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 was shock therapy in post communist countries?
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 was the shock therapy?
Shock therapy, also called Electroshock Therapy, Electroconvulsive Therapy, or Ect, method of treating certain psychiatric disorders through the use of drugs or electric current to induce shock ; the therapy derived from the notion (later disproved) that epileptic convulsions and schizophrenic symptoms never occurred ...
What is meant by shock therapy access its consequences on the post communist regime?
For consequences of Shock Therapy on the post-communist regimes. The term ‘Shock Therapy' meant the transitional model from being a socialist country to a capitalist country influenced by the World Bank and the IMF . ... It brought ruin to the communist economies and the people of the region.
What was shock therapy and its consequences?
Consequences of the Shock Therapy
The shock therapy ruined the economies of Russia and east European countries . Since restructuring was carried out by market driven forces and not by the government implement policies, there was a disappearance of almost all industries in the region.
What are post communist countries?
Post-communism is the period of political and economic transformation or “transition” in former communist states located in Eastern Europe and parts of Africa and Asia in which new governments aimed to create free market-oriented capitalist economies.
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.
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.
Is electro shock therapy still used today?
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 does ECT do for depression?
How Electroconvulsive Therapy Works. With ECT, an electrical stimulation is delivered to the brain and causes a seizure . For reasons that doctors don't completely understand, this seizure helps relieve the symptoms of depression. ECT does not cause any structural damage to the brain.
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 was shock therapy examine any four consequences of shock therapy?
Describe any four consequences of Shock Therapy. The consequences are: (i) Collective farms were replaced by private farming and capitalism in agriculture . (ii) Privatisation of state assets and corporate ownership patterns were immediately brought in.
Was shock therapy the best way to make a transition from communism to capitalism?
The model of transition in Russia, central Asia and East Europe came to be known as shock therapy. However, shock therapy wasn't the best way to transition from communism to capitalism because: It was a sudden and immediate change that uprooted the entire existing system and wrecked havoc over the economy of the state.
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 are political consequences of Globalisation?
Political Consequences: (i) Globalisation results in an erosion of state capacity . (ii) The old ‘welfare state' is now giving way to a more minimalist state. (iii) In place of the Welfare state, it is the market that becomes the prime determinant of economic and social priorities.
