Assertion: Shock therapy was the transition from Socialism to Capitalism.
Reason: Shock therapy was a result of the disintegration of the USSR due to the various flaws in the Soviet System.
Answer & explanation
Correct answer: option 1
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 eastern Europe 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.
Shock therapy was the transition from Socialism to Capitalism. Shock therapy was a result of the disintegration of the USSR due to the various flaws in the Soviet System.