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What were the main economic consequences of the First World War

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Introduction

Making Of The Modern World Economy HIS1005F COVER SHEET Student Name: Brian Lockyer Student Number: LCKBRI001 Tutor: Laura van Wyngaarden Tut Group No: 9 Assignment No: 1 Date: 2 April 2009 Plagiarism Declaration 1. I know that plagiarism is wrong. Plagiarism is to use another's work and pretend that it is one's own. 2. I have used the Harvard convention for citation and referencing. Each contribution to, and quotation in, this essay from the work(s) of other people has been attributed, and has been cited and referenced. 3. This essay is my own work. 4. I have not allowed, and will not allow, anyone to copy my work with the intention of passing it off as his or her own work. Signature ______________________________ What were the main economic consequences of the First World War? At the end of the First World War in 1918, the economic state of Europe was in such a perilous condition that the impending rebuilding of the continent seemed a remote and unrealistic possibility. ...read more.

Middle

The cost of the war was equally high in France and Russia and well into the billions in Italy, Belgium, Britain and Poland. Another major economic impact of the war was that it narrowed the gap between the economies of both Europe and the United States of America. Despite the USA being well into its industrialization programme and having a steadily growing economy the European economy was still superior to the US economy. However the devastating effects of the First World War resulted in massive economic stagnation and declination, which allowed the US to catch up and bridge the gap between the two. In the period following the War it is estimated that the US economy grew by triple that of Europe's economy in relative terms3. As a result of this economic alteration and switch in economic superiority, investment in Europe fell substantially, which effectively enhanced the problems already facing the economies of the continent. Newly established Asian companies relocated to the US, and many European firms decided to cross the Atlantic to save their businesses4. ...read more.

Conclusion

Lenin's implementation of his War Communism economic strategy resulted in the alienation of Russia from mainland Europe and thus the complete destruction of trading links between East and West.7 In terms of the bigger picture this alienation and destruction of major trading routes further contributed to the economic declination of European economies and further dented the economies of the countries that were active trading partners with Russia. Economically, the war completely devastated Europe. Every European economy suffered through the war and trading amongst European countries never really recovered. Through the political change in Europe, the economy suffered and this effectively allowed the USA to catch up and overtake the European economy in the preceding years of the war. Although many short-term problems were created by the war, the long-term problems far outweighed those in the short term. These long-term factors effectively led to the Second World War and the outbreak of the Cold War. Effectively the war shaped the Twentieth Century, as we now know it. ...read more.

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