question_answer

Assess any two consequences of shock therapy.

Answer:

Two consequences of shock therapy are:

(i) Economic set-up after disintegration in Russia, 90% of the state controlled industrial complex were put up for sale for private individuals and companies. Thus, this led to the virtual disappearance of all state controlled industries.

(ii) The value of Rouble, the Russian currency declined very rapidly. The GDP of Russia in 1999 was below what it was in 1989. People lost all their savings due to high rate of inflation.