The New Economic Policy and the Power Struggle 1921–1928

The period from 1921 to 1928 was one of the most pivotal in Soviet history. The introduction of the New Economic Policy (NEP) represented a dramatic retreat from the radical economics of War Communism, while the power struggle following Lenin's death in 1924 determined the future direction of the Soviet Union. Stalin's eventual triumph over his rivals was not inevitable — it depended on political skill, institutional control, and the mistakes of his opponents.

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The New Economic Policy

Why Was the NEP Introduced?

By early 1921, the Bolshevik regime faced an existential crisis:

• The economy had collapsed — industrial output was at 20% of 1913 levels
• The 1921 famine killed an estimated 5 million people
• Peasant revolts were spreading across the countryside
• The Kronstadt Rebellion demonstrated that even the Bolsheviks' core supporters were alienated
• Workers were leaving the cities; strikes were increasing

Lenin recognised that War Communism had failed. At the Tenth Party Congress in March 1921, he introduced the NEP as a strategic retreat — 'one step back in order to take two steps forward'.

Key Features of the NEP