Question

The model of transition in Russia, Central Asia, and East Europe that was influenced by the World Bank and the IMF came to be known as:

• A. Current Therapy
• B. Shock Therapy
• C. Fiscal Therapy
• D. Glasnost

Answer 1

The Correct Option is B

The economic transition model in Russia, Central Asia and Eastern Europe influenced by World Bank and IMF was known as Shock Therapy.

Additional Context:

• Implemented in the 1990s after collapse of Soviet Union
• Involved rapid privatization and liberalization
• Led to severe economic difficulties initially
• Different from Gorbachev's Glasnost (openness) policy
• Contrasted with more gradual reform approaches

Correct Answer: (2) Shock Therapy