Decolonization Models, Post-War Economy, and US Situation
Decolonization Models and the Cold War
Decolonization occurred within the framework of the Cold War, constrained by alignment with one bloc or another. The 1955 Bandung Conference led to the rise of the Non-Aligned Movement.
Models of Decolonization
Smith identifies several decolonization models:
- Elite Not Dependent on Metropolis: Where the elite ruled directly, as in Algeria, the nationalist movement was compact and homogeneous, leading to a bloody decolonization due to long-term property ownership.
- Dependent Elite Destroyed: In Indochina, divisions within the nationalist movement and the presence of communist elites resulted in civil war.
- Original Elites Displaced: In India, business elites who collaborated with the British were displaced by the industrial bourgeoisie, leading to clashes.
Post-World War II Economic Situation
The global economy was disorganized following a period of instability that began with World War I, culminated in the Great Depression, and continued through World War II. Capitalism’s viability was questioned.
Economic Characteristics
- Slowdown in economic growth.
- Reinforcement of internal hierarchies. France and England saw slight increases, while Germany and Japan were ruined.
- The United States benefited economically from the war.
- Capitalism was no longer the only viable economic system, with the Soviet economy presenting an alternative.
- Reduced trade and the threat of economic nationalism.
- Recurrence of famine in Europe.
- Irreversible momentum towards decolonization, further weakening old European powers.
Despite these challenges, hegemonic powers remained, and the destruction stimulated sectors like textiles, metallurgy, and chemicals.
The U.S. Situation After the Conflict
The U.S. recovered from the Great Depression through the New Deal and benefited from the war. By 1945, the U.S. had a 50% increase in GDP, a balanced budget, and a trade surplus.
Key Factors in U.S. Success
- The dollar was strong.
- A painless transition from war to peace, avoiding mass unemployment.
- A tacit agreement between the government and employers to convert war materials to consumer goods.
- Active demand both inside and outside the country. Europe needed U.S. goods, and domestic consumption increased due to wartime savings.
The U.S. was the only country that benefited significantly from the war, with a strong dollar and economic balance, avoiding the unemployment levels seen after World War I.