Shock therapy, referring to rapid, radical economic transitions from state-controlled to free-market economies, was primarily implemented in Eastern Europe and the former Soviet Union during the 1990s, with pioneering cases in Latin America. Poland led with its 1990 "Balcerowicz Plan," followed by Russia, Czechoslovakia, Estonia, and Latvia.
Poland led the way on January 1, 1990, with the first comprehensive reform program. Czechoslovakia was second, with a comprehensive program that began on January 1, 1991. Exactly one year later, Russia led the former Soviet Union into market reforms. Estonia and Slovenia are other exemplars of shock therapy.
Why did shock therapy work in Poland but not Russia?
By contrast, in Poland were this political motive had been absent, the privatisations had been much less rushed, reckless, and inequitable than in Russia, despite the presence of other 'shock therapy' measures; in the subsequent years, Poland saw a much lower increase in inequality and more economic growth.
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.
Which country benefited with the shock therapy in 1985?
Answer and Explanation: Bolivia used economic shock therapy in 1985 to end hyperinflation. The shock therapy policies Bolivia executed included reduced inflation; however, it resulted in a higher rate of unemployment.
What Was Shock Therapy In Russia? - Learn About Economics
Which country was most affected by the Great Depression?
The timing and severity of the Great Depression varied substantially across countries. The Depression was particularly long and severe in the United States and Europe; it was milder in Japan and much of Latin America.
Russian oligarchs (Russian: олигархи, romanized: oligarkhi) are business oligarchs of the former Soviet republics who rapidly accumulated wealth in the 1990s via the Russian privatisation that followed the dissolution of the Soviet Union.
Poland is rapidly closing the wealth gap with the UK, with its GDP per capita reaching about 81% of the UK's by late 2025, up from 36% in 1995, although the UK remains richer overall. While the UK's nominal GDP per capita is roughly double that of Poland's, Poland's economy has grown significantly faster since 2019, with some Polish regions now wealthier than parts of the UK.
Presently, there are five states which are officially communist in the world: China, Cuba, Laos, North Korea and Vietnam. In accordance with Marx's theory of the state, communists believe all state formations are under the control of a ruling class.
In the 18th century, Poland lost its independence during the three bouts of partitioning (in 1772, 1793, and 1795) and had its territory divided between three neighbouring powers: Russia, Prussia, and Austria. After the last partition Poland disappeared from the map of Europe for 123 years.
Summary. Ugo Cerletti was the inventor of the electroconvulsive therapy (ECT) adopted in 1938 to treat schizophrenia. He had a robust education in anatomical pathology, which also left its mark on the journal Pathologica.
Which currency declined as an aftermath of shock therapy?
Russia's and east European countries' economies were devastated by shock therapy. The ruble, the Russian currency, has lost a lot of value. Because of the high rate of inflation, people lost all of their money.
Why did shock therapy work in Poland but not in Russia?
The core group of Russian reformers was more intent than were the Poles on destruction of the existing system at whatever cost. In Poland, there was much in society that the shock therapists were willing to use as building blocks for reform during this primarily destructive phase. This was not the case in Russia.
Russia revived its economy in 2000 by the export of natural resources like oil natural gas and minerals. Even other countries have also gained due to crossing of pipelines from their region and they have been paid a rent. Russia has started some manufacturing units also to revive its economy.
Sachs was the main architect of Poland's debt reduction operation. He and IMF economist David Lipton advised on the rapid conversion of all property and assets from public to private ownership. Closure of many uncompetitive factories ensued. In Poland, Sachs was firmly on the side of rapid transition to capitalism.
Although Marxist theory suggested that industrial societies were the most suitable places for social revolution (either through peaceful transition or by force of arms), communism was mostly successful in underdeveloped countries with endemic poverty such as the Republic of China.
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.
Russia and the United States are independent countries with economic systems. According to the latest data released by the World Bank, the GDP of the United States in 2019 was $21.44 trillion, while the GDP of Russia was $1.70 trillion, indicating a significant gap between the two countries.
He was formerly Governor of Chukotka Autonomous Okrug from 2000 to 2008. According to Forbes, Abramovich's net worth was US$14.5 billion in 2021, making him the second-richest person in Israel. Since then, his wealth decreased to $6.9 billion (in 2022) before rising again to $9.2 billion in 2023.
