The New Economic Policy (NEP)

The New Economic Policy (NEP), introduced in Russia in 1921, was a significant shift in economic strategy after the Russian Civil War. It aimed to revive the economy by reintroducing some private ownership and small-scale capitalism, allowing farmers to sell their surplus produce and businesses to operate privately. This policy balanced state control with market mechanisms to boost production, reduce famine, and stabilize the economy. The NEP marked a pragmatic approach by the Bolshevik government to rebuild the war-torn economy while ensuring political control, paving the way for future industrialization efforts.