In 1921 Lenin and Bolshevik Party (now known as the Communist) faced enormous resistance to War Communism. There had been peasant revolts across the country due to grain [?], especially in the Tambov region of central Russia, and the [?] sailors, who had been the main supporters of the Bolsheviks during the October Revolution, staged an uprising against the regime. The Red Army put this down, but it was apparent to Lenin he had to take drastic measures to ensure the country continued to support his government. The NEP, or New [?] Policy was introduced to address many of the problems caused by War Communism and difficulties of fighting the Civil War. Grain requisitioning was abolished and replaced by a ‘tax in kind’ which was less harsh. Small-scale businesses which were privately owned were once again permitted. [?] was abolished, and people bought food and goods from their own income. Larger factories and industries continued to be run by the state, but were carefully managed by the State Planning Commission, otherwise known as [?]. Confidence in the economy increased with the introduction of a new rouble and the formation of a state bank, which could lend money to people wishing to develop their businesses. There was also widespread electrification of businesses and homes, raising the standard of living for millions of Russians. Finally, foreign trade began in earnest again with the signing of the [?]-Soviet agreement in 1921.

The NEP had both its advantages and disadvantages. Shops, cafes & restaurants re-opened. Farming improved; by 1923, cereal production increased [?]% compared with 1920. Industry also made important strides forward. Between, 1920-23 factory output rose [?]%, and by 1926 it reached pre-1914 levels. With more food being produced and distributed around the country, food prices also dropped. However, some tried to benefit unfairly from the favourable economic conditions. This period also saw the emergence of [?], who bought up surplus produce and goods and sold it at huge profits. Many supporters of Communist policies argued that by allowing private enterprise to flourish, the Bolsheviks had gone back on their original ideals. They also pointed to the moral declines they saw in Russian society, with the rise of gambling, alcoholism and prostitution. Lenin, however, excused the NEP by saying it was a [?] policy that was necessary to pull the country out of its economic difficulties.