Consequences of NEP

Question 1

1. What were the 7 main consequences of the NEP?

Answer 1

1. Stability and popularity amongst peasants.
2. Re-emergence of state capitalism concept.
3. Scissors crisis.
4. Growth of Nepmen.
5. Industrial growth followed by plateau.
6. Corruption & anti-social behaviour.
7. Debates within the CP regarding state control of economy.

Question 2

1. What did free trade encourage peasants to do?
   - What were the results of this? (2)
2. Grain production from 1913-26:
   1913: __ million tonnes.
   1921: __ million tonnes.
   1926: __ million tonnes.
3. What had happened to all industry despite pig iron and steel by 1926?
   - What did Lenin argue NEP was a form of?

Answer 2

1. Grow more.
   - Increased production which ended the famine.
2. 1913: 80m
   1921: 38m
   1926: 77m
3. Recovered to 1913 levels.
   - State Capitalism.

Question 3

1. How did Nepmen make money?
   - What were they regarded as by the CP?
   - Why?
2. When did they operate until?
3. What happened to them on the odd occasion? (3)
4. What other form of illegal activity grew during NEP?
   - What was this due to?

Answer 3

1. By spotting gaps in the market.
   - Parasites.
   - Made money by selling goods, and produced nothing.
2. End of NEP.
3. Arrested by Cheka for profiteering.
4. Prostitution.
   - Widespread poverty amongst women in the 1920s.

Question 4

1. What recovered fast and what recovered slowly during NEP?
2. Why did farmers have no incentive to produce?
3. What did the govt do to the prices of industrial products?
4. However, what did this mean there was less money for?
5. What did the scissors crisis indicate to radicals like Trotsky?

Answer 4

1. Agriculture - fast, industry - slowly.
2. Couldn’t buy goods.
3. Subsidised them.
4. Improving the economy.
5. That NEP was not capable of industrialising the economy.