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  Unit Two: Overview | Poland & Bolivia | Shock Therapy & Economic Indicators | Russia

  "Shock Therapy" in Latin America and Eastern Europe


  Students will use materials from Commanding Heights Online to understand how the tools of the modern world economy have been used in attempts to strengthen developing economies in crisis. They will explore the reasons why economies fail, what approaches have been tried to reverse economic downturns, and the ways in which these approaches have succeeded and failed. They will be challenged to understand why measures that succeed in one place fail in others. They will consider perspectives on these phenomena offered by various political leaders and economic policy makers and be encouraged to draw their own conclusions.

  Objectives for this Unit

  By the end of this Unit, students will be able to:
  • Identify the conditions and events that can trigger a severe economic downturn;
  • Describe four approaches available to policy makers to address sagging economies swiftly;
  • Identify some of the complex factors contributing to the success or failure of "shock therapy" economic reform;
  • Explain why lessons garnered from one context might or might not be applicable to another;
  • Articulate the tradeoffs between the benefits and costs of opening up domestic markets to the global economy;
  • Discuss the limitations of standard economic indicators as clear measures of policy outcomes.

  Unit Two: Overview | Poland & Bolivia | Shock Therapy & Economic Indicators | Russia

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