question_answer

'The Transition from Communism to Capitalism in Pre-Soviet Republics was not a smooth one.? Explain the statement.

Or

'Non-alignment was a strategy evolved in the Cold War context.' With the disintegration of the USSR has it lost its relevance? Highlight any two suitable arguments in support of your answer.

 

Answer:

Under the Shock Therapy these countries were required to make a total transition from communism to capitalism. It required rooting out of all structures evolved during the Soviet period. Private ownership of property became the dominant pattern of economy. It called for privatization of state assets. Collective farming was to be replaced by private farming and agriculture was to be set on capitalist lines. This shift involved either state-controlled socialism or capitalism and ruled out any other or third way of transition.

?Shock Therapy? also clarified changes in external arenas of these countries. Development now required more trade which was possible only through the evolution of free trade. Foreign direct investment (FDI) and Free Trade Regime were to be twin engines of change. It necessitated deregulation, opening doors to foreign investment and currency convertibility.

The ?Shock Therapy? however, did not yield the desired results. Its effects were as follows:-

(a) The economies of these countries including that of Russia were ruined. In Russia, the state-controlled industrial complex collapsed when 90% of its industries were sold to private entrepreneurs.

(b) As the restructuring was implemented by market forces instead of Govt., it led to gradual disappearance of entire industries. It was the ?largest garbage sale in industry? as industries were undervalued and sold at throw away prices.

(c) The value of Russian currency, rouble declined considerably, people lost their savings due to inflation. The collective farming collapsed leaving people starving for food.

(d) The old trading structure collapsed and GDP of Russia went down. Russia had to import food as the food security disintegrated.

(e) The traditional system of Social Security and welfare of all came to an end. Withdrawal of Govt. security made large sections of society? poor.

(f) ?Shock Therapy? made about half of Russia, 1500 banks and financial institutions bankrupt. Due to it the money of about 10000 corporate and private shareholders was lost.

Or

Here, we should have to make a heading i.e. END OF COLD WAR: IS NAM RELEVANT NOW?

NAM evolved as a strategy during the cold war period. Thus, with the end of cold war and the disintegration of Soviet - Union in 1991, NAM (Non-Aligned Movement) as a principle of India?s foreign policy and as a global movement became irrelevant. However, this is not true. NAM contained certain core ideas and enduring values. It was premised on the contention that it was a movement of decolonized states who shared a historical affinity- and aimed to integrate their force collectively as a single entity at the international level.

What is meant was that, small, poor and less developed states had no need to follow big power hegemony. They could continue with an independent foreign policy. It was based on the idea to democratize the global system by creating a new world order based on fairness and equality. These core issues remain relevant after, the end of cold war and therefore, NAM is still a relevant activity.