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13. Changing Global Landscape (Milestones of Century)

Recovering from war

Europe

first half of 20th
tragedies
fratricidal war
economic collapse
Holocaust
self-inflicted
civilization did not permanently collapse
second half of 20th
rebuilt
industrial economies
democratic political systems
three factors to explain recovery

Resiliency of industrialization

physical structure destroyed, but knowledge, skills, habits of mind enabling effective operation remained intact
even most terribly damaged countries largely recovered by 1960 (helped by worldwide economic boom during 1950s)
Germany
Soviet Union
Japan

Integrating economies

put aside nationalism for enduring peace and common prosperity for recovering economies
1957: European Economic Community (EEC)
alliance of six West European countries
Germany, France, Italy, Luxembourg, Belgium, Netherlands
reduced tariffs
developed common trade policies
over next half-century: expanded to include almost all of Europe; many former communist states
1994: renamed to European Union
2002: 12 members, later 17, adopted common currency (euro)
sustained Europe’s economic recovery and expressed larger European identity

United States

emerged after 1945 as dominant center of Western civilization; global superpower
Marshall Plan
indicated U.S.’s intention to exercise global leadership
effort to rebuild and reshape shattered European economies
$12 billion (2017: $121B equivalent), advisors, technicians
motivations
humanitarian concern
desire to prevent new depression by creating overseas customers
interest in undermining growing appeal of European communism
extremely successful
1948-1970s: Western European economies grew rapidly
widespread prosperity
improved living standards
commitment to Europe soon came to include political and military security
distant possibility of renewed German aggression
more immediate communist threat from Soviet Union
1949: North Atlantic Treaty Organization (NATO)
committed United States and nuclear arsenal to defense of Europe against Soviet Union
anchored West Germany within Western alliance
allowed Western Europe to avoid heavy military expenditures

Japan

previously under American occupation (1945-1952)
parallel process revived country’s devastated but already industrialized economy
in the two decades after occupation
economy grew remarkably
nation became economic giant
American occupation authorities imposed democratic constitution
“land, sea, and air forces, as well as other war potential, will never be maintained”
Japan depended on United States for military security even more than Europe

Soviet Union

very different conditions compared to Japan and Western Europe
last years of Stalin’s rule (1945-1953) were extraordinarily harsh
no tolerance for dissent
resulted in huge and growing convict labor force
3-4 million people
provided major source of cheap labor for recovery effort
wholly state-planned; basic consumer goods (e.g. shoes, clothing) suffered
heavy industry
agricultural production
military expenditure
gained some popular support by lowering price of bread and other essentials
benefited from seizure from Germany, Poland, etc.
West viewed as looting, plunder
Soviet viewed as “spoils of war”; justified by massive damage of Nazi invasion
industrial complexes
agricultural goods
raw materials
gold
European art

Europe
Resiliency of industrialization
Integrating economies
United States
Japan
Soviet Union
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