The New Economic Policy (NEP)

• Sailors at the Kronstadt Naval Base revolted in 1921 for about 3 weeks
• They were angry about the lack of democracy in War Communism
• The Red Army stopped the revolt forcefully
• These protests showed Lenin that there was need for change, as the Kronstadt sailors had initially been supporters of the Bolsheviks during the revolution
• Lenin understood that a more realistic way to rule was needed
• Under War Communism, people's conditions worsened
• The wage of the average worker in 1918 was a quarter of the average wage in 1913
• The wage of the average worker in the middle of the Civil War was about less than a tenth of the average wage in 1913
• Lenin introduced the NEP to deal with the situation, which regained support from the peasantry and workers
• Lenin also aimed to return to 1913 levels of production

• Factories with less than 20 employees could be owned privately
• Any factories with more than 20 employees continued to be owned by the government
• Russia now traded with other countries despite being communists, which boosted the economy

The NEP took a more capitalist approach as Lenin believed that the people were not "Civilised enough for communism".

• Industrial Production levels in 1926 returned to 1913 levels
• There was better food distribution, which made the peasants happy (not all surplus of grain was seized)
• Nepmen, who were private traders who bought grain from peasants and sold it to working classes appeared, and some made big profits

• The conditions of industrial workers were not improved, and they were jealous of the Nepmen
• Russia's success in the 1920s was not that great compared to other countries, such as Germany, America, and Japan