Consider the following statements about the lsquo shock therapy rsquo 1 It was the painful process o...........

Indian Polity NCERT

Consider the following statements about the ‘shock therapy’.

1. It was the painful process of transition from an authoritarian socialist system to a democratic capitalist system

2. It varied in intensity and speed amongst the former second world countries with direction and features were completely different

Which of these statements are correct?

1 only

2 only

Both of them

Neither of them

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Explanation:

The collapse of communism was followed in most of these countries by a painful process of transition from an authoritarian socialist system to a democratic capitalist system. 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 ‘shock therapy’. Shock therapy varied in intensity and speed amongst the former second world countries, but its direction and features were quite similar.