2004•Unpublished venueRequires access

Shock therapy and Russian economy

Wang Li-zhong

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Abstract

Russia employed the 'shock therapy' to accomplish the transformation from socialist economy to capitalist economy. But this method was not suitable for the national situation of Russia. After the conduct of 'shock therapy', economy in Russia did not develop towards a stable way, but suffered a lot of damages. It is argued that 'shock therapy' disobeyed the rules of economic transformation from planned economy to market economy in a limited period. This paper attempts to discuss the essence of 'shock therapy', the concrete measures it adopted and consequences it brought to Russian economy. It also tries to evaluate the 'shock therapy' taken by Russia and some positive effects that the 'shock therapy' might have on the development of socialist economy.

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What this paper is about

Russia employed the 'shock therapy' to accomplish the transformation from socialist economy to capitalist economy. But this method was not suitable for the national situation of Russia. After the conduct of 'shock therapy', economy in Russia did not develop towards a stable way, but suffered a lot of damages. It is argued that 'shock therapy' disobeyed the rules of economic transformation from planned economy to market economy in a limited period. This paper attempts to discuss the essence of 'shock therapy', the concrete measures it adopted and consequences it brought to Russian economy. It also tries to evaluate the 'shock therapy' taken by Russia and some positive effects that the 'shock therapy' might have on the development of socialist economy.

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Available abstract

Russia employed the 'shock therapy' to accomplish the transformation from socialist economy to capitalist economy. But this method was not suitable for the national situation of Russia. After the conduct of 'shock therapy', economy in Russia did not develop towards a stable way, but suffered a lot of damages. It is argued that 'shock therapy' disobeyed the rules of economic transformation from planned economy to market economy in a limited period. This paper attempts to discuss the essence of 'shock therapy', the concrete measures it adopted and consequences it brought to Russian economy. It also tries to evaluate the 'shock therapy' taken by Russia and some positive effects that the 'shock therapy' might have on the development of socialist economy.

Key concepts: Shock therapy, Shock (circulatory), Russian economy, Socialist market economy, Damages, Socialist economics, National economy, Economics

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