Consequences of Shock Therapy

Soviet System

The Union of Soviet Socialist Republics (USSR) was formed after Russia’s Socialist Revolution in 1917. This revolution aimed for a fair society without big differences between rich and poor. After World War II, the Soviet Union controlled some countries in Eastern Europe. The Soviet economy grew fast, but life was tough for people because the government had a lot of control. The Soviet Union tried to keep up with the US in making weapons, but it cost a lot of money....

Gorbachev and the Disintegration of the USSR

In 1985, Mikhail Gorbachev became the leader of the Communist Party in the Soviet Union. He introduced economic and political reform policies of perestroika (restructuring) and glasnost (openness). But later his policies were criticised. In 1991, some hardliners in the Communist Party tried to take over, but people wanted freedom. Russia, Ukraine, and Belarus said in 1991 that the Soviet Union was over. They chose capitalism and democracy instead....

Reasons for the Soviet Union Disintegration

There were many reasons why the Soviet Union ended:...

Consequences of Disintegration

Some of the Consequences of Disintegration were:...

Shock Therapy in Post-Communist Regimes

After communism ended, many countries had to switch to democracy and capitalism quickly. This was called Shock Therapy. Shock Therapy meant big changes like selling state-owned things and opening up to other countries for trade. But Shock Therapy hurt a lot of people. Currency lost value, prices went up, and many lost their jobs. It also involved a break up of the existing trade alliances among the countries of the Soviet bloc....

Consequences of Shock Therapy

The shock therapy brought ruin to the economies and disaster upon the people of the entire region. The value of the Russian currency ‘Ruble’ declined dramatically. People lost all their savings due to high rate of inflation. The government withdrew subsidies which pushed large sections of the people into poverty. The middle classes were pushed to the periphery of society. The construction of democratic institutions was not given the same attention and priority as the demands of economic transformation. Most of these economies, especially Russia, started reviving in 2000, 10 years after their independence. The reason for the revival was the export of natural resources like oil, natural gas and minerals....

Tensions and Conflicts in Former Soviet Republics

There were tensions and conflicts in most of the former Soviet republics and many have had civil wars and insurgencies. In Russia, two republics, Chechnya and Dagestan have had violent secessionist movements. Tajikistan witnessed a civil war for almost 10 years till 2001. The region had many sectarian conflicts. Central Asia too become a zone of competition between outside powers and oil companies. Czechoslovakia was divided into two, the Czechs and the Slovaks thus forming independent countries. Yugoslavia broke apart with several provinces like Croatia, Slovenia and Bosnia and Herzegovina declaring independence....

India and Post-Communist Countries

India maintained a cordial relationship with all the post-communist countries. The strongest relation of India is still with Russia. Indo-Russian relation is an important aspect of India’s foreign policy. Both the countries share a vision of a multipolar world order. India got benefits from Russia over issues like Kashmir, energy supplies, access to Central Asia, balancing its relations with China. Russia stands to benefit from this relationship because India is the second largest arms market for Russia. Both the countries have collaborated over many scientific projects....

Political Science Chapter 1: The End of Bipolarity – Important Facts

Some Important & Interesting Facts from the Chapter 1 – The End of Bipolarity includes:...

Political Science Chapter 1: The End of Bipolarity – Important Terms

Soviet System: Soviet system was introduced after Russian Revolution in 1917 based on the principles of egalitarian society and planned economy controlled by the state. Socialist Bloc: The east European countries were known as Socialist Bloc because these countries were liberated from the fascist forces and their political and economic systems were based on this bloc only. Capitalist Economy: In this economy, land and productive assets are owned and controlled by the Capitalists. Unipolar System: Affairs at international level are dominated by only one superpower. Multipolar System: Affairs at international level can not be dominated by one superpower only, instead group of countries play an important role. Egalitarian Society: It believes that all people are equally important and should have the same rights and opportunities in life. Largest Garage Sale: It was resulted due to Shock Therapy to undervalue the valuable industries of USSR to sell them at throwaway prices. Shock Therapy: The model of transition from authoritarian socialist system to a democratic capitalist system in Russia, Central Asia and East Europe under the influence of the World Bank and IMF....

Political Science Chapter 1: The End of Bipolarity – Timeline

Date Event March 1985 Mikhail Gorbachev elected as General Secretary of the Communist Party of the Soviet Union; appoints Boris Yeltsin as head of the Communist Party in Moscow; initiates a series of reforms in the Soviet Union. 1988 Independence movement begins in Lithuania; later spreads to Estonia and Latvia. October 1989 Soviet Union declares that Warsaw Pact members are free to decide their own future; Berlin Wall falls in November. February 1990 Gorbachev strips the Soviet Communist Party of its 72-year-long monopoly on power by calling on the Soviet Parliament (Duma) to permit multiparty politics. March 1990 Lithuania becomes the first of the 15 Soviet republics to declare its independence. June 1990 Russian parliament declares its independence from the Soviet Union. June 1991 Yeltsin, no longer in the Communist Party, becomes the President of Russia. August 1991 Communist Party hardliners stage an abortive coup against Gorbachev. September 1991 Three Baltic republics of Estonia, Latvia, and Lithuania become UN members (Later join NATO in March 2004). December 1991 Russia, Belarus, and Ukraine decide to annul the 1992 Treaty on the creation of the USSR and establish the Commonwealth of Independent States (CIS); Armenia, Azerbaijan, Moldova, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan join the CIS (Georgia joined later in 1993); Russia takes over the USSR seat in the United Nations. 25 December 1991 Gorbachev resigns as the President of the Soviet Union; the end of the Soviet Union....

Chapter 1 The End of Bipolarity- FAQs

What was the end of two polarity?...