The transition from socialist to a democratic system in Russia, Central Asia and east Europe after the IMF and the World Bank’s intervention involved –
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → The breaking up of the existing trade alliance among countries of the Soviet bloc and linking them directly to the West
Option (1) Stressing on adopting a “third way” — Incorrect. The transition, known as shock therapy, ruled out any alternate or ‘third way’ other than state-controlled socialism or capitalism.
Option (2) The breaking up of the existing trade alliance among countries of the Soviet bloc and linking them directly to the West — Correct. Each state of the bloc was now linked directly to the West and not to each other, to be absorbed gradually into the Western economic system.
Option (3) Growth of Fabianism in Eastern Europe — Incorrect. Fabianism is the idea of moving towards socialism slowly, through gradual reforms. Shock therapy was the very opposite: each country was required to make a sudden and total shift to a capitalist economy.
Option (4) Private farming was to be replaced by collective farms. Incorrect. It was the other way round: collective farms were to be replaced by private farming and capitalism in agriculture.
Note: The concept in Option (3), ‘Fabianism’, is not in NCERT (2025-26); it is explained here for the benefit of the students.
NCERT (2025-26): “Shock Therapy in Post-Communist Regimes … 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. Above all, it meant that private ownership was to be the dominant pattern of ownership of property. Privatisation of state assets and corporate ownership patterns were to be immediately brought in. Collective farms were to be replaced by private farming and capitalism in agriculture. This transition ruled out any alternate or ‘third way’, other than state-controlled socialism or capitalism. Shock Therapy in Post-Communist Regimes … Finally, the transition also involved a br eak up of the existing trade alliances among the countries of the Soviet bloc. Each state from this bloc was now linked directly to the West and not to each other in the region.…” |