NEP policies
¥Revival of private ownership & market economy
¥BUT small & medium industries and transport facilities remained nationalized
¥Reason: create incentive for peasants to produce
¥NEP –> spectacularly rapid increases in output, I.e., restoring production
¥Improve smyshka between peasants & proletariat
¥By 1926 significant class wealth division in countryside - kulaks
¥Scissors crisis worsens
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