How did Lenin's policies address economic challenges in Russia?

Lenin's policies addressed economic challenges in Russia through War Communism and the New Economic Policy (NEP).

During the Russian Civil War (1918-1921), Lenin introduced War Communism to keep the Red Army supplied and the economy functioning. This policy involved the nationalisation of industry, where the state took control of factories and production. Private trade was banned, and the government requisitioned grain from peasants to feed the cities and the army. However, War Communism led to severe economic hardship, including food shortages, a decline in industrial output, and widespread famine.

Recognising the failures of War Communism, Lenin introduced the New Economic Policy (NEP) in 1921. The NEP was a more pragmatic approach, allowing some private enterprise and small-scale private businesses to operate. Peasants were permitted to sell surplus produce on the open market, which incentivised them to grow more food. This policy aimed to revive the economy by boosting agricultural and industrial production.

The NEP successfully stabilised the economy and improved living conditions. Agricultural production increased, and small businesses began to thrive, leading to a more diverse and robust economy. However, it also created some tension within the Communist Party, as it seemed to contradict socialist principles by reintroducing elements of capitalism.

In summary, Lenin's policies initially focused on strict state control through War Communism, but the economic difficulties it caused led to the more flexible and market-oriented New Economic Policy, which helped to stabilise and revitalise the Russian economy.