The Industrialized World Since 1990

1. Section 1 The Industrialized World Since 1990

2. Objectives • Examine social, political, and economic trends in Europe after the Cold War. • Analyze how the United States’ and Russia’s shifting roles have affected the balance of global power. • Understand how important economic changes have affected Asia since the end of the Cold War.

3. Terms and People • European Union – an international organization made up of over two dozen European nations, with a common currency and common policies and laws • euro – the common currency used by member nations of the European Union • default – to fail to make payments on a loan • Vladimir Putin– president of Russia from 2000 until 2008, then prime minister

4. Barack Obama– President of the United States; took office in 2009 surplus– money left over after expenditures deficit– situation that exists when a government spends more than it takes in through taxes and other resources Pacific Rim– the vast region of nations that border the Pacific Ocean Terms and People(continued)

5. How did the end of the Cold War affect industrialized nations and regions around the world? The end of the Cold War marked the beginning of a global economy. This global economy became a driving force in shaping the world in the early twenty-first century. As the long struggle between the Soviet bloc and the West ended, both sides experienced new challenges and power shifts.

6. Nations in Eastern and Western Europe needed to cooperate to meet these challenges.

7. The reunification of Germany in 1990 was widely celebrated as a sign that the Cold War was ending. • However, the former East Germany faced challenges. Its economy had to be modernized, and unemployment rose when communist-era factories were closed. • Neo-Nazis blamed immigrants for economic troubles. • Twenty years after reunification, Germany remained a strong leader and an economic power.

8. Eastern European nations and former Soviet republics wanted to join NATO. It now includes such former communist nations as Poland, Hungary, the Czech Republic, Albania, Latvia, Lithuania, and Estonia. The primary goal of NATO shifted from a Cold War alliance to a peacekeeper and protector of human rights. The Warsaw Pact dissolved after the Cold War.

9. Union helped European nations compete more efficiently with the United States and Japan. • The euro became the common currency in 2002. • Some Europeans favored even greater political and economic unity, but others felt that the EU undermined national independence and loyalties. The European Union (EU) was founded in the 1990s to promote free flow of capital, goods, and labor.

10. Twenty-seven countries had joined the EU by 2007.

11. Russia struggled to build a market economy after the fall of the Soviet Union. • Some prospered in the new economy, but others suffered. Unemployment and prices rose as the government privatized businesses and farms. • Russia defaulted on its foreign debt in 1998. Banks collapsed and many people lost jobs or savings. • President Vladimir Putin helped rebuild the economy, but his government was plagued by corruption.

12. The United States became the world’s only superpower and had great global influence. 2001 President George W. Bush declared a “war on terror.” 2002 United States sent forces to Afghanistan, where the 2001 terrorist attacks had been planned. 2003 U.S. forces invaded Iraq and toppled dictator Saddam Hussein.

13. The economy of the United States went through ups and downs. • An economic boom in the 1990s created a budget surplus. However, slower growth, tax cuts, and increased spending led to a deficit in the 2000s. • A 2008 financial crisis weakened the American economy and sparked a global recession. • President Barack Obama approved an economic stimulus package when he took office in 2009. Critics argued that Obama’s policies increased the budget deficit and overextended federal power.

14. Asia joined the global economy. The Pacific Rim became a rising force in the 1990s. The volume of trade across the Pacific became greater than across the Atlantic.

15. Taiwan, Hong Kong, Singapore, and South Korea surged economically during this time and earned the nickname “Asian tigers.” Their growth resulted in part from their workers’ long hours and low wages. Japan dominated the Asian Pacific Rim for decades, but as its economy slowed down, China’s economy boomed.

16. Section 2 Globalization

17. Objectives • Describe the ways in which countries around the world are interdependent and how economic crises can have a global impact. • Understand how international treaties and organizations make global trade possible. • Analyze the costs and benefits of global trade.

18. Terms and People • globalization – the process by which national economies, politics, cultures, and societies become integrated with those of other nations around the world • interdependence – the dependence of countries on each other for goods, resources, knowledge, and labor from other parts of the world • outsourcing – the practice of sending work to the developing world to save money or increase efficiency

19. multinational corporation– a corporation with branches and assets in many countries that sells its goods and services throughout the world World Trade Organization (WTO)– international organization set up to facilitate global trade protectionism– the use of tariffs and other restrictions that protect a country’s home industries against competition Terms and People(continued)

20. Terms and People(continued) • bloc – a group, such as a trade group, that works for the common needs of its members • sustainability– the ability to meet present needs for food, resources, and shelter without harming future generations

21. How is globalization affecting economies and societies around the world? Globalizationbegan 500 years ago, at the time of the Columbian Exchange. By 2000, globalization was taking place at a rapid rate. The rise of free trade, improvements in transportation and communication, and the spread of democratic systems has increased economic interdependence in today’s world.

22. Nations depend on each other for goods, resources, knowledge, and labor. • Financial markets are interconnected. • These connections create opportunities and challenges. Interdependence is a major effect of globalization.

23. Rich and poor nations of the world are linked. Wealthy countries depend on developing nations for low-paid labor through outsourcing. Developing nations depend on wealthier countries for capital, trade, and technology.

24. Globalization led to the growth of multinational corporations. • Huge companies have assets in many countries and sell goods or services worldwide. • Defenders of these corporations argue they invest in the developing world, provide jobs, and improve infrastructure and technology. • Critics say they take profits out of developing countries and pay workers wages that are too low.

25. Natural resources—especially oil—play a huge role in the global economy. • When OPEC limited oil exports in 1973, economies suffered around the world. • People have began to invest in alternative fuels, but the world is still dependent on oil.

26. Developing nations spent income from exports on payments to foreign lenders.Western banks were stuck with bad debts. To solve the crisis, banks lowered interest rates and cancelled some debts. Lenders also required developing nations toadopt market reforms. Interdependence contributed to a debt crisis in developing nations in the 1980s. Bank interest rates rose in the 1980s. Developing nations could not repay loans they had taken out to modernize.

27. Developing nations felt the impact as prices for their exports fell and international aid decreased. Because the world is connected financially, a crisis in one nation or region can have a global impact. Wealthy nations shored up their economies with costly stimulus plans and bailouts. Several European nations faced crippling debt. In 2008, a banking crisis in the United States rippled through the world as global stock markets plunged.

28. The United Nations was created to keep the peace, but it also deals with political and social issues. • The World Bank offers loans and technical advice to developing nations. • The International Monetary Fund (IMF) promotes global economic growth and monetary cooperation. International organizations and treaties have greatly expanded since 1945.

29. International treaties promote and set guidelines for global trade. • The World Trade Organization was organized in 1995. It opposes protectionism and seeks to keep the flow of world trade smooth and free. • The Group of Eight (G-8) is an organization of industrialized nations that meets annually to discuss economic issues. Its members are Canada, Britain, France, Germany, Italy, Japan, Russia, and the United States.

30. The North American Free Trade Agreement (NAFTA) links Canada, the United States, and Mexico. • Asia-Pacific Economic Cooperation (APEC) eases trade among Pacific Rim nations. • The African Union deals with both economic and political issues. Nations have formed regional blocs,such as the European Union,to promote trade.

31. Global trade has costs and benefits.

32. The anti-globalization movement targets organizations such as the World Bank, the World Trade Organization, and the International Monetary Fund. They oppose the tough changes that such organizations require developing nations to make and accuse developed nations of exploiting poorer countries.

33. Section 3 Social and Environmental Challenges

34. Objectives • Explain the causes and effects of global poverty, disasters, and disease. • Analyze whether the basic human rights of people around the world are being upheld. • Discuss the environmental challenges that have resulted from industrial development.

35. Terms and People • tsunami – very large, damaging wave caused by an earthquake or very strong wind • epidemic – a disease that spreads rapidly • famine – when large numbers of people in a region or country face death by starvation • refugee– a person who is forced to move because of poverty, war, natural disaster, or persecution

36. acid rain– a form of pollution in which toxic chemicals in the air fall to Earth as rain, snow, or hail deforestation– destruction of forest land erosion– the wearing away of land global warming– the rise of the Earth’s surface temperature over time Terms and People (continued)

37. How do poverty, disease, and environmental challenges affect people around the world today? Globalization has brought poverty, disease, environmental threats, and human rights abuses to the attention of the world. As people work to solve these problems, they have learned that many of them need to be addressed on a global level.

38. Though some progress has been made in reducing global poverty, the gap between rich and poor nations is growing. • Developing nations have so much debt that they have no money to improve life for their people. • Political upheavals, war, and bad planning also block efforts to reduce poverty. • Rapid population growth has strained resources and made it harder to provide basic services.

39. GDP is one way to measure a nation’s wealth.

40. They encourage poor nations to limit their population growth, and ask rich nations to forgive the debts of poor nations. Organizations such as the World Bank believe that ending poverty is key to global peace. Three billion people in the world live on less than $2 per day. One billion cannot read or write. Hunger is an issue for 790 million.

41. One critical issue in developing countries is access to safe water.

42. Natural disasters strike all over the world and cause destruction, death, and disease. • A tsunami swept over the islands and coasts of the Indian Ocean in 2004, killing 160,000. • In 2010, an earthquake devastated Haiti, one of the world’s poorest nations. Over 300,000 people were killed and a million made homeless. • In addition to the immediate suffering, natural disasters can wreck local economies. • However, globalization has meant that news and aid travel more quickly.

43. Migration and travel have contributed to the rapid spread of disease. AnepidemicofHIV/AIDS began in the 1980s. Treating and preventing AIDS has become a global priority.

44. Food is often not distributed to those who need it most. • Both natural disasters and war have caused widespread famine. • Civil wars in Sudan and Ethiopia in the 1970s and 1980s led to famines that required the efforts of international aid groups. Hunger is a major threat for millions of people around the globe.

45. Globalization has led to greater movement of people around the globe. Some of those who migrate are refugeesforced to move due to war, disaster, or persecution. Millions of migrants go to Europe, North America, and Asia each year. While some people in developed countries welcome the newcomers, others fear that immigrants will take away jobs.

46. UN members approved the Universal Declaration of Human Rights in 1948. Nations signing the Helsinki Accords in 1975 guaranteed basic rights as well. However, human rights abuses still occur every day. Globalization has brought attention to these abuses. The world community pressed countries to end abuses through economic means. Human rights groups monitor and report on human rights violations.

47. A global women’s movement has worked for decades to secure equality and rights for women. • According to a report to the UN, women perform two thirds of all working hours but receive only one tenth of the world’s income. • The UN and other groups monitor the human rights of women. They also condemn violence against women.

48. Children suffer abuses around the world, and many work instead of attending school. • Ensuring a child’s right to life, liberty, and education has been difficult in the face of war, poverty, and AIDS. • Developed nations and human rights groups are working to end child labor and abuse. A nine-year-old worker in a brick factory in India

49. Land has been forcibly taken from indigenous people in the name of development. • Though the UN has worked to protect the rights of indigenous people, few have been able to maintain a traditional way of life. • Many Indians have died of diseases. • Mayan villagers were targeted by the government in Guatemala’s civil war.

50. Economic development has raised concerns about damage to the environment. • Gases from factories produced acid rain. • Pollution from nuclear plant disasters sparked debate on how to safely use this technology. • Oil spills polluted waterways. • Expanding human settlement endangered many species of animals. • Deforestation led to soil erosion.