The reasons for the transition to the new economic policy briefly. What is NEP? Reasons for abandoning the NEP

Under the conditions of the Civil War and the military-communist policy, the population lost any material incentives for production. However, it seemed to the leaders of the Bolsheviks that their policy was not emergency and forced, but quite natural. They were building a classless society of the future, free from commodity-money relations, communism. In response, powerful peasant uprisings broke out one after another in different parts of the country (in the Tambov province, the Middle Volga region, on the Don, the Kuban, in Western Siberia). By the spring of 1921, there were already over 200,000 people in the ranks of those who rebelled against the Bolshevik dictatorship. The surplus in 1920 was not carried out, huge efforts were spent on suppressing rebellions and peasant uprisings.

In March 1921, the sailors and Red Army men of Kronstadt, the largest naval base of the Baltic fleet, took up arms against the Bolsheviks. Against the power of the Bolsheviks, who spoke of the dictatorship of the proletariat, rises labor movement. In the cities, a wave of strikes and demonstrations of workers is growing. IN AND. Lenin was forced to characterize the situation of the winter of 1920-spring of 1921 as an economic and political crisis of Soviet power.

The power of the Bolsheviks was under threat. L.D. Trotsky, in order to overcome the crisis, demanded that the measures of "war communism" be tightened: to separate the peasants from the land, to create gigantic labor armies and use them on the construction sites of communism. Trotsky also proposed strengthening punitive and repressive organs for organized violence against those who would not voluntarily join the labor armies. His opponents from the so-called "workers' opposition" (A.G. Shlyapnikov, A.M. Kollontai and others) proposed, on the contrary, to abandon the leading role of the Bolsheviks and transfer control to the trade unions.

The most soberly dangerous situation for the Bolsheviks was assessed by Lenin. He refuses to attempt an immediate transition to communism through violence. Domestic politics builds in two directions:

1. In economic sphere The Bolsheviks abandoned their former course. In order to save their power, they are ready to make concessions to the peasants, go to the liberation of economic life from total state control.

2. In the political sphere, the previous course was toughened. Centralization and the struggle against opposition forces intensified, and the dictatorial character of Bolshevik rule was preserved.

The first "anti-crisis" measure of the Bolsheviks was the replacement of the surplus with a natural tax in kind. It was approved by the X Congress of the RCP (b), held on March 8-16, 1921. economic policy(NEP).

With the introduction of the tax in kind (it was less than the surplus and was announced in advance, on the eve of sowing), the peasant had surpluses that he could freely dispose of, i.e. trade. Free trade led to the destruction of the state monopoly not only in the distribution of agricultural products, but also in the management of industry in the city. Enterprises are transferred to self-financing, which made it possible to gradually transition to self-sufficiency, self-financing and self-government. Introduced material incentives for workers. Many enterprises were leased to cooperatives, partnerships or individuals. Thus, the decree on the nationalization of all small and handicraft industries was canceled.

According to the new regulation of July 7, 1921, it was possible to open a handicraft or industrial production, but not more than one per owner. It was allowed to hire up to 10 workers in mechanized production (“with a motor”) and up to 20 without mechanization (“without a motor”). More specialists began to be attracted to state-owned factories. The abolition of the law on universal labor service in 1921 made it possible to engage in entrepreneurship. The process of formation of the "Soviet bourgeoisie" (NEPmen) began.

The beginning of the NEP coincided with the famine - a consequence of the former policy of "war communism", which deprived agriculture of any reserves, making it defenseless against any crop failure. The grain-bearing regions of Ukraine, the Caucasus, the Crimea, the Urals and the Volga region in 1921 were engulfed in drought. In 1921-1922 about 40 provinces with 90 million people were starving, of which 40 million were on the verge of death.

The government was looking for a way out. A number of commissions to help the starving were created. A campaign began for the Russian church to voluntarily donate its valuables to the fund for rescuing the starving, and valuables began to come from Russian emigrants. However, persecution soon began on the church. For the purchase of food, church property was confiscated, often cruelly. Works of art were sold abroad. The Soviet government appeals to the world for help. It is proposed and provided by the American Relief Administration (ARA), the international proletariat, and the European states.

One of essential elements The NEP became the monetary reform of 1922-1924. (People's Commissar for Finance G.Ya. Sokolnikov). The reform began at the end of 1922 with the release of the Soviet chervonets. From that time until March 1924, a stable gold coin and a falling Soviet sign were in circulation at the same time. In 1924, the State Bank bought the remaining Soviet money from the population. The golden chervonets was valued above the British pound sterling and was equal to 5 dollars 14.5 US cents. The ruble has become an international currency.

Among the most important laws adopted by the Soviet government in the early 1920s is the law on concessions (permission, concession). The Soviet country, under an agreement, transferred natural resources, enterprises or other economic facilities to foreign entrepreneurs for a certain period of time. Through concessions V.I. Lenin saw an opportunity to acquire the necessary machines and locomotives, machine tools and equipment, without which it was impossible to restore the economy.

Concessions were concluded between the government of the RSFSR and the Great Northern Telegraphic Society (1921) for the operation of underwater telegraph lines between Russia, Denmark, Japan, China, Sweden and Finland. In 1922, the first international airline Moscow - Koenigsberg was opened. Special joint-stock enterprises are created - Russian, foreign, mixed. But in the future, concessions and mixed enterprises did not develop due to state intervention, which limited the freedom of entrepreneurs.

The cooperation, which during the years of "war communism" was an appendage of the People's Commissariat for Food, received relative independence. The efficiency of cooperative production was at least twice that of state industry. It was provided with a freer organization of labor. In industry by the mid-1920s. 18% of enterprises were cooperative. 2/3 of the cooperative commodity product fell on the cities. By 1927, 1/3 of all peasant households were covered by agricultural cooperation. She numbered about 50 various types associations: credit, sugar beet, potato, dairy, etc.

The agrarian policy of the Soviet government supported the economically weak poor and middle peasant farms. At the same time, the growth of large peasant (kulak) farms is restrained with the help of tax policy and regular redistribution of land. Specific gravity large farms did not rise above 5% of total number around the country. However, they were the producers of commercial products. Farms are closed in production for their own consumption, not sale. Population growth leads to fragmentation of peasant households. There is a stagnation and a fall in production. At the same time, prices for agricultural products are artificially lowered by the state, which makes their production unprofitable.

The needs for agricultural products of the urban population and industry are increasing, but they cannot be satisfied. The state that retained control over the "command" heights, i.e. over large industry and banks, constantly sought to dictate its terms in other sectors of the economy. Funds for maintaining large-scale industry were constantly withdrawn from other sectors of the economy, hindering their development. The inflated prices of manufactured goods made them unaffordable for the countryside. This is the most important reason for the NEP crises of 1923, 1925, 1928, which, in the end, led to the establishment of a rigid command and administrative system, military-communist in its content.

Literature

1. NEP. Side view: Collection / comp. V.V. Kudryavtsev. - M. -1991. - S. 42-56.

2. Russia and the world. Educational book on history. In 2 hours / under total. ed. A.A. Danilova. - M.: VLADOS, 1994. - Part 2. - S. 101-131.

3. Talapin, A.N. National history. Course of lectures: textbook. manual for students of non-humanitarian faculties of higher professional education / A.N. Talapin, A.A. Tsindic. - Omsk: Publishing House of OmGPU, 2012. - S. 98-99.

The situation in Russia was critical. The country lay in ruins. The level of production, including agricultural products, fell sharply. However, there was no longer a serious threat to the power of the Bolsheviks. In this situation, in order to normalize relations and social life in the country, it was, at the 10th Congress of the RCP (b), a decision was made to introduce a new economic policy, abbreviated NEP.

The reasons for the transition to the New Economic Policy (NEP) from the policy of war communism were:

• the urgent need to normalize relations between town and country;
• the need for economic recovery;
• the problem of stabilizing money;
• dissatisfaction of the peasantry with the surplus appropriation, which led to the intensification of the insurrectionary movement (kulak revolt);
• desire to restore foreign policy ties.

The NEP policy was proclaimed on March 21, 1921. From that moment on, the surplus appraisal was cancelled. It was replaced by half the tax in kind. He, at the request of the peasant, could be brought in both money and products. However, the tax policy of the Soviet government became a serious deterrent to the development of large peasant farms. If the poor were exempted from payments, then the prosperous peasantry bore a heavy tax burden. In an effort to elude their payment, prosperous peasants, kulaks, split up their farms. At the same time, the rate of fragmentation of farms was twice as high as in the pre-revolutionary period.

Market relations were again legalized. The development of new commodity-money relations led to the restoration of the all-Russian market, as well as, to some extent, private capital. During the NEP, the country's banking system was formed. Direct and indirect taxes are introduced, which become the main source of state revenues (excises, income and agricultural taxes, service fees, etc.).

Due to the fact that the policy of the NEP in Russia was seriously hampered by inflation and the instability of monetary circulation, a monetary reform was undertaken. By the end of 1922, a stable monetary unit appeared - the gold piece, which was backed by gold or other valuables.

An acute shortage of capital led to the beginning of active administrative intervention in the economy. First, the administrative influence on the industrial sector increased (Regulations on State Industrial Trusts), and soon it spread to the agricultural sector.

As a result, the NEP by 1928, despite frequent crises provoked by the incompetence of new leaders, led to a noticeable economic growth and some improvement in the situation in the country. The national income increased, the financial situation of citizens (workers, peasants, as well as employees) became more stable.

The process of industrial recovery was going on rapidly and Agriculture. But, at the same time, the backlog of the USSR from the capitalist countries (France, the USA and even Germany, which lost the First World War) inevitably increased. The development of heavy industry and agriculture required large long-term investments. For the further industrial development of the country, it was also necessary to increase the marketability of agriculture.

It is worth noting that the NEP had a considerable impact on the culture of the country. Management of art, science, education, culture was centralized and transferred to the State Commission for Education, headed by Lunacharsky A.V.

Despite the fact that the new economic policy was, for the most part, successful, already after 1925, attempts to curtail it began. The reason for the curtailment of the NEP was the gradual intensification of contradictions between the economy and politics. The private sector and the resurgent agriculture sought to provide political guarantees for their own economic interests. This provoked an internal party struggle. And the new economic policy did not suit the new members of the Bolshevik Party - the peasants and workers who went bankrupt during the NEP.

Officially, the NEP was curtailed on October 11, 1931, but in fact, already in October 1928, the implementation of the first five-year plan began, as well as collectivization in the countryside and the forced industrialization of production.

By the spring of 1921, political tension had sharply increased in Russia. Conflicts between various political forces, as well as between the people and the government, deepened and escalated. Only the Kronstadt uprising, as Lenin put it, posed a much greater danger to the power of the Bolsheviks than Denikin, Yudenich and Kolchak combined. And Lenin, as an experienced politician, understood this very well.

He immediately sensed the danger, realized that in order to retain power, it is necessary: ​​first, to come to an agreement with the peasantry; secondly, it will be even tougher to fight both with the political opposition and with everyone who does not share the Bolshevik beliefs, which are correct by definition. In the 1930s, the opposition was liquidated. Thus, in March 1921, at the 10th Congress of the RCP (b), Lenin announced the introduction of the NEP (New Economic Policy).

What is NEP

An attempt to get out of the crisis, both economic and political, to give a new impetus economy and agriculture for the purpose of their development and prosperity- the essence of the new economic policy. The policy of "war communism" pursued by the Bolsheviks until 1921 led Russia to economic collapse.

And for this reason, on March 14, 1921 - this historical date is considered to be the beginning of the NEP - on the initiative of V. I. Lenin, a course was set for the NEP. The main goal of the course taken is to restore the national economy. For the sake of this, the Bolsheviks decided to take extremely dubious and even "anti-Marxist" measures. This is private enterprise and a return to the market.

The Bolshevik project, huge in scale, was, of course, a gamble, since the "Nepman" or "Nepacha" perceived by the majority of the population as a bourgeois. That is, a class enemy, a hostile element. Nevertheless, this project turned out to be successful. Over the eight years of its existence, it has shown its usefulness and economic efficiency in the best possible way.

Reasons for the transition

The reasons for the transition can be summarized as follows:

• the policy of "war communism" has ceased to be effective;
• the economic and spiritual gulf between the city and the countryside was clearly marked;
• uprisings of workers and peasants swept through the regions (the largest are the Antonovshchina and the Kronstadt rebellion).

The main activities of the NEP include:

In 1924, a new currency was issued, the gold chervonets. It was equal to 10 pre-revolutionary rubles. Chervonets was backed by gold, rapidly gaining popularity and became a convertible currency. The height of the bar taken by the Bolsheviks thanks to the new policy was impressive.

Impact on culture

It is impossible not to say about the influence of the NEP on culture. People who began to earn money began to be called "Nepmen". It was completely uncharacteristic for shopkeepers and artisans to be interested in the ideas of revolution and equality (this feature was completely absent in them), nevertheless, it was they who were in this period in key roles.

The new rich were not at all interested in classical art - it was inaccessible to them due to lack of education, and NEP language was little like the language of Pushkin, Tolstoy or Chekhov. These people can be treated differently, but it was they who set the fashion. Frivolous, littering with money, spending a lot of time in cabarets and restaurants, Nepmen became a hallmark of that time. It was typical for them.

Economic results of the NEP

The restoration of the destroyed economy is the main success of the NEP. In other words, it was a victory over ruin.

Positive and negative consequences

1. The collapse of the chervonets. By 1926, the state was unable to restrain the issue of money. Calculations were made in chervonets, so the chervonets began to depreciate quickly. Soon the authorities stopped providing him with gold.
2. Sales crisis. The population and small businesses did not have enough convertible money to buy goods, and there was an acute problem of marketing.

Peasants stopped paying huge taxes, which went to the development of industry, so Stalin had to forcibly drive people to the collective farms.

market resuscitation, different forms of ownership, foreign capital, monetary reform (1922-1924) - thanks to all this, it was possible to revive the dead economy.

In the conditions of a severe credit blockade, the most important task of the state was to survive. Thanks to the NEP, the national economy began to quickly recover from the consequences of the First World War and the Civil War. Russia began to rise to its feet and develop in all directions.

The reasons for the transition to the NEP were not accepted by everyone. Such a policy was perceived by many as a rejection of Marxist ideas, as a return to the bourgeois past, where the main goal is enrichment. The party explained to the population that this measure was forced and temporary.

Before 1921 there were only two classes - workers and peasants. Now there are Nepmen. They provided the people with everything they needed. Such was the transition to the NEP in Russia. The date March 15, 1921 went down in history. On this day, the RCP (b) abandoned the tough policy of war communism and switched to the liberal NEP.

The political goal of the new economic policy was to toughen the fight against the opposition, as well as to eradicate and suppress any dissent.

The main differences from "war communism"

1919-1920 - War communism, Administrative-command system of economy	1921-1928 - NEP, Administrative and market system of economy
Rejection of free trade	Allowing private, cooperative, public trading
Nationalization of enterprises	Denationalization of enterprises
surplus appropriation	food tax
card system	Commodity-money relations
Curtailment of money circulation	monetary reform,chervonets
Militarization of labor	VoluntaryHiring
Labor service	labor market

As can be seen from the table, until 1921 the leadership country was carried out mainly by administrative-command methods. But after 1921 administrative-market methods prevailed.

Why did you have to turn

By 1926, it became obvious that the new policy had completely exhausted itself. From the second half of the 1920s, the Soviet leadership began to attempt to curtail the NEP. Syndicates were liquidated, economic people's commissariats were created. The time of the NEP and the Nepmen is over. At the end of 1927, the state failed to procure bread V required quantity. This was the reason for the complete curtailment of the new policy. As a result, already at the end of December, measures for the forced confiscation of bread began to return to the village. These measures were suspended in the summer of 1928, but resumed in the fall of that year.

In October 1928, the Soviet government decided to finally abandon the NEP and set the people the task of implementing the first five-year plan for the development of the national economy. The USSR headed for accelerated industrialization and collectivization. Despite the fact that the NEP was not officially canceled, in fact it was already curtailed. And legally, it ceased to exist on October 11, 1931, along with private trade.

The NEP did not become a long-term project, and from the very moment of its inception it was not supposed to be so. As a result of the contradictions that emerged in the early to mid-1920s, Stalin and the Soviet government were forced to abandon the NEP (1927) and start modernizing the country - industrialization and collectivization.

Introduced in the early twenties of the last century, it was supposed to be a transitional step towards building socialism. The country, only recently recovering from revolutions and civil war, wanted peace. The provisional policy of the Bolsheviks, which had become obsolete, was living out its last days. Once great Russia was on the verge of a serious social crisis - then the transition from war communism to the NEP was ripe. It was this decision that was proclaimed at the next (tenth) in Moscow in 1921.

The reasons for the transition to the NEP were clear. First of all, the difficult situation of the country at the turn of such changes affected: Russia was comprehended both politically, and Industry was destroyed, factories stood still. The workers were declassed more and more - there were many of them, they wanted to work and waged a tough fight for each workplace(but they were missing).

And those who worked, did not receive special moral and monetary satisfaction from their work. In connection with the abolition of commodity-money relations, people received wages in natural products, and not in money. Such leveling did not lead to a sense of satisfaction from moral justice, but to ever-increasing bitterness and rampant speculation throughout the country.

Agriculture, namely the recalcitrant peasants, was generally seen by the Bolsheviks as destructive elements. Peasant holdings, due to the reduction in sown areas and the instability of the situation in the country, were increasingly closed in on themselves and were similar to natural economic formations. Entering the consumer market was uninteresting and unprofitable for them. In addition, the peasants fed the Red Army, and the military personnel who were later demobilized increasingly filled the cities and villages, replenishing the ranks of cripples, losers and adopted children.

Now there was a long-term transformation of all spheres of the economy under the new policy - a direct transition to the NEP. Its main ideas (the abolition of the surplus appropriation and the introduction of a tax in kind) were not yet fully understood by the simple peasantry, who hid in anticipation of changes, although in the south of Russia anti-Bolshevik uprisings arose against all kinds of reforms - this is how Ukraine reacted to any changes (like “there will only be further worse").

The second significant change is the expansion and resolution of different forms of ownership. The market, in turn, could be revived by injections of foreign capital, which ensured the transition to the NEP. The depreciation of the currency at that time and terrible inflation required a monetary reform, which was carried out in the first years after the introduction of this policy.

During its existence, the party finally strengthened its positions - the Bolsheviks ceased to be associated with a political force. From now on, they became part of the expansion of ideology and its introduction into all spheres of public and private life led to the complete and undivided control of society by the Bolshevik party. Under such conditions, the transition to the NEP became the most possible, since the economic, political, and ideological spheres were concentrated in the hands of one "puppeteer".

The introduction of the new economic policy was met by the population in different ways. Many peasants quickly reoriented themselves and began to actively enter the market, the workers, in turn, got an excellent opportunity to use their forces in production, because the transition to the NEP provided the opportunity for the country's economy to flourish, which, unfortunately, was so mediocrely lost in subsequent years.

aim October revolution was, neither more nor less, the construction of an ideal state. A country in which everyone is equal, where there are no rich and poor, where there is no money, and everyone does only what they love, at the call of the soul, and not for a salary. That's just the reality did not want to turn into a happy fairy tale, the economy was rolling down, food riots began in the country. Then it was decided to move to the NEP.

A country that survived two wars and a revolution

By the 20s of the last century, Russia from a huge rich power turned into ruins. First World War, the coup of the 17th year, Civil War- it's not just words.

Millions of dead, destroyed factories and cities, deserted villages. The country's economy was practically destroyed. These were the reasons for the transition to the NEP. Briefly, they can be described as an attempt to return the country to a peaceful track.

The First World War not only depleted the economic and social resources of the country. It also created the ground for deepening the crisis. After the end of the war, millions of soldiers returned home. But there were no jobs for them. The revolutionary years were marked by a monstrous increase in crime, and the reason was not only temporary anarchy and confusion in the country. The young republic was suddenly flooded with people with weapons, people who had lost the habit of peaceful life, and they survived as their experience suggested. The transition to the NEP made it possible to increase the number of jobs in a short time.

Economic disaster

The Russian economy at the beginning of the twentieth century practically collapsed. Production has decreased several times. Large factories were left without management, the thesis "Factories for workers" turned out to be good on paper, but not in life. Small and medium businesses were practically destroyed. Craftsmen and merchants, owners of small manufactories were the first victims of the struggle between the proletariat and the bourgeoisie. A huge number of specialists and entrepreneurs fled to Europe. And if at first it seemed absolutely normal - an element alien to communist ideals was leaving the country, then it turned out that there were not enough workers for the effective functioning of industry. The transition to the NEP made it possible to revive small and medium-sized businesses, thereby ensuring the growth of gross output and the creation of new jobs.

Crisis of agriculture

The situation with agriculture was just as bad. The cities were starving, a system of wages in kind was introduced. The workers were paid in rations, but they were too small.

To solve the problem of food, a surplus appraisal was introduced. At the same time, up to 70% of the harvested grain was confiscated from the peasants. A paradoxical situation has arisen. Workers fled from the cities to the countryside to feed themselves on the land, but here, too, hunger awaited them, even more severe than before.

The labor of the peasants became meaningless. Work for a whole year, then give everything to the state and starve? Of course, this could not but affect the productivity of agriculture. Under such conditions, the only way to change the situation was to move to the NEP. The date of the adoption of the new economic course was a turning point in the revival of dying agriculture. Only this could stop the wave of riots that swept across the country.

The collapse of the financial system

The prerequisites for the transition to the NEP were not only social. Monstrous inflation devalued the ruble, and products were not so much sold as exchanged.

However, if we recall that the state ideology assumed a complete rejection of money in favor of payment in kind, everything seemed to be normal. But it turned out that it was impossible to provide everyone and everyone with food, clothes, shoes, just like that, according to the list. The state machine is not adapted to perform such small and precise tasks.

The only way that war communism could offer to solve this problem was surplus appropriation. But then it turned out that if the inhabitants of the cities work for food, then the peasants work generally for free. Their grain is taken away without giving anything in return. It turned out that it is almost impossible to establish a commodity exchange without the participation of a monetary equivalent. The only way out in this situation was the transition to the NEP. Briefly describing this situation, we can say that the state was forced to return to the previously rejected market relations, postponing for a while the construction of an ideal state.

Brief essence of the NEP

The reasons for the transition to the NEP were not clear to everyone. Many considered such a policy a huge step back, a return to the petty-bourgeois past, to the cult of enrichment. The ruling party was forced to explain to the population that this was a forced measure of a temporary nature.

Free trade and private enterprise were again revived in the country.

And if earlier there were only two classes: workers and peasants, and the intelligentsia was just a stratum, now the so-called NEPmen have appeared in the country - merchants, manufacturers, small producers. It was they who ensured the effective satisfaction of consumer demand in cities and villages. This is what the transition to the NEP looked like in Russia. The date 03/15/1921 went down in history as the day when the RCP(b) abandoned the tough policy of war communism, once again legitimizing private property and monetary and market relations.

The dual nature of the NEP

Of course, such reforms did not at all mean a full-fledged return to the free market. Large factories and plants, banks still belonged to the state. Only it had the right to dispose of the country's natural resources and conclude foreign economic transactions. The logic of administrative and economic management of market processes was of a fundamental nature. The elements of free trade rather resembled thin shoots of ivy, braiding the granite rock of a rigid state economy.

At the same time, there were a huge number of changes that the transition to the NEP caused. Briefly, they can be described as providing a certain freedom to small producers and traders - but only for a while, to relieve social tensions. And although in the future the state was supposed to return to the old ideological doctrines, such a neighborhood of the command and market economy was planned for quite a long time, sufficient to create a reliable economic base that would make the transition to socialism painless for the country.

NEP in agriculture

One of the first steps towards the modernization of the former economic policy was the abolition of the surplus appraisal. The transition to the NEP provided for a food tax of 30%, handed over to the state not free of charge, but at fixed prices. Even though the cost of grain was small, it was still an obvious progress.

The remaining 70% of the production, the peasants could dispose of independently, albeit within the boundaries of local farms.

Such measures not only stopped the famine, but also gave impetus to the development of the agricultural sector. The hunger has receded. Already by 1925, the gross agricultural product approached pre-war volumes. It was precisely the transition to the NEP that ensured this effect. The year when the surplus appraisal was canceled was the beginning of the rise of agriculture in the country. An agrarian revolution began, collective farms and agricultural cooperatives were massively created in the country, and a technical base was organized.

NEP in industry

The decision to move to the NEP led to significant changes in the management of the country's industry. Although large enterprises were subordinate only to the state, small ones were relieved of the need to obey the central administrations. They could create trusts, independently determining what and how much to produce. Such enterprises independently purchased the necessary materials and independently sold the products, managing their income minus the amount of taxes. The state did not control this process and was not responsible for the financial obligations of the trusts. The transition to the NEP brought back the already forgotten term "bankruptcy" to the country.

At the same time, the state did not forget that the reforms were temporary, and gradually planted the principle of planning in industry. The trusts gradually merged into concerns, uniting enterprises supplying raw materials and manufacturing products into one logical chain. In the future, it was precisely such production segments that were to become the basis of a planned economy.

Financial reforms

Since the reasons for the transition to the NEP were largely economic in nature, an urgent monetary reform was required. There were no specialists of the proper level in the new republic, so the state attracted financiers who had significant experience in the days of tsarist Russia.

As a result of economic reforms, the banking system was restored, direct and indirect taxation was introduced, and payment for some services that were previously provided free of charge. All expenses that did not correspond to the income of the republic were ruthlessly abolished.

A monetary reform was carried out, the first government securities were issued, the country's currency became convertible.

For a while, the government managed to fight inflation by keeping the cost of national currency at a high enough level. But then a combination of incongruous - planned and market economies - destroyed this fragile balance. As a result of significant inflation, the chervonets, which were in use at that time, lost the status of a convertible currency. After 1926, it was impossible to travel abroad with this money.

Completion and results of the NEP

In the second half of the 1920s, the country's leadership decided to move to a planned economy. The country reached the pre-revolutionary level of production, and in fact, in achieving this goal, there were reasons for the transition to the NEP. Briefly, the consequences of applying the new economic approach can be described as very successful.

It should be noted that the country did not have much sense to continue the course towards a market economy. After all, in fact, such a high result was achieved only due to the fact that the production facilities that were inherited from the previous regime were launched. Private entrepreneurs were completely deprived of the opportunity to influence economic decisions; representatives of the revived business did not take part in the government of the country.

Attraction of foreign investments in the country was not welcomed. However, there were not so many who wanted to risk their finances by investing in Bolshevik enterprises. At the same time, there were simply no own funds for long-term investment in capital-intensive industries.

It can be said that by the beginning of the 1930s the NEP had exhausted itself, and this economic doctrine was to be replaced by another one, one that would allow the country to start moving forward.