Was the New Economic Policy (NEP) of Lenin beneficial???
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Answers
Answer:
The N.E.P. was masterfully designed to bring capital into the state, which it did, and to help it prosper economically. However, some socialists believe it may have gone too far with its free-market economic style and possibly could have lead the Soviet Union into permanently possessing a capitalist economy, which would have destroyed the socialist priority. The original plan, however, was to have capitalism in place until the economy was strong enough to achieve socialism.With the NEP, the state only allowed private landholdings because the idea of collectivized farming had met strong opposition. Lenin understood that economic conditions were dire, so he opened up markets to a greater degree of free trade, hoping to motivate the population to increase production.
In 1921, Vladimir Lenin had proposed the "New Economic Policy (NEP)" as a temporary means of transition.In 1922, Lenin defined the NEP like an economic regime including 'free and state controlled capitalism,' while socialised state-owned enterprises would "operate" on a "profit- basis."
Explanation:
- The "war communism policy", which had been in place since the year 1918, had brought the national economy to total collapse by 1921. The March 1921 in "Kronshtadt Rebellion" convinced the Communist Party of the necessity of withdrawal from "socialist policies" to preserve the Party's hold over power, along with its ruler, Vladimir Lenin. Consequently, the "New Economic Policy" measures were launched by the 10th Party Congress in the year March 1921.
- The "New Economic Policy" restored the economic stability & enabled the Soviet people to recover from years of war, "civil war & mismanagement". In this period, the executives & small businessmen who thrived had become prominent as NEPs.
- The Soviet government considered the NEP to be merely a temporary means of enabling the "economy to recover" as the Communists strengthened power.
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