NEP (New Economic Policy)

The New Economic Policy (NEP) was introduced in Soviet Russia in 1921 by Vladimir Lenin to revive the economy after the Civil War. It aimed to replace War Communism and allowed some private enterprise and small-scale private ownership while the state retained control over major industries. This shift promoted agricultural production and encouraged trade by giving peasants the ability to sell surplus crops. The NEP helped stabilize the economy and improved living conditions but was eventually phased out in the late 1920s in favor of stricter state planning and collectivization under Stalin.