Equations or formulae were not provided in the text. Examples and their solutions were also not included in the summary.
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Shock therapy was a model of transition from authoritarian socialism to democratic capitalism, followed by Russia, Central Asia, and Eastern Europe.
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It required total shift to capitalism, involving privatization of state assets, corporate ownership patterns, and collective farms. This transition ruled out any alternate systems.
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Shock therapy involved drastic change in external orientation of these economies, including sudden and complete switch to free trade, openness to foreign investment, financial deregulation, and currency convertibility.
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It led to break up of existing trade alliances among countries of the Soviet bloc, leading to direct linkages with the West and gradual absorption into the Western economic system.
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Western capitalist states became leaders, guiding and controlling the development of the region through various agencies and organizations.
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Many former Soviet Republics, particularly in Central Asia and the Caucasus, have experienced conflicts, civil wars, and insurgencies, often complicated by the involvement of outside powers.
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Examples include Chechnya and Dagestan in Russia, Tajikistan, Azerbaijan’s Nagorno-Karabakh province, and Georgia, all of which have had secessionist movements or civil wars.
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The Central Asian Republics, rich in hydrocarbon resources, have seen competition from oil companies and great powers, including Russia, China, and the US, particularly after 9/11.
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The Balkan republics, particularly Yugoslavia, experienced severe conflicts, including ethnic massacres and the NATO intervention, following the breakup of Yugoslavia and declarations of independence by several provinces.
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The conflicts and instability in these regions have significantly impacted the lives of ordinary citizens, making life difficult for them.