Question

Read the following passage and answer accordingly.

Economist Jeffrey Sachs is widely associated with shock therapy. He developed a plan of shock therapy for post-communist Poland in 1990, for post-communist Russia in 1992, and several other countries, including Bolivia and Chile. 

Bolivia, in particular, in 1985, had success as a result of shock therapy in ending a period of hyperinflation.

Poland also initially seemed to benefit from shock therapy as inflation was controlled, but it saw a sharp rise in unemployment that peaked at 16.9%. 

Sachs did not like the term shock therapy, which he said was coined by the media and made the reform process sound more painful than it was.

In Russia, neo-liberal shock therapy did not produce favourable outcomes. Shock therapy was applied swiftly and in large scale, as opposed to how it was applied to other nations. 

Almost all of Russia’s industries were undervalued and sold to private individuals and companies, with most acquired by a few Russian oligarchs.

With limited government intervention, most industries disappeared. The Russian currency declined, causing high inflation and the erosion of most citizens’ savings. Unemployment increased drastically, and government subsidies were removed, further pushing Russian families into poverty.

Who developed the plan of the Shock therapy for the post-communist Poland?

विकल्प

• Mikhail Gorbachev

• Jeffery Sachs

• Both of them

• None of them

Answer 1

Jeffery Sachs