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Internal
situation (New Economic Policy)
The
wars and war communism ruined the country and led to famine. In order to improve
the situation NEP was created. The return to market economy was a break with the
foundations of war communism, yet the state's monopoly was preserved. The main
objectives of NEP were the change of obligatory contingents with agricultural
goods, which had ruined the farmers, into an alimentation tax. Market became
legal, as well as the exchange of goods between the country and towns. Private
property was allowed to a certain limit. As regards industry, a system of state
concessions for private and state capital was introduced.
A
few years after its introduction internal market was restored, the agricultural
production reached over 80 % of 1913 production, trade operated. Famine
vanished. A new middle class appeared, or kulaks
in the countryside and nepmans
in towns. State finances were stabilised and a "hard" currency
introduced. The war damages were liquidated gradually.
In
1922 Czeka
was transformed into GPU. 
In
1922 Lenin was ill and did not participate in the political life much. He
recommended Stalin on the post of The Party's General Secretary. Lenin also
designated the candidates who would come to power after his death (Bucharin,
Kamyeniev, Piatakov, Stalin, Trotsky, Zinovyev).
In
the same year USSR was created. At first it included four federated republics:
Russia, Byelorussia, Ukraine, Zakaukazie, later the number increased to 16
 Josef Wissarionowicz
Stalin - Lenin's successor.
Lenin
died in January 1924. A contest of power started. In a few years Stalin got rid
of all his competitors. A common accusation was supporting other, already
relegated members of the Party. One could be, for instance, accused of Trotskism
- supporting the views of Lew Trotsky.
At
the same time theoretical discussions on the continuation of NEP took place.
Among the supporters of NEP was Bucharin, among the opponents the so-called
left-wing opposition.
At
first Stalin supported NEP but it changed in 1927. In 1929 NEP ended and
Bucharin was accused of supporting kulaks
in the countryside.
 Josef Wissarionowicz Stalin
"friend of all children".
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