Transcript Document

Company
LOGO
Economic Recovery
and the
End of European Empire
Post-War Political and Economic Framework
• Bretton Woods Conference (1944):
created International Monetary Fund
(IMF), World Bank and WTO
• Lay foundations for modern monetary
system; based on U.S. dollar
• IMF (World Bank) designed to loan money
to struggling countries to prevent
economic crises and anarchy; instrumental
in post-war economic boom.
• United Nations created in 1945.
Western Europe political recovery
• Economic hardship after
WWII: scarcity of food,
runaway inflation, black
markets
• Many people believed
Europe was finished.
• Suffering was worst in
Germany.
• Marshall Plan instituted
to help recovery.
Political restructuring
• Christian Democrats inspired by common
Christian and European heritage.
• Rejected authoritarianism & narrow nationalism;
had faith in democracy and cooperation.
• Catholic parties also progressive in nature.
• Socialists and Communists also emerged with
increased power and prestige, especially in
France and Italy.
• Pushed for social change and economic reform
with considerable success.
• Result: social reform and political transformation
created foundations for a great European
renaissance.
Italy
• Christian Democrats
gained control in 1946
led by Alcide De
Gasperi
• Socialist influence:
social benefits came to
equal a large part of the
average worker’s
wages
France
• General Charles De Gaulle, inspiring
wartime leader of Free French, reestablished free and democratic Fourth
Republic (resigned in 1949)
• Catholic party provided some of best
postwar leaders e.g. Robert Schuman
• Socialist influence: large banks, insurance
companies, public utilities, coal mines, and
the Renault auto company were
nationalized by gov’t.
West Germany
• 1949, Konrad
Adenauer began long,
highly successful
democratic rule.
• Christian Democrats
became West
Germany’s majority
party for a generation
Britain
• Clement Attlee, socialist Labour party
leader, defeated Winston Churchill and the
Conservatives in 1945 (later returned to
power).
• Attlee moved toward establishment of a
“welfare state.”
• Many
industries
nationalized,
gov’t
provided each citizen with free medical
service and taxed the middle and upper
classes more heavily.
The Economic Miracle
• Unprecedented economic growth in European
history
• Europe entered period of rapid economic
progress lasting into late 1960s.
• By 1963, western Europe produced more than
2.5 times more than before the war.
• Causes:
– Marshall Plan aid helped western Europe begin
recovery in 1947
– Korean War in 1950 stimulated economic activity.
– Economic growth became a basic objective of all
western European governments.
– Governments accepted Keynesian economics to
stimulate their economies.
The Economic Miracle
• Germany and France were especially
successful and influential.
• In most countries many people willing to
work hard for low wages; expanding
industries benefited.
• Increased demand for consumer goods.
• Many economic barriers eliminated and a
large unified market emerged: Common
Market.
The Common Market
• German economic recovery led by finance
minister Ludwig Erhard
• Combined
free-market
economy
&
extensive social welfare network inherited
from Nazi era.
• By late 1950s, West Germany had robust
economy, full employment, a strong
currency and stable prices.
The Common Market
• France
• Combined flexible planning and a “mixed” state
and private economy to achieve most rapid
economic development in its history.
• Jean Monnet: economic pragmatist and
architect of European unity.
• France used Marshall Plan aid money and the
nationalized banks to funnel money into key
industries, several of which were state owned.
• European Coal and Steal Community in 1958.
European De-Colonization
• Postwar era saw total collapse of colonial
empires.
• Between 1947 and 1962, almost every colonial
territory gained independence.
• New nations of Asia and Africa deeply influenced
by Western ideas and achievements.
• Causes
– Modern nationalism and belief in self-determination
and racial equality, spread from intellectuals to the
masses in virtually every colonial territory after WWI.
– Decline of European prestige: Japanese victories;
destruction of Europe during WWII
– After 1945, European powers more concerned about
rebuilding; let colonies go
India
• India played a key role in decolonization and the end
of empire.
• Indian National Congress: British had no choice but
to develop a native political elite that could assist in
ruling such huge country.
• Exposure of young Indians to Western ideas of
nationalism, socialism, and democracy led to
demands for independence by the early 20th century.
• Mohandas K. Gandhi: after WWI led independence
movement with principle of passive resistance (civil
disobedience)
• Jawaharlal Nehru led Congress party in its push for
independence)
India
• Clement Attlee and others
in Labour party wished to
focus on internal affairs.
• Lord Louis Mountbatten:
appointed to supervise
transition of India to
independence
• Divided India into two
nations: India (Hindu) and
Pakistan (Muslim)
China
• After WWII (defeat of
Japanese invaders) a civil
war broke out between
communists led by Mao
Zedong and Nationalists
led by Jiang Jieshi
(Chang kai-shek)
• Mao won the revolution
and created a communist
country: People's
Republic of China
Indo-China
• After Japanese removed after WWII, French
tried to reassert control of Indochina
• Ho Chi Minh led the independence movement
in the north
• 1954, defeated French forces at Dien Bien Phu
• 1954,Vietnam
was
divided
into
North
(communist) and South (pro-Western); civil war
resulted
• U.S. defeated in attempt to prevent communist
takeover of South Vietnam; Vietnam unified in
1975
The Middle East
• Arab nationalists loosely united by opposition to
colonialism and migration of Jews to Palestine
• Israel and Palestine
– Balfour Declaration in 1917 indicated Britain favored
creation of Jewish “national home” in Palestine—opposed
by Saudi Arabia & Transjordan
– Great Britain announced its withdrawal from Palestine in
1948.
– United Nations voted for creation of two states, one Arab
and one Jewish
– Palestinians vowed to fight on until state of Israel destroyed
or until they established own independent Palestinian state;
led to several wars and numerous conflicts in late 20th
century
The Middle East
• Egypt
• Arab defeat in 1948 by Israel triggered nationalist
revolution in Egypt in 1952.
• 1956, Egyptian president Gamal Abdel Nasser
nationalized the Suez Canal, the last symbol and
substance of Western power in the Middle East.
• France, Britain and Israel attacked Egypt, trying to
take back control of Suez Canal
• U.S. and Soviet Union demanded their withdrawal
and the canal remained in Egypt's control
Middle East
• Algerian Crisis (mid 1950s)
• Algeria’s large French population considered Algeria
an integral part of France.
• This feeling led ensuing war; bitter and atypical of
decolonization.
• General De Gaulle, who had returned to power as part
of movement to keep Algeria French, accepted
principle of Algerian self-determination.
• 1962, after more than a century of French rule,
Algeria became independent and the European
population quickly fled.
• Crisis led to fall of the Fourth Republic and
beginning of the Fifth Republic
Sub-Saharan Africa
Decolonization proceeded much more smoothly
than in northern Africa
· British Commonwealth of Nations:
beginning in 1957, Britain’s colonies achieved
independence with little or no bloodshed;
entered a very loose association with Britain.
· Exception: Mao Mao society were a Kenyan
group of terrorists/freedom fighters who
fought to end English control of Kenya.
Sub-Saharan Africa
• 1958, De Gaulle offered leaders of French black
Africa choice of total break with France or immediate
independence within a kind of French
commonwealth.
· All but one of new states chose association with
France.
· Cultural imperialism continued,
·
France and Common Market partners saw
themselves as continuing their civilizing mission in
black Africa.
· Desired untapped markets for industrial goods, raw
materials, outlets for profitable investment, and good
temporary jobs for their engineers and teachers.