New Economic Policy


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New Economic Policy

(NEP), official economic reconstruction program of the USSR from 1921 to 1928. It replaced the economic policies of "war Communism" (1918–21), an emergency program established by LeninLenin, Vladimir Ilyich
, 1870–1924, Russian revolutionary, the founder of Bolshevism and the major force behind the Revolution of Oct., 1917. Early Life
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 during the civil war. War Communism had included forced requisition of grain, nationalization of all trade and industry, strict control of labor, payment in kind, and confiscation of financial capital. As a result of this program and of the ravages of the war, industrial and agricultural production declined sharply, and the population suffered severe deprivation. General unrest erupted in an insurrection in the Kronstadt naval base. At this time (Mar., 1921) Lenin introduced the NEP in order to revive the economy. The new program signified a return to a limited capitalist system. Forced requisition of grain was replaced by a specific tax in kind; peasants could retain excess produce and sell it for a profit. Smaller businesses were permitted to operate as private enterprises. Large industries remained under state control. They operated on the open market, but the state controlled the fixing of prices and the appointment of boards of directors. Private trade and wages were restored, and compulsory labor service was abolished. By 1928, the NEP had raised the Soviet national income above its prewar level. However, the NEP policies proved inadequate for the expansionist aims of Stalin and were reversed (1928) by the first Five-Year PlanFive-Year Plan,
Soviet economic practice of planning to augment agricultural and industrial output by designated quotas for a limited period of usually five years. Nations other than the former USSR and the Soviet bloc members, especially developing countries, have adopted such
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.
References in periodicals archive ?
Over the years the New Economic Policy, or NEP, introduced by the Indian government in 1991, morphed into a compendium of economic liberalization, privatization and opening up to the world.
Hua argues that the three major Soviet reforms--the New Economic Policy, the Thaw, and Perestroika--reflected the tendency to retreat from Communist ideals.
Patino underlined to his host that Ecuador' s current government, unlike the former ones, adopts a new economic policy based on openness namely to Asia and the Middle East.
The NUP leader stressed that his party wanted a new constitution, a brotherhood accord with the South, securing basic freedoms, resolving Darfur crisis, new economic policy, realistic handling of the standoff with the International Criminal Court (ICC) and a transitional government.
The move is part of a review of all WAG's overseas operations after the launch of the new economic policy, 'Economic Renewal: a new direction'.
Malaysia wants South Korea to take advantage of policy initiatives in the New Economic Policy and the 10th Malaysia Plan to explore opportunities and expand its business in the country.
Summary: MEDEF (French Employers) President Laurence Parisot has called on Tuesday here, French enterprises to adapt to Algeria's new economic policy, as defined in the 2009 additional Finance Act.
However, our countries should consolidate and institutionalize the new economic policy measures and tools developed to respond to the crisis.
But if new economic policy is enacted soon, he believes commercial real estate will have the tools in place to ride out the recession.
It has been three decades since Deng Xiao-ping, the architect of China's new economic policy, launched a crusade for reforms and opening, resulting in a most impressive progress in the country's economic development.
Summary: It was a telling sign that one of the first things Barack Obama did after clinching the Democratic Party nomination was to hire a new economic policy director, someone who can help him move from the anti-NAFTA left of the party toward the pro-market center that traces its lineage to Clinton administration Treasury secretaries.
Mr Brown told delegates: "We must create a new economic policy that is designed to reward talent, creativity and skills.