Why did Shock Therapy fail so badly?

Question

Why did shock therapy fail during perestroika? Has shock therapy ever worked in other situations?

Was it responsible for the creation of the nomenclature and oligarchs?

Are there any authors who have written extensively about the economic changes during this period?

Can you describe the parameters of the "failure"? Right now the language in this question is much more subjective than I generally like to see. — T.E.D., Commented May 15, 2018 at 19:17
Perhaps you should explain what you mean by "shock therapy". The commonest usage is as shorthand for e.g. electroconvulsive therapy en.wikipedia.org/wiki/Electroconvulsive_therapy which doesn't seem relevant. — jamesqf, Commented May 16, 2018 at 3:48
Consider looking at The Shock Doctrine: The Rise of Disaster Capitalism. — user18968, Commented May 16, 2018 at 16:40

Gangnus · Accepted Answer · 2018-05-15 20:48:54Z

1

There were no goods in shop in Dec 91. And there were many different kinds in Feb 92. It worked. THAT was a target and it was reached. Quickly.
Nomenclature is a party term and existed practically before the revolution of 1917. It meant important party members. Later it meant party members that were sometimes on important positions. As party was not a ruler anymore in 1992, it ceased to be, not appeared.
Billionaires appeared before 1992. Only they did not expose themselves. To become oligarchs, they had to get power. It is the common definition of oligarchs - one of few who has power. Yes, in Russia that group consisted mostly of billionaires, but it was later.

Why the whole period of reforms failed? As usually in Russia, reforms came too late.

answered May 15, 2018 at 20:48

Gangnus

7,27525 silver badges41 bronze badges

Correct me if I'm wrong, but from what I know, the Nomenkatura from the Soviet Era were the ones who benefited most economically from the privatization in Russia. I think most millionaires in Russia were on the list and a large amount of business owners were on it as well.
– An Individual
Commented May 15, 2018 at 20:51
1

@AnIndividual It was even worse. During 1985-86 Gorbi and his team struggled utterly against all remaining practicing capitalists in USSR. At the end of this time they (almost) all were in prisons. So, the party nomenclature blocked the possible competition. They(reform nomenclature) really wanted to get all resources of USSR to themselves. But really, they did not managed to do that. Too stupid. People from KGB and Komsomol overtaken practically everything. Yes, nomenclature, but from lower branches.
– Gangnus
Commented May 15, 2018 at 21:01
@AnIndividual And that mass stealing of really everything happened later - after the conflict between parliament and president in 93 was finished.
– Gangnus
Commented May 15, 2018 at 21:08

Add a comment |

1 Answer 1