New Economic Policy
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New Economic Policy was an economic policy of Soviet Russia proposed by Vladimir Lenin, who called it "state capitalism". The NEP represented a more capitalism-oriented economic policy, deemed necessary after the Russian Civil War of 1917 to 1922, to foster the economy of the country, which was almost ruined. The complete nationalization of industry, established during the period of War Communism, was partially revoked and a system of mixed economy was introduced, which allowed private individuals to own small enterprises, while the state continued to control banks, foreign trade, and large industries. In addition, the NEP abolished
prodrazvyorstka and introduced
prodnalog: a tax on farmers, payable in the form of raw agricultural product. The Bolshevik government adopted the NEP in the course of the 10th Congress of the All-Russian Communist Party and promulgated it by a decree on 21 March 1921 "On the Replacement of
Prodrazvyorstka by
Prodnalog". Further decrees refined the policy. Other policies included the monetary reform and the attraction of foreign capital.