Foreign News: Switching

In 1921 in Russia, the ducts of the young Soviet economy were all clogged up. Peasants were holding back food; managers of government stores and small factories cared little whether goods moved. Lenin reacted drastically by introducing the NEP (New Economic Policy). It restored a profit appetite to producers .and managers. "Enrich yourselves!" the peasants were told. But politically, Lenin's government remained Communist: after Russia got on its feet, the NEPmen were purged.

Last week Tito's clogged Communist economy moved NEPwards. It decreed that in the so-called free stores,* prices of goods would be determined in an open market by the producers—the...

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