Practicing Success
The collapse of the second world of the Soviet Union and the socialist systems in eastern Europe had profound consequences for world politics. Three broad kinds of enduring changes that resulted from it. Each of these had a number of effects. The collapse of communism was followed in most of these countries by a painful process of transition from an authoritarian socialist system to a democratic capitalist system. The model of transition in Russia, Central Asia and east Europe that was influenced by the World Bank and the IMF came to be known as ‘shock therapy’. Shock therapy varied in intensity and speed amongst the former second world countries, but its direction and features were quite similar. |
What role did the World Bank and International Monetary Fund play in the post-Soviet era? |
They supported socialist ideologies. They had no influence on international economics. They became powerful advisors for countries transitioning to capitalism. They promoted authoritarian political systems. |
They became powerful advisors for countries transitioning to capitalism. |
The World Bank and International Monetary Fund played a significant role by providing loans and advising countries on their transitions to capitalism in the post-Soviet era. Consequences of the disintegration of the USSR: |