Question

Write about Lenin's New Economic Policy.

Answer 1

Lenin's 'New Economic Policy' (NEP) restored a modified form of private ownership. It gave peasants land to produce more food and encourage industrial growth as well as trade between town and country. In agriculture, the farmers were allowed more freedom, they could lease land and employ labourers. In industry, small businesses with less than 20 labourers could come under private ownership. A State Bank was created in 1921. Taxes were levied on city dwellers. Foreign trade was resumed, as a result the whole system became modeled.