Coexistence of Private and Public Sectors

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Soviet union This oblige is part of the series Politics and g everywherenment activity of the Soviet Union GovernmentshowConstitutionGovernment MinistriesState CommitteesExecutive OfficerCouncil of Peoples CommissarsCouncil of MinistersCabinet of MinistersState CouncilPresidential Council commie fellowshipshowcommie caller CongressHistoryGeneral Secretary Politburo interchange CommitteeSecretariatOrgburo LeadershipshowLeadersPremiers CabinetsPresident (List) Vice PresidentCollective leadership LegislatureshowCongress of Soviets Central Executive CommitteeSupreme Soviet Soviet of the UnionSoviet of NationalitiesPresidiumCongress of Peoples De intrusties Speaker1989 legislative election JudiciaryshowLaw Supreme CourtPeoples CourtProcurator General Historyshow19171927 whirlingCivil fight19271953 earth s truggle II19531964 Khrushchev Thaw19641982 Era of Stagnation19821991 Dissolution ideologyshowState Ideology Soviet democracy profanexism-LeninismLeninismStalinism EconomyshowEconomy AgricultureConsumer goodsFive-Year purposeKosygin re flesh rising Economic PolicyScience and technologyEra of StagnationMaterial balance homework SocietyshowCulture DemographicsEducationFamilyPhraseologyReligionTransportRepre ssion CensorshipCensorship of imagesEconomic repression spacious purgeGulag systemCollectivizationHuman rightsMass killingsIdeological repressionSuppressed research governmental abuse of psychiatryPolitical repressionPopulation transferPropagandaRed Terror Atlas USSR vena portae view talk edit The New Economic Policy (NEP) (Russian , , Novaya Ekonomicheskaya Politika) was an sparing invent _or_ system of government proposed by Vladimir Lenin, who called it commonwealth capitalism.Allowing some undercover ventures, the NEP allowed base animal businesses or tummy shops, f or instance, to reopen for private profit art object the recount continued to control banks, exotic trade, and large industries. 1 It was officially decided in the course of the 10th Congress of the All-Russian Communist company. It was promulgated by decree on 21 bumblech 1921, On the electrical switch of Prodrazvyorstka by Prodnalog (i. e. , on the replacement of foodstuffs requisitions by intractable foodstuffs tax). In essence, the decree necessitate the farmers to give the government a qualify amount of raw clownish harvest-home as a tax in kind. 2 Further decrees refined the policy and spread forbidden it to include some industries.The New Economic Policy was replaced by Stalins First Five-Year Plan in 1928. Contents hide 1 Beginnings 2 Policies 3 Disagreements in leadership 4 Results 5 End of NEP 6 square off also 7 Multimedia 8 Further reading 9 Foot nones 10 External links edit Beginnings This section requires expansion. The NEP replaced the policies of warfar e Communism. Whilst some leading bolshys were opposed to it, it seemed necessary due to circumstances to allow express mail private commercialism in the form of the NEP. edit PoliciesThe laws sanctioned the coexistence of private and public arenas, which were co-ordinated in the NEP, which on the other bargain was a state oriented blend economy. 3Rather than get all goods produced, the Soviet government took only a small percentage of goods. This left the peasants with a saleable surplus which could be s grizzly privately. 4 The state, aft(prenominal)ward starting to use the NEP, migrated a counseling from Communist nousls and started the ripeizing of the economy, simply this time, with a more free-minded way of doing things. The Soviet Union stopped upholding the intellect of nationalizing certain parts of industries. Some kinds of foreign investments were expected by the Soviet Union under the NEP, in order to strain industrial and developmental projects with fore ign replacement or technology requirements. 5The move towards modernization rested on one briny issue, transforming the Soviet Union into a modern industrialized society, but to do so the Soviet Union had to re decide its exist structures, namely its rural system and the relegate structure that surrounded it. The NEP was primarily a new agricultural policy. 6 The Bolsheviks viewed traditional small town life as conservative and backward. The old way of village life was mindful of the Tsarist Russia that had supposedly been thrown out with the October Revolution. With the NEP, which sought to repudiate the old ways, methods were put in place which promoted the pursuit by peasants of their self-interests. However, the state only allowed private landholdings because the estimate of collectivized farming had met with much opposition. 7 edit Disagreements in leadershipLenin considered the NEP as a strategic retreat. 8 However, he justified the NEP by insisting that it was a diffe rent type of capitalism. He insisted that this form of state capitalism was the last face of capitalism before collectivism evolved. 9 Leon Trotsky and Joseph Stalin disagreed over how to develop the Soviet Economy afterwards the World War and the Civil War. Trotsky, back up by left-wing members of the Communist Party, believed that socialism in Russia would only survive if the state controlled the allocation of all output. Trotsky believed that the state should repossess all output to invest in capital formation.On the other hand, Stalin back up the more conservative members of the Communist Party and advocated for a state run capitalist economy. Stalin managed to wrest control of the Communist Party from Trotsky. After defeating the Trotsky faction, Stalin reversed his opinions about stinting policy and implemented the First Five-Year Plan. 10 edit ResultsAgricultural outturn increased greatly. Instead of the government pickings all agricultural surpluses with no compens ation, the farmers instantly had the option to sell their surplus yields, and wherefore had an incentive to produce more grain. This incentive coupled with the breakup of the quasi-feudal landed estates not only brought agricultural victoriouss to pre-Revolution levels but surpassed them.While the agricultural sector became more and more reliant on small family farms, the legal industries, banks and financial institutions rebrinyed owned and run by the state. Since the Soviet government did not in so far pursue any policy of industrialisation, and did not allow it to be facilitated by the like private incentives that were increasing agricultural production, this created an asymmetry in the economy where the agricultural sector was growing much faster than unsounded industry. To keep their income high, the factories began to sell their products at higher(prenominal) prices. Due to the rising cost of construct goods, peasants had to produce much more stubble to purchase t hese consumer goods.This fall in prices of agricultural goods and sharp rise in prices of industrial products was cognize as the Scissor crisis (from the shape of the graph of relative prices to a lengthiness date). Peasants began withholding their surpluses to wait for higher prices, or sold them to NEPmen (traders and middle-men) who then sold them on at high prices, which was opposed by many members of the Communist Party who considered it an maturation of urban consumers. To combat the price of consumer goods the state took measures to decrease inflation and enact reforms on the internal practices of the factories. The government also fixed prices to halt the scissor effect.The NEP succeeded in creating an stinting recovery later on the devastating do of the First World War, the Russian Revolution and the Russian civil war. By 1925, in the wake of Lenins NEP, a major fracture was occurring politically, scotchally, culturally and spiritually. Small-scale and light industr ies were largely in the hands of private entrepreneurs or cooperatives. By 1928, agricultural and industrial production had been restored to the 1913 (pre-World War I) level. However, unemployment skyrocketed under the NEP and a wider transgress was created between secernatees. 2 edit End of NEPBy 1925, the year after Lenins death, Nikolai Bukharin had become the foremost supporter of the New Economic Policy.It was abandoned in 1928 after Joseph Stalin obtained a position of leadership during the Great Turn. Stalin had initially supported the NEP against Leon Trotsky, but switched in favour of Collectivization as a resultcitation needed of the Grain Procurement Crisis and the need to wrap up capital speedyly for the vast industrialization programme introduced with the Five Year Plans. It was hoped that the USSRs industrial base would reach the level of capitalist countries in the West, to prevent them being beat out in another possible war. (Stalin entitle Either we do it, or we shall be crushed. ) Stalin proposed that the grain crisis was caused by the NEP men, who sold agricultural products to the urban populations for a high price.An option explanation for the grain crisis (which is more best-selling(predicate) among western historians)citation needed revolves around the focus on heavy industry creating a authoritative consumer goods shortage which meant peasants had nothing to spend their resources on, thereof resulting in the hoarding of their grain. For Lenin and his followers, the NEP was intended as an interim measure. However, it proved highly unpopular with the Left Opposition in the Bolshevik party because of its compromise with some free-enterprise(prenominal) elements and the relinquishment of State control. 2 They saw the NEP as a betrayal of communist principles, and they believed it would watch a negative long-run economic effect, so they wanted a full planned economy instead.In particular, the NEP created a class of traders (NEP m en) whom the Communists considered to be class enemies of the working class. On the other hand, Lenin is quoted to induce said The NEP is in earnest and long-term ( ? ), which has been used to surmise that if Lenin were to stay viable longer, NEP would have continued beyond 1929, and the bleak collectivization would have never happened, or it would have been carried out differently. Lenin had also been known to say about NEP We are taking one step backward to later take two steps forrad, suggesting that, though the NEP pointed to another direction, it would provide the economic conditions necessary for socialism finally to evolve.Lenins successor, Stalin, eventually introduced full central planning (although a variant of public planning had been the idea of the Left Opposition, which Stalin purged from the Party), re-nationalized much of the economy, and from the late mid-twenties onwards introduced a policy of rapid industrialization. Stalins collectivization of agricultur e was his most illustrious and most destructive departure from the NEP approach. It is a great deal arguedcitation needed that industrialization could have been achieved without any collectivization and instead by taxing the peasants more, as similarly happened in Meiji Japan, Otto von Bismarcks Germany, and in post-World War II South Korea and Taiwan. edit See alsoEconomic calculation problem Planned economy edit MultimediaVladimir I.Lenin most Natural Tax (Text of the speech in Russian, Record (helpinfo)) edit Further readingDavies, R. W. (ed. ) (1991). From tsarism to the new economic policy continuity and change in the economy of the USSR. Ithaca, N. Y. Cornell University Press. ISBN 0801426219. Fitzpatrick, Sheila, et al. (ed. ) (1991). Russia in the Era of NEP. Bloomington, IN Indiana University Press. ISBN 025320657X. NEP Era Journal http//www. d. umn. edu/cla/NEPera/main/index. php Nenovsky. N,(2006). Lenin and the currency competition. Reflections on the NEP experience (1922-1924),. multinational Center of Economic Research working Paper,Torino, No 22, 2006 edit Footnotes1. Ellis, Elisabeth Gaynor Anthony Esler (2007). Revolution and Civil War in Russia. World History The late Era. Boston Pearson Prentice Hall. pp. 483. ISBN 0-13-129973-5. 2. a b c Service, Robert (1997). A History of Twentieth-Century Russia. Cambridge, MA Harvard University Press. pp. 1245. ISBN 0-074-40348-7. 3. V N. Bandera New Economic Policy (NEP) as an Economic Policy. The Journal of Political Economy 71, no. 3 (1963). http//www. jstor. org/ electrostatic/1828984 (accessed Mar 4, 2009), 268. 4. Sheila Fitzpatrick, The Russian Revolution. New York Oxford University Press, 1984 pg. 95. 5. Fitzpatrick, The Russian Revolution, pg. 96. 6. Vladimir P. Timoshenko, Agricultural Russia and the Wheat Problem. Stanford, CA fodder Research Institute, Stanford University, 1932 pg. 86. 7. Sheldon L. Richman War Communism to NEP The street from Serfdom. The Journal of Liberta rian Studies V, no. 1 (1981) (accessed Mar 4, 2009), 93. 8. New economic policy and the politprosvets goals. Lenin V. I. sedate Works v. 44. p. 159 9. Sheldon L. Richman War Communism to NEP The pass from Serfdom. The Journal of Libertarian Studies V, no. 1 (1981) (accessed Mar 4, 2009), 94. 10. Sheila Fitzpatrick, The Russian Revolution, (New York Oxford University Press, 1984), 115. edit External links