Economic Interdependency
WWII leads to re-structuring of the world economy along the lines of “economic interdependency” among nations – globalization
Technology (air transportation/computers/radar/penicillin) plays a significant role in victories – Churchill: “a wizards war”
Point of view that emerges: Undo the pattern of recycled wars – Teach each nation its prosperity is tied to the prosperity of others
The outcome is a world in which innovation is the primary basis of competition.
Institutions: World Bank, IMF, WTO/GATT, UN – In sum, to give the effort teeth, each has a specific role – Mission creep eventually distorts that or, depending on your point of view, gives evidence that the project is doing well.
Personalities and their ideas:
Monnet (Jean)
De Gaulle
Gandhi
Yoshida
It is an international effort, not an American effort alone, and succeeds because of international commitment
After three years of peace, world GDP dominated by Americans; about 50% global GDP;
Europe still devastated (5000 German bridges, concentration of gold, Europes harsh winter, communist threat in Italian election; business relationships destroyed, soil damaged)
Response: Marshall Plan, in Europe (1948-1952)
American goals: It needed markets to buy its goods, but also humanitarian
Results over time:
Growth in Global GDP and decrease in U.S. share
Finding opportunities to innovate
Multiple markets, one economy
French company becomes more Dutch, German becomes more American, etc
Rise from poverty for millions but inequities persist
Anecdotes
FDR and assessment of his allies
Akio Morita, Sony and AT&T
WWII leads to re-structuring of the world economy along the lines of “economic interdependency” among nations – globalization
Technology (air transportation/computers/radar/penicillin) plays a significant role in victories – Churchill: “a wizards war”
Point of view that emerges: Undo the pattern of recycled wars – Teach each nation its prosperity is tied to the prosperity of others
The outcome is a world in which innovation is the primary basis of competition.
Institutions: World Bank, IMF, WTO/GATT, UN – In sum, to give the effort teeth, each has a specific role – Mission creep eventually distorts