‘Shock therapy’ in the post-Communist Regime context meant:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → The model of transition in Russia, Central Asia, and Eastern Europe, which was influenced by the World Bank and the IMF.
Option (1) The model of transition in Russia, Central Asia, and Eastern Europe, which was influenced by the World Bank and the IMF. — Correct. The painful transition from an authoritarian socialist system to a democratic capitalist system in Russia, Central Asia and east Europe, influenced by the World Bank and the IMF, came to be known as ‘shock therapy’.
Option (2) The economic crisis experienced by the USSR during Second World War — Incorrect. Shock therapy came after the collapse of communism in 1991, not during the Second World War.
Option (3) The nationalisation of state assets by Soviet Union. — Incorrect. It was the reverse: shock therapy meant large-scale privatisation of state assets and a total shift to a capitalist economy.
Option (4) The alliance building among the countries of the Soviet bloc for nuclear armament. — Incorrect. Shock therapy broke up the existing trade alliances among the countries of the Soviet bloc and linked each of them directly to the West.
NCERT (2025-26): “Shock Therapy in Post-Communist Regimes … 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.” |