In view of the serious internal and external troubles in the country, Gorbachev had no choice but to announce the early holding of the 28th National Congress of the Communist Party of the Soviet Union and the first direct election activities of the Soviet Union. At the same time, the election of the people's representatives of the 28th National Congress and the election of the Supreme Soviet Congress were also put on the agenda. Because this election allowed non-Soviet members to serve as candidates, this actually gave up the system that the Soviet Union had always adhered to. This was a key meeting on the future destiny of the Soviet Union. Therefore, this election activity was truly a big focus, because in recent years, a series of domestic reform activities have made the Communist Party of the Soviet Union apart from a united whole, including the conservatives represented by Ligachev and the new thinking faction represented by Yakovlev, which has many followers within the Communist Party of the Soviet Union. However, with a series of fruitful reforms by Seriosha in the country, many young comrades in the party began to focus on him.

Selyosci was disturbed by these expectations. Selyosci himself had unspeakable difficulties and he was unwilling to go to the next level in his career. What Selyosci really needed was an agent who could be controlled. In Selyosci, Jeltsci, who was abandoned by conservatives and new thinking, was his best candidate. Selyosci is now responsible for the Soviet reform. He knows the depth of the Soviet economy and wants to completely reverse it will not be a matter of overnight success. At present, the Soviet Union

The lifeblood of the economy is still unable to escape the mining of oil, natural gas, and mineral resources. But at present, the world's economy is still operating at a low level. The information industry may be in a year or two, but the information industry has no direct help to bulk transactions of resource products. Only when the world's economy regains vitality and consumption begins to become a new driving force for economic growth, those countries that rely on resources for their lives will gain economic growth as oil prices rise.

At this time, the whole world is facing a shortage of investment. In Eastern Europe, countries that have just experienced a transformation in social systems are even more so. They are burdened with a large amount of foreign debt. Their economy is sluggish, domestic commodity supply is insufficient, and severe inflation have caused the governments and people of these countries torture. However, this is a rare opportunity for Seriosha. Seriosha has long been salivating about which industrial enterprises in Eastern Europe. Now, the new types of governments of Eastern Europe have actually had no choice when facing large fiscal deficits and foreign debts.

In order to get Eastern European countries on the radical privatization path that Seriosha expected. Seriosha invited the hottest economist from South America to conduct academic visits to Eastern European countries and set up a platform for the Bank of Colombia. The expert's name is Jeffrey Sachs, who is now employed by the Bank of Colombia as an economic consultant in Eastern Europe. The reason why Seriosha hired such a scholar was completely because he was now famous in the economic world, the father of "shock therapy".

Jeffrey Sachs' reputation in the economics industry is truly at its peak, catching up with the Chicago School that successfully carried out economic reforms in Chile. Because the "shock therapy" created by Jeffrey Sachs is not an academic concept in the ivory tower, a castle in the air, this theory has just achieved great success in Bolivia, a barren country in Latin America.

Although Jeffrey Sachs was famous in the economic world before, he did not have the status quo of the world. He only served as a respected professor in the Department of Economics at Harvard University. It was not until 1986 that Jeffrey Sachs was hired as an economic adviser to the Bolivian government by the President of Bolivia that his shock therapy was truly in use.

Bolivia is a small country in South America with almost no industry and its economy is mainly agriculture. In fact, the most profitable agricultural economy is to provide drug production materials for Escobar's drug trafficking group - coca. It is such a poor American country. In the mid-1980s, Bolivia's foreign debt was US$5 billion, and the interest paid for that year was US$1 billion, which exceeded the total export revenue of Bolivia at that time. By 1985, the fiscal deficit of the Bolivian government had reached 486.9 trillion pesos, which was equivalent to one-third of Bolivia's GDP that year. At that time, Bolivia's inflation rate had reached 24,000%, and the entire Bolivia's economy had completely collapsed.

As the saying goes, use heavy punishments in troubled times and put a strong medicine on the turbulent times. Faced with this sinister economic environment, Jeffrey Sax's radical shock therapy naturally came in handy. Putting aside the profound economic principles, Jeffrey Sax's economic reform was nothing more than three secrets, namely, compressing all government spending, liberalizing price controls, and thorough privatization. When these measures began to be implemented, they immediately achieved immediate results in Bolivia.

In the first week of the implementation of shock therapy in Bolivia, under the multiple combinations of government large-scale cancellation of price subsidies and spending cuts, as well as crazy tax increases, domestic inflation in Bolivia was finally controlled. The money supply in the entire market was no longer increasing because the government canceled investment. Coupled with the almost crazy tax increase policy, more and more currencies returned to the government, and the currency in the market decreased, so prices did not soar.

After controlling inflation, Jeffrey Sachs then began to implement the second reform step, which was to relax the control of prices and allow prices to freely link them to currency, and at the same time began large-scale privatization activities. If the price control was only relaxed, prices would naturally rise according to the money supply in the market at that time. However, the privatization tricked prices to go downward. Because of privatization, state-owned assets began to circulate in the market like commodities, such as factories controlled by the government, which were originally not sold. However, when the complete privatization began, factories were put on the market like commodities. In a short while, the number of commodities in the market increased, and prices naturally began to fall.

Geoffrey Sachs's measures were extremely successful in Bolivia, and the situation in Bolivia was exactly the same as that of the current Eastern European countries. It was full of debt, fell into hyperinflation, and the same countries had a large amount of assets. This made Geoffrey Sachs full of confidence in applying his shock therapy to Eastern Europe.

So under the arrangement of the Colombian Bank, Jeffrey Sax began his trip to Eastern Europe. Seryosha knew Jeffrey Sax's theory and was happy that Jeffrey Sax would become an economic adviser and promoter of reform for governments in Eastern Europe, because whether it was deflation, marketization of prices, or complete privatization, they were what Seryosha had long been looking forward to. Seryosha was convinced that if Eastern European countries reformed according to Geoffrey Sax's shock therapy, the Gorky Consortium would definitely get the greatest benefits.
Chapter completed!