The New Economic Policy
-By 1921 Lenin realized war Communism was not causing a recovery
-He brought in the NEP (new economic policy)
-Some private trade was permitted
-Peasants could sell surplus
-Small factories could be purchased by a co-operative for private ownership
-some parts of the industry began to recover under the NEP
-This policy was later removed after the economy recovered
-He brought in the NEP (new economic policy)
-Some private trade was permitted
-Peasants could sell surplus
-Small factories could be purchased by a co-operative for private ownership
-some parts of the industry began to recover under the NEP
-This policy was later removed after the economy recovered
Summary: Because of the low economy from War Communism, Lenin put the New Economic Policy into place which increased the economy by permitting private trade.