism from more ideologically driven Communists as it permitted profit-seeking and economic inequality, and it did not fully revive industrial production or resolve issues in the agricultural sector.

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Industrial and Agricultural problems of the NEP "From Russia of the NEP, there will be a Russia of Socialism. (Vladimir Lenin) Toby Attrill
The NEP An emergency measure introduced 21st March 1921 to rescue the economy, and possibly the communist regime itself, from collapse. Lenin justified it as a halfway house between capitalism and communism, it allowed some small businesses whilst large organisations were still state-controlled. A replacement of food requisitioning with a small tax of foodstuffs.
Policies Some foreign investment was allowed for industry although the NEP was a primarily agricultural issue. The NEP allowed individuals to make money and show initiative whilst, in theory, protecting the populations interests by keeping the means of production and industry in state hands.
Arguments against the NEP The arguments for the NEP did not carry much weight for many more fervent communists who took Marxist ideology seriously. The NEP went strongly against many communist principles; within this policy some people were allowed to profit from others labour or even pure speculation. This led to economic and subsequently class divisions. A new bourgeoisie class appeared (or resurrected), bringing back memories of the old Russia, for many.
The Marxist world-view sees the bourgeoisie not as wealth creators to further a communist society, but as oppressors of the cause and the people. This caused massive political divides, between the practical and the ideological. Those who were more practical supported the NEP as a way to get the USSR onto its feet before becoming truly communist whereas the more ideological saw it as an insult to Russia herself.
Soviet Agriculture 1924-28 By the early 20s soviet agriculture had suffered greatly from war communism and the great famine of 1921-2 but, due to the NEP, by 1926 productions were returned to pre-war levels. Many peasant households benefited massively from the opportunity to sell produce on the open market after paying their tax.
HOWEVER... Recovery was uneven across such a vast nation and the recovery of fruit, vegetable and beet crops was far more significant than that of grain production. Because wealthier peasants were taxed with higher levels than poorer ones, based on the size of their herds and fields, many peasants tried to hide as much of their property as possible, meaning only 4/5 of the targets for tax collection were fulfilled.
Exports fell, meaning lass revenue coming into the USSR; only a quarter of 1913 levels. Most peasant households still farmed in a primitive way, similar to the methods used in medieval England, except the village commune decided what was planted where, and when. This meant that only freedom peasants had was to decide what to buy and sell. It was a system of small-scale individual farming which could not support ambitious industrialisation plans.
Between 1924 and 1927 many peasant unions were set up trying to defend peasants interests, worrying the authorities, who subsequently destroyed them all.
The procurement crisis 1927-1928 Framers had been keeping more and more of their produce for themselves, twice as much as 13 years previously (1913). This was a major cause of the procurement crisis, which pushed the regime into requisitioning grain and later collectivisation. There is also some evidence that Stalin exaggerated the crisis in order to use harsher methods on the Kulaks.
Industry and the NEP Industry had slumped during the period of war communism although the introduction of the NEP did not create a dramatic change in industrial organisation because most industry was still nationalized. A money-based economy was introduced after 1921, though this did not help firms which were inefficient and over-beauracratic. As a result of the NEP there were many workers strikes in the 1920s.
Industrial problems Industry did not recover as quickly as agriculture due to out-of-date machinery and a shortage of housing, de-motivating workers and subsequently lowering production. Many of the criticisms of Stalins five year plans were also applicable to the NEP. For example the focus on the quantity of goods rather than quality and the State covering losses. Average wages in state owned industry were often as low as half what they had been pre-war.
In 1926 the Supreme Council of the National Economy (VSNKh) was created. In essence it made more profitable industries subsidise less so ones. This lead to a shortage of consumer goods. In 1927/1928 there was a government drive for efficiency in industry though the production targets were not matched with wage increases leading to unrest among the proletariat and subsequent strikes.
Strikes Strikes were particularly damaging because the industrial proletariat were supposed to be the basis of the revolution and thus the Party itself. Instead of being good role models workers increasingly showed their disillusionment through many strikes, protests and attacks on the Jewish community (the traditional scapegoat).
Scapegoat-ing Rather than admit its industrial problems the Party used the bourgeoisie as scapegoats, calling them class-enemies and saboteurs and purging (killing/sending to Gulags) them. The shifting of blame was to become a signature of Communism with every section of society aside from the leader himself being blamed at some point or another.
The crisis of industry suggested that the NEP and sate owned industry could not sit comfortably together. High production costs due to inefficiency led to high consumer prices and heavy subsidy. The Party realised that the NEP was not effective and there were calls for it to be repealed before Stalin implemented the first of his infamous five year plans
Question time. What problems were the proletariat causing for the Party image by striking? The Party supported peasant unions. True or False? Which recovered more quickly; agriculture or industry? Give one reason.

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Industrial and agricultural problems of the nep

  • 1. Industrial and Agricultural problems of the NEP "From Russia of the NEP, there will be a Russia of Socialism. (Vladimir Lenin) Toby Attrill
  • 2. The NEP An emergency measure introduced 21st March 1921 to rescue the economy, and possibly the communist regime itself, from collapse. Lenin justified it as a halfway house between capitalism and communism, it allowed some small businesses whilst large organisations were still state-controlled. A replacement of food requisitioning with a small tax of foodstuffs.
  • 3. Policies Some foreign investment was allowed for industry although the NEP was a primarily agricultural issue. The NEP allowed individuals to make money and show initiative whilst, in theory, protecting the populations interests by keeping the means of production and industry in state hands.
  • 4. Arguments against the NEP The arguments for the NEP did not carry much weight for many more fervent communists who took Marxist ideology seriously. The NEP went strongly against many communist principles; within this policy some people were allowed to profit from others labour or even pure speculation. This led to economic and subsequently class divisions. A new bourgeoisie class appeared (or resurrected), bringing back memories of the old Russia, for many.
  • 5. The Marxist world-view sees the bourgeoisie not as wealth creators to further a communist society, but as oppressors of the cause and the people. This caused massive political divides, between the practical and the ideological. Those who were more practical supported the NEP as a way to get the USSR onto its feet before becoming truly communist whereas the more ideological saw it as an insult to Russia herself.
  • 6. Soviet Agriculture 1924-28 By the early 20s soviet agriculture had suffered greatly from war communism and the great famine of 1921-2 but, due to the NEP, by 1926 productions were returned to pre-war levels. Many peasant households benefited massively from the opportunity to sell produce on the open market after paying their tax.
  • 7. HOWEVER... Recovery was uneven across such a vast nation and the recovery of fruit, vegetable and beet crops was far more significant than that of grain production. Because wealthier peasants were taxed with higher levels than poorer ones, based on the size of their herds and fields, many peasants tried to hide as much of their property as possible, meaning only 4/5 of the targets for tax collection were fulfilled.
  • 8. Exports fell, meaning lass revenue coming into the USSR; only a quarter of 1913 levels. Most peasant households still farmed in a primitive way, similar to the methods used in medieval England, except the village commune decided what was planted where, and when. This meant that only freedom peasants had was to decide what to buy and sell. It was a system of small-scale individual farming which could not support ambitious industrialisation plans.
  • 9. Between 1924 and 1927 many peasant unions were set up trying to defend peasants interests, worrying the authorities, who subsequently destroyed them all.
  • 10. The procurement crisis 1927-1928 Framers had been keeping more and more of their produce for themselves, twice as much as 13 years previously (1913). This was a major cause of the procurement crisis, which pushed the regime into requisitioning grain and later collectivisation. There is also some evidence that Stalin exaggerated the crisis in order to use harsher methods on the Kulaks.
  • 11. Industry and the NEP Industry had slumped during the period of war communism although the introduction of the NEP did not create a dramatic change in industrial organisation because most industry was still nationalized. A money-based economy was introduced after 1921, though this did not help firms which were inefficient and over-beauracratic. As a result of the NEP there were many workers strikes in the 1920s.
  • 12. Industrial problems Industry did not recover as quickly as agriculture due to out-of-date machinery and a shortage of housing, de-motivating workers and subsequently lowering production. Many of the criticisms of Stalins five year plans were also applicable to the NEP. For example the focus on the quantity of goods rather than quality and the State covering losses. Average wages in state owned industry were often as low as half what they had been pre-war.
  • 13. In 1926 the Supreme Council of the National Economy (VSNKh) was created. In essence it made more profitable industries subsidise less so ones. This lead to a shortage of consumer goods. In 1927/1928 there was a government drive for efficiency in industry though the production targets were not matched with wage increases leading to unrest among the proletariat and subsequent strikes.
  • 14. Strikes Strikes were particularly damaging because the industrial proletariat were supposed to be the basis of the revolution and thus the Party itself. Instead of being good role models workers increasingly showed their disillusionment through many strikes, protests and attacks on the Jewish community (the traditional scapegoat).
  • 15. Scapegoat-ing Rather than admit its industrial problems the Party used the bourgeoisie as scapegoats, calling them class-enemies and saboteurs and purging (killing/sending to Gulags) them. The shifting of blame was to become a signature of Communism with every section of society aside from the leader himself being blamed at some point or another.
  • 16. The crisis of industry suggested that the NEP and sate owned industry could not sit comfortably together. High production costs due to inefficiency led to high consumer prices and heavy subsidy. The Party realised that the NEP was not effective and there were calls for it to be repealed before Stalin implemented the first of his infamous five year plans
  • 17. Question time. What problems were the proletariat causing for the Party image by striking? The Party supported peasant unions. True or False? Which recovered more quickly; agriculture or industry? Give one reason.