What did the New Economic Policy of 1921 do?

What did the New Economic Policy of 1921 do?

Introduced by Vladimir Lenin in 1921, the New Economic Policy (or NEP) was a radical shift in Bolshevik economic strategy. It eased the harsh restrictions of war communism, the Bolshevik economic policy during the Civil War, and allowed the return of markets and petty trade.

What were the factors that led to the adoption of the new economic policies?

Economic reforms were introduced in India because of the following reasons:

  • Poor performance of the public sector.
  • Adverse BoP or imports exceed exports.
  • Fall in foreign exchange reserves.
  • Huge debts on government.
  • Inflationary pressure.
  • Terms and conditions of the World Bank and the IMF.

What was Lenin’s New Economic Policy of 1921 quizlet?

At the 10th Congress of the Communist Party between 7-16th March 1921, Lenin introduced his New Economic Policy, He described it as ‘state capitalism’ that would re-introduce a free market and capitalism, but subject to state control.

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What did Lenin want accomplish with his new economic plan?

Lenin characterized the NEP in 1922 as an economic system that would include “a free market and capitalism, both subject to state control,” while socialized state enterprises would operate on “a profit basis.” Other policies included monetary reform (1922–1924) and the attraction of foreign capital.

What were the reasons to implement new economic policy in India *?

The following are the reasons for economic reforms:

  • (i) Rise in Prices:
  • (ii) Rise in Fiscal Deficit:
  • (iii) Increase in Adverse Balance of Payments:
  • (iv) Iraq War:
  • (v) Dismal Performance of PSU’s (Public Sector Undertakings):
  • (vi) Fall in Foreign Exchange Reserves:

How did Lenin’s economic policies change quizlet?

How did Lenin’s economic policies change? Lenin turned Russia into a socialist economy. He took control of all major heavy industry and put it under government control.

What were the components of Lenin’s NEP quizlet?

Terms in this set (9)

  • Ended grain requisitioning.
  • Revival of private trade and small businesses reopened.
  • Peasants allowed to keep their surpluses and sell it to make a profit.
  • A new Rouble in 1922.
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