faced during 1920-21 as a result of the civil war and War Communism was no production was being produced anymore as the Russian people were being starved to death. Famine, cold weather and disease killed 7 million Russians. The added problems of cut-offs from where the sources of production were and the loss of valuable land to Germany during World War I was adding up. This made Lenin see that he needed a new Policy scheme. This came from the NEP (New Economic Policy).
             The NEP, introduced by Lenin in 1921, March, had some new reforms. These new policies were:-
             „h Confiscation of farm produce ceased, instead grain tax imposed.
             „h Small factories and shops operated under private ownership. Trade Unions were free of government control and strikes were permitted.
             „h Foreign companies were encouraged to trade and invest in Russia.
             These new reforms settled the public opinion down and took pressure off the Bolshevik party for now. The NEP was quite successful though. From the major slump in 1921, Coal rose from 6.9 million tons to 27.6 million tons by 1926. Steel rose from 0.2 million tons to 3.1 million tons. Pig iron rose from 0.1 million tons to 2.4 million tons. Electricity rose from 520 million kWh to 3508 million kWh. The Industry was back to its f
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