Practicing Success

Target Exam

CUET

Subject

Political Science

Chapter

Contemporary World Politics: End of Bi-Polarity

Question:

What was the trend in Russia's real GDP in 1999 compared to 1989?

Options:

It showed substantial growth.

It increased significantly.

It decreased, with 1999 being below 1989.

It remained unchanged.

Correct Answer:

It decreased, with 1999 being below 1989.

Explanation:

Russia's real GDP in 1999 was below what it was in 1989, indicating a decline.

As a consequence of the shock therapy, the value of the ruble, the Russian currency, declined dramatically. The rate of inflation was so high that people lost all their savings. The collective farm system disintegrated leaving people without food security, and Russia started to import food. The real GDP of Russia in 1999 was below what it was in 1989. The old trading structure broke down with no alternative in its place. The old system of social welfare was systematically destroyed. The withdrawal of government subsidies pushed large sections of the people into poverty. The middle classes were pushed to the periphery of society, and the academic and intellectual manpower disintegrated or migrated. A mafia emerged in most of these countries and started controlling many economic activities. Privatisation led to new disparities. Post-Soviet states, especially Russia, were divided between rich and poor regions. Unlike the earlier system, there was now great economic inequality between people.