Reconstruction, decolonization and re- stabilization Europe in the late 1940s.
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Transcript of Reconstruction, decolonization and re- stabilization Europe in the late 1940s.
Reconstruction, Reconstruction, decolonization and re-decolonization and re-
stabilizationstabilization
Europe in the late 1940sEurope in the late 1940s
The Department of Political Science The Department of Political Science PresentsPresents
Figuring out what's broke: Assessing the Figuring out what's broke: Assessing the effects of ownership on political news effects of ownership on political news
contentcontent
Dr. Kelly BlidookDr. Kelly BlidookDepartment of Political ScienceDepartment of Political Science
Memorial University of NewfoundlandMemorial University of Newfoundland
Friday March 13, 2009Friday March 13, 2009SN2033SN20332:30pm2:30pm
Reminders:Reminders:
Net assignment #2 due, Monday, March 16Net assignment #2 due, Monday, March 16 thth at at 5:00 p.m.5:00 p.m.
Book or film reviews due in class on Thursday, Book or film reviews due in class on Thursday, March 19March 19thth • Be sure to consult the hints and suggestions & the Be sure to consult the hints and suggestions & the
directions on format and style in the topic sheetdirections on format and style in the topic sheet
Today’s classToday’s class
Further exploration of a paradox: how Europe Further exploration of a paradox: how Europe moved from a half century of turmoil to one of moved from a half century of turmoil to one of peace, political unity, prosperity, and affluencepeace, political unity, prosperity, and affluence
Possible explanations:Possible explanations:• New elNew elán, determination not to return to dirty án, determination not to return to dirty
thirties?thirties?• Dreams and hopes?Dreams and hopes?• Willingness to learn from the past?Willingness to learn from the past?• Deliberate planning? Deliberate planning? • Fortuitous choices, facilitated & encouraged by the Fortuitous choices, facilitated & encouraged by the
cold war?cold war?
Look atLook at
Domestic politics, uses made of the Domestic politics, uses made of the statestate
Marshall PlanMarshall Plan Attempts to construct a federal Attempts to construct a federal
EuropeEurope International sideInternational sidehttp://news.bbc.co.uk/2/shared/spl/hi/europe/02/euro_borders/html/7.stmhttp://news.bbc.co.uk/2/shared/spl/hi/europe/02/euro_borders/html/7.stm
Domestic sideDomestic side Parties of the left emerge from the war Parties of the left emerge from the war
stronger than beforestronger than before• Surges of support for CommunistsSurges of support for Communists• Socialists stronger in many countriesSocialists stronger in many countries• Christian Democrats willing to work with the Christian Democrats willing to work with the
leftleft• Labour wins majority in 1945 electionsLabour wins majority in 1945 elections
Widespread sense that:Widespread sense that:• Neither politically possible nor desirable to Neither politically possible nor desirable to
return to the 1930sreturn to the 1930s• The state could be used – albeit in different The state could be used – albeit in different
ways -- to produce desired outcomesways -- to produce desired outcomes
UKUK Labour gov’t nationalizes basic industries:Labour gov’t nationalizes basic industries:
• Coal, gas, transport, eventually iron & steelCoal, gas, transport, eventually iron & steel Implements Beveridge report: Implements Beveridge report:
• Citizens pay flat rate insurance premiumCitizens pay flat rate insurance premium• Receive universal benefits, without means test (thus flat rate)Receive universal benefits, without means test (thus flat rate)
Old age pensions & widows’ benefitOld age pensions & widows’ benefit Unemployment insuranceUnemployment insurance Sick leave/insurance against industrial accidentsSick leave/insurance against industrial accidents
• Presumption:Presumption: affordable if economy is managed so affordable if economy is managed so that relatively few are forced to draw on themthat relatively few are forced to draw on them
Requires Keynsian demand management – counter-cyclical Requires Keynsian demand management – counter-cyclical policiespolicies
Establishes National Health Service (NHS): system of Establishes National Health Service (NHS): system of socialized medicine, doctors on salarysocialized medicine, doctors on salary
Moves toward physical resource planningMoves toward physical resource planning
ProblemsProblems
IndebtednessIndebtedness ExhaustionExhaustion Insufficient resources to sustain empire, Insufficient resources to sustain empire,
overseas role or pound as a reserve overseas role or pound as a reserve currencycurrency
Economy out of joint: rationing through Economy out of joint: rationing through 19521952
Actual planning is minimal: Actual planning is minimal: nationalizations achieve ownership without nationalizations achieve ownership without necessarily providing control or directionnecessarily providing control or direction
FranceFrance
Despite political uncertainty, move toward Despite political uncertainty, move toward indicative planning (voluntary targeting)indicative planning (voluntary targeting)
Commissariat du Plan established under Commissariat du Plan established under directorship of Jean Monnetdirectorship of Jean Monnet
Planners set targets for economic growthPlanners set targets for economic growth• Isolate bottlenecks or obstaclesIsolate bottlenecks or obstacles• Use information & resources of the state to Use information & resources of the state to
encourage corporations to overcome them:encourage corporations to overcome them: Financial facilities (e.g. loan guarantees)Financial facilities (e.g. loan guarantees) Nationalized industries (e.g. Renault)Nationalized industries (e.g. Renault)
• Facilitate postwar industrializationFacilitate postwar industrialization
ItalyItaly
Postwar state inherits IRI – a holding company Postwar state inherits IRI – a holding company with a portfolio of industries publically owned, with a portfolio of industries publically owned, because Fascists had rescued thembecause Fascists had rescued them
Use to modernize Use to modernize partsparts of the Italian economy of the Italian economy Regional development funds established – Regional development funds established –
transfer huge amounts of money to the transfer huge amounts of money to the underdeveloped southunderdeveloped south
Even so,Even so,• Widespread destitution, poverty….Widespread destitution, poverty….
NetherlandsNetherlands Breakthrough, championed by resistance forces, Breakthrough, championed by resistance forces,
Social Democrats, fails to materializeSocial Democrats, fails to materialize Nevertheless, Social Democrats & Catholics ally Nevertheless, Social Democrats & Catholics ally
to build postwar welfare stateto build postwar welfare state Trade unions & employers association come Trade unions & employers association come
together to administer incomes policies and together to administer incomes policies and manage reconstruction manage reconstruction
Government uses licensing powers, access to Government uses licensing powers, access to foreign exchange to promote industrialization & foreign exchange to promote industrialization & job creation, ‘active industrial policy’job creation, ‘active industrial policy’
Jump-starting European economiesJump-starting European economies
Despite planning, severe economic Despite planning, severe economic dislocationsdislocations
Recovery stalled by liquidity crisis Recovery stalled by liquidity crisis • Individuals, countries lack money to buy each Individuals, countries lack money to buy each
others’ goodsothers’ goods Growing realization that economic stability Growing realization that economic stability
linkedlinked Outbreak of Cold War galvanizes US into Outbreak of Cold War galvanizes US into
actionaction
Marshall Plan (1947)Marshall Plan (1947) U.S. Secretary of State, George MarshallU.S. Secretary of State, George Marshall
• proposes recovery planproposes recovery plan• receives bi-partisan supportreceives bi-partisan support
US supplies multi-year creditsUS supplies multi-year credits• Part for purchase of American goodsPart for purchase of American goods• Part for investment in industryPart for investment in industry• Technical assistanceTechnical assistance
Plans to be developed through new intnat’l Plans to be developed through new intnat’l org, OEEC (Organization for European org, OEEC (Organization for European Economic Cooperation, later OECD)Economic Cooperation, later OECD)
Offered to both western and eastern European Offered to both western and eastern European countriescountries
ImpactImpact
Older view:Older view:• Marshall Plan jump-starts European economies, Marshall Plan jump-starts European economies,
providing needed liquidityproviding needed liquidity• Foundation for postwar affluenceFoundation for postwar affluence• An instance in which the US got it rightAn instance in which the US got it right
More recently, some argue thatMore recently, some argue that• Growth was already underwayGrowth was already underway• Marshall Plan largely self-interested -- designed to Marshall Plan largely self-interested -- designed to
promote US interestspromote US interests Bottom lineBottom line
• Even if impact largely psychological, Marshall Plan made Even if impact largely psychological, Marshall Plan made a differencea difference
Organizing Western EuropeOrganizing Western Europe
Multiple efforts to build transnational and Multiple efforts to build transnational and international structures:international structures:
Bretton Woods Conference (1943) Bretton Woods Conference (1943) establishes basis for currency exchange: establishes basis for currency exchange: multilateral system of accounts replaces multilateral system of accounts replaces bilateral exchangebilateral exchange
GATT (General Agreement on Tariffs and GATT (General Agreement on Tariffs and Trade, fore-runner of WTO) as device for Trade, fore-runner of WTO) as device for facilitating changefacilitating change
World Bank and International Monetary World Bank and International Monetary Fund as stabilizersFund as stabilizers
Uniting EuropeUniting Europe
Initially, stuff of dreamers & visionariesInitially, stuff of dreamers & visionaries Altiero Spinelli & European Federalist Altiero Spinelli & European Federalist
MovementMovement Churchill urges (but not for Britain)Churchill urges (but not for Britain) United States promotesUnited States promotes
Multiple effortsMultiple efforts
BeneluxBenelux Hague Conference > Council of EuropeHague Conference > Council of Europe Organization for Economic Cooperation Organization for Economic Cooperation
and Development (OECD) as vehicle for and Development (OECD) as vehicle for Marshall Plan aid (initially OEEC)Marshall Plan aid (initially OEEC)
European Coal and Steel Community European Coal and Steel Community (ECSC) (ECSC)
NATONATO• Engages all but a few neutrals (Switzerland, Engages all but a few neutrals (Switzerland,
Sweden, Ireland, AustriaSweden, Ireland, Austria
European Coal & Steel European Coal & Steel CommunityCommunity
Schumann Plan – conceived by Jean MonnetSchumann Plan – conceived by Jean Monnet Problem:Problem:
• How to allow Germany to reindustrialize in ways How to allow Germany to reindustrialize in ways acceptable to Franceacceptable to France
ECSC (1951) brings France, Germany, Italy & Benelux ECSC (1951) brings France, Germany, Italy & Benelux together in a community to manage key resources: coal together in a community to manage key resources: coal and steeland steel• Governed by a high authority, with a representative Governed by a high authority, with a representative
assemblyassembly• wedge, intended to promote spillover to other sectors & wedge, intended to promote spillover to other sectors &
eventual European unityeventual European unity• forerunner of European Economic Community (EEC) & forerunner of European Economic Community (EEC) &
eventually, the EUeventually, the EUhttp://news.bbc.co.uk/2/shared/spl/hi/europe/02/euro_borders/html/9.stmhttp://news.bbc.co.uk/2/shared/spl/hi/europe/02/euro_borders/html/9.stm
The new Europe The new Europe US actively engagedUS actively engaged Governments actively involved in the Governments actively involved in the
management of their economiesmanagement of their economies With Marshall Plan Aid, currency reforms With Marshall Plan Aid, currency reforms
most European economies recovermost European economies recover• Steady economic growth through 1950sSteady economic growth through 1950s• By late 1950s, 1960s many countries By late 1950s, 1960s many countries
approaching full employmentapproaching full employment• Older conflicts ease – cf. class tensions, Older conflicts ease – cf. class tensions,
religious divisionsreligious divisions Cold war imposes political stability in both Cold war imposes political stability in both
east and westeast and west
Interplay between domestic and Interplay between domestic and international politicsinternational politics
Western Europe enmeshed in overlapping Western Europe enmeshed in overlapping international organizations:international organizations:
OEEC (later OECD)OEEC (later OECD) ECSC (later EEC, then EC, EU)ECSC (later EEC, then EC, EU)
• European Free Trade Association (EFTA)European Free Trade Association (EFTA) NATONATO
• Western European UnionWestern European Union Council of EuropeCouncil of Europe
http://geology.com/world/europe-physical-map.shtmlhttp://geology.com/world/europe-physical-map.shtml
International sideInternational side
Britain & France, Netherlands shed Britain & France, Netherlands shed colonies – not always willinglycolonies – not always willingly
Britain & France try to carve out Britain & France try to carve out international rolesinternational roles• UK via special relationship with the United UK via special relationship with the United
States States Has its own bombHas its own bomb
• France, via independent France, via independent force du frappeforce du frappe (after (after 1958)1958)
European countries European countries policy-takerspolicy-takers rather rather than than policy-makerspolicy-makers