Capitalist and Communist Blocs: Post-War Evolution
The Evolution of the Capitalist World
Political Developments
- The disappearance of military dictatorships in countries of Southern Europe. The so-called Carnation Revolution put an end to the dictatorship in Portugal. Spain, meanwhile, began the transition to democracy in 1975 after the death of Franco.
- The birth of Eurocommunism. European communist parties agreed to the accession to power by parliamentary means, due to the obvious difficulty of a Communist revolution in the capitalist countries of Europe.
The Economy
- The 1973 crisis: The causes of the crisis were many. The main one was the decision of the Organization of Petroleum Exporting Arab Countries to stop selling oil to Western countries. To this was added the OPEC decision to triple the price of oil, and the crisis in some industrial sectors. The consequences of the crisis were a high price rise, driven by rising oil prices, a reduction in demand, massive unemployment, and business closures.
- Political measures against the crisis: The measures were of three types:
- Neoliberal policies were implemented. This reduced state intervention in the economy and took steps such as cutting public expenditure, employment flexibility, and lowering taxes.
- Reduced energy consumption and encouraged the use of alternative energy sources to oil.
- Measures were taken to address the industrial crisis. Thus, the redevelopment of traditional sectors took place, reducing production and labor or modernizing techniques and products.
As a result of these measures, the economy recovered in 1981, inflation declined, and consumption grew.
The Organization of the Communist Bloc
Characteristics of the Communist Bloc
- In the political arena: After the war, dictatorships of the proletariat were implemented that subordinated individual rights and freedoms in the interest of the state. Agencies were created that concentrated executive and legislative power.
- In the economy: A planned economy was imposed, based on the collectivization of land and the nationalization of industry.
- In society: A theoretically egalitarian, classless society was established.
Political System
- In the Soviet Union: The abuses of power and personality cult of Stalin were condemned, and some freedom of expression was allowed, but his successor stalled reforms.
- In Central and Eastern Europe: Dictatorships of the proletariat were established due to Soviet pressure. The USSR suppressed, by force, any attempt at dissent. Only Yugoslavia implanted a communist republic independent from the USSR under Marshal Tito.
The Evolution of the Economy
- The creation of the CMEA as a response to the Marshall Plan, which encouraged aid to its members and promoted the joint planning of the economy, operated as a common market for commercial interests.
- State planning of the economy: the land passed into the hands of agricultural cooperatives or state farms, and industries, banking, and transport were nationalized.
Society
Societies of the USSR and the People’s Democracies increased their living standards. Consumption was not widespread, but the state guaranteed full employment and covered basic services like education and health.