Chapter 19: Recovery and post industrial growth in the 3

worlds era

Post War (three worlds) Era

0 WWII changed not only Europe, but the entire world order. Imperialist order collapsed (though the world will still be divided into “haves” and “havenots”)

0 From 1945-1989 two superpowers- US/USSR, dominate the globe. 3 types of countries0 US + Allies (1st world)0 USSR + Allies (2nd world)0 Everyone else (3rd world)

0 “Supernationalism” (caring about not only your country but your allies) becomes an important part of international relations

0 New countries industrialize- those that had been industrialized move into post industrial phase

The Cold War

0Rivalry between US/USSR began before the war0 FDR and Churchill were close0Stalin a “necessary evil”0 Ideological differences more intense

Different World Views

0 US: Want to spread democracy with a strong international organization to promote world order and peace.

0 Felt Stalin was imperializing eastern Europe. (which was all well and good when they had done it in other parts of the world….)

0 Soviets: Democracies are by definition anti-communist, and therefore anti USSR. Thought Eng/US didn’t open a western front fast enough, froze USSR out of atomic bomb project, stopped lend/lease in 1945 (Eng/Fr got until 1950) Want a Buffer zone against further aggression

Allied Conferences: Tehran

01943 02nd front in France 0Discussed self-determination0 Important because it sets the tone for conflict later

Yalta

0Feb 19450Occupation zones for Germany and Berlin0Stalin agrees to hold elections

Potsdam

0 July 1945 (after VE)0No elections0A-bomb0Stalin already knows through spies, but is still ticked

to get left out of the loop0Fascist threat ended, superpower conflict rising

Emergence of Superpowers

0Atlee in0US the only player left with the strength to deal with

the new communist threat

Truman Doctrine

0 “It must be the policy of the US to support free peoples who are resisting attempted subjugation by armed minorities or outside pressures.”

01947 Greece/Turkey0This is a big move- US had been thinking isolationist

thoughts again after the war. Pledged $$ to any country to defeat communism

Containment

0 1947- US stated goal was that no other country should become communist (Saw USSR as a threat to “American way of life”)

0 Became even more adamant after Communist takeover of China in 1949

Massive Retaliation

0 US liked the few years they were the only one with Atomic weapons. But once Soviets have them too (1949) there is sticky new territory.

0 But US says it will use our atomic weapons if USSR tries to expand

Marshall Plan

0 13 Billion in aide given between 1949-51. Allowed Europe to recover remarkably quickly. We wanted to offer it to eastern Euro too, but Soviets wouldn’t allow

Berlin Crisis

0 Berlin in Soviet zone, but divided separately, so W. Berlin had Marshall plan support. East Germans began flooding there. Soviets blockade Berlin- which becomes an early example of extreme tension.

0 US responded with Berlin Airlift- 277,000 flights (landed every 45 seconds) to keep city supplied. Blockade lasted 11 months, and led to Berlin Wall

NATO

0 Cold War tensions lead to creation of 2 military alliances

0 North Atlantic Treaty Organization- friends of US

0 Founded in response to Berlin crisis.

0 12 nations with collective security- the will stand or fall together. (another big step for US, had never done that before) The democracies of Europe- including W. Germany, which is an important sign.

0 Still exists, now 26 countries- including Russia

Warsaw Pact

0 Soviet Response- USSR and their satellite nations. Also known as the “Eastern Bloc” or “Iron Curtain”

0 Always less strong- most of the countries not in it by choice.

0 Dissolved 19910 NO Yugoslavia

United Nations

0Atlantic Charter0San Francisco October 19450 Important, taking other viewpoints into

consideration, not just imposing0Supernationalism

Set-Up

02 main bodies:0 General Assembly: all member states, headed by a

Secretary General (who by tradition, will NOT be from a European nation) Will have a vote on security issues, and oversee depts like Food and Agriculture, UN education, Scientific and cultural issues (today WHO another important responsibility)

0 Security Council: 5 permanent members (US, USSR, England, France, and China) + 7 rotating members. All interventions must have approval of all permanent and majority of rotating members

Korean War 1950-53

0 A big test for the UN- can it DO something (unlike League and their “condemnations”

0 Korea had been a territory of Japan, had been divided at 38th parallel by US/USSR at end of war, US sets up a democratic gov’t, USSR a communist satellite state

0 1950: North Korea invades South. UN, (with leadership of US) moved to step in and support S. Korea

0 Able to go b/c People’s Republic of China not yet “recognized” and USSR is temp. boycotting UN because it won’t recognize

0 Conflict is a tie- 38th parallel still border today

Limited War

0MAD0Threat of WW III and nuclear annihilation0Hydrogen Bomb developed by US in 1952, USSR has it

in 19530war where NO ONE wins

Vietnam0 A similar situation (in terms of limited war)0 Ho Ch Minh- a communist nationalist began an uprising against

French colonial power in 1954. Successful in North, and headed South.

0 France can’t handle more pressure- begin to pull out after defeated by communist guerrilla forces (Viet Cong) at Dien Bien Phu.

0 President Eisenhower began sending $$ and “advisors” to prop up Southern Vietnamese gov’t. JFK sent in full troops. (even more under LBJ) By 1965 there are 365,000 US troops in Vietnam, but they are unable to defeat Viet Cong. (China supplying $$ to communists, but not troops). But Vietnamese WANT Ho Chi Minh, US pulls out 1975

Nuclear Arms Race

0 Other Nuclear Powers: England 1952, (we shared) France 1963, China 1964

0 Though Korea and Vietnam were “limited” the Superpowers spent an awful lot of time developing ever more deadly weapons

0 1963 Nuclear Test Ban Treaty: No testing in atmosphere, space, or underwater- radiation fears. Signed by US, USSR, England

0 1968 Nuclear Nonproliferation Act: limited further development of nuclear weapons. Signed by 137 countries

0 By 1975 discussions beginning for talks about limiting/destroying nuclear weapons. (SALT treaties)

Cuban Missile Crisis

0 Bay of Pigs (attempt to overthrow Castro, a serious miscalculation)

0 US put up a naval blockade around Cuba, the tensest point what as the Soviets arrived to break the blockade

0 Backing down weakened Krushchev (Stalin’s successor) led to his downfall

Space Race

01957 Sputnik0US spent 1960’s

dedicated to winning the space race and reaching the moon 1st.

0Soviets also beat US with 1st manned space flight- Yuri Gregoran 1961.

01960 U2 incident – American spy plane shot down over USSR

Political and Economic Recovery

0Marshall Plan allowed Europe to recover more quickly than expected given levels of devastation. By 1950 industrial output was 30% higher than 1939- and that growth continued well into the 60’s.

Bretton Woods Conference

01944. Laid the foundations for the postwar international monetary system- most countries have or will step away from Gold Standard

0General Agreement on Tariffs and Trade (GATT): Keep tariffs low overall to stimulate international trade

0 International Monetary Fund (IMF): provide short term loans to struggling countries to prevent econ crisis and anarchy

0World Bank: long term loans for economic growth and development

Post Industrialization

0Transition to a new type of economy- more people employed in service sector (like technology, healthcare, business, legal, finance and education) than old school manufacturing (production of tangible goods). Fewer than ever involved in agriculture- only a tiny % needed to produce plenty of food for all.

Economic Cooperation (change in order)

0 Also important in rebuilding in Europe- which is full of small countries in an age of superpowers.

0 1951 France, Netherlands, Belgium, Luxembourg and Italy create the European Coal and Steel Community to create a common market and economy of scale for these two products

0 Britain didn’t join- too close to US which stands to lose from the arrangement.

0 Bound the econs of these countries together- war amongst them becomes virtually impossible.

0 Heading towards EU

Advanced Democracies

0Characterized not only by elections, but also by civil liberties, rule of law, open societies that allow privacy and a neutral judiciary.

0 Integration of these societies has been a trend since the cold war period- culminating with the EU in 1991

Political Restructuring

0 “Christian Democrats” become a new political force- a focus on faith in democracy and cooperation (rejection of totalitarianism and narrow nationalism). Pushed for social change and econ reform- became foundation for widescale political change

The Welfare State

0Not to aide only poor, but all citizens. Western European countries sought to provide universal services (employment, social security, healthcare, gradiated tax system). Reduced class tensions which had caused problems for centuries.

0Worked really well through 60’s, became more problematic in the economic downturn of the 70’s, moved to a “mixed economy”

Council of Europe

019480The original idea was to create a European

parliament, but that didn’t happen. However, the conversation along began discussions about making supernationalistic decisions for Europe as a whole

European Economic Community (EEC)

0 19570 Same countries that created Coal and Steel Union eliminated all

customs barriers between them to form the Common Market. Still have tariffs for the rest of the world- but free movement of capital and labor within.

0 Encouraged standardization of econ practices, and further economic union. (tried for political too, but that fell apart in 70’s as France had some issues)

0 Became 2nd largest economy in the world (after US)0 Also created European Atomic Energy Community- peaceful

uses.

West Germany

01st Chancellor of West Germany Konrad Adenauer (1949-63) oriented towards Western Europe, made a special effort to reconcil with France.

0Economic Miracle: Unprecedented econ growth, by 1963 production was 2.5x what it had been before war, even having lost 25% of population and 40% of territory. Came part from Marshall plan $, part from Keyensian economics. During the 60s econ grew so much had to import workers from Greece, Spain, Italy, Yugoslavia and Turkey (though that changed with recession of 70s)

Ostpolitik

01970s Willy Brandt became Chancellor. More socialist, wanted a more independent stance from Western Bloc (tired to trying to “make up” to people- says that was another generation)

0Ostpolitik- sought to improve relations with USSR. Says Germany is part East and part West, and needs to have a relationship with both.

0Brandt’s chancellorship and stance help Germany move towards a leadership stance in Europe again

The German Question

0There are “Two German states within one nation”, and Brandt’s hope is that a relationship with the Soviets will lead to greater interaction between East and West.

0Not going for reunification (yet) just a relationship

Britain

0Churchill had emphasized putting domestic issues aside for the duration of the war. Defeated by Clement Atlee and Labour party in 1945, but both parties worked together to further develop welfare state

0Beveridge Report- plan begun before war ended to guarantee minimum standard of living for all British. National health service 1st step- created 1948. The progressive tax and inheritance tax

A mixed economy

0The gov’t directs the economy, nationalizing key industries (like healthcare, Bank of England, Coal, electricity, iron and steel) without giving up basic principles of capitalism, such as private ownership (80% of business private)

0As they lost colonies they hit some hard econ times, and OPEC crisis was tough.

0Greater divide in econ theory between labor and conservative parties after 1970s

Margaret Thatcher

0PM of England during the 80s- she blamed the weakened economy on socialist policies of postwar era.

0Privatized multiple businesses/industries (example; sold gov’t owned apts to renters at low prices, creating a whole new class of property owners) Cut welfare programs, strengthened national defense, (Fawklands War)and got tough with unions.

0Known as the “Iron Lady” divided much of the population with her controversial decisions

France

0When France was liberated in 1944, Charles de Gaulle, hero of the resistance was made head of the provisional republic and established the 4th Republic. (1944-1958)

0But de Gaulle didn’t like his role in gov’t (largely ceremonial, real power was in legislature) so he “retired” in 1946.

04th Republic struggles (shocker I know) deadlocked between multiple political parties, with a clear majority elusive.

5th Republic

0Began with Algerian Crisis (Algeria began to rebel against French rule in 1954)

01958 international criticism over French bombing of civilian areas brought the gov’t down. De Gaulle asked to return and write a new constitution (the 12th since 1789 for those who are keeping track, 15th if you count the couple that were never really put into effect). He created a strong presidency, and was president 1959-69, and his party (UDC union of democrats for the republic) controlled the presidency until 1981

Dirigisme

0State management of capitalist economy.0De Gaulle encouraged large scale industrial growth

(which had never been France’s strong point)0Government helped create mergers to form larger,

more internationally competitive corporations- made France a major econ player again by 1970s. (unfortunately just in time for recession of 70s)

0Have never been an econ powerhouse in the modern age

Francois Mitterand

0President 1981-1995 (socialist party) Launched a large program of nationalism and a keynesian movement to spend France out of recession. (which failed, and he was forced to put in a number of economic cutbacks)

0 Interestingly, a 2005 survey had him ranked as France’s greatest president (with de gaulle 2nd and Chiroc 3rd )

Economic Crisis of the 1970s

0Began when Nixon took US off gold standard in 1970 (Us currency had been a source of stabilization) fixed rates of exchanged abandoned, which created uncertainty in international trade and finance.

0The energy crisis began in 1973 (opec raised price of oil in retaliation for Western support of Israel in Yom Kippur War)

0Stagflation: increasing prices and rising unemployment (usually the two are inverse). Debts and deficits piled up, led to a conservative resurgence from economic frustrations