The major consequences of ‘Shock Therapy’ in the
post-Communist regimes were:
a. In Russia, the Industrial complex which was built on a large scale and was owned by the state government had almost collapsed.
b. Approximately 90% of the industries were put up for sale to private individuals and companies at a very low price.
c. It was called the largest garage sale in the history of the world.
d. The value of the ruble declined.
e. The inflation rate increased so high that people had lost their savings.
f. The collective farm system disintegrated.
g. The Russian old system of social welfare was destroyed.
h. The government subsidies were withdrawn which pushed many people into poverty.
i. Many countries were now divided into rich and poor sections which lead to an increase in economic inequality.
The two features of India’s policy of non-alignment are:
1. India’s policy of nonalignment enabled the newly recognized countries to frame their independent foreign policy.
2. It allowed India to express its independent viewpoint in the international forums.
3. There was no compulsion to join any military block such as NATO and Warsaw Pact.
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