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Lessons from the NEP experience for solving contemporary economic problems (to the 100th anniversary of the transition to NEP)

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  • Goland, Yu.

    (Institute of Economics, Russian Academy of Sciences Moscow, Russia)

Abstract

The article analyzes the experience of New economic policy (NEP), some of its features, the study of which may be helpful in solving the problems of the modern domestic economy. Certain similarities are obvious between the mixed economy of the NEP period, which V. Lenin called state capitalism, and the modern market economy with the growing role of the state. Within the framework of the chosen topic of NEP lessons, five key research areas have been identifi ed: 1) selection of qualified personnel, 2) limitation of the excessive control system, 3) monetary policy, combining fighting inflation and stimulating economic growth, 4) a stable exchange rate of the domestic currency or devaluation; 5) attracting foreign capital. For each of these areas, the problems during the NEP period are highlighted. They were caused not only by the complexity of the economic recovery following the civil war. Contradictions in the ruling stratum of the Communist Party were also of great importance. The communists with high posts in the economy considered the development of productive forces to be the main priority and proceeded from the need to stimulate an increase in production. Party ideologists and apparatchiks, representatives of various control bodies, were guided primarily by political and ideological considerations. As a result of these contradictions, economic policy was often inconsistent. The study of the NEP experience lets us find the positive lessons that can be used in modern conditions, and those negative features that should not be repeated.

Suggested Citation

  • Goland, Yu., 2022. "Lessons from the NEP experience for solving contemporary economic problems (to the 100th anniversary of the transition to NEP)," Journal of the New Economic Association, New Economic Association, vol. 56(4), pages 172-193.
  • Handle: RePEc:nea:journl:y:2022:i:56:p:172-193
    DOI: 10.31737/2221-2264-2022-56-4-8
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    References listed on IDEAS

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    1. Carmen M. Reinhart & Kenneth S. Rogoff, 2009. "Varieties of Crises and Their Dates," Introductory Chapters, in: This Time Is Different: Eight Centuries of Financial Folly, Princeton University Press.
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    More about this item

    Keywords

    new economic policy; NEP; human resources; control; infl ation; economic growth; devaluation; foreign investment;
    All these keywords.

    JEL classification:

    • B14 - Schools of Economic Thought and Methodology - - History of Economic Thought through 1925 - - - Socialist; Marxist
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
    • F35 - International Economics - - International Finance - - - Foreign Aid
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus
    • N14 - Economic History - - Macroeconomics and Monetary Economics; Industrial Structure; Growth; Fluctuations - - - Europe: 1913-
    • N34 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - Europe: 1913-
    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • P20 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - General

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