Big Era EightBig Era Eight

A Half Century of Crisis A Half Century of Crisis 1900 - 19501900 - 1950

Three major events shook up the Three major events shook up the modern world system that had modern world system that had

been created during Big Era been created during Big Era Seven.Seven.

World War IWorld War I

DepressionDepression

World War IIWorld War II

Why is Why is Big Era Eight Big Era Eight about crisis?about crisis?

They could upsetThey could upsetthe balance ofthe balance of

political and economicpolitical and economicforces in theforces in the

modern world.modern world.

What could the crises of Big Era Eight upset?What could the crises of Big Era Eight upset?

• Communications networks made Communications networks made possible by the telegraph, telephone, possible by the telegraph, telephone, and undersea cable.and undersea cable.

• Transportation networks made possible Transportation networks made possible by the railway, steamship, and (soon to by the railway, steamship, and (soon to come) airplane. come) airplane.

• Trade and financial networks.Trade and financial networks.• Diplomatic relations and alliances.Diplomatic relations and alliances.• Relations between imperial powers and Relations between imperial powers and

the colonial peoples they ruled. the colonial peoples they ruled.

Before we go any Before we go any further, how was the further, how was the world tied together at world tied together at

the start of the 20the start of the 20thth century?century?

Did an equal balance of Did an equal balance of political and military powerpolitical and military powerexist among world regions exist among world regions

in Big Era Eight?in Big Era Eight?

Oh, no.Oh, no.I like to throw myI like to throw myweight around.weight around.

At the start, European countries At the start, European countries dominated Big Era Eight. By the end…dominated Big Era Eight. By the end…well, we’ll talk about that towards the well, we’ll talk about that towards the end. For now, let’s pickend. For now, let’s pickup where Big Era Seven left off.up where Big Era Seven left off.

EuropeEurope

European descent-denseEuropean descent-dense

European descent-sparseEuropean descent-sparse

European influenceEuropean influence

European coloniesEuropean colonies

Japanese EmpireJapanese Empire

You already You already know that know that Europeans got Europeans got the upper hand the upper hand in the modern in the modern world system world system during the later during the later part of Big Era part of Big Era Seven.Seven.

• In Big Era Seven, In Big Era Seven, western European western European countries achieved countries achieved greater economic power greater economic power than most other than most other countries as a result of countries as a result of industrialization.industrialization.

• Many European Many European governments and governments and businesses wanted more businesses wanted more overseas markets and overseas markets and raw materials.raw materials.

• Western European Western European military forces had big military forces had big world leads in military world leads in military technology.technology.

Why did Europeans have Why did Europeans have so much power in the so much power in the modern world system?modern world system?

Also . . .Also . . .

The last quarter of the The last quarter of the 19th century saw great 19th century saw great droughts and famines droughts and famines in many parts of the in many parts of the world. world.

These disasters were These disasters were connected to El Niño connected to El Niño climatic conditions.climatic conditions.

These disasters caused These disasters caused economic, social, and economic, social, and political disruption in political disruption in African and Asian African and Asian societies just when societies just when European power was European power was strongest.strongest.

No. No.

Europe’s leaders competed Europe’s leaders competed with each other to dominate with each other to dominate the modern world. Their the modern world. Their competition helped cause competition helped cause World War I, the first crisis World War I, the first crisis of Big Era Eight.of Big Era Eight.

Also, many workers in Also, many workers in Europe felt that their Europe felt that their political and business political and business leaders treated them poorly.leaders treated them poorly.

German cartoon depicts the German cartoon depicts the threat of British imperial threat of British imperial expansion in the 19expansion in the 19thth century. century.

Did Europeans get only Did Europeans get only benefits from the benefits from the

modern world system?modern world system?

No. The No. The Japanese Japanese government government seized an seized an empire in empire in East AsiaEast Asia

No. Americans No. Americans expanded their expanded their opportunities opportunities at home and at home and abroad.abroad.

Did other Did other industrial industrial

countries accept countries accept Europe having Europe having

exclusive exclusive dominance?dominance?

Some Some collaborated collaborated with the with the European European takeover…takeover…

Many resisted, though usually Many resisted, though usually failed to defeat Europeanfailed to defeat Europeanarmies. The Ethiopiansarmies. The Ethiopiansrepelled the Italians in 1896, repelled the Italians in 1896, but this was an exception. but this was an exception.

What did peoples in What did peoples in Asia and Africa do Asia and Africa do

when European when European powers invaded their powers invaded their

lands or put lands or put economic pressure economic pressure

on them?on them?

This is gettingThis is gettingold.old.

So, to review: So, to review: European countries dominated European countries dominated a booming world economy at a booming world economy at the start of Big Era Eight. But the start of Big Era Eight. But many people in other places many people in other places (and some in Europe) did not (and some in Europe) did not like this system.like this system.

World War IWorld War IWorld War IIWorld War II

DepressionDepression

1. Two wars and a worldwide economic 1. Two wars and a worldwide economic collapse weakened European dominance.collapse weakened European dominance.

2. But some countries saw these crises as 2. But some countries saw these crises as opportunities to gain new influence or opportunities to gain new influence or take over parts of the system.take over parts of the system.

So how did the So how did the crises of Big Era crises of Big Era

Eight change things?Eight change things?

World War I was fought in several parts ofWorld War I was fought in several parts ofthe world, though the longest and biggest the world, though the longest and biggest battles took place in Europe. The war killed both battles took place in Europe. The war killed both soldiers and civilians, and it devastated both soldiers and civilians, and it devastated both towns and countryside.towns and countryside.

20,000,000 20,000,000 people died in people died in connection connection with the war, far with the war, far more than in any more than in any earlier war in earlier war in world history.world history.

Regions Regions where where

fighting fighting took place took place in World in World

War IWar I33

11 22

55

44

66

88

1010

99

77

1111

1212 1 Western European1 Western European FrontFront 2 Eastern European2 Eastern European FrontFront 3 Italian Front3 Italian Front 4 Balkan Front4 Balkan Front 5 Palestine/Syria5 Palestine/Syria 6 Iraq6 Iraq 7 Arabia7 Arabia 8 German Togoland8 German Togoland 9 German Camaroons9 German Camaroons10 German East Africa10 German East Africa11 German Southwest 11 German Southwest AfricaAfrica12 German Pacific Islands12 German Pacific Islands

It devastated Europe It devastated Europe both physically and both physically and psychologically.psychologically.

Europeans saw that Europeans saw that industrialization made industrialization made warfare more brutal, warfare more brutal, deadly, and deadly, and destructive.destructive.

Many felt Many felt disillusioned and lost disillusioned and lost their belief in their belief in progress. progress.

How did World War I How did World War I weaken Europe’s weaken Europe’s

global dominance?global dominance?

If World War I weakened If World War I weakened European power, how did it affect European power, how did it affect

everyone else?everyone else?

It’s about time It’s about time some more of ussome more of usmade our weightmade our weight

felt.felt.

Hey! How’d I getHey! How’d I getoff the ground?off the ground?

The war caused The war caused death and death and destruction in the destruction in the Middle East and Middle East and Africa—wherever Africa—wherever fighting took place.fighting took place.

It caused economic It caused economic and social stress in and social stress in all the European all the European colonial empires.colonial empires.

Societies all over the world contributed resources Societies all over the world contributed resources or soldiers to the war effort, gaining experience or soldiers to the war effort, gaining experience

and a firmer voice on the global stage.and a firmer voice on the global stage.

Colonial soldiers became more confident Colonial soldiers became more confident in their own abilities and less awed in their own abilities and less awed

by their foreign rulers.by their foreign rulers.

Indian soldiers in Indian soldiers in BelgiumBelgium

Ford factory, Ford factory, Detroit, MichiganDetroit, Michigan

As a result, some local leaders in colonies began As a result, some local leaders in colonies began to call for self-determination or independence.to call for self-determination or independence.

South AfricaSouth Africa

IndiaIndia

Meanwhile, in Europe upheaval gave other Meanwhile, in Europe upheaval gave other industrial countries opportunities to grow.industrial countries opportunities to grow.

Women everywhere took on new Women everywhere took on new responsibilities responsibilities

outside the home as part of the Total War outside the home as part of the Total War effort.effort.

USAUSA

FranceFrance

RussiaRussia

In 1917, the Bolshevik Party led a In 1917, the Bolshevik Party led a successful Communist revolution in successful Communist revolution in Russia.Russia.

The Bolsheviks overthrew the The Bolsheviks overthrew the monarchy of the Tsar, which had been monarchy of the Tsar, which had been in power for centuries.in power for centuries.

Russia had been an ally of Britain, Russia had been an ally of Britain, France, and the US. But Lenin, the France, and the US. But Lenin, the Bolshevik leader, took Russia out of Bolshevik leader, took Russia out of World War I.World War I.

Tsar Nicholas II wasTsar Nicholas II wasExecuted in 1918Executed in 1918

After World War I, the modern world After World War I, the modern world became more closely tied together became more closely tied together than ever before.than ever before.

Yes. Along with global trade and finance, sounds Yes. Along with global trade and finance, sounds from radios and images from movies and from radios and images from movies and magazines helped knit a modern global culture.magazines helped knit a modern global culture.

Did the world change inDid the world change inimportant ways?important ways?

The 1920s saw silent film, tango, flappers, The 1920s saw silent film, tango, flappers, and jazz gain global popularityand jazz gain global popularity..

IndiaIndia

JapanJapan

ParisParis

ArgentinaArgentina

USAUSA

Value of Value of Global Global Exports in Exports in Billions of Billions of DollarsDollars

The Depression put another dent in the sense The Depression put another dent in the sense of progress and possibility that many people of progress and possibility that many people had felt. The global economy spread misery had felt. The global economy spread misery as well as wealth and prosperity.as well as wealth and prosperity.

Then, the Great Depression Then, the Great Depression happened.happened.

Unemployment and Unemployment and hunger rippled through hunger rippled through many societies, raising many societies, raising

doubts about the system.doubts about the system.

BrazilBrazil

USAUSA

FranceFrance

No, some industries in No, some industries in the West kept going. the West kept going.

And some workers kept And some workers kept going on strike when going on strike when they felt the system was they felt the system was treating them badly. treating them badly. (Remember the unhappy (Remember the unhappy workers before World workers before World War I?)War I?)

Sit-down strikers, 1937, USA.Sit-down strikers, 1937, USA.

Did the Depression in the Did the Depression in the modern world system modern world system

affect everyone the same affect everyone the same way?way?

Soviet GNP growth per yearSoviet GNP growth per year1928-371928-37

Communists said the modern Communists said the modern world system had to change. world system had to change. Government planning, Government planning, communal ownership, and a communal ownership, and a classless society should classless society should replace free markets and close replace free markets and close the divide between rich owners the divide between rich owners and poor workers. and poor workers.

In fact, the Soviet Union under In fact, the Soviet Union under the Bolsheviks remained the Bolsheviks remained authoritarian and repressive. authoritarian and repressive.

Even so, while most of the Even so, while most of the capitalist world struggled in capitalist world struggled in the 1930s, the Soviet Union’s the 1930s, the Soviet Union’s industrial economy grew industrial economy grew rapidly. rapidly.

By the mid-By the mid-1930s, 1930s, there was a there was a three-way three-way struggle for struggle for control of control of modern modern world’s world’s future. future.

How did the Depression and How did the Depression and the challenge of Communism the challenge of Communism

add to the crisis in the add to the crisis in the modern world?modern world?

MussoliniMussolini

HitlerHitler

StalinStalin

Along with Communism’s challenge to Along with Communism’s challenge to liberal capitalism, a new challenger liberal capitalism, a new challenger appeared: Fascism.appeared: Fascism.

HitlerHitler

Fascist leaders used nationalism and state control of Fascist leaders used nationalism and state control of industries and cultural life to unite people of all classes.industries and cultural life to unite people of all classes.

These leaders blamed national troubles on foreigners and These leaders blamed national troubles on foreigners and communists. communists.

Some fascist-run countries recovered quickly from the Some fascist-run countries recovered quickly from the Depression, partly by expanding their military economies.Depression, partly by expanding their military economies.

Major countries Major countries with Fascist-with Fascist-style governmentsstyle governmentsby the 1940sby the 1940s

Bulg

ari

a

Bulg

ari

a

Ital

yItal

y

SpainSpain

Germany

Germany

South AfricaSouth Africa

JapanJapan

Leaders of capitalist democracies Leaders of capitalist democracies believed that they could meet the believed that they could meet the challenges of Communism and challenges of Communism and Fascism…Fascism…

•by defending democratic by defending democratic values.values.

•by modernizing capitalism by modernizing capitalism through economic and social through economic and social reform.reform.

Regardless of these beliefs, democracies Regardless of these beliefs, democracies used overseas colonies to help prop up the used overseas colonies to help prop up the home economies during the Depression. home economies during the Depression.

Hawaii pineapple plantationHawaii pineapple plantation

As they recovered from the Depression, both As they recovered from the Depression, both Germany and Japan became increasingly aggressive. Germany and Japan became increasingly aggressive. When Hitler invaded Poland in 1939, Britain and When Hitler invaded Poland in 1939, Britain and France went to war against Germany. World War II France went to war against Germany. World War II was underway.was underway.

At first, Fascist Germany and Communist Russia had a At first, Fascist Germany and Communist Russia had a tense alliance. But when Hitler invaded Russia in June tense alliance. But when Hitler invaded Russia in June 1941, Stalin allied Russia with 1941, Stalin allied Russia with Britain and the United States.Britain and the United States.

The US entered the war afterThe US entered the war afterJapan bombed Pearl HarborJapan bombed Pearl Harboron December 7, 1941.on December 7, 1941.

JapaneseJapaneseBombing Bombing of Pearl of Pearl HarborHarbor

World War II AlliancesWorld War II Alliances

Axis PowersAxis Powers:: Italy, Italy, Germany, and Japan Germany, and Japan were fascist, anti-were fascist, anti-communist, and anti-communist, and anti-liberal democracy.liberal democracy.

AlliesAllies: The US and : The US and Britain were liberal Britain were liberal democracies. The democracies. The USSR was Communist.USSR was Communist.But all three were But all three were anti-fascist.anti-fascist.

Mussolini and HitlerMussolini and Hitler

Stalin, Roosevelt, & ChurchillStalin, Roosevelt, & Churchill

World War II involved men and World War II involved men and women fighting and serving all over women fighting and serving all over the world.the world.

Areas of FightingAreas of Fighting

Even more than in World War I, men and Even more than in World War I, men and women around the world fought in or women around the world fought in or supported the battles of World War II.supported the battles of World War II.

IndianIndian

West AfricanWest AfricanCanadianCanadian

New weapons and tactics of war made World New weapons and tactics of war made World War II even more destructive and deadly than War II even more destructive and deadly than World War I.World War I.

German plane German plane wreckage in wreckage in North AfricaNorth Africa

Both sides in the war Both sides in the war targeted civilians.targeted civilians. Dresden, Dresden,

GermanyGermanyTokyo, Tokyo, JapanJapan

London,London,EnglandEngland

The deadliest war in The deadliest war in history (over 50 history (over 50 million killed)…million killed)…

ended with the use ended with the use of the deadliest of the deadliest weapon in history.weapon in history.

What global changes resulted What global changes resulted from World War II?from World War II?

New powers and political groups New powers and political groups competed to reshape the world.competed to reshape the world.

The United States The United States took over as the took over as the world’s leading world’s leading military and military and economic power economic power and supporter of and supporter of reformed reformed capitalism and capitalism and liberal democracyliberal democracy

A poster encouragingA poster encouragingAmericans to buy warAmericans to buy warbonds to support the bonds to support the war effortwar effort

A devastated A devastated Western Europe Western Europe depended on US depended on US aid for aid for rebuilding.rebuilding.

This American This American effort was called effort was called the Marshall the Marshall Plan.Plan.

Dutch cartoon, late 1940sDutch cartoon, late 1940s

The USSR also emerged from the The USSR also emerged from the

war stronger than ever.war stronger than ever.

• It rebuilt its economy It rebuilt its economy without Western aid.without Western aid.

• It created an empire in It created an empire in Eastern Europe.Eastern Europe.

• It worked to spread It worked to spread Communist ideas and Communist ideas and revolutions.revolutions.

• It became the USA’s main It became the USA’s main rival for power in the rival for power in the modern world.modern world.

Red Army SoldiersRed Army Soldiers

Japan lost its empire, swore off militarism, and Japan lost its empire, swore off militarism, and rebuilt with American aid.rebuilt with American aid. China became the second major communist China became the second major communist country after its revolution in 1949.country after its revolution in 1949.

American Ships Sail toAmerican Ships Sail toJapan for Occupation, Japan for Occupation, 19451945

Mao Zedong, Leader of the Mao Zedong, Leader of the Communist Revolution in Communist Revolution in ChinaChina

Nehru and GandhiNehru and Gandhiin Indiain India

Nehru with Kwame Nehru with Kwame Nkrumah of the Gold Nkrumah of the Gold

Coast/GhanaCoast/Ghana

Colonies sought Colonies sought independence independence from their former from their former European rulers.European rulers.

Ho Chi Minh Ho Chi Minh in Vietnamin Vietnam

European countries recovered from European countries recovered from the war and went on to new the war and went on to new prosperity. prosperity.

But Europe no longer dominated the But Europe no longer dominated the world as it had at the start of the world as it had at the start of the century. century.

That’s moreThat’s morelike it.like it.

What happened?What happened?

•More world-wide integration More world-wide integration (now called globalization).(now called globalization).

•More conflict too! Will More conflict too! Will capitalism triumph over capitalism triumph over Communism? The USA over Communism? The USA over the USSR? Will new groups the USSR? Will new groups push their way into the push their way into the competition for power? How competition for power? How will the environment change?will the environment change?

What will Big Era What will Big Era Nine bring for the Nine bring for the

modern world modern world system?system?

StayStaytuned!tuned!

Big Era NineBig Era Nine

Paradoxes of Paradoxes of Global AccelerationGlobal Acceleration

1945-20041945-2004

The World in 1945:The World in 1945: 50 million people killed during WW II50 million people killed during WW II

Parts of Europe, Asia, and North Africa Parts of Europe, Asia, and North Africa in ruinsin ruins

World trade severely damagedWorld trade severely damaged

Much of Much of the world the world

looked looked pretty pretty bleak.bleak.

Many European economies in shamblesMany European economies in shamblesEuropean Colonial empires crumblingEuropean Colonial empires crumblingGrowing nationalist movements in Africa Growing nationalist movements in Africa and Asiaand Asia U.S. the major industrial and atomic U.S. the major industrial and atomic powerpower

The world entered a new The world entered a new era.era.

Cold War policies developed:Cold War policies developed:

The Soviet Union occupied Eastern Europe The Soviet Union occupied Eastern Europe and part of Germany.and part of Germany.The U.S. moves to encircle the Soviet Union The U.S. moves to encircle the Soviet Union with a system of alliances and military aid. with a system of alliances and military aid. U.S. offers Marshal plan to rebuild Europe U.S. offers Marshal plan to rebuild Europe and gives $13 billion in aid.and gives $13 billion in aid.

The U.S. adopted a policy of “Containment” The U.S. adopted a policy of “Containment” of the Soviet Union with military bases around of the Soviet Union with military bases around the world. the world.

An “Iron Curtain” of tense relations An “Iron Curtain” of tense relations separated the Western allies from the U.S.S.R. separated the Western allies from the U.S.S.R. and its allies.and its allies.

The World became divided into The World became divided into two hostile camps: The U.S.S.R. two hostile camps: The U.S.S.R. and the U.S.and the U.S.

Joseph StalinJoseph StalinPres. Harry Pres. Harry

TrumanTruman

1946-1946-6060

During the Cold During the Cold War, the U.S.S.R War, the U.S.S.R and the U.S. and the U.S. followed a policy followed a policy of Mutual Assured of Mutual Assured Destruction (MAD)Destruction (MAD)..

The U.S. and U.S.S.R The U.S. and U.S.S.R had enough nuclear had enough nuclear bombs to destroy the bombs to destroy the world about 400 world about 400 times. times.

I guess I guess it made it made sense at sense at

the the time.time.

Mutual Assured Destruction is Mutual Assured Destruction is a military deterrence strategy a military deterrence strategy in which a full scale use of in which a full scale use of nuclear weapons by one of the nuclear weapons by one of the opposing powers would result opposing powers would result in the destruction of both. in the destruction of both.

1950-53 - A divided 1950-53 - A divided Korea led to war, Korea led to war, separated family separated family members, and cost a members, and cost a million lives, million lives, including 48,000 including 48,000 Americans. Americans.

1963-1972 - Three 1963-1972 - Three million people died million people died in the Vietnam War, in the Vietnam War, including 58,000 including 58,000 Americans.Americans.

The Cold War was very costly The Cold War was very costly in lives.in lives.

The forty years of the Cold War were The forty years of the Cold War were costly in resources.costly in resources.

A trillion dollars is enough to give each A trillion dollars is enough to give each family in the U.S. $100,000.family in the U.S. $100,000.

We spent 5.5 We spent 5.5 trillion dollars on trillion dollars on nuclear arms, and nuclear arms, and

we won!we won!

We spent 3.5 trillion, We spent 3.5 trillion, and for what?and for what?

How much How much is a trillion is a trillion

dollars?dollars?

George H.W. BushGeorge H.W. Bush

Michail GorbachevMichail Gorbachev

During the cold war many former During the cold war many former colonized peoples created new colonized peoples created new nations. nations. India gained independence from India gained independence from

Britain in 1947.Britain in 1947.

Indonesia gained independence Indonesia gained independence from the Dutch in 1949.from the Dutch in 1949.

Ghana gained independence from Ghana gained independence from Great Britain in 1957.Great Britain in 1957.

By 1965 most former European By 1965 most former European colonies had become newly created colonies had become newly created independent nation-statesindependent nation-states..

. .

The U.S. and the U.S.S.R. The U.S. and the U.S.S.R. competed for the loyalties of these competed for the loyalties of these new nations. new nations.

Several of the new nations Several of the new nations pursued a non-aligned policypursued a non-aligned policy. .

• In 1955 India, Indonesia, and Yugoslavia In 1955 India, Indonesia, and Yugoslavia sponsored the Bandung Conference of Non-sponsored the Bandung Conference of Non-Aligned nations. It aimed to promote Aligned nations. It aimed to promote solidarity among newly independent states solidarity among newly independent states and to prevent the U.S. and the U.S.S.R. and to prevent the U.S. and the U.S.S.R. from meddling in their domestic affairs. from meddling in their domestic affairs.

• Nehru and Sukarno led the meeting.Nehru and Sukarno led the meeting.

SukarnoSukarnoof of IndonesiaIndonesia

Nehru of IndiaNehru of India

Colonialism left new nations “Underdeveloped.”

This table shows how shares of world Gross Domestic Product changed between 1870 and 1998.

DateDate IndiaIndia ChinaChina AfricaAfrica JapanJapan Western Western Europe and Europe and U.S.U.S.

18701870 12.212.2 17.217.2 3.63.6 2.32.3 42.542.5

19131913 7.67.6 8.98.9 2.72.7 2.62.6 52.652.6

19501950 4.24.2 4.54.5 3.63.6 3.03.0 53.653.6

19731973 3.13.1 4.64.6 3.33.3 7.77.7 47.747.7

19981998 5.05.0 11.511.5 3.13.1 7.77.7 42.542.5

What might we learn from this table about What might we learn from this table about patterns of economic development in the world?patterns of economic development in the world?

In 1750, China and In 1750, China and India provided 57% of India provided 57% of world manufacturing.world manufacturing.

In 1953, they In 1953, they manufactured only manufactured only 4% of the world’s 4% of the world’s goods. goods.

What caused such a What caused such a dramatic change?dramatic change?

In the 1960s, as the colonized people gained independence, the world-wide split between the North –rich industrial nations—and the South – poor “third world” nations—grew wider.

How did Western leaders try to How did Western leaders try to restore world trade after World restore world trade after World War II?War II?

In 1944, at the Bretton In 1944, at the Bretton Woods Monetary Woods Monetary Conference in New Conference in New Hampshire, Western Hampshire, Western leaders:leaders:

Created the World Bank. Created the World Bank.

Established the International Established the International Monetary Fund. Monetary Fund.

Established stable currency Established stable currency exchange rates.exchange rates.

Ushered in a new Global Age Ushered in a new Global Age of economic cooperation.of economic cooperation.

However, these However, these agreementsagreements did not did not include the Communist include the Communist bloc nationsbloc nations

In 1971, however, the high cost of the In 1971, however, the high cost of the Vietnam War prompted President Richard Vietnam War prompted President Richard Nixon to abolish the fixed currency Nixon to abolish the fixed currency exchange rates that had been established exchange rates that had been established at Bretton Woods.at Bretton Woods.

The Age of Free The Age of Free Market Capitalism Market Capitalism began, but still began, but still excluded the Soviet excluded the Soviet bloc nations bloc nations

Gold backing for Gold backing for currencies was currencies was eliminated.eliminated.World currencies World currencies “floated.”“floated.”

““UnderlyingUnderlying most most arguments against the arguments against the free market is a lack of free market is a lack of belief in freedom itself.“belief in freedom itself.“Economist Milton Economist Milton FriedmanFriedman

In theory, free world trade In theory, free world trade encourages greater economic encourages greater economic specialization, more productivity, specialization, more productivity, and greater wealth. and greater wealth.

Efficient use of world Efficient use of world resources is possible. resources is possible.

Tariffs are eliminated.Tariffs are eliminated.

Businesses can move whereBusinesses can move wherethey make more profits.they make more profits.

More jobs are created.More jobs are created.

People have more money People have more money to spend.to spend.

And each country can concentrate on what it does best.

In the 1980s the U.S. moved to expand In the 1980s the U.S. moved to expand free market capitalism within the free market capitalism within the global system.global system.

Little government interference in Little government interference in the marketthe marketFreedom of individual choiceFreedom of individual choiceBorderless market economyBorderless market economyMarkets as masters over state Markets as masters over state policiespoliciesPeople should be free to pursue People should be free to pursue economic self-interesteconomic self-interestConsuming goods a major valueConsuming goods a major value

What is What is free free

market market capitaliscapitalis

m?m?

However, most nations However, most nations continued to pursue some continued to pursue some forms of economic forms of economic nationalismnationalism

In the 1980s China moved toward a free-market system and joined the global economy.

China’s Trade surplus balance with U.S. $666.2 billion in the 2004,

China’s economy will probably equal that of US. In twenty-five years.

China now buys from 1-2 billion China now buys from 1-2 billion dollars of the U.S. debt each dollars of the U.S. debt each day.day.

In 1989, the Berlin Wall came down and the Cold In 1989, the Berlin Wall came down and the Cold War ended. Eastern European countries broke War ended. Eastern European countries broke away from Soviet control. The Soviet Union itself away from Soviet control. The Soviet Union itself broke into more than a dozen new states.broke into more than a dozen new states.

The Berlin Wall was The Berlin Wall was built in August 1961built in August 1961

The Wall was The Wall was destroyed destroyed on November 9, on November 9, 19891989

In 1991, India abandoned it’s 44 year-old socialist oriented economy and embraced a the free market system and joined the global economy.

With a GDP of 800 billion dollars, India is now the fourth largest world economy after the U.S., China and Japan. India’s growth rate has averaged about 5.8 per cent for the past fifteen years.

Major exports include

Clothing

Automobiles

Handicrafts

With the collapseWith the collapse

In the 1990s, with the In the 1990s, with the integration of many of the integration of many of the states of the former Soviet states of the former Soviet Union and the entry of China Union and the entry of China and India, Globalization now and India, Globalization now embraced the majority of embraced the majority of the world’s economies . the world’s economies .

In the 1980s, the U.S., the major world In the 1980s, the U.S., the major world power, became the chief advocate of free power, became the chief advocate of free market capitalism for the global system. market capitalism for the global system.

Increasing global Increasing global connectedness through connectedness through rapid communication and rapid communication and transport.transport.

Rapid intensification of Rapid intensification of worldwide social relations. worldwide social relations.

Swift and free flow of Swift and free flow of capital, people, and ideas capital, people, and ideas across national borders.across national borders.

What is What is Globalization?Globalization?

billions7

6

5

4

3

2

1

1803 - 124 yrs 1927- 33 yrs 1960 - 14 yrs 1974 - 12 yrs 1986 – 13 yrs

The time it takes to add a billion people grows shorter.

World population has been World population has been rapidly increasing.rapidly increasing.

Wow! Wow! More than More than

6 6 billion billion people people

now alive.now alive.

Life expectancy is rising, but it varies world wide.

CountryCountry Average Life Average Life ExpectancyExpectancy

SwedenSweden 79.279.2

FranceFrance 7878

United United StatesStates

71.171.1

BangladeshBangladesh 62.862.8

BotswanaBotswana 40.140.1

ZimbabweZimbabwe 39.239.2

Average life Average life expectancyexpectancyfor the world for the world is 70 years.is 70 years.

Speed of travel has increased dramatically.

World wide communication is almost instantaneous

19811981

19771977

19571957

19821982

Look at this Look at this antique computerantique computer. .

It doesn’t even It doesn’t even have a hard drive!have a hard drive!

19621962

The computer has been changing The computer has been changing billions of lives.billions of lives.

Where are the Where are the books I ordered?books I ordered? I’m applying I’m applying

to college.to college.

IT Engineer IT Engineer seeks seeks househusbandhousehusband....

We’re catching We’re catching up with the U.S. up with the U.S. economy.economy.

Will you be my Will you be my E-pal?E-pal?

I raised my I raised my campaign funds campaign funds via the internet.via the internet.

But what does

globalization have to do

with me?

Jeans from Jeans from

MalaysiaMalaysia

Backpack Backpack from from ChinaChina

Shirt Shirt from from MexicoMexico

Cap from Cap from BangladeshBangladesh

Video gameVideo gamefrom Japanfrom Japan

Sneakers from Sneakers from

IndonesiaIndonesiaSoccer ball Soccer ball fromfromPakistanPakistan

Expanding technology

makes possible a

cornucopia of new products

for us

. .

New technologies allow humans New technologies allow humans to control nature like never to control nature like never beforebefore

More goods are being More goods are being produced, bought, and sold produced, bought, and sold worldwide than ever before.worldwide than ever before.

What shall I buy

next?

GlobaGlobalization also spreads ideas lization also spreads ideas and valuesand values..

Democratic ideas have spread to Democratic ideas have spread to more countries than ever before.more countries than ever before.

IndiaIndia

KoreaKorea

JapanJapan

Taiwan Taiwan

MalaysiaMalaysia

QatarQatar

MaliMali

BrazilBrazil

South South AfricaAfrica

                       

But globalization But globalization brings high human brings high human

costs.costs.

Although the world’s people are producing Although the world’s people are producing more than 47 trillion dollars in wealth, these more than 47 trillion dollars in wealth, these riches are not distributed equally.riches are not distributed equally.

20% get most of the wealth.20% get most of the wealth.The U.S. owns 11 trillion dollars of The U.S. owns 11 trillion dollars of this wealth. this wealth. 2 billion of the world’s people live 2 billion of the world’s people live on less than $2 a day. on less than $2 a day. Peasants are forced to leave the Peasants are forced to leave the land as money and wage land as money and wage economies spread.economies spread. Workers without education and skills Workers without education and skills are often left behind. are often left behind.

The growing gap between the The growing gap between the rich and the poor continues to rich and the poor continues to increase.increase.

Global Distribution of I ncome (2002)

82.7

11.7

2.3

1.9

1.4Poorest

4th

3rd

2nd

Richest

Percentage of Global Income

Each bar representsa fifth of the world'spopulation arrangedby income.

Some big Some big multinational multinational corporations corporations have more have more wealth than wealth than many nations.many nations.

RankingGDP/value added $trillion

1 United States 9.9

2 Japan 4.7

    $billion

40 Malaysia 89.7

41 Colombia 81.3

42 Philippines 74.7

43 Chile 70.5

44Wal-Mart Stores 67.7

45 Pakistan 61.6

46 Peru 53.5

47 Algeria 53.3

48 Exxon 57.6

49 Czech Republic 50.8

50 New Zealand 50

51 Bangladesh 47.1

52United Arab Emirates 46.5

53 General Motors 46.2

54 Hungary 45.6

55 Ford Motor 45.1

56 Mitsubishi 44.3

57 Mitsui 41.3

58 Nigeria 41.1

59 Citigroup 39.1

60 Itachu 38.4

Gross DomesticGross DomesticProduct (GDP) Product (GDP) of Selectedof SelectedCountries and Countries and CorporationsCorporations20022002Corporations in bold faceCorporations in bold face

In poor countries child labor is In poor countries child labor is widespread. Some 212 million children of widespread. Some 212 million children of ages 5-14 are working instead of going to ages 5-14 are working instead of going to school. school.

These young These young girls work 12 girls work 12 hours a day, 6 hours a day, 6 days a week, days a week, earning $2-3 per earning $2-3 per week.week.

Most child labor Most child labor involves involves high energy work. high energy work.

                              

                           

          

                 

Outsourcing is increasing.Outsourcing is increasing.In 2003, the U.S. lost 234,000 information In 2003, the U.S. lost 234,000 information technology jobs. An estimated 14 million more technology jobs. An estimated 14 million more jobs may move overseas.jobs may move overseas. But the U.S. loss is a But the U.S. loss is a gain for India, China, Ireland, Korea and other gain for India, China, Ireland, Korea and other nationsnations

Narayana Murthy (right) and his Narayana Murthy (right) and his Infosys Information Technology Infosys Information Technology complex in Bangalore, India.complex in Bangalore, India.

Strong labor unionsStrong labor unions High wages High wages Environment Environment

protection laws andprotection laws and Unstable Unstable

governmentsgovernments

Manufacturing and capital flows to the areas of the world where they can make the most profits.

all tend to keep all tend to keep businesses and businesses and investment away.investment away.

The speed of globalization results in more pollution The speed of globalization results in more pollution and global warming caused by and global warming caused by over-cutting forests.over-cutting forests.burning fossil fuels.burning fossil fuels.producing more industrial and consumer waste.producing more industrial and consumer waste.

Growing threats to the Growing threats to the environment affect all peopleenvironment affect all people

Global Global warming lead warming lead to major to major floods. floods.

Lots of people question Lots of people question globalization.globalization.

..

Hollywood Hollywood is ruining is ruining our our children. children.

Globalization Globalization is forcing my is forcing my child to work. child to work.

Free trade Free trade is destroying is destroying us farmers.us farmers.

Industrial Industrial countries are countries are leaving us out leaving us out of Globalization. of Globalization.

Development Development is destroying is destroying our rain forest. our rain forest.

We have 50 We have 50 million people million people living in poverty.living in poverty.

Some people believe that globalization is “cultural imperialism”.

Can you interpret how Can you interpret how this cartoon depicts this cartoon depicts the idea of “cultural the idea of “cultural

imperialism?”imperialism?”

Globalization involves Globalization involves paradoxes.paradoxes.

Profitable industry but widening Profitable industry but widening gap between rich and poor?gap between rich and poor?

Lots of cultural pluralism but Lots of cultural pluralism but people becoming “homogenized?”people becoming “homogenized?”

Increasing interdependence but Increasing interdependence but small communities banding more small communities banding more tightly together?tightly together?

Huge wealth in industrialized Huge wealth in industrialized nations but great poverty in other nations but great poverty in other countries?countries?

You mean You mean it’s not good it’s not good

for for everyone?everyone?

Some wholeheartedly Some wholeheartedly embrace it. embrace it.

Some seek to maintain Some seek to maintain their traditions in the face their traditions in the face of perceived threats.of perceived threats.

Some fight for more Some fight for more economic fairness.economic fairness.

Some turn to religion.Some turn to religion.

Some violently oppose it.Some violently oppose it.

Some try to manage it for Some try to manage it for the greater human good. the greater human good.

People respond to globalization differently.

A house in Figuig, an oasisA house in Figuig, an oasisin Morocco on the edge of the in Morocco on the edge of the Sahara Desert. This family Sahara Desert. This family reaches out to the world through reaches out to the world through its satellite dish.its satellite dish.

Terrorism has ushered in a new Terrorism has ushered in a new global threatglobal threat..

             

                    

Modern military strategies Modern military strategies and weapons are often and weapons are often ineffective against suicide ineffective against suicide attacks.attacks.

Terrorists communicate and Terrorists communicate and spread their ideologies using spread their ideologies using cell phones and the Internet.cell phones and the Internet.

Terrorist groups may have Terrorist groups may have cells in many nations. cells in many nations.

In 2002, the United States In 2002, the United States government adopted policies of government adopted policies of massive military intervention as part massive military intervention as part of a war on terror.of a war on terror.

2002 – U.S. forces invaded Afghanistan to topple the 2002 – U.S. forces invaded Afghanistan to topple the government of the Taliban, which was cooperating with government of the Taliban, which was cooperating with international terrorists.international terrorists.

2003 – U.S. forces invaded Iraq to overthrow the government 2003 – U.S. forces invaded Iraq to overthrow the government of Saddam Hussein. The U.S. accused him of supporting of Saddam Hussein. The U.S. accused him of supporting terrorism.terrorism.

Are we entering a new era of Are we entering a new era of international relations?international relations?

In this new era will the U.S. act as In this new era will the U.S. act as democratic leader, the supreme world democratic leader, the supreme world power, as an empire?power, as an empire?

owns about one fourth of owns about one fourth of the world’s wealth.the world’s wealth.working to create working to create democratic institutions in democratic institutions in Afghanistan, Iraq, and other Afghanistan, Iraq, and other countries. countries. has military force equal to has military force equal to the next 20 countries the next 20 countries combined.combined.striving to be a model of striving to be a model of democracy for the world.democracy for the world. maintains 725 military maintains 725 military bases, valued at $118 billion, bases, valued at $118 billion, with 254,000 military with 254,000 military personnel in 153 nations. personnel in 153 nations.

Do these Do these factors help factors help

us answer the us answer the question?question?

Your decisions and actions will Your decisions and actions will help shape the future.help shape the future.

Will we cooperate to Will we cooperate to fight terrorism and fight terrorism and work to ensure that work to ensure that all people live in all people live in dignity? How these dignity? How these issues turn out is issues turn out is really up to us.really up to us.

One person can make a One person can make a difference.difference.

Big Era Big Era Nine ends Nine ends here, but here, but it’s not it’s not

over yet!over yet!