New Economic Policy

On November 7th, 1917, Vladimir Lenin led the Bolshevik party takeover in Russia, thus starting the creation of the socialist state. Vladimir Lenin aimed at creating a Marxist communist utopia. Lenin promised liberation of oppressed workers and peasants, equality, advancement, peace and social justice. Even though Lenin was trying to create a communist state, he implemented an economic policy that sought a return to capitalist ideals, which created a mixed economy, with some private individuals allowed to own small enterprise. His economic policy matched the New Economic Policy, created in 1921, which was a set of pragmatic policies designed to restore stability and growth. It only lasted a short period of time under Lenin. The move away from the New Economic policy and towards the nationalization of the economy begins with the nationalization of industries and foreign trade.

Lenin foresaw that destroying the large economy right away was not practical. He came up with the  transational stage where he “advocated features of a large-scale capitalist economy such as individual managerial control, wage and piecework incentives, even the employment of bourgeois technical experts and managers.” (Siegelbaum) that led to the creation of the New Economic Policy in 1921. The New Economic Policy was a “gradualist plan of socialist development” (Freeze, 301). The focus on market forces during this transitional period “led to the denationalization of small-scale industry and services; the establishment of trusts for supplying, financing, and marketing the products of large-scale industry; the stabilization of the currency; and other measures.” (Siegelbaum). The photo above shows a local market place where private trading took place, which represents the denationalization and brief privatization of the economy in Soviet Russia. The capitalist ideals helped strengthen the new Soviet states economy but led to economic uncertainity and anxiety among some citizens.

The transitional period of capitalism was short lived. In a draft of his economic policy written in December 1917, he decrees the nationalization of stock companies, he places restrictions on the wealthy class, he forces everyone to keep their money in the State Bank, and he focuses on the creation of trade unions to enforce his decrees. During the following year Lenin’s comrades pushed towards a nationalized state by taking private citizens capitalism by “nationalizing foreign trade and abolishing private inheritance” (Siegelbaum). The next steps in transitioning away from the market forces towards a socialist economy included abolishing private real estate and trade and nationalizing industry.The transitional period of capitalism sheds light on the pragmatic side of Lenin. Additionally, while the New Economic Policy only lasted a short period of time under Lenin, it created an ideological basis for reform that would resurface during the Gorbachev era and laid the foundations for the Soviet state.




Bunyan, Jame and H.H. Fisher, ed., Bolshevik Revolution, 1917-1918; Documents and Materials (Stanford: Stanford University Press; H. Milford, Oxford University Press, 1934), pp. 316-317.

Freeze, Gregory L. Russia: A History. 3rd ed. Oxford: Oxford UP, 2009. Print.

Ostrow, Joel M. Politics in Russia: A Reader. Los Angeles: SAGE Publications, 2013. Print.

Proekt dekreta o sotsializatsii narodnogo khoziaistva, Narodnoe khoziaistvo, No. 11 (1918), p. 15.

Remington, Thomas F. Politics in Russia. 7th ed. New York [u.a.: Pearson Longman, 2011. Print.

Siegelbaum, Lewis. “1917: Economic Apparatus.” Seventeen Moments in Soviet History. Macalester College, n.d. Web. 14 Sept. 2014. <>.

This entry was posted in Uncategorized. Bookmark the permalink.

8 Responses to New Economic Policy

  1. leahw93 says:

    I find it interesting that even though Lenin believed a transitional capitalist economy was necessary in the grand scheme of things, it was still manufactured by the state, thus not much of of a “free” market as we know it. Eventually this state-run capitalist economy would just turn into even more heavily state-run socialism (redundant?), as you pointed out in this informative post.

  2. piercedc says:

    Thanks for your post. I appreciate the insight on the NEC. I think Russia could have fared better if they would have pursued a more mixed state/private economic structure, but this never really coincided with Lenin’s vision really. The transitional period is important to understand because it did show pragmatic principals in action prior to collectivization and eventual state rule.

  3. afoutz says:

    I found it interesting that Russia would not have wanted to keep the mixed economy. After taking Micro and macroeconomics classes here at Virginia Tech I learned that most all economies are a mixed economy. To me mixed economies work best because it takes the good and realistic aspects of each side. Although in a perfect world pure capitalism or pure communism would work, in reality mixed economies work best.

  4. A. Nelson says:

    Some good analysis in this post, which explores the tension between the communal impulses of the revolutionaries and the practical concern to not wreak (more) havoc on an already unstable economic system in 1917. Let’s check back on the chronology, though — the New Economic Policy (limited capitalism) begins in 1921 — after the period described here.

  5. I keep listening to the news bulletin lecture about receiving boundless online grant applications so I have been looking around for the top site to get one. Could you tell me please, where could i acquire some?

  6. 財布コピー、バッグコピー、腕時計コピー、ベルトコピー靴コピーネックレスコピー、手帳コピー、小物コピー、SS品、N品、価格激安、品質の保証,2015人気ブランド偽物,歓迎光臨楽天★送料無料(日本全国)典雅気質!シャネルバッグCHH67723(*^^*)11月シャネル手作り新作(*^^*)時流の先端快適美品!シャネルブーツCH783283四季向け「 シャネル靴」最高な選択!ブランドコピー 代引きコピーブランド 代引きスーパーコピー 代引きスーパーコピーブランドバッグルイヴィトン コピーシャネル コピー
    エルバーキンコピーエルメスバーキン30コピーエルメス ボリード47,エルメス バッグ 名前,エルメス ネクタイ ピンク エルメス クラッチバッグ,エルメス バッグ コピー,エルメス バーキン コピー エルメス 財布 ダミエ オークション,エルメス ヨーロッパ,エルメス エールライン エルメス クラッチ激安通販、高い品質、送料無料。バーキン25コピー、バーキン30コピー、バーキン35コピー、バーキン40コピーなど世界中有名なブランドレプリカを格安で通販しております。N級品スーパーコピーブランドは ブランドスーパーコピー超N品エルメスバッグ,エルメス バーキン25 , バーキン30.バーキン35.バーキン40. エルメス(HERMES) ケリー

  7. プラダ スーパーコピー,プラダ 財布 コピー,プラダ 新作 財布ブランド財布コピー,ブランド スーパーコピー 財布,プラダ スーパーコピー 財布,シャネル財布コピー,グッチ スーパーコピー 財布,エルメス スーパーコピー 財布,ルイヴィトン長財布コピー,スーパーコピー財布,エルメスコピー財布,各種のブランドはかばんをコピーします偽物ブランド,激安偽物,ブランド財布コピー,エルメス財布コピー,ブランドのコピーブランド財布,ルイ?ヴィトンブランド財布コピー,偽ブランドグッチ財布,D&G,コピー財布偽物,偽物時計コピー,時計,ボッテガベルト,,靴,その他のバッグコピー,ブランド財布激安,ブランド激安販売,偽ブランド激安市場,通販送料無料專門店 ルイヴィトンコピー 当店ルイヴィトン コピー 財布、ルイヴィトン コピー バッグ 全MAX80%OFF!期間限定SALE。最短即日発送。送料無料ルイヴィトン コピー,ルイヴィトン コピー 財布,ルイヴィトン コピー バッグ
    激安 ブランドスーパーコピー新しいものを販売しています。ルイルイヴィトンコピー、グッチコピー、シャネルコピー、ブランドコピー、ブランドスコピー、ブランドコピー時計などルイヴィトンコピー 激安 ブランド、スーパーコピー、代引き対応、レプリカ、安心通販ルイヴィトン偽物、シャネル偽物、グッチ偽物、エルメス偽物、クロエ偽物、カルティエコピー、オメガコピー、IWCコピー楽天ヴィトンコピー屋

Leave a Reply

Your email address will not be published.