NEP

Stands for New Economic Policy; introduced by Lenin in 1921

In response to the failure of war communism, Lenin instituted measures he saw as temporary:

-Peasants sold produce on the market and farm land for their own benefit

-Private property allowed although government still owns major industry

-Retail trade and free labor market

-1921-1926: Russian economic recovery especially in agriculture but peasants still did not participate in markets enough to stimulate urban economies, resulting in grain shortages in the cities