Economic Recovery and the End of European Empire

1. Economic Recovery and theEnd of European Empire

2. 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.

3. 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.

4. 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.

5. 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

6. France • General Charles De Gaulle, inspiring wartime leader of Free French, re-established 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.

7. West Germany • 1949, Konrad Adenauer began long, highly successful democratic rule. • Christian Democrats became West Germany’s majority party for a generation

8. 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.

9. 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.

10. 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.

11. 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.

12. 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.

13. 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

14. 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)

15. 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)

16. 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

17. 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

18. 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

19. 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

20. 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

21. 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 Maosociety were a Kenyan group of terrorists/freedom fighters who fought to end English control of Kenya.

22. 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.