Answer:
(a) The New Economic Policy allowed individuals to buy, sell and trade in farm products. While major industries, remained under government control, small businesses and home industries could be privately owned and operated for profit. Foreign capital was welcomed for the development of state industries and investors promised a high rate of return. This policy help. the Russian economy to improve and the economic conditions of the ordinary people improved (b) When Stalin came to power, the Soviet economy was plagued by many problems. He took steps to revitalize all sectors of the economy. Industrialization was carried out through a planned process. In 1929, Russia adopted the first of a series of its Five Year Plans aimed at making Russia a modern industrialized country. Heavy industries were given greater importance at the cost of consumer goods. As a result, by 1940, the USSR overtook Britain in iron and steel production and almost equaled Germany's coal output. But life was hard for workers. While medals were given for high production, workers were also condemned to death if they failed to meet the targets set. Workers lived in primitive conditions while party functionaries and their families lived in spacious flats and maintained dachas in holiday resorts. In the agricultural field, collective farms were introduced, worked by the peasants with government owned machinery and animals. The income was divided according to their work and capacity. Thousands of wealthy peasants were executed when they attempted to withhold their lands from collectivization. Many others were imprisoned or exiled. Under forced collectivization the production of food grains dropped. Famine broke out in many parts of the country and nearly 5 million peasants died of starvation.
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