Shock therapy led to decline in Russian currency and created huge division in society as it was a failure for Russia and created crisis situation.
The shock therapy administered in the 1990s did not lead the people into the promised utopia of mass consumption. Generally, it brought ruin to the economies and disaster upon the people of the entire region. In Russia, the large state-controlled industrial complex almost collapsed, as about 90 per cent of its industries were put up for sale to private individuals and companies. Since the restructuring was carried out through market forces and not by government-directed industrial policies, it led to the virtual disappearance of entire industries. This was called ‘the largest garage sale in history’, as valuable industries were undervalued and sold at throwaway prices. Though all citizens were given vouchers to participate in the sales, most citizens sold their vouchers in the black market because they needed the money. |
