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Coexistence of Private and Public Sectors

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New Economic PolicyFrom Wikipedia, the free encyclopediaJump to: navigation, search
For the Malaysian New Economic Policy, see Malaysian New Economic Policy.
Soviet Union

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Politics and government of the Soviet Union

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The NEP was primarily a new agricultural policy.[6] The Bolsheviks viewed traditional village life as conservative and backward. The old way of village life was reminiscent of the Tsarist Russia that had supposedly been thrown out with the October Revolution. With the NEP, which sought to repudiate the “old ways,” methods were put in place which promoted the pursuit by peasants of their self-interests. However, the state only allowed private landholdings because the idea of collectivized farming had met with much opposition.[7]

[edit] Disagreements in leadershipLenin considered the NEP as a strategic retreat.[8] However, he justified the NEP by insisting that it was a different type of capitalism. He insisted that this form of “state capitalism” was the last stage of capitalism before socialism evolved.[9]

Leon Trotsky and Joseph Stalin disagreed over how to develop the Soviet Economy after the World War and the Civil War. Trotsky, supported by left-wing members of the Communist Party, believed that socialism in Russia would only survive if the state controlled the allocation of all output. Trotsky believed that the state should repossess all output to invest in capital formation.

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