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World War 1 social and economic impact
Nationalism during World War 2
Globalisation ; critically discuss this
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Recommended: World War 1 social and economic impact
1914 marked a critical turning point in global affairs and the economy, as the destruction of the Great War not only physically affected millions of people, but it also destroyed the system of global capitalism which existed prior to 1914. During the interwar period, American isolationism from international trade and affairs left the major powers without the infrastructure or leadership to continue the international trade, investment, and currency stabilization which existed before 1914. As a result, the major powers continued their “great power rivalry,” which inhibited global cooperation and resulted in countries adopting nationalist policies to achieve their goal of stable growth and more equitable distribution of wealth (Frieden, 154). After World War Two, the United States emerged as the global leader, and influenced most of the major powers to reorganize their economic policies to promote growth and equality through multinational collaboration, global trade, currency stability, and foreign investments. In both periods, the major powers enacted economic policies to promote stable economic growth and equitable nationwide sharing of the profits from the growth; however, the outcomes were influenced by crucial differences in the levels of United States involvement, economic nationalism, and trade barriers and collaboration.
Before World War I, countries’ economic policies promoted interdependence and global trade. However, the Great War destroyed the financial infrastructure for interdependence which existed prior to 1914, and promoted America into the role of the world’s “financial, commercial, and diplomatic” leader. After the Great War, the “European powers were dependent on the United States . . . to rebuild” (Frieden, 132...
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...lism after 1945. Another crucial difference was the role of trade barriers and collaboration. During the interwar period, countries largely used bilateral trade agreements and colonies for trade, and freer trade did not exist. This prompted economic nationalism and internal national development. However, after 1945, most of the Western major powers promoted multi-national trade agreements and collaboration, including involvement in NATO, OECD, IMF, the World Bank, the EEC and ECSC, and the GATT. All of these post-1945 multinational agreements were intended to promote global capitalism and fight communism, and they also helped foster international economic growth and equitable national distribution of profits.
References
Frieden, Jeffry A.. Global Capitalism: Its Fall and Rise in the Twentieth Century. 1 ed. New
York: W.W. Norton & Company, 2006.
In the book, America’s Great War: World War I and the American Experience, Robert H. Zieger discusses the events between 1914 through 1920 forever defined the United States in the Twentieth Century. When conflict broke out in Europe in 1914, the President, Woodrow Wilson, along with the American people wished to remain neutral. In the beginning of the Twentieth Century United States politics was still based on the “isolationism” ideals of the previous century. The United States did not wish to be involved in European politics or world matters. The U.S. goal was to expand trade and commerce throughout the world and protect the borders of North America.
During 1940-1970, the USSR and the USA were the world’s leading superpowers. After WW2, it was the US money that helped rebuild nearly all of Western Europe, putting nearly half a dozen countries into debt. They opened trade and helped Europe’s ravaged economy to get back onto its feet. They did so by creating the ‘Marshall Plan’ on June the 5th, 1947. The plans aim was to reconstruct Western Europe and at the same time to stop Communism spreading to them – the Americans were avid believers in the Domino Theory, and believed that communism would take over all of Europe if they did not intervene. They also created other policies such as the Truman doctrine on March the 12th, 1947 (which is a set of principles that state that the US as the worlds ‘leading country’ will help out other democratic governments worldwide) and NATO, 4th of April 1949.
In conclusion, economic integration and economic globalization help reduce the probability of interstate belligerency because war negatively impacts the markets and investments, post World War reconstruction helps build stronger economies and lastly, countries would rather focus on specialization than war. In addition, economic integration and economic globalization help the economy grow and expand. These points show that war and conflict is decreasing because countries that are economically integrated prefer to free trade without any restrictions. As a result, markets increase since countries have more access to trade and that leads to an increase in globalization, whereas war would put the countries’ economies at risk.
During the Great Depression, America’s economy was merely destroyed. Because less money was available, industrialization dropped, factories were losing, and the number of unemployment increased. Later, during World War II most of the countries were destroyed, however, America’s economy was able to grow. Due to the mobilization of America, The victory gardens, the rationing, and the urge to produce more to fight better, America’s production increased in order to support its military. Also, different types of industry that wasn’t available before the war started to develop during the war. So, employment started to increase, thereby increasing the economy. Moreover, it was able to fund other countries with weapons and products necessary for the war, and in alliances America was mainly the provider. After the war, when the Americans’ soldiers came back, with a huge number of factories and high number of people ready to work, production flourished. Thus, America started to recover economically and become more powerful. World War II transformed America’s economy from a depressed
World War I may not have made the world safe for democracy, but it did help to lay the groundwork for a decade of American economic expansion. The war began in Europe in 1914, and the United States entered the fray in 1917. The 1920s saw the growth of the culture of consumerism. A significant reason for United States involvement in the war was the nation’s economic links to the Allied Powers, and especially to Great Britain. American soldiers returned home in May 1919 with the promise of a prosperous decade (Baughman 197).
World War I came to an end in November of 1918, when the Treaty of Versailles was signed. This treaty ended the fighting and of many other results, it put the blame on Germany for the war. This resulted in Germany having to pay major reparation fee’s and put Germany in a financial hole. The treaty took away parts of Germany’s land and made it impossible for them to use their natural resources to profit from. The amount that Germany had to pay back was more then they could, and this started a chain reaction for the transfer of money. In 1924, The Dawes Plan was signed into action and the U.S. became a creditor nation. Germany owed around 32 billion in war reparations. They were unable to pay this, so the U.S. loaned Germany money, with that Germany paid European countries War Reparations, and with the reparation money they received, U.S exports were able to be bought. This benefited the U.S. because the loans would have to be paid back with interest, and it let the economy experience a boost because goods were able to be exported. The Dawes Plan boosted the American economy, while facilitating other European countries’ attempts to reestablish a stable financial state after World War One. This time period in the 1920’s is referred to as the ‘roaring twen...
World War I had placed great strains on the economies of the most European nations that were involved in the conflict. With trade agreements with countries like Britain, France and United Kingdom America’s economy flourished, as they forced these countries to accept goods in exchange for debt. The economy of America soared to new heights. America’s abundant natural resources and technological advances were used to become leaders in manufactured exports. (Encl) Usually the general public would opposed big business owners to partner with government, but as the lifestyles of many Americans elevated these relationships were accepted. By the end of the decade, 1910 to 1919, annual incomes rose from $580 to $1300 setting the stage for the “crazy years” known as the “Roaring Twenties”.
WWII has a ripple effect across the globe causing changes both internationally and domestically. Internationally, The sun finally began to set over the British Empire with the majority of her majesties colonial possessions gaining independence in the years following the war. Britain’s stage left exit from its hegemonic role resulted in the start of a new “Great Game” between two burgeoning superpowers. A new world order began to take shape with the United States and USSR vying to establish their own hegemony.
During the Twentieth-Century, there were several dramatic economic changes and events. Going from being a complete agricultural nation to being an industrial super, enduring a great depression, having a civil rights movement and so many more, the 20th Century carries the names of some of the world’s most important events. Although history has flourished with all of its game changers, the solute most important event of the 1900’s was World War 2. The second world war, just decades after the first, “was the most widespread and deadliest war in history, involving more than 300 countries and resulting in more than 50 million military and civilian dead,” according to History.com. After World War I had ended, the peace settlement known as the Treaty of Versailles, created in 1919, had a purpose of obligating Germany to relinquish territories to Belgium, Czechoslovakia, and Poland. However these new territories were very susceptible to aggression from its neighboring countries, Germany and the Soviet Union. During this time there was still a great deal of tension between the countries/ territories. Italy and Japan viewed the treaty as a failure to acknowledge the status of the two’s world powers. Also Germans saw that rather than being defeated at the close of World War I, they were betrayed. With the economy being exceptionally deprived and a great deal of political instability, this set the stage for dictatorships that according to Twentieth-Century America “offered territorial expansion by military conquest as a way to redress old rivalries, dominate trade and gain access to raw materials”. Countries such as Japan began making use of propaganda’s stressing that Japans “greatness” must be reassured. Italy’s Fascist dictator, Benito Mus...
Many historians and sociologists have identified a transformation in the economic processes of the world and society in recent times. There has been an extensive increase in developments in technology and the economy as a whole in the twentieth century. Globalization has been recognized as a new age in which the world has developed into what Giddens identifies to be a “single social system” (Anthony Giddens: 1993 ‘Sociology’ pg 528), due to the rise of interdependence of various countries on one another, therefore affecting practically everyone within society.
From 1971 to 1980, the author worked as an ‘Economic Hitman’ (EHM) for the consulting firm Chas. T. Main, Inc. (MAIN). His role was “to cheat countries around the globe out of billions of dollars... to encourage world leaders to become part of a vast network that promotes U.S. commercial interests. In the end, those leaders become ensnared in a web of debt that ensures their loyalty” (p17). This was accomplished by the production of economic projections that would persuade the World Bank and other international organisations to lend money to these countries. After this money was spent on developing infrastructure in the countries in question – the contracts for which went to U.S. companies – they were left with large amounts of debts which they could not hope to repay. This in turn left these countries beholden to the United States’ economic and political interests, creating a ‘global empire’ controlled by “corporations, banks and governments” (Preface, p xiii). Perkins refers to this collusion of interests as the ‘corporatocracy’, and it is they who devised and carry out this strategy. The goal is not only to increase economic growth, both for the U.S. and the corporations themselves, but “to perpetuate and continually expand the system” (Preface, p xiii).
... The Costs of US Hegemony: Military Power, Military Spending, and US Trade Performance. Sage.
Established in 1944 and taking its name from the New Hampshire town where the agreements were drawn up, the Bretton Woods conference was a gathering of finance ministers from Allied countries following the end of the Second World War. Under American leadership, the group met to discuss the failings of World War I’s Treaty of Versailles and the creation of a new international monetary system which could fund post war reconstruction, economic stability and facilitate international trade. This conference led to the establishment of two of the most important post war economic institutions, the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development, now known as the World Bank (An introduction to the WTO and GATT, pp. 42, 2003). Originally, the architects of the international trade system in the post war ...
Realist perspective explains globalization in terms of the relative distribution of power (Nau 2007, 278). In their opinion, trade and economic activities thrives “only under favorable security conditions,” and those conditions rely on the relative distribution of power (Nau 2007, 279). They believe that alliances and hegemony are the two most affirmative security conditions. “’Free trade is more likely within than across political-military alliances; and …alliances have had a much stronger effect on trade in a bipolar than in to a multipolar world.’” (Nau 2007, 279) In other words, the fewer dominating states with power there are in the system, the stronger is the alliance and its effect on trade. In a multipolar world, countries cannot trust each other in trade because alliances are rarely permanent and therefore, countries might use the gains from trade to increase its military power and threaten to cause damage to the other country. Thus, realists argue that,
Shawki, Ahmed, Paul D’Amato (2000), “Briefing: The Shape of World Capitalism,” International Socialist Review, [http://www.isreview.org/issues/11/world_capitalism.shtml], accessed 19 May 2012.