How the Economic Policies of Lenin Changed 1918-1924 Essay Example

and rents, railways and postal charges were abolished.

Russia now had a barter economy. War communism resulted in a dramatic increase in discontent of the peasantry, who also refused to grow any excess grain and began to revolt and rebel, the Kronstadt rebellion is an example of just how much discontent there was in Russia over War Communism. War Communism left Russia in starvation and famine. Lenin knew that he had to change the economy if he was to survive. In 1921, War Communism was scrapped and the New Economic Policy (NEP) was introduced.

NEP was Lenin’s concession to help him stay in power. It was enforced to combat the discontent and uprisings but also because Russia urgently needed more food and the peasants could not be forced to give any more grain. The NEP had four main features. Firstly, it meant the taking of grain was stopped but the peasant farmers would have to give to the government a set amount of grain each year in tax but if they produced any extra they could then sell it to the open market for profit. This gave them an incentive to produce more grain.

Secondly, traders were allowed to buy and well which was illegal under War Communism. Thirdly, small factories producing things which people could buy but were not essential to life were returned to their original owner and they could now sell goods to make a profit. Lastly, although small factories were returned to their original owners, larger factories that produced essential items remained under state control. Overall, Lenin’s New Economic policy was a step back from communism but had

overcome many problems that Russia could not cope with while they were at War.