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Was Shock Therapy Consistent with Democracy?
- Source :
-
Review of Social Economy . Jun2004, Vol. 62 Issue 2, p221-243. 23p. - Publication Year :
- 2004
-
Abstract
- The transition process in Russia and Eastern Europe was dominated in the literature and in policy making by the shock therapy process. However, shock therapy was short-lived. Governments that implemented shock therapy were not able to sustain the reform program since they lost power after the first term as a result of unfavourable electoral results. The new governments implemented gradualism. While after the first term shock therapy governments were substituted by gradualists, a government in favour of shock therapy never substitute any gradualist governments. The aim of the paper is to demonstrate that shock therapy was inconsistent with a democratic process of decision-making. Actually shock therapy was only consistent with a pluralistic political structure in the tradition of Hayek, Buchanan and Friedman. Foreign aid was inadequate to ensure the continuation of the shock therapy reforms within a democratic environment. [ABSTRACT FROM AUTHOR]
Details
- Language :
- English
- ISSN :
- 00346764
- Volume :
- 62
- Issue :
- 2
- Database :
- Academic Search Index
- Journal :
- Review of Social Economy
- Publication Type :
- Academic Journal
- Accession number :
- 13396358
- Full Text :
- https://doi.org/10.1080/00346760410001684451