Practicing Success
Assertion: The model of transition in Russia, Central Asia and East Europe that was influenced by the World Bank and the IMF came to be known as ‘shock therapy’. |
The Assertion is false, but the Reason is true The Assertion is true, but the Reason is false Both the Assertion and the Reason are true, but the Reason is not the correct explanation of the Assertion. Both the Assertion and the Reason are true and the Reason is the correct explanation of the Assertion. |
The Assertion is true, but the Reason is false |
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 east Europe that was influenced by the World Bank and the IMF 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. Each of these countries was required to make a total shift to a capitalist economy, which meant rooting out completely any structures evolved during the Soviet period. |