The failure of the Soviet Union made many of its constituent countries abandon Communism and follow democratic ways. Russia, Asian countries, Easer European countries etc were attracted towards organizations like the World Bank and IMF.
- The main purpose was to make communist countries follow the capitalist model.
- Private capital would be very important.
- Cooperative farming will give way to private farming.
- Foreign investment, open market system and currency exchange would be possible,
- The countries of the erstwhile Soviet Union will have the facility to have contact with Western countries and trade with them.
- Using all these, the Western countries made the member countries of the erstwhile Soviet Union come closer to them.
Results:
- Many big industries under government control collapsed.
- 90% industries were sold to individuals or private companies.
- The Russian Currency Rouble was devalued.
- Because of inflation people lost the value of their savings.
- In Cooperative farming, people had food security. But now it was not there. Russia had to import food grains.
- In Russia,the GDP in 1999 was less than that of 1989.
- The social welfare schemes were abandoned.
- As subsidies were withdrawn, many people experienced poverty.
- Educational and intellectual human resources were scattered and many people emigrated
- Privatization made economic inequality among people.
