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Cold War & Recovery

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Cold War & Recovery ColdCold War War & & Recovery Recovery PostPost--WarWar Political Political andand Economic Economic Framework Framework .. BrettonBretton WoodsWoods ConferenceConference (1944):(1944): createdcreated InternationalInternational MonetaryMonetary FundFund (IMF)(IMF) .. LayLay foundationsfoundations forfor modernmodern monetarymonetary system;system; basedbased onon U.S.U.S. dollardollar .. IMFIMF (World(World Bank)Bank) designeddesigned toto loanloan moneymoney toto strugglingstruggling countriescountries toto preventprevent economiceconomic crisescrises andand anarchy;anarchy; instrumentalinstrumental inin postpost--warwar economiceconomic boom.boom. .. UnitedUnited NationsNations createdcreated inin 1945:1945: SecuritySecurity CouncilCouncil (12(12 nationsnations includingincluding 55 permanentpermanent membersmembers hadhad powerspowers toto act;act; GeneralGeneral AssemblyAssembly hadhad powerspowers toto adviseadvise (included(included allall nationsnations ofof thethe world)world) WesternWestern Europe Europe PoliticalPolitical Recovery Recovery .. EconomicEconomic hardshiphardship afterafter WWWW IIII:: scarcityscarcity ofof food,food, runawayrunaway inflation,inflation, blackblack marketsmarkets .. ManyMany peoplepeople believedbelieved EuropeEurope waswas finished.finished. .. SufferingSuffering waswas worstworst inin GermanyGermany WesternWestern Europe Europe PoliticalPolitical Recovery Recovery POLITICALPOLITICAL RESTRUCTURING:RESTRUCTURING: .. ChristianChristian DemocratsDemocrats inspiredinspired byby commoncommon ChristianChristian andand EuropeanEuropean heritage.heritage. .. RejectedRejected authoritarianismauthoritarianism && narrownarrow nationalism;nationalism; hadhad faithfaith inin democracydemocracy andand cooperation.cooperation. .. SocialistsSocialists andand CommunistsCommunists alsoalso emergedemerged withwith increasedincreased powerpower andand prestige,prestige, especiallyespecially inin FranceFrance andand Italy.Italy. Pushed for social change and economic reform with considerable success. Result: social reform and political transformation created foundations for a great European renaissance. ““EconomicEconomic Miracle Miracle”” .. UnprecedentedUnprecedented economiceconomic growthgrowth inin EuropeanEuropean historyhistory .. EuropeEurope enteredentered periodperiod ofof rapidrapid economiceconomic progressprogress lastinglasting intointo latelate 1960s.1960s. .. ByBy 1963,1963, westernwestern EuropeEurope producedproduced moremore thanthan 2.5x2.5x moremore thanthan beforebefore thethe war.war. ““EconomicEconomic Miracle Miracle”” .. CausesCauses:: . 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. .. GermanyGermany andand FranceFrance werewere especiallyespecially successfulsuccessful andand influential.influential. .. InIn mostmost countriescountries manymany peoplepeople willingwilling toto workwork hardhard forfor lowlow wages;wages; expandingexpanding industriesindustries benefited.benefited. .. IncreasedIncreased demanddemand forfor consumerconsumer goods.goods. .. ManyMany economiceconomic barriersbarriers eliminatedeliminated andand aa largelarge unifiedunified marketmarket emerged:emerged: CommonCommon Market.Market. EuropeanEuropean Unity Unity CouncilCouncil of of Europe: Europe: CreatedCreated in in 1948 1948 .. EuropeanEuropean federalistsfederalists hopedhoped CouncilCouncil wouldwould quicklyquickly evolveevolve intointo aa truetrue EuropeanEuropean parliamentparliament withwith sovereignsovereign rights,rights, butbut thisthis diddid notnot happen.happen. .. Britain,Britain, withwith itsits empireempire andand itsits ““specialspecial relationshiprelationship”” withwith U.S.,U.S., opposedopposed givinggiving anyany realreal politicalpolitical powerpower——sovereigntysovereignty——toto thethe council.council. EuropeanEuropean Economic Economic Community Community (EEC)(EEC) .. TreatyTreaty ofof Rome,Rome, 19571957 .. CreatedCreated EuropeanEuropean EconomicEconomic CommunityCommunity (EEC)(EEC) oror thethe CommonCommon MarketMarket .. FirstFirst goalgoal ofof treaty:treaty: GradualGradual reductionreduction ofof allall tariffstariffs amongamong thethe SixSix inin orderorder toto createcreate aa singlesingle marketmarket almostalmost asas largelarge asas thethe U.S.U.S. .. OtherOther goalsgoals:: .. FreeFree movementmovement ofof capitalcapital andand labor.labor. .. CommonCommon economiceconomic policiespolicies andand institutions.institutions. .. TariffsTariffs werewere rapidlyrapidly reducedreduced andand regionsregions specializedspecialized inin whatwhat theythey diddid best.best. EuropeanEuropean Economic Economic Community Community (EEC)(EEC) .. EECEEC encouragedencouraged hopeshopes ofof politicalpolitical andand economiceconomic unionunion frustratedfrustrated inin 1960s1960s byby resurgenceresurgence ofof moremore traditionaltraditional nationalism.nationalism. .. EuratomEuratom (European(European AtomicAtomic EnergyEnergy Agency)Agency) alsoalso createdcreated byby agency.agency. .. CommunistCommunist statesstates respondedresponded byby formingforming theirtheir ownown economiceconomic associationassociation COMECONCOMECON ColdCold War War in in the the 1950s 1950s EventsEvents .. 1949,1949, CommunistsCommunists inin ChinaChina ledled byby MaoMao ZedongZedong winwin ChineseChinese revolutionrevolution EstablishEstablish "Peoples"Peoples RepublicRepublic ofof China"China" ("Red("Red China")China") .. 1949,1949, SovietsSoviets successfullysuccessfully testtest atomicatomic bombbomb KoreanKorean War War 1950 1950--19531953 .. AfterAfter WWWW II,II, KoreaKorea divideddivided atat 38th38th parallel:parallel: NorthNorth waswas communist,communist, SouthSouth waswas notnot .. CauseCause:: 1950,1950, NorthNorth KoreaKorea invadedinvaded SouthSouth KoreaKorea (supported(supported byby SovietSoviet resources)resources) .. UNUN (led(led byby USUS && Gen.Gen. DouglasDouglas MacArthurMacArthur)) sentsent forcesforces toto pushpush backback communistscommunists .. SovietsSoviets boycottingboycotting UNUN forfor U.S.U.S. refusalrefusal toto allowallow "Red"Red China"China" intointo UNUN SecuritySecurity CouncilCouncil .. ChinaChina sendssends hundredshundreds ofof thousandsthousands ofof troopstroops toto pushpush backback UNUN .. ResultResult:: ceasecease--firefire andand borderborder atat 38th38th parallelparallel restored;restored; stillstill inin existenceexistence todaytoday HydrogenHydrogen Bomb Bomb .. DevelopedDeveloped byby USUS inin 19521952 && USSRUSSR inin 1953:1953: worldworld nownow hashas twotwo superpowerssuperpowers WarsawWarsaw Pact Pact 19551955 .. CollectiveCollective securitysecurity organizationorganization ofof easterneastern blocbloc nationsnations toto countercounter NATO.NATO. .. U.S.U.S. policypolicy ofof "massive"massive retaliation"retaliation" betweenbetween 19531953--5555 .. U.S.U.S. policypolicy nownow isis toto helphelp EasternEastern EuropeanEuropean countriescountries removeremove communism.communism. .. U.S.U.S. vowsvows toto destroydestroy USSRUSSR withwith nuclearnuclear weaponsweapons ifif itit triestries toto expandexpand .. BrinksmanshipBrinksmanship:: thethe artart ofof goinggoing toto thethe brinkbrink ofof warwar toto forceforce thethe otherother sideside tt backback down.down. KhrushchevKhrushchev .. PowerPower strugglestruggle emergedemerged afterafter StalinStalin dieddied inin 1953;1953; KhrushchevKhrushchev emergedemerged aa fewfew yearsyears laterlater .. StalinStalin’’ss heirsheirs realizedrealized reformsreforms werewere needed.needed. .. WidespreadWidespread fearfear andand hatredhatred ofof StalinStalin’’ss politicalpolitical terrorterror resultedresulted inin reductionreduction ofof powerpower ofof secretsecret policepolice andand gradualgradual closureclosure ofof forcedforced laborlabor camps.camps. .. AgricultureAgriculture inin badbad shape.shape. .. ShortagesShortages ofof consumerconsumer goods.goods. .. HardHard workwork andand initiativeinitiative inin declinedecline duedue toto poorpoor livingliving conditions.conditions. DeDe--StalinizationStalinization .. 19561956:: KhrushchevKhrushchev tooktook startlingstartling initiativeinitiative againstagainst hardhard--linersliners byby denouncingdenouncing StalinStalin’’ss crimescrimes inin aa closedclosed session.session. .. SecretSecret antianti--StalinStalin speechspeech probablyprobably mostmost influentialinfluential statementstatement inin RussiaRussia sincesince LeninLenin addressedaddressed thethe crowdcrowd onon arrivingarriving inin AprilApril 1917.1917. .. GosplanGosplan:: ResourcesResources shiftedshifted fromfrom heavyheavy industryindustry andand thethe militarymilitary towardtoward consumerconsumer goodsgoods andand agricultureagriculture –– CentralizedCentralized EconomicEconomic PlanningPlanning DeDe--StalinizationStalinization .. DeDe--StalinizationStalinization resultedresulted inin communistcommunist reformersreformers andand thethe massesmasses seekingseeking greatergreater libertyliberty andand nationalnational independence.independence. .. PolandPoland:: MarchMarch 1956,1956, riotsriots resultedresulted inin releaserelease ofof moremore thanthan 90009000 politicalpolitical prisonersprisoners HungarianHungarian Uprising Uprising 19561956 .. StudentsStudents andand workersworkers inin BudapestBudapest installedinstalled aa liberalliberal
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