Company LOGO Economic Recovery and the End of European Empire

Post-War Political and Economic Framework Bretton Woods Conference (1944): created International Monetary Fund (IMF), World Bank and WTO Lay foundations for modern monetary system; based on U.S. dollar IMF (World Bank) designed to loan money to struggling countries to prevent economic crises and anarchy; instrumental in post-war economic boom. United Nations created in 1945.

Western Europe political recovery Economic hardship after WWII: scarcity of food, runaway inflation, black markets Many people believed Europe was finished. Suffering was worst in Germany. Marshall Plan instituted to help recovery.

Political restructuring Christian Democrats inspired by common Christian and European heritage. Rejected authoritarianism & narrow nationalism; had faith in democracy and cooperation. Catholic parties also progressive in nature. Socialists and Communists also emerged with increased power and prestige, especially in France and Italy. Pushed for social change and economic reform with considerable success. Result: social reform and political transformation created foundations for a great European renaissance.

Italy Christian Democrats gained control in 1946 led by Alcide De Gasperi Socialist influence: social benefits came to equal a large part of the average worker’s wages

France General Charles De Gaulle, inspiring wartime leader of Free French, re- established free and democratic Fourth Republic (resigned in 1949) Catholic party provided some of best postwar leaders e.g. Robert Schuman Socialist influence: large banks, insurance companies, public utilities, coal mines, and the Renault auto company were nationalized by gov’t.

West Germany 1949, Konrad Adenauer began long, highly successful democratic rule. Christian Democrats became West Germany’s majority party for a generation

Britain Clement Attlee, socialist Labour party leader, defeated Winston Churchill and the Conservatives in 1945 (later returned to power). Attlee moved toward establishment of a “welfare state.” Many industries nationalized, gov’t provided each citizen with free medical service and taxed the middle and upper classes more heavily.

The Economic Miracle Unprecedented economic growth in European history Europe entered period of rapid economic progress lasting into late 1960s. By 1963, western Europe produced more than 2.5 times more than before the war. Causes: –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.

The Economic Miracle Germany and France were especially successful and influential. In most countries many people willing to work hard for low wages; expanding industries benefited. Increased demand for consumer goods. Many economic barriers eliminated and a large unified market emerged: Common Market.

The Common Market German economic recovery led by finance minister Ludwig Erhard Combined free-market economy & extensive social welfare network inherited from Nazi era. By late 1950s, West Germany had robust economy, full employment, a strong currency and stable prices.

The Common Market France Combined flexible planning and a “mixed” state and private economy to achieve most rapid economic development in its history. Jean Monnet: economic pragmatist and architect of European unity. France used Marshall Plan aid money and the nationalized banks to funnel money into key industries, several of which were state owned. European Coal and Steal Community in 1958.

European De-Colonization Postwar era saw total collapse of colonial empires. Between 1947 and 1962, almost every colonial territory gained independence. New nations of Asia and Africa deeply influenced by Western ideas and achievements. Causes –Modern nationalism and belief in self-determination and racial equality, spread from intellectuals to the masses in virtually every colonial territory after WWI. –Decline of European prestige: Japanese victories; destruction of Europe during WWII –After 1945, European powers more concerned about rebuilding; let colonies go

India India played a key role in decolonization and the end of empire. Indian National Congress: British had no choice but to develop a native political elite that could assist in ruling such huge country. Exposure of young Indians to Western ideas of nationalism, socialism, and democracy led to demands for independence by the early 20 th century. Mohandas K. Gandhi: after WWI led independence movement with principle of passive resistance (civil disobedience) Jawaharlal Nehru led Congress party in its push for independence)

India Clement Attlee and others in Labour party wished to focus on internal affairs. Lord Louis Mountbatten: appointed to supervise transition of India to independence Divided India into two nations: India (Hindu) and Pakistan (Muslim)

China After WWII (defeat of Japanese invaders) a civil war broke out between communists led by Mao Zedong and Nationalists led by Jiang Jieshi (Chang kai-shek) Mao won the revolution and created a communist country: People's Republic of China

Indo-China After Japanese removed after WWII, French tried to reassert control of Indochina Ho Chi Minh led the independence movement in the north 1954, defeated French forces at Dien Bien Phu 1954,Vietnam was divided into North (communist) and South (pro-Western); civil war resulted U.S. defeated in attempt to prevent communist takeover of South Vietnam; Vietnam unified in 1975

The Middle East Arab nationalists loosely united by opposition to colonialism and migration of Jews to Palestine Israel and Palestine –Balfour Declaration in 1917 indicated Britain favored creation of Jewish “national home” in Palestine—opposed by Saudi Arabia & Transjordan –Great Britain announced its withdrawal from Palestine in –United Nations voted for creation of two states, one Arab and one Jewish –Palestinians vowed to fight on until state of Israel destroyed or until they established own independent Palestinian state; led to several wars and numerous conflicts in late 20 th century

The Middle East Egypt Arab defeat in 1948 by Israel triggered nationalist revolution in Egypt in , Egyptian president Gamal Abdel Nasser nationalized the Suez Canal, the last symbol and substance of Western power in the Middle East. France, Britain and Israel attacked Egypt, trying to take back control of Suez Canal U.S. and Soviet Union demanded their withdrawal and the canal remained in Egypt's control

Middle East Algerian Crisis (mid 1950s) Algeria’s large French population considered Algeria an integral part of France. This feeling led ensuing war; bitter and atypical of decolonization. General De Gaulle, who had returned to power as part of movement to keep Algeria French, accepted principle of Algerian self-determination. 1962, after more than a century of French rule, Algeria became independent and the European population quickly fled. Crisis led to fall of the Fourth Republic and beginning of the Fifth Republic

Sub-Saharan Africa Decolonization proceeded much more smoothly than in northern Africa · British Commonwealth of Nations: beginning in 1957, Britain’s colonies achieved independence with little or no bloodshed; entered a very loose association with Britain. · Exception: Mao Mao society were a Kenyan group of terrorists/freedom fighters who fought to end English control of Kenya.

Sub-Saharan Africa 1958, De Gaulle offered leaders of French black Africa choice of total break with France or immediate independence within a kind of French commonwealth. · All but one of new states chose association with France. · Cultural imperialism continued, · France and Common Market partners saw themselves as continuing their civilizing mission in black Africa. · Desired untapped markets for industrial goods, raw materials, outlets for profitable investment, and good temporary jobs for their engineers and teachers.