Economic Recovery &

European Unity1945-2001

The Last AP PowerPoint of the Year

Post-War Political and Economic Framework

• Bretton Woods Conference (1944): created International Monetary Fund (IMF)– 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: – Security Council (12 nations

including 5 permanent members had powers to act;

– General Assembly had powers to advise (included all nations of the world)

IMF Flow Chart

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

Political RestructuringChristian 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.

• Britain followed same trend

Political Restructuring• Federal Republic of Germany

(West Germany): – 1949, Konrad Adenauer began long,

highly successful democratic rule.– Christian Democrats became West

Germany’s majority party for a generation

• Great Britain:– Clement Attlee, socialist Labour

party leader, defeated Winston Churchill and the Conservatives in 1945.

– 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• “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 2.5X 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.

– 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 Economic Miracle• 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.

• 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.

 

Creation of a Welfare State• Western European countries

sought to provide universal services to all people– Employment– Unemployment and disability

insurance– Social security for the elderly– Free or subsidized healthcare– Redistribution of wealth and income

by placing high taxes on wealthier citizens

• The welfare state would be universal and not just aimed at the poor and unemployed

• The Christian Democrats in West Germany, France and Italy played a key role in shaping the welfare state

Creation of a Welfare State• As long as the European economy in

western and central Europe continued to grow in the 1950’s and 1960’s governments could more or less meet the expenses of the “welfare state”

• Britain became the model for the “welfare state” and a “mixed economy” under the socialistic Labour party and prime minister Clement Atlee

– Government nationalized the Bank of England, coal mines, electricity and gas, iron, steel

– 80% of industry remained private– Increased social insurance for

unemployment old age, workers compensation, universal national health care

– Increased a progressive income tax and inheritance tax which were largely targeted at the middle-class and the wealthy

– When conservatives took power from 1951 to 1964, the “welfare state” essentially remained in tact though some nationalized industries were privatized

Creation of a Welfare State• With the economic downturn and

high inflation in the 1970’s, governments experienced larger deficits, increased national debts, and pressure from conservatives to lower taxes.

• Conservatives argued that the “welfare state” had become excessive while high taxation was stunting economic growth.

• The welfare state was thus trimmed throughout Europe

• In some countries, such as Britain led by conservative Margaret Thatcher, government began privatizing industries that had been state-owned and restricting labor strikes.

Immigration of “Guest Workers”• What are the issues

surrounding these migrant workers?– Economic– Cultural Effects

European Unity• Three major Streams for European

unity emerged– Political: Council of Europe

• Contained nearly every European nation but had little influence

– Military: has never truly materialized– Economic most successful with the

development of the European Union (EU) through various stages of development – ECSC, EEC, EC, and EU

• Council of Europe created in 1948– European federalists hoped Council

would quickly evolve into a true European parliament with sovereign rights, but this did not happen.

– Britain, with its empire and its “special relationship” with U.S., opposed giving any real political power—sovereignty—to the council.

European Unity• Schuman Plan, 1950 created the

European Coal and Steel Community– Put forth by French statesman Jean

Monnet and Foreign Minister Robert Schuman.

– Special international organization to control & integrate European steel and coal production.

– West Germany, Italy, Belgium, Netherlands, & Luxembourg accepted in 1952.

– Britain refused to enter– Immediate economic goal: a single

competitive market w/o national tariffs or quotas.

– "The Six": By 1958 coal and steel moved freely among six nations of the European Coal and Steel Community

– Far-reaching political goal: bind six member nations so closely together economically that war among them would become unthinkable and virtually impossible.

European Economic Community (EEC)• Treaty of Rome, 1957

– Created European Economic Community (EEC) or the Common Market

– Signed by same six nations in the Schuman Plan – “the Six”

– First goal of treaty: Gradual reduction of all tariffs among the Six in order to create a single market almost as large as the U.S.

– Other goals: • Free movement of capital and labor.• Common economic policies and institutions.• Tariffs were rapidly reduced and regions

specialized in what they did best.– EEC encouraged hopes of political and

economic union.– Union frustrated in 1960s by resurgence of

more traditional nationalism.– Euratom (European Atomic Energy Agency)

also created by agency.– Communist states responded by forming their

own economic association--COMECON

European Unity• France steps back from European

unity• Bitter colonial war in Algeria

resulted in the election in 1958 of General De Gaulle who established the Fifth French Republic and ruled as president until 1969.

• Withdrew France from "US controlled" NATO and developed own nuclear weapons program.

• De Gaulle twice vetoed application of pro-American British to European Union.

• Britain did not enter until 1973.

European Union• went into effect in 1993• European Community (EC) renamed to

European Union in 1996• Chancellor Kohl and President Mitterrand

sought to extend the EU to include a single European currency and a common defense and foreign policy

• British prime minister Margaret Thatcher led opposition until she resigned in November 1990, replaced by conservative successor John Major who urged a limited federalism.

• Maastricht Treaty, 1991– Promised most radical revision of the EC

since its beginning.– Eurodollar became the single currency of

the EU in 1999 integrating the currency of 11 western and central European nations.

– Proposals to form common foreign and defense policies.

– Increased use of majority voting.– Greater parliamentary consultation.– By 1995 EU had 15 members

Economic crises of the 1970s• Nixon takes U.S. off gold standard: effectively

ended the “Bretton Woods” system of international currency stabilization.

• Fixed rates of exchange abandoned.• Great uncertainty replaced postwar

predictability in international trade and finance.

• Energy Crisis– Postwar economic boom fueled by cheap oil,

especially in western Europe.– 1973, OPEC (Organization of Petroleum

Exporting Countries) dramatically increased oil prices in Europe and U.S. in retaliation for their support of Israel in the Yom Kippur War against Egypt and Syria.

– Second price increase in 1979 during Iranian Revolution hurt modest progress since 1976.

– Price revolution in energy, coupled with upheaval in international monetary system, plunged world into worst economic decline since 1930s.

– "Stagflation" hit in the mid 1970s: increased prices and increased unemployment; rare

– Debts and deficits piled up quickly in the 1970s and 1980s

Economic crises of the 1970s• Social consequences of the 1970s economic

crisis– Created condition for collapse of communism in

late 1980s.– Pessimism replaced optimism in society in general– Welfare system created in postwar era prevented

mass suffering and degradation.– Total government spending in most countries rose

during 1970s and 1980s• Conservative resurgence in late 1970s and

early 1980s: Thatcher, Reagan, Mitterand– By late 1970s, powerful reaction against

increased governments’ role resulted in austerity measures to slow growth of public spending and the welfare state.

• Margaret Thatcher in Great Britain• Ronald Reagan in U.S.

– 1993, frustrated French voters gave coalition of conservatives and moderates overwhelming victory.

• France in early 1980s attempted to increase gov’t role but failed

– Francois Mitterand led his Socialist party and Communist allies in launching a vast program of nationalization and public investment designed to spend France out of economic stagnation. (Keynesian)

– By 1983, this policy failed and Mitterand was forced to impose wide variety of austerity measures for the remainder of the decade.

– Reduction in spending for “Big Science” (except cold war related spending)

• Europeans and North Americans developed a leaner, tougher lifestyle

SOCIETY AFTER WORLD WAR II

• Science and Technology– For first time in history, “pure

theoretical” science and “practical” technology (”applied science”) effectively joined together on massive scale during WWII.

– British scientists developed radar to detect enemy aircraft.

– Jet aircraft developed by Germany– Electronic computers further

developed; had barely come into existence before 1939.

– Manhattan Project: Atomic bomb most spectacular result of scientific research during the war; project overseen by J. Robert Oppenheimer

– “Big Science” became new model for science after WWII

• Combined theoretical work with sophisticated engineering in a large, often huge organization.

• U.S. emerged as leader in Big Science after WWII

• Science not demobilized after WWII either in U.S. or USSR

• Large portion of all postwar scientific research went for “defense” (25%!)

SOCIETY AFTER WORLD WAR II• Space Race (part of Cold War competition to achieve

technological superiority)– 1957, USSR launched Sputnik, an orbiting satellite using

long-range rockets– US fearful Soviets could now launch a nuclear missile into

space and then down to U.S.– Resulted in development of ICBMs (Intercontinental Ballistic

Missiles)– U.S. countered with creation of NASA and vastly increased

educational funding for science.– 1961, Soviets sent world’s first cosmonaut, Yuri Gagarin,

into orbit.– President John F. Kennedy responded by increasing funds

for space.– 1969, Apollo Program put first man on the moon; 4 more

moon landings followed by 1972.• “Brain Drain”: U.S. attracted many of Europe’s best

scientists during 1950s and 1960s—seen as the American Challenge

– Some Europeans feared Europe was falling behind U.S. in science, technology, and most dynamic industrial sectors of the late 20th century.

– Yet, revitalized Europe pooling resources on Big Science projects:

• Concorde supersonic passenger airliner and peaceful uses of atomic energy.

• Massive growth of scientific community• Four times as many scientists in Europe and North America in 1975

as in 1945.• Highly specialized modern scientists and technologists worked as

members of a team, which completely changed work and lifestyle of modern scientists.

• James Watson and Francis Crick win Nobel Prize in 1962 for discovering structure of DNA

SOCIETY AFTER WORLD WAR II• Change in class structure and social reform

– Rise of the middle-class largely result of increased access to higher education

– European society became more mobile and democratic.

– New middle-class, based largely on specialized skills and high levels of education, more open, democratic, and insecure than old propertied middle class.

• Changes in structure of middle class influential in trend toward less rigid class structure.

– Causes for change in rise of middle class– Rapid industrial and technological expansion created

in large corporations and gov’t agencies became powerful demand for technologists and managers.

– Old propertied middle class lost control of many family-owned businesses.

– Top managers and ranking civil servants represented model for new middle class of salaried specialists; well paid and highly trained

– Passed on opportunity for advanced education to their children.

• Structure of lower classes also became more flexible and open.

– Mass exodus from farms and countryside.– Resulted in drastic decline in one of Europe’s most

traditional and least mobile groups.• Industrial working class ceased to expand while job

opportunities for white-collar and service employees grew rapidly.

– European governments reduced class tensions by further expanding social security reforms: health care, family allowances, maternity grants, public housing

SOCIETY AFTER WORLD WAR II

• Consumerism worked to level Western society.• Sparked by rising standard of living giving more

people disposable income.• European automobile industry expanded

phenomenally.• “Gadget revolution”

– Like US, Europeans bought washing machines, vacuum cleaners, refrigerators, dishwashers, radios, TVs, and stereos.

– Purchasing greatly facilitated by installment purchasing.

– Increased social welfare resulted in more disposable income and less need to save for old age.

• Leisure and recreation became big business as workers worked fewer hours.

– Soccer matches, horse races, movies, TV, commercialized hobbies

– Increased attendance in cultural events: concerts and exhibitions.

– Travel industry mushroomed most dramatically– Before WWII travel for pleasure or relaxation

largely aristocratic.– Paid vacations required by law in most countries

SOCIETY AFTER WORLD WAR II• The youth movement and

Counterculture• Counter-Culture: rebellion against

parents, authority figures and status quo– Baby boom after WWII developed distinctive

and international youth culture.– Many raised in economic prosperity and

more democratic class structure.– New generation influenced by revival of

leftist thought created a “counter-culture” – Youth in America took the lead.– Some youth rebelled against conformity and

boredom of middle-class suburbs.– Rock music helped tie counter-culture

together– Beatles, British rock band, became one of

biggest pop groups in music history– Increased sexual behavior among many

young people during 1960s and 1970s– Age of first sexual experienced reduced

significantly.– Growing tendency of young unmarried

people to live together on a semipermanent basis with little thought of getting married or having children.

SOCIETY AFTER WORLD WAR II• Causes of the emergence of international youth culture in 1960s.

– Mass communication and youth travel linked countries and continents together.

– Baby boom meant youth became unusually large part of population and exercised exceptional influence on society as a whole.

– Postwar prosperity and greater equality gave youth more purchasing power than ever before.

– Youth to set mass trends and fads in everything from music to chemical stimulants.

– Common patterns of consumption and behavior fostered generational loyalty.

– Good jobs were readily available.– High demand for workers meant youth had little need to fear punishment

from straight-laced employers for unconventional behavior.

SOCIETY AFTER WORLD WAR II• Student Revolts in the late 1960s

• Causes– Opposition to U.S. war in Vietnam

triggered revolutionary ferment among youths

– Influenced by Marxist current in French universities after 1945 & new left thinking in US

– Believed older generation & US fighting immoral & imperialistic war against Vietnam.

– Students in western Europe shared US youth's rejection of materialism and belief that postwar society was repressive and flawed.

– Problems in higher education: classes overcrowded; little contact with professors; competition for grades intense; demanded even more practical areas of study to qualify for high-paying jobs after college

– Some students warned of dangers of narrowly trained experts ("technocrats") who would serve the establishment to the detriment of working class.

French Student Revolt, 1968

• Students took over the university, leading to violent clashes with police.

• Most students demanded changes in curriculum and real voice in running the university

• Appealed to industrial workers for help; spontaneous general strike spread across France

• To many it seemed the French Fifth Republic might collapse

• De Gaulle called in troops and called for new elections (which he won decisively)

• The mini-Revolution collapsed.• For much of the older generation in

western Europe, the student revolution of 1968 signaled the end of illusions and end of an era.

Abstract Expressionism• was an American post–World War II art movement. • It was the first specifically American movement to

achieve worldwide influence and put New York City at the center of the western art world, a role formerly filled by Paris.

• Although the term "abstract expressionism" was first applied to American art in 1946 by the art critic Robert Coates, it had been first used in Germany in 1919 in the magazine Der Sturm, regarding German Expressionism.

• In the USA, Alfred Barr was the first to use this term in 1929 in relation to works by Wassily Kandinsky.

• The movement's name is derived from the combination of the emotional intensity and self-denial of the German Expressionists with the anti-figurative aesthetic of the European abstract schools such as Futurism, the Bauhaus and Synthetic Cubism.

• Additionally, it has an image of being rebellious, anarchic, highly idiosyncratic and, some feel, nihilistic

Women• Early women’s rights advocates: De Gouges,

Wollstonecraft, Pankhurst• Second wave of women’s movement first assumed

real significance in the late 1960s, gathered strength in the 1970s, and won major victories in the 1970s and 1980s.

• Marriage and Motherhood– In the postwar era, women continued to marry earlier.– Typical woman in Europe, U.S. and Canada had children

quickly after marrying.– Average of only 2 children per family– Motherhood occupied a much smaller portion of a

women’s life than at the turn of the century.– Birth control use increased with oral contraceptives and

intrauterine devices.• Women in the workplace

– In 20th century, especially after WWII, opportunities for women of modest means to earn cash income at home practically disappeared.

– Thus, sharp increase across Europe and North America in number of married women who became full-time and part-time wage earners outside the home.

– Rising employment of married women became a powerful force in drive for women’s equality and emancipation.

– Rising employment for married women became a factor in decline of the birthrate.

The Pill• Margaret Sanger & Katherine McCormick

– In 1953, Margaret Sanger and Katherine McCormick confronted Pincus with the idea of creating an oral contraceptive.

• Gregory Pincus – was an American physician, biologist, and researcher during the 20th

century. – Early in his career he began studying hormonal biology and steroidal

hormones, but his first breakthrough came in 1934 when was able to produce in vitro fertilization in rabbits.

– He sought out Searle, a pharmaceutical company, about funding for their plan.

– Searle's initial reaction was 'no' because it jeopardized his company due to the austere birth control laws.

– Desp– ite the fact that Searle had no intention of creating an oral contraceptive,

Frank Colton, a chemist at the company, accidentally developed a type of one.

– Pincus was allowed to have samples of the drug for his research and in 1957 The Pill was released as a treatment for gynecological disorders.

– Finally, in 1960, it became FDA approved and by 1963, 1.2 million women were using it.

• What were the last effects on women in regards to their social role?

Women's Rights Movement

• Simone de Beauvoir : The Second Sex (1949) -- existentialist ideas

– Argued women were in essence free but had almost always been trapped by particularly inflexible and limiting conditions.

– Only by courageous action and self-assertive creativity could women become free and escape the role of inferior “other.”

– Inspired a future generation of women's rights intellectuals

• Betty Friedan: The Feminine Mystique (1963) -- American

– Women expected to conform to false, infantile pattern of femininity and live for husbands and children.

– Founded National Organization for Women (NOW); inspired European groups

Goals of women's rights movements– New statutes in the workplace: laws against

discrimination, “equal pay for equal work,” and maternal leave and affordable day care.

– Gender and family questions: right to divorce (in some Catholic countries), legalized abortion, needs of single parents I (usually women) and protection from rape and physical violence.

– In almost every country, effort to legalize abortion became catalyst for mobilizing an effective women’s movement.

Women's Rights Movement

• Feminism– In the 1970’s woman played a

significant role in other reform movements such as environmentalism, gay rights, and poverty in developing countries

– Some feminists lashed out at what they considered to be a make dominated culture that emphasized lady-like behavior in women.

• Criticized beauty pageants, condemned male chauvinism, and even burned bras to what they saw as the cultural oppression of women

Religion• Second Vatican Council

– Most important council of the Catholic Church since the Council of Trent

– Allowed for the use of the vernacular in the Catholic Liturgy

– Scripture was declared to be the foundation of the Church

– Declared that although the Catholic Church was the one true Church, other Christian groups shared a belief in Christ and should be respected.

• By the 21st century, Europe had continued to display a strong secular streak

– A poll c. 2005 showed that only 21% of Europeans believe religion is” very important” (compared to 59% in the US)

– A 2004 Gallop Poll found that only 15% of Europeans attend church regularly (compared to 44% of Americans) although these figures vary from country to country.

• Countries where Catholicism is dominant have significantly higher attendance (except France)

Global Issues: The Environment

• Fossil FuelsFossil fuels are any carbon bases fuel derived from the decomposed remains of prehistoric plants and animals.  The burning of fossil fuels, such as oil, coal, peat, petroleum, and natural gas have allowed human to develop many different technologies to improve life.  The Industrial Revolution that changed the world was fuel by this resource.  Today, fossil fuels power our cars, heat our homes, and run the factories that manufacture everything we use in our lives.  However, recent science has suggested that the use of fossil fuels has damaged the environment, and many groups are pushing for cleaner forms of energy.  The Middle East is a major producer of fossil fuels, while the industrialized nations in Europe and North America are the major users.

• Pollution Pollution is the contamination of the environment by human acts.  Pollution is harmful to all living things and can take many forms including, air pollution from the burning of fossil fuels, and water and soil pollution form the dumping of waste products and the use of chemical fertilizers and pesticides. Pollution has caused health problems in humans including respiratory disease and different forms of cancer.  Pollution is also responsible for destroying various animals, plants, and insects as it destroys their natural habitat.

Global Issues: The Environment

• Ozone LayerThe Ozone Layer is the upper portion of the Earth's atmosphere that screens out most of the Sun's harmful ultraviolet radiation. Recent science has suggested that industrial air pollutants, such as chlorofluorocarbon, has damaged the ozone layer by creating a hole in it.  Through this hole, damaging UV radiation penetrates to the Earth's surface. Increased exposure to this radiation can cause skin cancer in humans, damage crops, and destroy the marine ecology.  Many nations around the world have ceased using CFCs in the production of industrial materials.

• DeforestationDeforestation is the widespread destruction of the world's forests.  One of the largest areas of destruction are the tropical rainforests.  These forest are cut down for the hardwood lumber, to clear space for farming, for building settlements, and for grazing animals.

Global Issues: The Environment

• Nuclear PowerNuclear power is usually electrical power produced from nuclear fusion or fission.  Nuclear power is supposed to be cleaner to produce than the energy created by the burning of fossil fuels.  Whereas fossil fuels will someday run out, the ability to produce nuclear power should not.  However, nuclear power does have dangerous side effects.  Radioactive waste products must be stored somewhere, and the threat of nuclear accidents, like the incident at the Chernobyl power plant in Ukraine.

Chernobyl Disaster• On April 26, 1986, a reactor at the

Chernobyl nuclear power plant in Ukraine experienced a catastrophic failure and resulted in the worst nuclear power disaster in history. The disaster was due to a flawed reactor design and poorly trained plant personnel. The amount of radiation released was at least 100 times that of the Hiroshima and Nagasaki atomic bombs combined, and an area nearly half the size of Colorado was contaminated by the accident.

• Over 600,000 emergency workers (referred to as "liquidators") were drafted to clean up the disaster site and build a sarcophagus over the failed reactor. Robots that were brought in to remove the chunks of highly radioactive reactor fuel broke down, and Soviet military conscripts eventually did the job themselves by collecting the radioactive fuel by hand.

Chernobyl Disaster• Although Western scientists detected

high levels or radiation spreading across Northern and Western Europe, the Soviets continued to deny that an accident had occured at Chernobyl. It wasn't until April 28 - two days after the disaster - that the Soviet government ackowledged an accident had taken place. Evacuations of the affected areas were slow to occur, and the Soviet government continued to treat the disaster as if it were a relatively minor accident. The Soviet press focused mainly on the upcoming May Day celebrations, and when they actually reported on the Chernobyl accident, they were more concerned with the "lies" and "propaganda" that the West was using to describe the accident.

Chernobyl Disaster• In the end, over 300,000

residents were evacuated from their homes in the contaminated zone and moved to safer ground. An estimated 25,000 people have died since the incident, and tens of thousands of Ukrainians and Belorussians suffer from radiation related sicknesses.

• In December 2000, Chernobyl's last remaining reactor was finally switched off.

Terrorism• Is the deliberate use of unpredictable violence especially against civilians to gain revenge or

achieve political goals• Tactics:

– Suicide bombings of trains, busses, planes– Hijackings– Kidnappings

• Why?– The context in which terrorist tactics are used is often a large-scale, unresolved political conflict. The type of conflict varies

widely; historical examples include:– Secession of a territory to form a new sovereign state or become part of a different state – Dominance of territory or resources by various ethnic groups – Imposition of a particular form of government – Economic deprivation of a population – Opposition to a domestic government or occupying army – Religious fanaticism

• Groups Known to Use Terrorism: – Al-Queda– Hamas– Hezbollah– ETA– IRA

Terrorism• Recent European Events

– 2004 Madrid Train bombings – al-Queda

– 2004 – Belsan School Crisis, Chechnya (Russia)

– 2005 London Bus Bombings

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