The Private Business During the New Economic Policy (on the Materials of the Volga Region)

The development of the private business had the regional features in the Volga region during the new economic policy. The originality of the study lies in the fact that it is conducted on the example of a large Russian region – the Volga region. The work is based on the documents of the regional archives of the Volga towns and on the materials of the local press. In the 1920s the private business was an integral part of the Russian multistructural economy, formed under the influence of natural and historical factors of its development. The attempt of the Bolsheviks to failure of the multistructure in economic during the policy of “military communism”; the prohibition of freedom in the trade and in business; the introduction of the surplus appropriation system – all these became the reasons of the political and economic crisis of the end of 1920s. At this time a considerable mass of peasants and working people revolted. The return to multistructural economy became important achievement of the new economic policy, which contributed to restoration of the destroyed economy. The private business has developed significantly in the trade, grain procurement and the fishing industry in the Volga region. In these spheres of economic activity was a competitive struggle between state, cooperative and private companies. The state had to strengthen organizations working in these spheres, responding to the economic challenge from private capital in trade, grain companies and the fishing industry. A special interest was placed on the revival of cooperation. State and cooperative companies were strengthened by experienced personnel, supplied with scarce goods. They were granted loans on preferential terms. The result of the competition was a rapid recovery of these sectors of the economy, significantly outpacing the overall development of the regional economy. In winning from the competition were also ordinary citizens – consumers who could receive quality goods and services at cheap prices.