NEP stands for New Economic Policy and was the economic policy followed in the Soviet Union after the end of Communism in the 1921 war and with Stalin's rise to power in 1928. The NEP was based on small agricultural, industrial and commercial holdings to private initiative, to bring the Soviet Union out of the crisis in which it found itself.
The New Economic Policy recovered some traces of capitalism to encourage the nascent Soviet economy. The NEP, according to Lenin, consisted of a tactical retreat, characterized by the reestablishment of free enterprise and small private property, admitting the support of foreign financing. Lenin said "One step back to take two steps forward".
NEP had some principles: freedom of internal trade, freedom of wages for workers, authorization for the operation of private companies and permission for the entry of foreign capital for the reconstruction of the parents.
The NEP came into force in 1921, was conceived and built by Lenin, and it re-established the old capitalist practices. This economic policy reversed previous economic policies, such as the suspension of nationalization of factories, the abandonment of forced requisitions for agricultural supplies and raw materials, the interruption of the rationing of food and industrialized products, the end of the distribution of ration tickets and vouchers in place of cash payments and direct exchanges of products.