Political Science, February 14.
Postwar Reconstruction (Growing the global economy)
In the paper, we have to compare. You need to be able to describe them, but we only have 5
pages to do it. Accent on COMPARE. Half of it talks about VALUES AND POLICY.
Comparing requires you to do some serious thinking. COMPARE COMPARE, similarities
and dissimilarities, unit of analysis, individuals vs. system. Best analogy, people say you
can’t compare apples and oranges, but you can.
Government intervention they created strategic policies, to create comparative
advantage (TSMC) government bought technology, founded the university and
invested into the firm.
Infant industry protection Alexander Hamilton, how is America going to grow its
firms? You have to protect your infant industry by making foreign competition more
expensive, by increasing tariff barriers and putting a tax on foreign
goods( manipulate the market to encourage citizens to buy their own products )
Picking and making market winne rs These are small economies( Taiwan, Korea)
picked sectors they thought they could do well in, and they picked things good for
their industry and slowly advanced, and paid attention to what market wanted
American patronage Americans helped them out a lot, provided military support,
largest naval fleet in Japan to protect from communist expansion, amount of aid
given to just o Korea was more then half of the aid given to the whole African
continent, bought Korean products
Development stat e Only best and brightest were invited, and these industries
had extraordinary power, they had the power
Export oriented growt h they needed to export, they have small markets (25- 40
million of people) these economies were plugged into the market economy ( they sold
more then they bought, and essentially benefited from the global economy)
Outlier or Model?
Market regarding – Smith
Mercantilist – List Hamilton predicated to government
www.notesolution.com Dependent development – Lenin and Wallenst einForeign aid, economy , and
There is tremendous complimentary between these theories (Market regarded economies
that took seriously supply and demand)
They plugged into the global market at good times
At the end of 19tcentury average GDP growth was 2.5%. WWI, WWII 1%, 1950-1960 4.2%,
The world Wars: A devastating turning point
WWI – 15 million people died
WWII – 50 million people died
(Number of deaths in Korean and Vietnam war of American soldiers was 110 thousand
Not only humans died, physical destruction was devastated, the economic infrastructure
that was developed in 19 century was destroyed.
What was it about WWI and WWII that made global growth double, how did they shape
post war reconstruction, what lessons did we learn from these lessons, and how did these
lessons shape this post war period? These wars set up the economy we live in today.
World War I
Rise of Germany
o Germany was the leading steel production by the latec1 th e9tury, and was
engaged in naval arms race with England, Germanys economic growth rate
was double of that in England, as a result England was begin to be a little
nervous, paranoid and isolated.
o Germany forms alliance with Austria, Serbia starts a war, and Germany
o England forms an Alliance with France and Russia; by doing that they could
balance the rising power that was in Germany.
www.notesolution.com Power transition moment
1919 Treaty of Versailles and Germany’s defeat