Capitalism vs. Socialism: Cold War Conflicts & Global Power
Capitalism vs. Socialism: A Cold War Overview
Capitalism: A free market economic system characterized by supply and demand, private property, and individualism, where individuals and companies control production.
Socialism: A political system advocating for the socialization of production systems.
The first socialist country was Russia. Socialism then spread to Sweden, Germany, Great Britain, France, Belgium, and Spain.
After World War II, the world was divided into two blocs: the capitalist West, led by the U.S., and the communist/socialist East, led by the USSR.
This era was marked by a power struggle between the superpowers, including an arms race and the development of the atomic bomb. Initially, only the U.S. possessed the atomic bomb, but the USSR developed their own within four years.
This period is known as the Cold War.
The Cold War involved an arms race and economic competition between the U.S. and the USSR.
Nikita Khrushchev, who succeeded Truman and Eisenhower, reduced U.S. military spending.
Capitalist countries had democratic governments and were financially supported by the World Bank and the International Monetary Fund.
The Marshall Plan provided 13 billion U.S. dollars to Europe, with the condition that they would not expand the communist model.
The dollar became the key currency. The Truman Doctrine and the Marshall Plan were the first steps in the new American stance.
The Warsaw Pact, signed in Warsaw in May 1955, was a friendship pact between Hungary, Poland, Slovakia, Germany, Romania, and the USSR.
Cold War Conflicts in the Middle East
During the Cold War, numerous battles were fought in the Middle East, particularly between Israel and the Palestinians. The West supported Israel, while non-aligned countries supported the Arab states. France was a major arms supplier to Israel. After the war, Jewish leaders formed the new state of Israel. Initially, the USSR sympathized with the small Jewish state. The third Arab-Israeli war resulted in Israel more than quadrupling its territory.
The SESAN conflict occurred on November 22, 1967.
Korean and Vietnam Wars
The Korean War was another major conflict, a precursor to the Vietnam War. Soviet troops occupied the north, and American troops occupied the south. This was a very active stage of the Cold War, with a series of conflicts that ceased in 1953.
The Vietnam War was one of the most active stages of the Cold War and can be seen as a continuation of the struggle for independence against France. The U.S. gradually intervened to support the colonial regime in South Vietnam. In 1956, the U.S. pursued a policy of economic and social development supported by strong investments. However, the U.S. was defeated by the Vietnamese. In 1968, there were 563,000 American troops, which were reduced to 16,000 by 1964.
Cuban Missile Crisis
Cuba was another active stage of the Cold War. The USSR installed Soviet missiles there, creating a tense situation as they were perceived as a threat to the U.S.
Third World Countries
In addition to the superpowers, there were other countries, known as Third World countries, that were struggling to become powers.