Which policy did Lenin introduce in 1921 to rebuild the Soviet economy after War Communism?

Which policy did Lenin introduce in 1921 to rebuild the Soviet economy after War Communism?

• A. War Communism
• B. New Economic Policy (NEP)
• C. Five-Year Plan
• D. De-kulakization program

Answer: (B)

The policy is the New Economic Policy. After War Communism, which relied on forced requisitioning and central control and led to shortages, Lenin introduced a more pragmatic mix of state direction with limited private enterprise. The NEP allowed peasants to sell their surplus crops on the open market and permitted small private businesses and light industry to operate for profit. It also reintroduced money and a market for goods, while the state kept control of heavy industry, banking, and foreign trade. This combination aimed to revive agricultural and industrial production, stabilize the economy, and win peasant support, serving as a transitional move before further centralized planning. It differs from War Communism in its partial return to market mechanisms, from the later Five-Year Plans in its more gradual approach, and from the harsher policies like Dekulakization that came later.

The policy is the New Economic Policy. After War Communism, which relied on forced requisitioning and central control and led to shortages, Lenin introduced a more pragmatic mix of state direction with limited private enterprise. The NEP allowed peasants to sell their surplus crops on the open market and permitted small private businesses and light industry to operate for profit. It also reintroduced money and a market for goods, while the state kept control of heavy industry, banking, and foreign trade. This combination aimed to revive agricultural and industrial production, stabilize the economy, and win peasant support, serving as a transitional move before further centralized planning. It differs from War Communism in its partial return to market mechanisms, from the later Five-Year Plans in its more gradual approach, and from the harsher policies like Dekulakization that came later.