Big Era Nine Paradoxes of Global Acceleration 1945

Big Era Nine Paradoxes of Global Acceleration 1945 -2004

The World in 1945: Ø 50 million people killed during WW II Ø Parts of Europe, Asia, and North Africa in ruins Ø World trade severely damaged Much of the world looked pretty bleak.

Ø Many European economies in shambles ØEuropean Colonial empires crumbling ØGrowing nationalist movements in Africa and Asia Ø U. S. the major industrial and atomic power The world entered a new era.

Cold War policies developed: Ø The Soviet Union occupied Eastern Europe and part of Germany. ØThe U. S. moves to encircle the Soviet Union with a system of alliances and military aid. ØU. S. offers Marshal plan to rebuild Europe and gives $13 billion in aid. ØThe U. S. adopted a policy of “Containment” of the Soviet Union with military bases around the world. ØAn “Iron Curtain” of tense relations separated the Western allies from the U. S. S. R. and its allies.

The World became divided into two hostile camps: The U. S. S. R. and the U. S. Pres. Harry Truman 1946 -60 Joseph Stalin

During the Cold War, the U. S. S. R and the U. S. followed a policy of Mutual Assured Destruction (MAD). I guess it made sense at the time. Mutual Assured Destruction is a military deterrence strategy in which a full scale use of nuclear weapons by one of the opposing powers would result in the destruction of both. The U. S. and U. S. S. R had enough nuclear bombs to destroy the world about 400 times.

The Cold War was very costly in lives. 1950 -53 - A divided Korea led to war, separated family members, and cost a million lives, including 48, 000 Americans. 1963 -1972 - Three million people died in the Vietnam War, including 58, 000 Americans.

The forty years of the Cold War were costly in resources. We spent 3. 5 trillion, and for what? We spent 5. 5 trillion dollars on nuclear arms, and we won! How much is a trillion dollars? George H. W. Bush Michail Gorbachev A trillion dollars is enough to give each family in the U. S. $100, 000.

During the cold war many former colonized peoples created new nations. Ø India gained independence from Britain in 1947. Ø Indonesia gained independence from the Dutch in 1949. Ø Ghana gained independence from Great Britain in 1957. . Ø By 1965 most former European colonies had become newly created independent nation-states. The U. S. and the U. S. S. R. competed for the loyalties of these new nations.

Several of the new nations pursued a non-aligned policy. • In 1955 India, Indonesia, and Yugoslavia sponsored the Bandung Conference of Non. Aligned nations. It aimed to promote solidarity among newly independent states and to prevent the U. S. and the U. S. S. R. from meddling in their domestic affairs. • Nehru and Sukarno led the meeting. Sukarno of Indonesia Nehru of India

Colonialism left new nations “Underdeveloped. ” This table shows how shares of world Gross Domestic Product changed between 1870 and 1998. Date India China Africa Japan Western Europe and U. S. 1870 12. 2 17. 2 3. 6 2. 3 42. 5 1913 7. 6 8. 9 2. 7 2. 6 52. 6 1950 4. 2 4. 5 3. 6 3. 0 53. 6 1973 3. 1 4. 6 3. 3 7. 7 47. 7 1998 5. 0 11. 5 3. 1 7. 7 42. 5 What might we learn from this table about patterns of economic development in the world?

In 1750, China and India provided 57% of world manufacturing. In 1953, they manufactured only 4% of the world’s goods. What caused such a dramatic change?

In the 1960 s, as the colonized people gained independence, the world-wide split between the North –rich industrial nations—and the South – poor “third world” nations—grew wider.

How did Western leaders try to restore world trade after World War II? In 1944, at the Bretton Woods Monetary Conference in New Hampshire, Western leaders: ØCreated the World Bank. ØEstablished the International ØMonetary Fund. ØEstablished stable currency exchange rates. ØUshered in a new Global Age of economic cooperation. However, these agreements did not include the Communist bloc nations

In 1971, however, the high cost of the Vietnam War prompted President Richard Nixon to abolish the fixed currency exchange rates that had been established at Bretton Woods. ØGold backing for currencies was eliminated. ØWorld currencies “floated. ” The Age of Free Market Capitalism began, but still excluded the Soviet bloc nations “Underlying most arguments against the free market is a lack of belief in freedom itself. “ Economist Milton Friedman

In theory, free world trade encourages greater economic specialization, more productivity, and greater wealth. ØEfficient use of world resources is possible. And each country can concentrate on what it does best. ØTariffs are eliminated. ØBusinesses can move where they make more profits. ØMore jobs are created. ØPeople have more money to spend.

In the 1980 s the U. S. moved to expand free market capitalism within the global system. What is free market capitalis m? ØLittle government interference in the market ØFreedom of individual choice ØBorderless market economy ØMarkets as masters over state policies ØPeople should be free to pursue economic self-interest ØConsuming goods a major value However, most nations continued to pursue some forms of economic nationalism

In the 1980 s China moved toward a free-market system and joined the global economy. China’s Trade surplus balance with U. S. $666. 2 billion in the 2004, China now buys from 1 -2 billion dollars of the U. S. debt each day. China’s economy will probably equal that of US. In twenty-five years.

In 1989, the Berlin Wall came down and the Cold War ended. Eastern European countries broke away from Soviet control. The Soviet Union itself broke into more than a dozen new states. The Berlin Wall was built in August 1961 The Wall was destroyed on November 9, 1989

In 1991, India abandoned it’s 44 year-old socialist oriented economy and embraced a the free market system and joined the global economy. With a GDP of 800 billion dollars, India is now the fourth largest world economy after the U. S. , China and Japan. India’s growth rate has averaged about 5. 8 per cent for the past fifteen years. Major exports include §Clothing §Automobiles §Handicrafts

In the 1990 s, with the integration of many of the states of the former Soviet Union and the entry of China and India, Globalization now embraced the majority of the world’s economies. In the 1980 s, the U. S. , the major world power, became the chief advocate of free market capitalism for the global system.

What is Globalization? ØIncreasing global connectedness through rapid communication and transport. ØRapid intensification of worldwide social relations. ØSwift and free flow of capital, people, and ideas across national borders.

World population has been rapidly increasing. Wow! More than 6 billion people now alive. billions 7 6 5 4 3 2 1 1803 - 124 yrs 1927 - 33 yrs 1960 - 14 yrs 1974 - 12 yrs 1986 – 13 yrs The time it takes to add a billion people grows shorter.

Life expectancy is rising, but it varies world wide. Average life expectancy for the world is 70 years. Country Average Life Expectancy Sweden 79. 2 France 78 United States 71. 1 Bangladesh 62. 8 Botswana 40. 1 Zimbabwe 39. 2

Speed of travel has increased dramatically. 1957 World wide communication is almost instantaneous 1962 1981 Look at this antique computer. It doesn’t even have a hard drive! 1977 1982

The computer has been changing billions of lives. IT Engineer seeks househusband. . Will you be my E-pal? We’re catching up with the U. S. economy. I raised my campaign funds via the internet. Where are the books I ordered? I’m applying to college.

Cap from Bangladesh Shirt from Mexico Backpack from China Soccer ball from Pakistan But what does globalization have to do with me? Jeans from Malaysia Video game from Japan Sneakers from Indonesia

New technologies allow humans to control nature like never before. Expanding technology makes possible a cornucopia of new products for us

More goods are being produced, bought, and sold worldwide What than ever before. shall I buy next?

Globalization also spreads ideas and values.

Democratic ideas have spread to more countries than ever before. India Korea Japan Taiwan Malaysia Qatar Mali Brazil South Africa

But globalization brings high human costs. Although the world’s people are producing more than 47 trillion dollars in wealth, these riches are not distributed equally.

The growing gap between the rich and the poor continues to increase. Ø 20% get most of the wealth. ØThe U. S. owns 11 trillion dollars of this wealth. Ø 2 billion of the world’s people live on less than $2 a day. ØPeasants are forced to leave the land as money and wage economies spread. ØWorkers without education and skills are often left behind.

Gross Domestic Product (GDP) of Selected Countries and Corporations 2002 Corporations in bold face Some big multinational corporations have more wealth than many nations. GDP/value added Ranking $trillion 1 United States 9. 9 2 Japan 4. 7 $billion 40 Malaysia 89. 7 41 Colombia 81. 3 42 Philippines 74. 7 43 Chile 70. 5 44 Wal-Mart Stores 67. 7 45 Pakistan 61. 6 46 Peru 53. 5 47 Algeria 53. 3 48 Exxon 57. 6 49 Czech Republic 50. 8 50 New Zealand 51 Bangladesh 47. 1 52 United Arab Emirates 46. 5 53 General Motors 46. 2 54 Hungary 45. 6 55 Ford Motor 45. 1 56 Mitsubishi 44. 3 57 Mitsui 41. 3 58 Nigeria 41. 1 59 Citigroup 39. 1 60 Itachu 38. 4 50

In poor countries child labor is widespread. Some 212 million children of ages 5 -14 are working instead of going to school. These young girls work 12 hours a day, 6 days a week, earning $2 -3 per week. Most child labor involves high energy work.

Outsourcing is increasing. In 2003, the U. S. lost 234, 000 information technology jobs. An estimated 14 million more jobs may move overseas. But the U. S. loss is a gain for India, China, Ireland, Korea and other nations Narayana Murthy (right) and his Infosys Information Technology complex in Bangalore, India.

Manufacturing and capital flows to the areas of the world where they can make the most profits. Ø Strong labor unions Ø High wages Ø Environment protection laws and Ø Unstable governments all tend to keep businesses and investment away.

The speed of globalization results in more pollution and global warming caused by Øover-cutting forests. Øburning fossil fuels. Øproducing more industrial and consumer waste.

Growing threats to the environment affect all people Global warming lead to major floods.

Lots of people question globalization. Globalization is forcing my child to work. . Free trade is destroying us farmers. Hollywood is ruining our children. Development is destroying our rain forest. Industrial countries are leaving us out of Globalization. We have 50 million people living in poverty.

Some people believe that globalization is “cultural imperialism”. Can you interpret how this cartoon depicts the idea of “cultural imperialism? ”

Globalization involves paradoxes. You mean it’s ØProfitable industry but widening not good for gap between rich and poor? everyone? ØLots of cultural pluralism but people becoming “homogenized? ” ØIncreasing interdependence but small communities banding more tightly together? ØHuge wealth in industrialized nations but great poverty in other countries?

People respond to globalization differently. Ø Some wholeheartedly embrace it. Ø Some seek to maintain their traditions in the face of perceived threats. Ø Some fight for more economic fairness. Ø Some turn to religion. Ø Some violently oppose it. Ø Some try to manage it for the greater human good. A house in Figuig, an oasis in Morocco on the edge of the Sahara Desert. This family reaches out to the world through its satellite dish.

Terrorism has ushered in a new global threat. ØModern military strategies and weapons are often ineffective against suicide attacks. Ø Terrorists communicate and spread their ideologies using cell phones and the Internet. ØTerrorist groups may have cells in many nations.

In 2002, the United States government adopted policies of massive military intervention as part of a war on terror. 2002 – U. S. forces invaded Afghanistan to topple the government of the Taliban, which was cooperating with international terrorists. 2003 – U. S. forces invaded Iraq to overthrow the government of Saddam Hussein. The U. S. accused him of supporting terrorism. Are we entering a new era of international relations?

In this new era will the U. S. act as democratic leader, the supreme world power, as an empire? Ø owns about one fourth of the world’s wealth. Øworking to create democratic institutions in Afghanistan, Iraq, and other countries. Ø has military force equal to the next 20 countries combined. Østriving to be a model of democracy for the world. Ø maintains 725 military bases, valued at $118 billion, with 254, 000 military personnel in 153 nations. Do these factors help us answer the question?

Your decisions and actions will help shape the future. Will we cooperate to fight terrorism and work to ensure that all people live in dignity? How these issues turn out is really up to us. One person can make a difference.

Big Era Nine ends here, but it’s not over yet!