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Alekssandra [29.7K]
3 years ago
5

Describe how Russia’s economy changed from 1921-1924.

History
1 answer:
horsena [70]3 years ago
4 0
In 1922, Vladimir Lenin introduced New Economic Policy (NEP) characterized by free market and capitalism, controlled by the state. Under the NEP, p<span>rodrazvyorstka (forced grain requisition) abolished and prednalog (tax on farmers) introduced. NEP policy triggered agriculture, agriculture was allocated for the small farmers, while the heavy industry and service sector (banks, financial institutions) were under state control. 
In early 1923, Scissors Crisis happened due to the gap between the prices of industrial and agricultural products. Because of the faster rise in agriculture, factories raised the prices in order to keep the balance. Peasants started to produce more agricultural products and it lowered the prices. This situation created the Scissors Crisis. 
NEP Policy abandoned in 1928 after Stalin came to power. </span>
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