Question

Explain the New Economic Policy of Lenin.

Answer 1

Lenin's New Economic Policy, promulgated by decree on 21st March, 1921, was a temporary retreat from full socialism to partial capitalism for the purpose of rebuilding Russian economy.

It permitted small businesses to make personal profits, while the state continued to control banks, foreign trade and large industries. Elements of capitalism such as individual profit and private ownership of land were permitted in order to revitalise the Russian economy.