In the 20th century, countries across the world attempted to reach prosperity through government control of economies. Totalitarian regimes implanted central planning of the economy, such as in Russia, whereas Democratic nations, such as Chile, nationalized industries to protect economies from foreign competition. However, by the 21st century as deficits and inflation continued to augment, due to the current economic policies, dramatic global economic reform was inevitable. “The Agony of Reform” recounts the story of how the economies of the Soviet Union, Poland, India, Bolivia, and Chile failed and the turmoil of transitioning into a free-market capitalistic economy.
The Soviet Union was an industrial leader and a military super power controlling every aspect of their economy through communism. Citizens lost freedom, the poor …show more content…
India protected their industries by preventing foreign imports which caused the Indian people to pay high prices for inferior goods and services. India workers lacked incentives, which, in turn, cause a lack in productivity leading to a shortage economy. The collapse of the Soviet was a sign to India of the inevitable failure of a centrally planned economy. India responded by removing bureaucratic red tape and other restrictive policies which promoted self-sufficiency. Incentives increased which increased profitability and productivity.
Bolivia was one of the poorest and most unstable countries in Latin America facing hyperinflation and constant military coups. The government spent 30 times as much as it received in taxes causing massive debt. To solve their economic issues, Bolivia introduced shock therapy, cutting government spending, stopping price controls, cutting import tariffs, and balancing the government budget. Bolivia’s success kick-started the economic reform of the rest Latin American and influenced the Polish
The Soviet Union was an industrial leader and a military super power controlling every aspect of their economy through communism. Citizens lost freedom, the poor …show more content…
India protected their industries by preventing foreign imports which caused the Indian people to pay high prices for inferior goods and services. India workers lacked incentives, which, in turn, cause a lack in productivity leading to a shortage economy. The collapse of the Soviet was a sign to India of the inevitable failure of a centrally planned economy. India responded by removing bureaucratic red tape and other restrictive policies which promoted self-sufficiency. Incentives increased which increased profitability and productivity.
Bolivia was one of the poorest and most unstable countries in Latin America facing hyperinflation and constant military coups. The government spent 30 times as much as it received in taxes causing massive debt. To solve their economic issues, Bolivia introduced shock therapy, cutting government spending, stopping price controls, cutting import tariffs, and balancing the government budget. Bolivia’s success kick-started the economic reform of the rest Latin American and influenced the Polish