new economic policy
- by 1921 Lenin realized War Communism was not causing a recovery
- He brought in the new NEP
- Some private trade was permitted
- Peasants could sell surplus
- Small factories could be a co-operative for private ownership
- some parts of the industry began to recover under NEP
Summary
The NEP or new economic policy was brought in when Lenin realized that complete communism was causing an economic breakdown. the NEP allowed small amounts of free trade and other business.
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