Postwar Reconstruction – Growing the Global Economy Notes for second term final
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February 14, 2011
Postwar Reconstruction – Growing the Global Economy
o Last four weeks – growth and development (giving us various perspectives to how
countries grow – values, ethics, human effort, public policy, politics in general)
o Asked to compare, instead of argue, describe these contending perspectives
(values and policy)
o Can talk about similarities and dissimilarities, unites of analysis, individuals
versus systems, etc…
- Asia’s Rise
o Government intervention
Created strategic policies in order to create advantages in the market.
o Infant industry protection
How is America going to grow its industry to become competitive? You
have to protect your infant industries.
Put a tax on foreign goods to stop people from buying it and buying yours
instead. Korea put a tax on foreign cars so people would buy cars built by
o Picking and making market winners
They picked sectors that they thought they could do well with, that would
suit the market economy. So Korea picked things like electronics.
o American patronage
Helping out nations is important to your own nation’s economies.
o Developmental state
o Export oriented growth
Could only grow so much to your domestic markets, need to export to
These economies were plugged into the global economy.
Sold more than they bought, essentially benefited from this
- Outlier or Model?
o Market regarding – smith
Selling things that the consumers wanted.
o Mercantilist – List and Hamilton
Government intervention, etc…
o Dependent development – Lenin and Wallerstein
These were peripheral countries, they depended on the core countries.
They depended on foreign trade, markets, etc…
- Global Economic Growth – Prewar, Interwar, and Postwar
o Average GDP annual before wars 2.5%
o During wars 1.0%
o After wars 4.2%
o 1960-1970 5.3%
o World wars – major turning point
These economies before the war joined the world economic growth after
- World Wars
o A devastating turning point.
65 million people died over the course over the two wars.
o Not only was the toll measurable in human terms, the physical destruction was
The devastation that was reaped by the weaponry of the time, left the
countries in ruins.
Economic structure that had been built had been basically destroyed.
- World War 1
o Rise of Germany
By the end of the 19th century, Germany was the leading producer of
heavy industrial production (steel -> boats, weapons, etc…)
Germany and the English were basically in a arms race.
England’s economy was in a decline. By the end of the 19th century,
Germany’s was growing two-fold
England, scared, joins alliance with France and Russia
o Alliance formation
France, Russia, England, able to suppress the other rising powers to
Germany is encircled. Germany now forms an alliance with Austria-
o Power transition moment
o 1919 Treaty of Versailles and Germany’s defeat
Peace treaty, conclusion of world war 1.
Pronounces Germany’s defeat, included the war guilt clause.
Officially states that World War 1 was Germany’s fault.
- Collective Security
o Woodrow Wilson
Did not want to be in any wars.
Believed that it was the system that caused World War 1.
o Collective security doctrine
Preservation of state sovereignty
The primary assumption of realists is that we live in a world of
Aggression illegal; outlaw offensive war
Attacking another country without equal want for conflict
Deter aggression through coalition
If the state becomes aggressive, all the countries in the world
would band together and punish the state.
Failed deterrence lead to collective punishment
o League of Nations – Paris Peace Conference
Basis of this collective security doctrine.
o Fragile on the security front and on the economic front.