Jeffrey Sachs Explains Why He Thinks ‘Shock Therapy’ Was So Harsh in Russia: Planet Money : NPR

Anatoly Sapronenkov/AFP via Getty Images

Anatoly Sapronenkov/AFP via Getty Images

In the early 1990s, Russia’s new democratic government wanted to overhaul the country. They wanted to build a new system marked by freedom, democracy and a vibrant market economy. But after the collapse of the Soviet Union, Russia faced an economic crisis and the huge challenge of making the leap from communism to capitalism. This is one of the reasons why they sought help from American economist Jeffrey Sachs.

Sachs came up with a strategy that became known as “shock therapy.” While his strategy seemed to work in Poland two years ago, reforms in Russia didn’t go as planned. Almost immediately, people began to blame “shock therapy” for Russia’s botched transition. But Sachs says what happened in Russia wasn’t his strategy at all. Today, he joins the show to tell us his story. We get his thoughts on what went so horribly wrong.

This episode was produced by Willa Rubin and designed by Gilly Moon. Edited by Jess Jiang.

music: “Arpeggios and piano beats“”Meander” and”Concentric circles“

Find us: twitter / Facebook / Instagram / Tik Tok

Subscribe to our show Apple Podcasts, Spotify; and NPR One.

Want to read economic stories from the comfort of your own home? Subscribe to Planet Money’s weekly newsletter.