Describe any four consequences of Shock Therapy.
Most of the Communist countries changed from an authoritarian system to a democratic capitalist system. The process of transition from an authoritarian socialist system to a democratic capitalist system is called Shock Therapy. Following were the main features of Shock Therapy: Each of these countries had to make a total change from a socialist economy to a capitalist economy. Each of these countries had to adopt private ownership as a dominant pattern of ownership of property. All these countries had to privatize all state assets and establish corporate ownership patterns. Collective farming was replaced by capitalist (private) farming.
