By spring 1921 Lenin and the Bolsheviks had won the civil war, but they ruled a shattered and devastated land. Facing economic disintegration, the worst famine in generations, riots by peasants and workers, and an open rebellion by previously pro-Bolshevik sailors at Kronstadt, Lenin changed course. In March 1921 he announced the New Economic Policy (NEP), which re-established limited economic freedom in an attempt to rebuild agriculture and industry. Peasant producers could sell their surpluses in free markets, as could private traders and small handicraft manufacturers. Heavy industry, railroads, and banks, however, remained wholly nationalized.

The NEP was successful both politically and economically. Politically, it was a necessary but temporary compromise with the Soviet Union’s overwhelming peasant majority. Economically, the NEP brought rapid recovery. In 1926 industrial output surpassed prewar levels, and peasants were producing almost as much grain as before the war.

As the economy recovered, an intense power struggle began in the Communist Party’s inner circles, for Lenin left no chosen successor when he died in 1924. The principal contenders were Stalin and Leon Trotsky. While Trotsky appeared to be the stronger of the two, in the end Stalin won because he gained the party’s support, the only genuine source of power in the one-party state.

Stalin gradually achieved absolute power between 1922 and 1927. He used the moderates to crush Trotsky and then turned against the moderates and destroyed them as well. Stalin’s final triumph came at the party congress of December 1927, which condemned all deviation from the general party line as formulated by Stalin.