WESTERN EUROPE: WESTERN EUROPE: DECOLONIZATION AND DECOLONIZATION AND

ECONOMIC UNITY AFTER ECONOMIC UNITY AFTER WORLD WAR IIWORLD WAR II

DecolonizationDecolonization

With the growth of With the growth of nationalism in the nationalism in the 1930s and the 1930s and the weakening of weakening of empires after empires after WWII, European WWII, European colonies around colonies around the world begin to the world begin to disintegratedisintegrate

Brits Give Up IndiaBrits Give Up India

Under the leadership of Under the leadership of Mohandas Gandhi, Mohandas Gandhi, India won India won independence from the independence from the British in 1948British in 1948““Partition and run” was Partition and run” was the English strategy as the English strategy as they divided the they divided the country between country between Hindus (India) and Hindus (India) and Muslims (Pakistan) and Muslims (Pakistan) and left the countryleft the country

Japan Recovers After The WarJapan Recovers After The War

Japan dominated much Japan dominated much of East and Southeast of East and Southeast Asia in the late 30s and Asia in the late 30s and early 40searly 40sWith U.S. aid and With U.S. aid and business practices, business practices, Japan became an Japan became an industrial leader by 1970 industrial leader by 1970 in autos and electronics in autos and electronics Cold War conflicts Cold War conflicts between the U.S. and between the U.S. and USSR in this power USSR in this power vacuum occurred in vacuum occurred in Korea and VietnamKorea and Vietnam

Japan’s Economy RecoversJapan’s Economy RecoversWest Germany and Japan West Germany and Japan faced a similar challenge – an faced a similar challenge – an occupied nation restoring a occupied nation restoring a shattered economy shattered economy The U.S. wanted to preserve The U.S. wanted to preserve their sphere of influence their sphere of influence against communist against communist encroachment in Asiaencroachment in AsiaGeneral MacArthur led General MacArthur led occupation forces in Japan occupation forces in Japan and led an economic and led an economic turnaround that saw Japan turnaround that saw Japan rise to the 3rise to the 3rdrd largest industrial largest industrial nation in the world by 1968 nation in the world by 1968

Africa Regains IndependenceAfrica Regains IndependenceAfrican independence came African independence came relatively late: the 1950s and relatively late: the 1950s and 1960s 1960s While countries like Britain While countries like Britain and Belgium yielded their and Belgium yielded their colonies, French held firm colonies, French held firm especially after their especially after their humiliating defeat in humiliating defeat in IndochinaIndochinaFinally after a fierce conflict Finally after a fierce conflict in Algeria, de Gaulle agreed in Algeria, de Gaulle agreed to Algerian independence in to Algerian independence in 19621962

Middle East Walks Tight-ropeMiddle East Walks Tight-ropeIn the Middle East, the In the Middle East, the withdrawal of British and withdrawal of British and French rule and the French rule and the creation of Israel in 1948 creation of Israel in 1948 destabilized the areadestabilized the areaEgypt and Syria sought Egypt and Syria sought Soviet support against the Soviet support against the new Israeli statenew Israeli stateIn 1956 Egyptian president In 1956 Egyptian president Nasser nationalized the Nasser nationalized the Suez Canal, leading to the Suez Canal, leading to the Suez CrisisSuez CrisisThe British and French The British and French fought back until the fought back until the US/USSR pressured them US/USSR pressured them to withdrawto withdraw

Oil In IranOil In Iran

Oil in Iran brought the Oil in Iran brought the Soviets politicking in Soviets politicking in the Mid-East after WWIIthe Mid-East after WWIIHowever, Western oil However, Western oil companies had already companies had already won oil concessions in won oil concessions in IranIranIn 1951, a nationalist In 1951, a nationalist Iranian government Iranian government sought to evict the sought to evict the westernerswesternersThe CIA intervened and The CIA intervened and installed a puppet leader installed a puppet leader (Shah of Iran)(Shah of Iran)

U.S. Protects Latin AmericaU.S. Protects Latin America Geographically close Geographically close to the U.S., Latin to the U.S., Latin America was a region America was a region the U.S. was the U.S. was determined to keep determined to keep out of Communist out of Communist handshandsThe U.S. orchestrated The U.S. orchestrated an overthrow of an overthrow of Guatemala’s leftist Guatemala’s leftist regime (1954) to keep regime (1954) to keep Soviet influence in the Soviet influence in the Western Hemisphere Western Hemisphere in checkin check

Cuba Falls to CommunismCuba Falls to Communism

In 1959 a revolution in Cuba produced a communist In 1959 a revolution in Cuba produced a communist regime under the leadership of a young lawyer – Fidel regime under the leadership of a young lawyer – Fidel CastroCastroThe 1962 Cuban Missile Crisis brought the superpowers The 1962 Cuban Missile Crisis brought the superpowers to the brink of nuclear warto the brink of nuclear war““Peaceful coexistence” resulted as both sides recognized Peaceful coexistence” resulted as both sides recognized how close they came to mutual annihilationhow close they came to mutual annihilation

European UnityEuropean UnityGreater cooperation and Greater cooperation and regulation were sought by regulation were sought by Western European Western European countries after WWII for countries after WWII for security and prosperitysecurity and prosperityIncreased welfare Increased welfare programs, unemployment programs, unemployment benefits, pensions, public benefits, pensions, public health programs and fair health programs and fair housing policies created a housing policies created a safety net that has safety net that has become the norm for become the norm for Western European Western European governmentsgovernments (the (the Beveridge Report)Beveridge Report)

John Maynard Keynes InfluenceJohn Maynard Keynes Influence

Keynes influenced the new social Keynes influenced the new social democracies democracies His believed in governmental planning His believed in governmental planning and responsibility to the citizenryand responsibility to the citizenryHe thought the government should be He thought the government should be responsible for the control and regulation responsible for the control and regulation of the economy, check inflation, of the economy, check inflation,

and reduce boom-and-bust cycles and reduce boom-and-bust cycles Deficit spend if necessaryDeficit spend if necessary

The European Economic The European Economic CooperativeCooperative

The chief mechanism The chief mechanism for advancing the for advancing the Marshall plan aid was Marshall plan aid was the Office of European the Office of European Economic Cooperative Economic Cooperative (OEEC)(OEEC)The modernization of The modernization of economies through economies through centrally coordinated centrally coordinated planning made Europe planning made Europe once again a major once again a major economic playereconomic player

West German Economy ThrivesWest German Economy Thrives

The most committed to The most committed to free-market policies was free-market policies was West GermanyWest GermanyCalled -- “A free market Called -- “A free market enterprise economy with enterprise economy with a social conscience”a social conscience”West Germany became West Germany became the richest economy in the richest economy in Western Europe and third Western Europe and third richest in the world—an richest in the world—an “economic miracle”“economic miracle”

““Benelux” Unites 3 CountriesBenelux” Unites 3 Countries

Belgium, the Belgium, the Netherlands and Netherlands and Luxembourg were the Luxembourg were the first to establish first to establish themselves as an themselves as an economic uniteconomic unitKnown as “Benelux” – Known as “Benelux” – the 3 countries the 3 countries removed customs and removed customs and erected external tariff erected external tariff barriersbarriers

Schuman PlanSchuman Plan

In the early 1950s, the Schuman plan In the early 1950s, the Schuman plan (created by Robert Schuman and Jean (created by Robert Schuman and Jean Monnet) joined France and West Monnet) joined France and West Germany in Economic Cooperation by Germany in Economic Cooperation by pooling all Coal and Steel resourcespooling all Coal and Steel resourcesIn 1951, Benelux, France, Italy and West In 1951, Benelux, France, Italy and West Germany formed the European Coal and Germany formed the European Coal and Steel Community (ECSC)Steel Community (ECSC)The ECSC established a “common The ECSC established a “common market” in coal and steel for its market” in coal and steel for its membersmembers

European Economic CommunityEuropean Economic Community

In 1957, the same six In 1957, the same six members created the members created the European Economic European Economic Community (EEC)Community (EEC)

It was the beginning of It was the beginning of what became known as what became known as the Common Marketthe Common Market

Note: Great Britain was Note: Great Britain was reluctant from the start reluctant from the start to join the EEC – they to join the EEC – they finally relented in 1973finally relented in 1973

Unification of GermanyUnification of GermanyOn the surface, the differences On the surface, the differences between the GDR and the FRG between the GDR and the FRG seemed insurmountableseemed insurmountableBy the 1980s, West Germany By the 1980s, West Germany stood as an economic giant – 2stood as an economic giant – 2ndnd in foreign trade to the United in foreign trade to the United States (GDR 15States (GDR 15thth))East German citizens were lured East German citizens were lured by the prosperity of the West by the prosperity of the West and increasingly emigratedand increasingly emigrated

VS.

FRG

GDR

West Embraces EastWest Embraces East

The West German government assisted The West German government assisted their eastern brethren in shoring up their their eastern brethren in shoring up their economyeconomyThe strong West German deutsche mark The strong West German deutsche mark replaced the weak East German currencyreplaced the weak East German currencyMonetary Union prefigured political Monetary Union prefigured political unificationunificationIn October 1990, Germany was reunitedIn October 1990, Germany was reunited

The West in the Global The West in the Global CommunityCommunity

The 1970s The 1970s witnessed rising witnessed rising oil prices, inflation oil prices, inflation and recessionand recessionEuropean nations European nations sought greater sought greater cooperation as a cooperation as a response to world response to world markets markets dominated by the dominated by the Unites StatesUnites States

Politics of OilPolitics of Oil

The oil crisis of the 1970s The oil crisis of the 1970s undercut the goals of the undercut the goals of the common marketcommon marketOPEC (Organization of OPEC (Organization of petroleum exporting countries) petroleum exporting countries) raised prices and cut back raised prices and cut back productionproductionInflation resultedInflation resultedWestern European leaders Western European leaders realized great integration was realized great integration was the only defense against the the only defense against the loss of marketsloss of markets

Foreign LaborForeign Labor

Foreign labor was an important Foreign labor was an important component of European growthcomponent of European growthThe permanent presence of The permanent presence of foreign workers, many of them foreign workers, many of them erratically employed, came to be erratically employed, came to be seen as a problem by welfare state seen as a problem by welfare state leaders and politicians of the new leaders and politicians of the new rightrightEurope’s new working class Europe’s new working class became the brunt of racial became the brunt of racial antagonismantagonism

The European CommunityThe European Community

The European Community (EC) was The European Community (EC) was created in 1967 by merging the 3 created in 1967 by merging the 3 transnational European bodiestransnational European bodies

1) European Coal and Steel 1) European Coal and Steel

2) European Economic 2) European Economic Community Community

3) European Atomic Energy 3) European Atomic Energy Community (Euratom) Community (Euratom)

Toward a Single EuropeToward a Single Europe

In 1985 the EC negotiated the Single European Act (ratified In 1985 the EC negotiated the Single European Act (ratified in 1987)in 1987)The Act sought a fully integrated market by 1992The Act sought a fully integrated market by 1992Cut internal and international trade barriersCut internal and international trade barriersStandardized labor, trade and utilitiesStandardized labor, trade and utilitiesEurope as a “single nation” conceptEurope as a “single nation” concept

Population of the ECPopulation of the EC

Rose to 320 million by Rose to 320 million by 19891989EC joined with the EC joined with the European Free Trade European Free Trade Association (EFTA) in Association (EFTA) in October, 1991October, 1991After the EC adds After the EC adds Scandinavian countries, Scandinavian countries, Austria, Lichtenstein and Austria, Lichtenstein and Iceland – EC now Iceland – EC now consisted of 380 million consisted of 380 million consumersconsumers

The flag for the EC was introduced in 1986

The European UnionThe European Union

Established in December, 1991 Established in December, 1991 in Maastricht, Netherlandsin Maastricht, Netherlands12 EC nations12 EC nationsA common currency would A common currency would eventually be created to eventually be created to replaced national currenciesreplaced national currenciesA single banking system would A single banking system would be established: European be established: European Monetary InstituteMonetary InstituteA single political body would A single political body would governgovernA common defense systemA common defense system

Maastricht Treaty formally signed February 7, 1992

““One Currency, One Culture, One One Currency, One Culture, One Social Area, One Environment”Social Area, One Environment”

By January 1, 2002 Twelve By January 1, 2002 Twelve of the 15 member nations of the 15 member nations adopted a single currency - adopted a single currency - the eurothe euroBritain resisted the euro, Britain resisted the euro, but was fully committed to but was fully committed to the EU under Thatcher and the EU under Thatcher and MajorMajorMajor EU expansion came Major EU expansion came on May 1, 2004 as 10 new on May 1, 2004 as 10 new nations joined including – nations joined including – Baltic, Balkan and some Baltic, Balkan and some Mediterranean countriesMediterranean countries

Iron Curtain, Iron SmurtainIron Curtain, Iron Smurtain

The expansion the EU into The expansion the EU into Eastern Europe helped put an Eastern Europe helped put an end to the rift that from 1945 end to the rift that from 1945 onwards, separated the free onwards, separated the free world from the Communist world from the Communist worldworldToday the EU has 25 member Today the EU has 25 member nations and will Estonia, nations and will Estonia, Slovenia and Lithuania by Slovenia and Lithuania by 20072007The EU is the largest exporter The EU is the largest exporter in the world and its GNP is in the world and its GNP is higher than the U.S.higher than the U.S.