Which one of the following is not considered a consequence of the “Shock Therapy”?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → The old system of social welfare was redesigned to bring prosperity for the poor.
Option (1) The value of ruble declined. A consequence (Incorrect). The ruble declined dramatically and inflation wiped out people’s savings.
Option (2) The withdrawal of government subsidies pushed large sections of the people into poverty. A consequence (Incorrect). The middle classes too were pushed to the periphery of society.
Option (3) Privatisation led to new disparities. A consequence (Incorrect). Valuable industries were sold at throwaway prices, and a mafia came to control many economic activities.
Option (4) The old system of social welfare was redesigned to bring prosperity for the poor. Not a consequence (Correct). The old system of social welfare was systematically destroyed, not redesigned for the poor.
NCERT (2025-26): “Consequences of 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.…” |