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


  Exercise: "Shock Therapy" in Poland and Bolivia


  Reading/Viewing Assignment

  Have students view Commanding Heights Episode Two: Chapters 10 - 13.

Also have students read:

Ask students to pay special attention to the causes and proposed solutions to crises in Bolivia, Poland and Russia.

Alert students to the existence of the Chapter Transcripts, the Country Reports for all three countries that are available on the site, and to the site Search engine as additional resources they can use to complete the unit.



  The Roots of Crisis and Response

 

Search the resources of Commanding Heights Online and identify the dominant economic policy in force in Bolivia and in Poland prior to reform. Note also the year that reforms were undertaken, and determine the inflation rate at the onset of the crisis.

Use the table below to organize your findings.

CountryDominant Policy or System
Prior to Reform
Year of Reform
(hint: when did policy change?)
Inflation Rate
The Year Before Reform
Poland   
Bolivia   


  Questions for Reflection and Debate

 
  1. Based on information available on the site, what were the main economic problems common to Bolivia and Poland as they approached their respective crises?


  2. What were the key components of "shock therapy" as applied in Bolivia and Poland, and what were reforms designed to acheive?


  Answer key

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


 
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