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Big Era Nine Paradoxes of Global Acceleration 1945-2004

Big Era Nine Paradoxes of Global Acceleration 1945-2004. The World in 1945: 50 million people killed during WW II Parts of Europe, Asia, and North Africa in ruins World trade severely damaged. Much of the world looked pretty bleak. Many European economies in shambles

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Big Era Nine Paradoxes of Global Acceleration 1945-2004

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  1. Big Era Nine Paradoxes of Global Acceleration 1945-2004

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

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

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

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

  6. I guess it made sense at the time. During the Cold War, the U.S.S.R and the U.S. followed a policy of Mutual Assured Destruction (MAD). 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.

  7. 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.

  8. 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? Michail Gorbachev George H.W. Bush A trillion dollars is enough to give each family in the U.S. $100,000.

  9. During the cold war many former colonized peoples created new nations. • India gained independence from Britain in 1947. • Indonesia gained independence from the Dutch in 1949. • Ghana gained independence from Great Britain in 1957. • 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.

  10. 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

  11. Colonialism left new nations “Underdeveloped.”This table shows how shares of world Gross Domestic Product changed between 1870 and 1998. What might we learn from this table about patterns of economic development in the world?

  12. 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?

  13. In the 1960s, 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.

  14. 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: • Created the World Bank. • Established the International • Monetary Fund. • Established stable currency exchange rates. • Ushered in a new Global Age of economic cooperation. However, these agreementsdid not include the Communist bloc nations

  15. 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. • Gold backing for currencies was eliminated. • World currencies “floated.” The Age of Free Market Capitalism began, but still excluded the Soviet bloc nations “Underlyingmost arguments against the free market is a lack of belief in freedom itself.“Economist Milton Friedman

  16. In theory, free world trade encourages greater economic specialization, more productivity, and greater wealth. And each country can concentrate on what it does best. • Efficient use of world resources is possible. • Tariffs are eliminated. • Businesses can move where they make more profits. • More jobs are created. • People have more money to spend.

  17. In the 1980s the U.S. moved to expand free market capitalism within the global system. • Little government interference in the market • Freedom of individual choice • Borderless market economy • Markets as masters over state policies • People should be free to pursue economic self-interest • Consuming goods a major value What is free market capitalism? However, most nations continued to pursue some forms of economic nationalism

  18. In the 1980s 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.

  19. 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

  20. 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

  21. In the 1990s, 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 . With the collapse In the 1980s, the U.S., the major world power, became the chief advocate of free market capitalism for the global system.

  22. What is Globalization? • Increasing global connectedness through rapid communication and transport. • Rapid intensification of worldwide social relations. • Swift and free flow of capital, people, and ideas across national borders.

  23. 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.

  24. Life expectancy is rising, but it varies world wide. Average life expectancy for the world is 70 years.

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

  26. 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.

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

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

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

  30. Globalization also spreads ideas and values.

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

  32. 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.

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

  34. Gross Domestic Product (GDP) of Selected Countries and Corporations 2002 Corporations in bold face Some big multinational corporations have more wealth than many nations.

  35. 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.

  36. 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.

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

  38. The speed of globalization results in more pollution and global warming caused by • over-cutting forests. • burning fossil fuels. • producing more industrial and consumer waste.

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

  40. 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. We have 50 million people living in poverty. Industrial countries are leaving us out of Globalization.

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

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

  43. People respond to globalization differently. • Some wholeheartedly embrace it. • Some seek to maintain their traditions in the face of perceived threats. • Some fight for more economic fairness. • Some turn to religion. • Some violently oppose it. • 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.

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

  45. 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?

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

  47. 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.

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

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