New Economic Policy

The New Economic Policy (NEP) was introduced in 1921 in Soviet Russia by Lenin as a response to economic turmoil after the Russian Revolution. It marked a shift from strict socialist policies to a mixed economy, allowing some private ownership and market mechanisms. This policy aimed to revive the economy by encouraging small-scale private enterprises, agriculture, and foreign trade while the state retained control over major industries. The NEP helped stabilize the Soviet economy and laid the groundwork for future industrialization, balancing state control with limited capitalism to address immediate economic challenges.