Evolution of Communism and Global Economic Shifts
China
China’s communist system began with Mao Zedong’s arrival in 1949, marked by five-year plans, collectivization, and a focus on heavy industry. However, this model was not fully applicable after 1957 as China was predominantly agricultural. The nation implemented its own model of people’s communes and rural collectivization. In the mid-1960s, larger units were formed. From 1966 to 1969, the Cultural Revolution occurred, advocating for smaller production units. From 1970 until eight years after Mao’s death, the focus shifted back to heavy industry.
Cuba
Cuba inaugurated a communist system in 1960. Discussions began about collectivization following the Soviet Union’s model. This alarmed the United States due to Cuba’s proximity. President Kennedy considered attacking before Cuba could fully develop, leading to the installation of Soviet missiles on Cuban soil. This event, known as the Cuban Missile Crisis, brought the world to the brink of nuclear war. To avoid conflict, the Soviets removed the missiles. The U.S. imposed a trade embargo on Cuba, but the USSR provided aid. Problems arose when the USSR faced its own challenges.
The Third World
The Third World cannot be understood without considering decolonization. Many countries formed in the 19th century were primarily American colonies. Japan, initially a Western colony, surprisingly became a major power. India and Pakistan achieved independence through Gandhi’s efforts. The USSR and the U.S., while not colonial powers, were imperialists. This, combined with Europe’s weakened state, propelled decolonization. World War II led to the downfall of major empires like the Third Reich and Japan, ending colonialism. Western-educated individuals in these newly formed nations often adopted European colonial ideologies. Territorial divisions were often flawed, sometimes grouping enemies together. These countries were typically underdeveloped, with low cultural levels and high child mortality rates, resembling a return to the 17th century. Their trade balance primarily consisted of exporting raw materials, with the tertiary sector more developed in capital cities. They also faced physical and human capital limitations, including underemployment. Many nations were arbitrarily formed, leading to a situation where a class leader could exploit existing factors. This often resulted in former colonial powers regaining control, making it difficult for these countries to break free from the system. These nations were often characterized by:
- Very poor development
- Low cultural levels
- High child mortality
Spanish Economy: Civil War (1936-1939)
The Spanish Civil War involved two factions: Nationalists and Republicans. The Republicans faced internal conflicts regarding the prioritization of war versus revolution, leading to a lack of unified action. The Republic had initiated collectivization. NegrÃn aimed to end land redistribution and focus on the war effort, as the Nationalists were gaining territory. Ultimately, all Nationalist factions united under Franco’s leadership. Nationalist territories had an agricultural advantage, benefiting their population. The Republic sent a significant amount of gold to Moscow for assistance. The rebels received support from various countries. Debt-based currency was issued, guaranteed by a future Nationalist victory. Franco’s victory resulted in widespread repression. Economists, insurance professionals, and transport workers generally sided with Franco, while Republican-leaning teachers were often exiled, leading to a significant loss of human capital. Material losses included gold reserves used for weapons and the destruction of infrastructure. The standard of living did not recover until 1956, delayed by the war, post-war isolation, and unequal distribution.
Franco Dictatorship (1939-1975)
The period from 1939 to 1953 was characterized by autarky, the belief that Spain could be self-sufficient. This idea stemmed from Spain’s Golden Age and was further justified by World War II. However, Spain’s debt to Germany prevented complete neutrality, leading to a position of non-belligerency. True self-sufficiency during wartime proved difficult, remaining more ideological than practical. The National Institute of Industry (INI) was established to develop an industrial policy and acquire agricultural production. From 1951 to 1953, Spain began to open up. The U.S. formed a pact with Spain as an ally against Soviet communism. U.S. aid was welcomed due to widespread hunger and poverty. In 1959, Franco, advised by Opus Dei, shifted towards a technocratic government, leading to a stabilization plan in 1961. The 1960s saw increased liberalization and foreign investment. The First Development Plan (1964-1967) achieved an average growth rate of 6%. The Second Plan (1968-1972) saw a rate of 5.5%. The Third Plan (1973-1975) was abandoned due to the oil crisis. Pros and Cons:
- Shift from agriculture to industrialization
- Strong technocratic influence
- Economic imbalances
- Unreliable statistics and data
- Low economic growth
- Labor migration
In conclusion, the oil crisis began to impact Spain in the mid-1970s. Franco’s death in 1975 added political uncertainty to the economic crisis, creating a very negative outlook.