Take Class 12 Tuition from the Best Tutors
Affordable fees 1-1 or Group class Flexible Timings Verified Tutors Search in
9. What was Shock Therapy? Was this the best way to make a transition from communism to capitalism?
Asked by Mohen Last Modified
Answer 
Apoorva Purohit
Shock therapy was a process of transition from an authoritative socialist system to a democratic capitalist system after the collapse of communism. The model of transition in Russia, central Asia and East Europe came to be known as shock therapy.
However, shock therapy wasn’t the best way to transition from communism to capitalism because:
• It was a sudden and immediate change that uprooted the entire existing system and wrecked havoc over the economy of the state.
• In Russia the huge industries controlled by the state almost collapsed and 90 percent of them were put up for sale to private individuals and companies. This was called as ‘the largest garage sale’ in history as the industries were undervalued and sold away at throw away prices.
• The value of Ruble, the Russian currency went down dramatically. Inflation grew uncontrollably leaving the Russian economy in a battered state.
• The collective farming system disintegrated leaving people without food and security.
• The already miserable state of economy was further worsened by privatisation which widened the gap between poor and rich even more.
• The old system of social welfare was destroyed with the defeat of socialism and the withdrawal of government subsidies pushed a lot of people into poverty.
read lessNow ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com
Ask a QuestionRecommended Articles
Meet Sandhya R, a B.Sc tutor from Bangalore
Sandhya is a proactive educationalist. She conducts classes for CBSE, PUC, ICSE, I.B. and IGCSE. Having a 6-year experience in teaching, she connects with her students and provides tutoring as per their understanding. She mentors her students personally and strives them to achieve their goals with ease. Being an enthusiastic...
Read full article >
Meet Swati, a Hindi Tutor from Bangalore
Swati is a renowned Hindi tutor with 7 years of experience in teaching. She conducts classes for various students ranging from class 6- class 12 and also BA students. Having pursued her education at Madras University where she did her Masters in Hindi, Swati knows her way around students. She believes that each student...
Read full article >
Meet Radhe Shyam Burman, an MBA Tutor from...
Radhe Shyam is a highly skilled accounts and finance trainer with 8 years of experience in teaching. Accounting is challenging for many students and that’s where Radhe Shyam’s expertise comes into play. He helps his students not only in understanding the subject but also advises them on how to overcome the fear of accounts...
Read full article >
Meet Urmila, an MBBS tutor from Bangalore
Urmila is a passionate teacher with over 8 years of experience in teaching. She is currently pursuing her Ph. D. She provides classes for Class 11, Class 12, MBBS and Medical tuition. Urmila began her career in teaching long before she became a teacher. She used to provide classes for foreign national students in her college...
Read full article >
Looking for Class 12 Tuition ?
Learn from the Best Tutors on UrbanPro
Are you a Tutor or Training Institute?
Join UrbanPro Today to find students near youThe best tutors for Class 12 Tuition Classes are on UrbanPro
The best Tutors for Class 12 Tuition Classes are on UrbanPro
