1. Economic Globalization
Social Studies 10-1

2. Key Terms economic globalization reparations communism
economic depression
market economy

3. Economic Globalization
is the increasing interconnectedness of people and places as a result of advances in transport, communication, and information technologies that cause political, economic, and cultural convergence.

4. William Tabb
Globalization is healthy but does not benefit all people economically

5. Joseph Stiglitz Won the Nobel Prize for Economics in 2001
countries and peoples are more economically integrated today than ever before.
Interdependence has happened because communication and transportation costs have been greatly reduced and barriers to the flow of goods, services, capital, and knowledge have been taken down.

6. Naomi Klein Journalist
Economic globalization reaches into every aspect of life, but she believes that it builds fences between people.
“These fences of social exclusion can
discard an entire industry, and they can also write off an entire country.”

7. WWI Britain, France, and Russia against Germany and Austria-Hungary.
The economic costs of the war were also high. European cities, towns, farms, roads, factories, ports, ships, and railways had been destroyed.
Significant decrease in the production of goods
Unemployment was to follow…….

8. Treaty of Versailles
was supposed to ensure peace and prevent another global war.
Reparation payments were too extreme and eventually lead to feelings of retribution by Germany
John Maynard Keynes, a member of the British delegation, said that crippling Germany and Austria with war debts would starve the people and guarantee another major war.
The Big 4 

9. Effects of WWI on Canada
$2.5 million a day
After the war, interest payments on the country’s war debt totaled $164 million a year and soldiers’ pensions cost another $76 million a year
This eventually lead to a period of high unemployment which was compounded by the great depression

10. Russian Revolution In 1914, Russia was ruled by Czar Nicholas II
Russian peasants lived difficult lives under an ancient economic system that allowed them little control over their labour or property
THEY WANTED REVOLUTION SO….
Nicholas II was forced to give up his throne in and he and his family were murdered in 1918
In 1922, the Union of Soviet Socialist Republics emerged out of the former Russia. The USSR, or Soviet Union, was the world’s first communist state
under Lenin
an ideology would form that would shape the face of 20th century history comparing government control to economic freedom

11. Communism
a new economic and political model that was supposed to get rid of class distinctions.
Opposition to Capitalism
Under Stalin the Soviet Union became a one party state (dictatorship)
This gave way to many restrictions and oppressions on the Soviet people
Many historians believe that the people of the Soviet Union were worse off under Stalin than under the czars.

13. The Great Depression Tuesday, October 29, 1929 Black Tuesday
a decrease in stock value caused widespread panic and investors started selling stocks
Result – people who lost money could no longer pay bills
Gradually, the entire world moved into an economic depression — the Great Depression.

14. Depression in Canada
Between 1929 and 1933, Canadian exports fell by 50 per cent
By 1933, 26.6 per cent of Canadians were out of work
1929. In addition, a drought that had started in 1928 continued off and on until 1937

15. WWII Germany hit hard by depression
1933 Adolf Hitler and the Nazi Party promised to fix things
Hitler was popular, and he convinced many Germans that they belonged to a master race that was entitled to rule other people

16. The United Nations at Bretton Woods
In July 1944, representatives of 44 countries met in the small New Hampshire town of Bretton Woods for a conference sponsored by the newly founded United Nations to prevent the economic turmoil that may lead to another war

17. Keynes
Keynes believed that the unrestricted capitalism that had existed before World War I and between the two world wars had failed
Keynes believed that the government needs to intervene at times in the economy to create economic stability
For Example
Governments should set up programs to hire the unemployed
Interventionist

18. Hayek Friedrich Hayek disagreed with Keynes’s views on the economic
role of government
According to Hayek, a government should protect the market by ensuring that its rules and laws do not interfere with competition between businesses

19. World Bank and the IMF
Monetary Fund, or IMF, were mapped out at the Bretton Woods meetings. These two organizations would be supported by the United Nations and would help expand international trade
Why?
To Avoid Another War!

21. Gatt (general agreement on tariffs and trade)
GATT members agreed to gradually
eliminate tariffs and other trade barriers between themselves
Basically
Trade Rules!!!

22. Changed Foundations Capitalism vs Communism
Source of a great amount of friction
This “Cold War” greatly affected global trade
By 1989 the Soviet Union was growing weak and these frictions gradually disappeared and a new economic age would emerge

23. Hayek and Friedman The Market Economy less government intervention and
freer markets would generate economic health and prosperity
Freidman’s theories Influenced Margaret Thatcher
As a result, Britain and the U.S. began to move toward a market economy

24. The debate between the two differing economic visions continues to reverberate in the world today.

25. Journal Entry #9
To what extent did world events shape contemporary economic globalization?