¥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