New Economic Policy Flashcards
What were the four main parts of the NEP?
Grain requisitioning was abolished
Ban on private trade was removed
Small businesses reopened
State control of heavy industry
What did the abolition of grain requisitioning mean?
Peasants gave a fixed amount of grain to the state.
A lot less was taken than during the war.
They were able to sell surplus grain.
What did the ban on private trade being removed mean?
Rationing was abolished.
Privately owned shops were abolished.
People had to buy their own goods and food out of their income.
What happened when small businesses were reopened?
People were allowed to made a profit.
Lenin realised peasants would not sell their grain if there was no attractive goods for them to buy.
What did state control of heavy industry mean?
The state maintained control of large-scale heavy industry. This included coal, steel and oil.
It retained control of transport and the banking system.
