question_answer

Describe any four consequences of Shock Therapy.

Answer:

Pour consequences of Shock Therapy arc -

(i) In Russia, the large stare-controlled industrial complex almost collapsed, as about 90 per cent of its industries were put up for sale to private individuals and companies.

(ii) All citizens were given vouchers to participate in the sales; most citizens sold their vouchers in the black market because they needed the money.

(iii) The value of the Ruble, the Russian currency, declined dramatically. The rate of inflation was too high.

(iv) The old system of social welfare was systematically destroyed. The withdrawal of government subsidies pushed large sections of the people into poverty.