The Balcerowicz Plan (Polish: plan Balcerowicza), also termed “Shock Therapy”, was a method for rapidly transitioning from an economy based on state ownership and central planning, to a capitalist market economy. ... Balcerowicz, the Polish minister and economist Leszek Balcerowicz, the plan was adopted in Poland in 1989.
What did the shock therapy involve?
In economics, shock therapy is the sudden release of price and currency controls (economic liberalization), withdrawal of state subsidies, and immediate trade liberalization within a country, usually also including large-scale privatization of previously public-owned assets.
What is meant of shock therapy?
Shock therapy is an economic theory that says that sudden, dramatic changes in national economic policy can turn a state-controlled economy into a free-market economy. Shock therapy is intended to boost economic production, increase the rate of employment, and improve living conditions .
What is shock therapy and its consequences?
Answer: After the disintegration of the Soviet Union, the model of economic transition in Russia, Central Asia and east Europe which was influenced by the WB and IMF came to be known as ‘shock therapy. Consequences of the Shock Therapy. The shock therapy ruined the economies of Russia and east European countries .
What was known as shock therapy in post communist regimes?
Answer: DEFINITION of ‘Shock Therapy' A sudden and dramatic change in national economic policy that turns a state-controlled economy into a free-market one . Characteristics of shock therapy include the ending of price controls, the privatization of publicly-owned entities and trade liberalization.
What are the four consequences of shock therapy?
- In Russia, the state-controlled industrial sector lost 90% of its industries. ...
- Restructuring of industries took place on a large scale. ...
- The value of Russian currency declined and hence the economy of Russia too declined.
- Privatization divided the society into rich and poor.
What do you mean by shock therapy describe four consequences of shock therapy?
(i) It brought ruin to the economies and disaster upon the people of the entire region . (ii) In Russia, the large state-controlled industrial complex almost collapsed. ... (iii) The value of the ruble- the Russian currency declined. (iv) People lost all their savings due to high rate of inflation.
What does shock therapy do for muscles?
Electric stimulation therapy is a therapeutic treatment that applies electrical stimulation in treating muscle spasms and pain . It can help prevent atrophy and build strength in patients with injuries. It is also helpful in keeping muscles active especially after any type spinal cord injury or strokes.
Which description does not characterize Russia's shock therapy strategy?
All of the following describe Russia's “shock therapy” strategy EXCEPT: [ X] widespread wealth and prosperity . abandonment of government price controls.
Did China do shock therapy?
Teng Fei, 17, was given electro-convulsive therapy (ECT) for internet addiction at a centre in China . ... He was given ECT many more times in the following weeks. “It was really painful – just like a needle piercing through my brain,” he said.
Why did USSR fall?
Gorbachev's decision to allow elections with a multi-party system and create a presidency for the Soviet Union began a slow process of democratization that eventually destabilized Communist control and contributed to the collapse of the Soviet Union.
What is shock therapy 12th?
Answer: Shock Therapy was a painful process of transition from an authoritarian socialist system to a democratic capitalist system . This transformation system was influenced by the world bank and the IMF in Russia, Central Asia and East Europe. ... It systematically destroyed old system of social welfare.
What are the consequences of disintegration of USSR?
- The fall of second world.
- The period marked the end of many communist regimes in response to mass protests.
- End of cold war: End of arms race, end of ideological confrontations.
- Change in power equations: Unipolar world, capitalist ideology, IMF, World Bank etc.
Do they still use electroshock therapy?
ECT is much safer today. Although ECT may still cause some side effects, it now uses electric currents given in a controlled setting to achieve the most benefit with the fewest possible risks.
What was shock therapy was this the best way?
Shock therapy was a process of transition from an authoritative socialist system to a democratic capitalist system after the collapse of communism. The model of transition in Russia, central Asia and East Europe came to be known as shock therapy .
How was shock therapy discovered?
ECT was invented in Italy in the late 1930s . Psychiatrists had already discovered that inducing seizures could relieve symptoms of mental illness. Before ECT, this was done with the use of chemicals, usually one called Metrazol.
