Question

Can Shock Therapy be called the best way to make transition from authoritarian socialist system to liberal capitalist system after the disintegration of Soviet Union? Explain.

Answer 1

Yes, there was no better way to shift from authoritarian socialism to liberal capitalism after the breakup of the Soviet Union. The transition concept was implemented in Russia, Central Asia, and Eastern Europe, where a complete move to a capitalist economy occurred. It also meant that private ownership would be the predominant mode of property ownership. Privatisation of public assets and changes in corporate ownership patterns were to be implemented immediately. Collective farms would be supplanted by private farming and capitalism in agriculture.