MAKING OF A GLOBAL WORLD

MAKING OF A GLOBEL WORLD By globalization we mean increasing integration between different economies of the world. The making of the globel world has a long history of trade ,migration of people in search of work. Trade and culture exchange through the silk route. Traders and travellers introduced new crops to the land through the silk route.

The 19th Centuary(1857-1914) Economist identifies thre types of flows . a.The first is the flow of Europe . B.Second is the flow of trade. C.Third is the flow of capital.

WARTIME TRANSFORMATION The first world war was faught between two power block. In one block- Britain, French and Russia. types of flows a.The first is the flow of Europe In another block-Germany,Austria-Hungery and Turkey. This was the first modern industrial war. During this war,Industries were restructured to produce war related goods. Many countries borrowed loans from U.S.A. The war transformed U.S. from an international debtor to an international creditor.

POST WAR RECOVERY After the war production contracted and unemployment increased. Many agricultural economy were in crisis. Rural incomes declined,Farmers felt deeper into debt

The great economic depression The great depression began around 1929 and lasted till the mid 1930. All countries faced declines in production, employment,incomes and trade. Agricultural overproduction remained a problem. Many countries financed their investments through loans from U.S. The withdrawal of U.S. loans affected much of the rest of the world. By 1935, a modest economy was under way in most industrial countries.

2nd world war Economy Second world war began in 1939. It was faught between Axis powers-Germany,Japan,Italy. The allies power-France,Soviet union and U.S. The second world war was the dominance of the soviet union.

AFTER THE SECOND WORLD WAR Main aim of the post war ecnomic system was to preserve economic stability and full employment in the industrial world. Bretton-Woods conference established the international Monetary Fund. World Bank was set up to finance post war reconstruction.

DECOLONISATION AND INDEPENDENCE Developing countries organised themselves as a group-the group of 77. It demand a new international economic order.(NIEO) By NIEO they meant the system that would give them real control oer their natural resources.