Question

What is shock therapy?.​

Answer 1

Shock therapy -

• with the Disintergration of soviet union , the former soviet Republics which had emerged as sovereign independent states and the east European states which were earlier the part of the Soviet Bloc had changed from Authoritarian socialistic system to democratic capitalistic system which was a new experience for these states.
• Under this new system , these countries had to completely change their system into capitalistic system for which there was need to built new institutions by demolishing old institutions.
• The public sector was to be changed into private sector. Collective farming was to be changed into private farming and the agriculture sector was to be completely overhauled without which no alternative was left with them