The New Economic Policy, or NEP, introduced by the Bolshevik government in 1921, was an attempt to readjust and realign the Soviet economy and to prevent its implosion. The basic concept of the new policy was that the appropriation of food from the peasants, as pioneered in the infamous ‘War Communism’, was to be abolished and replaced by a ‘tax in kind’. Peasants were then left in undisturbed possession of the land, free to sell their produce in the market. The policy ran from 1921 until 1928 and generated a great deal of controversy, both at the time and from historians since. A common argument levelled at the policy was that it was unsuccessful in attaining what it was trying to achieve and should not have been adopted by the Bolshevik Government.
In order to assess whether the NEP was in fact successful, it is necessary first to examine the situation prior to its adoption. Many have argued that the New Economic Policy was adopted as a result of the failures of War Communism; the government had experienced great difficulty in feeding the urban population and the peasants soon discovered that war communism entailed the forcible confiscation of their grain to feed the cities. This idea angered many of the peasants, who were left starving while their food was exported to feed those people living in the cities. By the autumn of 1920 it was clear that Bolshevik Russia was in ruins; industrial output was minimal, railway rolling stock was dilapidated and economic life rested on a primitive system of barter. It was obvious, therefore, that some form of economic reform was necessary.
The event which actually sparked off the introduction of NEP occurred in March 1921 in Kronstadt. A group of sailors caused a revolt by demanding an end to the special position of the Bolshevik party, a relaxation of economic controls and the restoration of freedom of speech for all. The uprising was quickly suppressed