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.

'The free trade regime and FDI were to be the main engines of change.' Expand FDI.

Foreign Direct Investment

'The free trade regime and FDI (Foreign Direct Investment) were to be the main engines of change.'