Transcript WESTERN EUROPE: DECOLONIZATION AND ECONOMIC UNITY …

WESTERN EUROPE:
DECOLONIZATION AND
ECONOMIC UNITY AFTER
WORLD WAR II
Decolonization
With the growth of
nationalism in the
1930s and the
weakening of
empires after
WWII, European
colonies around
the world begin to
disintegrate
Brits Give Up India
Under the leadership of
Mohandas Gandhi,
India won
independence from the
British in 1948
“Partition and run” was
the English strategy as
they divided the
country between
Hindus (India) and
Muslims (Pakistan) and
left the country
Japan Recovers After The War
Japan dominated much
of East and Southeast
Asia in the late 30s and
early 40s
With U.S. aid and
business practices,
Japan became an
industrial leader by 1970
in autos and electronics
Cold War conflicts
between the U.S. and
USSR in this power
vacuum occurred in
Korea and Vietnam
Japan’s Economy Recovers
West Germany and Japan
faced a similar challenge – an
occupied nation restoring a
shattered economy
The U.S. wanted to preserve
their sphere of influence
against communist
encroachment in Asia
General MacArthur led
occupation forces in Japan
and led an economic
turnaround that saw Japan
rise to the 3rd largest
industrial nation in the world
by 1968
Africa Regains Independence
African independence came
relatively late: the 1950s and
1960s
While countries like Britain
and Belgium yielded their
colonies, French held firm
especially after their
humiliating defeat in
Indochina
Finally after a fierce conflict
in Algeria, de Gaulle agreed
to Algerian independence in
1962
Middle East Walks Tight-rope
In the Middle East, the
withdrawal of British and
French rule and the
creation of Israel in 1948
destabilized the area
Egypt and Syria sought
Soviet support against the
new Israeli state
In 1956 Egyptian president
Nasser nationalized the
Suez Canal, leading to the
Suez Crisis
The British and French
fought back until the
US/USSR pressured them
to withdraw
Oil In Iran
Oil in Iran brought the
Soviets politicking in the
Mid-East after WWII
However, Western oil
companies had already
won oil concessions in
Iran
In 1951, a nationalist
Iranian government
sought to evict the
westerners
The CIA intervened and
installed a puppet leader
(Shah of Iran)
U.S. Protects Latin America
Geographically close
to the U.S., Latin
America was a region
the U.S. was
determined to keep
out of Communist
hands
The U.S. orchestrated
an overthrow of
Guatemala’s leftist
regime (1954) to keep
Soviet influence in the
Western Hemisphere
in check
Cuba Falls to Communism
In 1959 a revolution in Cuba produced a communist
regime under the leadership of a young lawyer – Fidel
Castro
The 1962 Cuban Missile Crisis brought the superpowers
to the brink of nuclear war
“Peaceful coexistence” resulted as both sides recognized
how close they came to mutual annihilation
European Unity
Greater cooperation and
regulation were sought by
Western European
countries after WWII for
security and prosperity
Increased welfare
programs, unemployment
benefits, pensions, public
health programs and fair
housing policies created a
safety net that has
become the norm for
Western European
governments (the
Beveridge Report)
John Maynard Keynes Influence
Keynes influenced the new social
democracies
His believed in governmental planning
and responsibility to the citizenry
He thought the government should be
responsible for the control and regulation
of the economy, check inflation,
and reduce boom-and-bust cycles
Deficit spend if necessary
The European Economic
Cooperative
The chief mechanism
for advancing the
Marshall plan aid was
the Office of European
Economic Cooperative
(OEEC)
The modernization of
economies through
centrally coordinated
planning made Europe
once again a major
economic player
West German Economy Thrives
The most committed to
free-market policies was
West Germany
Called -- “A free market
enterprise economy with
a social conscience”
West Germany became
the richest economy in
Western Europe and third
richest in the world—an
“economic miracle”
“Benelux” Unites 3 Countries
Belgium, the
Netherlands and
Luxembourg were the
first to establish
themselves as an
economic unit
Known as “Benelux”
– the 3 countries
removed customs and
erected external tariff
barriers
Schuman Plan
In the early 1950s, the Schuman plan
(created by Robert Schuman and Jean
Monnet) joined France and West
Germany in Economic Cooperation by
pooling all Coal and Steel resources
In 1951, Benelux, France, Italy and West
Germany formed the European Coal and
Steel Community (ECSC)
The ECSC established a “common
market” in coal and steel for its
members
European Economic Community
In 1957, the same six
members created the
European Economic
Community (EEC)
It was the beginning of
what became known as
the Common Market
Note: Great Britain was
reluctant from the start
to join the EEC – they
finally relented in 1973
Unification of Germany
On the surface, the
differences between the
GDR and the FRG seemed
insurmountable
By the 1980s, West
Germany stood as an
economic giant – 2nd in
foreign trade to the United
States (GDR 15th)
East German citizens were
lured by the prosperity of
the West and increasingly
emigrated
FRG
VS.
GDR
West Embraces East
The West German government assisted
their eastern brethren in shoring up their
economy
The strong West German deutsche mark
replaced the weak East German currency
Monetary Union prefigured political
unification
In October 1990, Germany was reunited
The West in the Global
Community
The 1970s
witnessed rising
oil prices, inflation
and recession
European nations
sought greater
cooperation as a
response to world
markets
dominated by the
Unites States
Politics of Oil
The oil crisis of the 1970s
undercut the goals of the
common market
OPEC (Organization of
petroleum exporting countries)
raised prices and cut back
production
Inflation resulted
Western European leaders
realized great integration was
the only defense against the
loss of markets
Foreign Labor
Foreign labor was an important
component of European growth
The permanent presence of
foreign workers, many of them
erratically employed, came to be
seen as a problem by welfare state
leaders and politicians of the new
right
Europe’s new working class
became the brunt of racial
antagonism
The European Community
The European Community (EC) was
created in 1967 by merging the 3
transnational European bodies
1) European Coal and Steel
2) European Economic
Community
3) European Atomic Energy
Community (Euratom)
Toward a Single Europe
In 1985 the EC negotiated the Single European Act (ratified
in 1987)
The Act sought a fully integrated market by 1992
Cut internal and international trade barriers
Standardized labor, trade and utilities
Europe as a “single nation” concept
Population of the EC
The flag for the EC was
introduced in 1986
Rose to 320 million by
1989
EC joined with the
European Free Trade
Association (EFTA) in
October, 1991
After the EC adds
Scandinavian countries,
Austria, Lichtenstein and
Iceland – EC now
consisted of 380 million
consumers
The European Union
Established in December, 1991
in Maastricht, Netherlands
12 EC nations
A common currency would
eventually be created to
replaced national currencies
A single banking system would
be established: European
Monetary Institute
A single political body would
govern
A common defense system
Maastricht Treaty formally signed February 7, 1992
“One Currency, One Culture, One
Social Area, One Environment”
By January 1, 2002 Twelve
of the 15 member nations
adopted a single currency the euro
Britain resisted the euro,
but was fully committed to
the EU under Thatcher and
Major
Major EU expansion came
on May 1, 2004 as 10 new
nations joined including –
Baltic, Balkan and some
Mediterranean countries
Iron Curtain, Iron Smurtain
The expansion the EU into
Eastern Europe helped put an
end to the rift that from 1945
onwards, separated the free
world from the Communist
world
Today the EU has 25 member
nations and will Estonia,
Slovenia and Lithuania by
2007
The EU is the largest exporter
in the world and its GNP is
higher than the U.S.