New Economic Policy- NEPThe New Economic Policy- Policy of the Soviet authority where all the enterprises of one industry submitted to unified central controls to the main committee (central board). NEP has replaced a policy of military communism. The transition has been proclaimed by the congress of Russian communist party with V.I Lenin in charge of it all.
The basic measures of NEP were; legalization of free trade, people got the right to be engaged in domestic industries and to open the industrial enterprises with number of workers up to hundred. Nationalized enterprises returned to its former owners. In 1922 the right to rent and the use of wage labor has been recognized; the system of labor duties and labor mobilization was cancelled. These changes were made by the party in power without refusing the ideological views and command methods of a management sociopolitical and economic process.
Lenins New Economic Policy has led to fast development of the economy. The economic interest which has appeared to peasants in manufacture of agricultural production, has allowed to fill the markets with food again and to compensate the hungry years of military communism. However already at an early stage NEPs recognition on the market meshed with measures on its abandonment. The majority of people in a communist party were concerned about the new system and thought of it as an inevitable harm, being afraid, that it will lead to restoration of capitalism. At many (Bolsheviks) military-communistic illusions that destruction of a private property, commerces, money, in distribution of material benefits conduct equality to communism were kept, and NEP was a change to communism. The point of NEP was to continue a rate on socialism, by maneuvering, the social compromise with the majority of the population to move the country to objective of a party to socialism though slower and with smaller risk. All this was considered in accepted in 1922 laws and in the subsequent acts.
The strategic objective of a set (socialism) remained, and NEP was considered as temporary deviation from reached for years of military communism .Therefore, everything was done to not allow NEP to fall outside the limits. Within NEP-state tops did not want reforms, and have been worried that the private sector will get advantage before the state. Captured by the fear of NEP, they took measures on its discredit. Official propagation in every possible way slighted a private trader, in public consciousness the image entrepreneur, the class enemy was formed. To the middle of 1920 measures on restraint of development of NEP were replaced by a rate with its curtailing. NEP has begun privately, all over again measures of tax suffocation of a private sector, then deprivation of its legal guarantees. Thus at all party forums fidelity to new economic policy was proclaimed.
By the end of 1920s, the new economic policy has ceased to serve socialism, the country leaders have cancelled NEP with the revolutionary methods. During its realization rural "bourgeois" have confiscated properties, banished people to Siberia, and the rests city bourgeois businessman , and also members of their families deprived with the political rights,many were subjected to legal suits. The experiment by the name of New Economic Policy didnt work.
Sources:http://www.historylearningsite.co.uk/new_economic_policy1.htm http://en.wikipedia.org/wiki/New_Economic_PolicyBook: Russian History by Zaichki. I.A and Pochkaev. I.N published in 1992.