Which among the following statements with reference to 'The Shock Therapy' are incorrect?

A. Privatisation led to new disparities. Russia was divided between rich and poor regions
B. The value of the rouble the Russian currency declined
C. Private farming was to be replaced by collective farming
D. The valuable industries were undervalued and sold at throwaway prices
E. The restructuring of the industries was carried out by the Russian Government

Choose the correct answer from the options given below:
1. A and E
2. C and A
3. C and E
4. D, B and C

3

The statement C, "Private farming was to be replaced by collective farming," is incorrect with reference to Shock Therapy in the context of the post-Soviet economic reforms. Shock Therapy was about moving from a planned economy to a market-based economy quickly, which would include privatizing state-owned enterprises, not replacing private farming with collective farming. Collective farming was a feature of the Soviet era, not the post-Soviet economic reforms.  Rather, collective farms were to be replaced by private farming and capitalism in agriculture.

Statement E, "The restructuring of the industries was carried out by the Russian Government," is also incorrect. The idea behind Shock Therapy was to reduce the role of the government in the economy and increase the role of market forces and private ownership. 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

Therefore, the incorrect statements with reference to Shock Therapy are:

C. Private farming was to be replaced by collective farming
E. The restructuring of the industries was carried out by the Russian Government