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1. Which among the following statements that describe the nature of Soviet economy is wrong?
(a) Socialism was the dominant ideology.
(b) State ownership/control existed over the factors of production.
(c) People enjoyed economic freedom.
(d) Every aspect of the economy was planned and contained by the state.
Answer: (c) People enjoyed economic freedom.
2. Arrange the following in chronological order:
(a) Soviet invasion of Afghanistan
(b) Fall of the Berlin Wall
(c) Disintegration of Soviet Union
(d) Russian Revolution
Answer: I. (d) Russian Revolution (1917)
II. (a) Soviet invasion of Afghanistan (1979)
III. (b) Fall of the Berlin Wall (Nov 1989)
IV. (c) Disintegration of Soviet Union
3. Which among the following is NOT an outcome of the disintegration of the USSR?
(a) End of the ideological war between the US and USSR
(b) Birth of CIS
(c) Change in the balance of power in the world order
(d) Crises in the Middle East
Answer: (d) Crises in the Middle East
4. Match the following
Answer: (i)-(c);
(ii)-(d);
(iii)-(a);
(iv)-(e);
(v)-(b)
5. Fill in the blanks:
(a) The Soviet Political System was based on ideology.
(b) was the military alliance started by the USSR.
(c) party dominated the Soviet Union’s political system.
(d) initiated the reforms in the USSR in 1985.
(e) The fall of the symbolized the end of the Cold War.
Answer: (a) socialist
(b) Warsaw Pact
(c) Communist
(d) Gorbachev
(e) Berlin wall
6. Mention any three features that distinguish the Soviet economy from that of capitalist country like the US.
Answer: The three features that distinguish the Soviet economy from that of a capitalist country like the US, can be summed up as follows:
1. Soviet economy experienced a complex communication network, vast energy resources, and an efficient transport sector to connect its remotest areas.
2. Soviet Union industries produced every domestic product from pin to cars, whose quality might not match with that of the west technology.
3. the Soviet Union ensured a minimum standard of living for all its citizens.Consequently the Government-subsidised necessities including health, education, children, and other welfare schemes.
4. There was an absence of unemployment in the Soviet Union.
5. Land and productive assets were owned by the state only.
7. What were the factors that forced Gorbachev to initiate the reforms in the USSR?
Answer: Mikhail Gorbachev was the General Secretary of the Communist Party of the Soviet Union in 1985. He was forced to initiate the reforms in the USSR due to following reasons:
1. To keep the USSR abreast of information and technological revolutions at par with the West.
2. To normalize the relations with that of the West.
3. To democratize the Soviet System.
4. To loosen the administrative system which exempted ordinary people from the privileges.
8. What were the major consequences of the disintegration of the Soviet Union for countries like India?
Answer: The major consequences of the disintegration of the Soviet Union for countries like India can be analyzed as follows:
1. Disintegration of the Soviet Union gave an end to Cold War confrontations and ideological disputes between two superpowers.
2. Military alliances had been abolished and demand arose for world peace and security.
3. Multipolar system was surpassed to exist where no single power could dominate and a group of countries could play a crucial role in world politics like NAM Countries.
4. The US became the sole superpower and the capitalist economy became dominant at the international level. World Bank and IMF became powerful advisors due to their economic support to these countries during the transitional period.
5. The motion of liberal democracy emerged as a way to organize political life.
6. Due to the disintegration of the Soviet Union many new countries emerged with independent aspirations and choices.
7. The Baltic and East European states wanted to join European Union and became part of NATO. The Central Asian countries took the advantage of their geographical location and continued close ties with Russia, the West, China, and others.
9. What was Shock Therapy? Was this the best way to make a transition from communism to capitalism?
Answer: Shock Therapy was a painful process of transition from an authoritarian socialist system to a democratic capitalist system. This transformation system was influenced by the world bank and the IMF in Russia, Central Asia, and East Europe. Though it varies in intensity and speed amongst the former second world countries but its direction and features were quite similar. This was not the best way to make a transition from communism to capitalism due to the following drawbacks:
1. Russia, the large state-controlled industrial complex lost about 90 percent of its industries through sales to private individuals and companies
2. It created “the largest garage sale in history” which led virtual disappearance of entire industries for the restructuring was carried out by market forces in place of government-owned policies. Hence, industries were undervalued and sold at throwaway prices.
3. It systematically destroyed the old system of social welfare.
4. The value of ‘ruble’, the Russian currency, declined dramatically due to the high rate of inflation and the real GDP of Russia also declined between 1989 to 1999.
5. The withdrawal of government subsidies pushed large sections of society into poverty and it emerged mafia to start controlling many economic activities.
6. Privatisation led to new disparities which divided Russia between rich and poor people creating economic inequality.
7. Hence, Shock Therapy brought ruin to economies and disaster upon the people of the entire region.
10. Write an essay for or against the following proposition. “With the disintegration of the second world, India should change its foreign policy and focus more on friendship with the US rather than with traditional friends like Russia”.
Answer: India should not change its foreign policy and focus more on friendship with the US, but India is required to maintain healthy relations with Russia because India has experienced a long band of mutual trust, interest, and popular perceptions with Russia in the following manner:
1. Russia and India share a vision of multipolar world order i.e. coexistence of several world powers internationally, collective security, greater regionalism democratization with the decision-making through bodies like the UN.
2. More than 80 bilateral agreements have been experienced between India and Russia as a part of the Indo- Russia Strategic Agreement of 2001.
3. India has been benefitted from its relationship on the issues like Kashmir, energy supplies, sharing information on international terrorism, access to Central Asia, and balancing its relation with China.
4. Russia is also important for India’s nuclear energy plane and assisting India’s space industry by giving cryogenic rockets to India whenever needed.
5. Co-operation with Russia and its republics like Kazakhstan, Turkmenistan in the form of partnership and investment in oil fields has also benefitted India.
6. Russia is also benefitted from India on the ground of the second largest arms market for Russia. Indian military gets most of its hardware from Russia.
7. Russia and India have collaborated on various scientific projects also.
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