by Max Barry

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New Economic Policy

The laws sanction the co-existence of private and public sectors, which were incorporated in the NEP, which on the other hand was a state-oriented "mixed economy".

The NEP represented a move away from full nationalization of certain parts of industries. Some kinds of foreign investments are expected under the NEP, in order to fund industrial and developmental projects with foreign exchange or technology requirements

The NEP is primarily a new agricultural policy. With the NEP, the state only allows private landholdings because the idea of collectivized farming had met strong opposition.

The government understood that economic conditions were dire, so he opened up markets to a greater degree of free trade, hoping to motivate the population to increase production. Under the NEP, not only is "private property, private enterprise, and private profit largely restored in post-communist Poland," but the regime turned to international capitalism for assistance, willing to provide "generous concessions to foreign capitalism." The government took the position that in order to achieve socialism, they had to create "the missing material prerequisites" of modernization and industrial development that made it imperative for Poland to "fall back on a centrally supervised market-influenced program of state capitalism".

NEP economic reforms aim to take a step back from central planning and allow the economy to become more independent. NEP labor reforms tied labor to productivity, incentivizing the reduction of costs and the redoubled efforts of labor. Labor unions became independent civic organizations. NEP reforms also opened up government positions to the most qualified workers. The NEP gives opportunities for the government to use engineers, specialists, and intelligentsia for cost accounting, equipment purchasing, efficiency procedures, railway construction, and industrial administration. A new class of "NEPmen" thrived. These private traders opened up urban firms hiring up to 20 workers. NEPmen also included rural artisan craftsmen selling their wares on the private market.

TL;DR: An economic system that would include "a free market and capitalism, both subject to state control", while socialized state enterprises would operate on "a profit basis".