Post-War Politics and Economic Transformations (1945-2007)
Great Britain
Following World War II, Great Britain experienced a period of change marked by the decline of traditional industries, the rise of dualism between labor and conservative ideologies, and the development of economic liberalism alongside social welfare programs. The 1945 election saw a Conservative victory under Churchill, who established social security, leading to financial challenges and subsequent tax increases until the Conservative triumph in 1964. This period witnessed a softening of social attitudes, although not complete acceptance. In 1964, Labor won the election and implemented further social improvements. Later, Margaret Thatcher’s conservative government favored large corporations, privatized state-owned enterprises, and ultimately faced backlash due to its excesses. In 1997, Tony Blair of the Labor Party won the election, and Gordon Brown became Prime Minister in 2007.
France
Post-war France was heavily influenced by General de Gaulle, a symbol of resistance against the Axis powers. He established the Fourth Republic, which was characterized by weak governance and instability, particularly concerning Algerian independence. This political crisis led to De Gaulle’s return to power with the Fifth Republic, which strengthened presidential authority. De Gaulle oversaw the recognition of Algerian independence in 1962 and addressed the student movement of 1968, which involved millions of workers and paralyzed France. These movements challenged existing political models. France subsequently saw alternating center-right governments (Pompidou, Chirac, Sarkozy) and center-left governments (Mitterrand, Jospin).
Germany
In post-war Germany, the Americans initially oversaw a 20-year period of governance by the Democratic Party, leading to an incredible economic recovery. A peace treaty was signed with the Social Democrats in 1969, opening up relations with the Soviet bloc. In 1990, the two German states reunified under Christian Democrat Helmut Kohl, leading to Germany becoming a major European power. In 1998, Social Democrat Gerhard Schröder became Chancellor, followed by Christian Democrat Angela Merkel in 2006.
Italy
After the war, Italy’s political landscape was dominated by the Communist Party (PCI) and the Christian Democrats. By 1990, a new system emerged, with the Left (Olive Tree) and the Right (Forza Italia) competing for power. Silvio Berlusconi, founder of Forza Italia and a prominent entrepreneur, capitalized on the discrediting of traditional parties and governed from 1994-1995 and 2001-2006. Romano Prodi, a leftist, served as Prime Minister from 1996-1998, marking a significant shift after the Fascist era.
Western Bloc Economy
Post-War Economy
The United States benefited economically from World War II and emerged as the leading capitalist power in 1945, with the dollar becoming the international currency and American firms dominating global markets. The war-torn Western European nations underwent a period of reconstruction between 1945 and 1950, aided by the Marshall Plan. The 1950s marked an era of prosperity, modernization, and improved living standards. State intervention increased across Europe, with nationalization of key industries like banking, mining, and steel, consolidating the welfare state (education, healthcare, pensions, etc.). Japan, like Europe, was devastated but rebuilt with US aid, becoming the second-largest economic power by the 1970s.
The Crisis of 1973 and its Impact
The economic recession of the 1950s and 1960s led to reduced benefits and increased global competition, exacerbated by the 1973 oil crisis stemming from the Arab-Israeli conflict. The crisis caused producing countries (primarily Arab nations) to significantly raise oil prices. This resulted in stockpiling, bankruptcies, reduced investment, and a surge in unemployment. The solution involved technological renewal, increased productivity, and the rise of neoliberalism (reduced state intervention in the economy). Less-developed countries experienced increased technological dependence and financial strain, while small and medium-sized enterprises (SMEs) adapted to the new demands. Production slowed, unemployment remained high (including temporary and underground economies), and social benefits were reduced from the 1980s onwards.
The USSR and the Communist Bloc
Communism expanded rapidly, gaining prestige due to its victory over the Nazis. With the end of the war, communist democracies emerged, distinct from the Western democracies and aligned against the US. Characteristics of these regimes included communal land ownership, nationalization of industry and transport, and state-planned economies. These countries formed a military alliance (the Warsaw Pact) and an economic group (COMECON). Mao Zedong’s victory in 1949 established the communist People’s Republic of China. Stalin’s dictatorship focused on heavy industry and military buildup. After his death in 1953, Khrushchev attempted reforms, emphasizing consumer goods and peaceful coexistence with the US. This openness was perceived as a threat by conservatives, who ousted him in 1964. Brezhnev’s leadership marked a decadent phase for the USSR, with a return to strict social control and remilitarization. He and subsequent elderly general secretaries were known as the “gerontocracy.” In 1985, Gorbachev, a younger leader, was chosen to revitalize the country, promoting closer ties with the US and the West.
Centrally Directed Economy
In response to the Marshall Plan, the Council for Mutual Economic Assistance (COMECON) was created to facilitate trade among communist countries. However, it was less effective than the Marshall Plan due to restricted market freedom. Development focused on heavy industry, with consumer goods as a secondary priority. Low productivity, excessive military spending, and shortages of consumer goods led to delays and ultimately contributed to the fall of communist regimes in the 1980s. After the collapse of the USSR, a socio-economic transformation began.
Early Protests Against Moscow
Eastern European countries under Soviet control experienced popular protests, which were suppressed by Soviet tanks (East Germany in 1953, Hungary in 1956) or Warsaw Pact troops (Czechoslovakia in 1968). These countries lacked guaranteed freedoms and faced unacceptable living conditions. Discontent grew within both the USSR and the Eastern Bloc.
Decline of the USSR
In 1985, Gorbachev became General Secretary and denounced the USSR’s stagnation. He introduced perestroika (restructuring) and glasnost (openness) to reform governance and the economy, aiming to compete in international markets. He initiated dialogue with the US and reduced military spending. Political reforms led to the creation of a parliament, and Gorbachev was elected president in 1990. These measures gained popularity but faced resistance from communist hardliners. The population struggled to receive aid, and Gorbachev granted autonomy to the various Soviet republics. In August 1991, a coup by communist hardliners was opposed by Boris Yeltsin, President of the Russian Federation, who defended the reforms. Gorbachev attempted to form a Commonwealth of Independent States, but the effort failed. He resigned, and Yeltsin outlawed the Communist Party.
New Russian Federation
The new Russian Federation, with 150 million inhabitants and the world’s second-largest nuclear arsenal, faced challenges transitioning from a planned to a free-market economy. Reforms in 1992 aimed to privatize the economy and liberalize prices, leading to hyperinflation (2,000%), ruble devaluation, economic recession, and the rise of organized crime. Former communist leaders opposed the changes and ordered the army to seize Parliament, but a new constitution was adopted. Yeltsin won re-election in 1996, continuing a policy of openness, signing an agreement with NATO, and dismantling missiles aimed at Europe. Religious freedom was granted, with the Orthodox Church regaining prominence. Due to poor health, Yeltsin resigned in favor of his Prime Minister, Vladimir Putin, who was elected in 2000 and re-elected in 2004. Putin pursued reforms more rigorously and addressed Chechen nationalism.
Political Transformations in Central Europe
[Details of political transformations in Central Europe were not provided in the original text.]
European Integration Process
Early Stages of European Integration
European integration transformed the political and economic lives of citizens, originating from the need for Franco-German reconciliation and economic coordination after World War II. The idea gained traction in the context of post-war weakness and the need to respond to Soviet expansionism.
The Construction of the European Union
In 1948, the Organization for European Economic Cooperation was established to coordinate Marshall Plan investments. The Council of Europe, founded in 1949, aimed to promote European unity and protect freedoms. The European Coal and Steel Community (ECSC) was formed in 1951 by France, Italy, West Germany, the Benelux countries, and spurred cooperation in other economic sectors. The European Economic Community (EEC) and the European Atomic Energy Community (Euratom) were established by the Treaty of Rome in 1957, leading to the emergence of the European Union in 1967. Its goals included removing internal customs duties, unifying external tariffs, and establishing a common agricultural policy. The European Free Trade Association (EFTA), comprising the UK, Scandinavian countries, Portugal, Switzerland, and Austria, pursued free trade alongside the EEC. The EEC’s success led to applications from Great Britain, Denmark, and Ireland in 1967, joining six years later. The Treaty of Rome in 1968 established the Common Agricultural Policy (CAP), and in 1972, the first European Parliament elections were held. Greece joined in 1981, followed by Portugal and Spain in 1986, creating the EU-12. East Germany joined in 1990 after reunification.
From Maastricht to the EU-15
The Maastricht Treaty of 1992 aimed to move beyond the common market towards greater unity. The EEC was renamed the European Union. Objectives included monetary union (single currency “€”), common foreign and security policy, protection of rights, cohesion funds to support less-developed countries (Greece, Spain, and Portugal), and collaboration in justice. Difficulties included the inability to play a peacekeeping role in the Yugoslav Wars. In 1995, Sweden, Finland, and Austria joined, creating the EU-15.
From Amsterdam to the EU-27
The Amsterdam Treaty, signed in 1997 and effective in 1999, established a common employment policy, broadened the powers of the European Parliament, and appointed Javier Solana as the High Representative for the Common Foreign and Security Policy (CFSP). It proposed free movement of people and capital and addressed the need for social policies. Former communist bloc countries were considered for membership, but some faced challenges in reorganizing cohesion funds. The euro (€) was introduced on January 1, 2002, strengthening economic and monetary policy (excluding the UK, Denmark, and Sweden). In 2002, the EU Council agreed to admit ten new members: Cyprus, Slovakia, Slovenia, Estonia, Latvia, Lithuania, Hungary, Malta, Poland, and the Czech Republic, which joined in 2004, followed by Bulgaria and Romania in 2007.