POL101Y1 Lecture Notes - Italian Fascism, Collective Security, Isolationism

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Government intervention (subsidies, credit, direct investments, etc) Picking and making market winners (global demand) Global economic growth- prewar, interwar and postwar. 1870-1913: golden age of europe, good economic growth (2. 5%) 1950-1970: huge economic growth: period when asia plugged into the economy. The world wars: a devastating turning point. Wwi: 15 million deaths; wwii: 50 million deaths. Alliance formation (england, france, russia vs germany) 1919 treaty of versailles and germany"s defeat. Collective security doctrine: preservation of state sovereignty (realist, aggression illegal; outlaw offensive war (cannot invade another country, deter aggression through coalition. League of nations- paris peace conference 1919 (security a collective responsibility, moral responsibility for prevention, could only work if this threat of punishment was credible) Beggar thy neighbor: competitive exchange rate devaluations. Annual growth rate in world output and trade. Rise of the national socialists in germany- the nazi party in 1933. Democracy- occupation strategies (democracy correlated with peace)

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