Question

Which among the following statements with reference to the Shock Therapy are incorrect?

• A. A and E
• B. C and A
• C. C and E
• D. D and C

Hint:

Shock therapy refers to rapid economic reforms, often leading to instability, inequality, and a loss of social safety nets, especially when privatization and liberalization are implemented too quickly.

Answer 1

The Correct Option is C

The statements C and E are incorrect. Shock therapy in Russia involved rapid privatization, and there was no move to replace private farming with collective farming. Additionally, the restructuring process was not carried out solely by the Russian government but also involved external advice and assistance from international organizations like the IMF and World Bank. The shock therapy resulted in significant social and economic disparities.