• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

What were the main economic consequences of the First World War

Extracts from this document...

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.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE International relations 1900-1939 section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE International relations 1900-1939 essays

  1. Summary of John Maynard Keynes' "The Economic Consequences of the Peace".

    a part of the League of Nation that includes Germany looked upon as representative within it. Coal and Iron: 1. Annex V must be cancelled, and Germany's obligation to make good France's loss of coal through the destruction of her mind should remain until Germany pays its due.

  2. Trench Diary Assignment.

    one's eyes and one is recalled to the bitter realities of the moment by the officer's voice: 'Fifteen minutes to go, boys, get ready'. Immediately there is a great stir and excitement, a final setting of equipment etc and examination of arms and then a handshake with one or two dear comrades.

  1. 'The rise and decline of the great powers can be explained by their relative ...

    Britain, in comparison seemed to have a strong hold on her empire, trading frequently with Australia, India, New Zealand and Hong Kong. In addition to these Dominions, Britain also had power over many mandates such as Palestine, Iran, Transjordan, Iraq and Syria, as well as her formal colonies.

  2. Causes of World War 2

    This was well beyond Germany's financial abilities and this huge debt eventually drove Germany over the edge and into a state of hyper-inflation rendering it financially unstable and giving German currency basically no value. This destroyed the morale of every citizen of Germany.

  1. Questions on World War One.

    Hence - largely defensive in nature, lacking any colours of aggressiveness. With the alliances, security was gained and enabled Germany to become gradually an industrial power in equality with UK. On the part of France, she did try her best in finding allies.

  2. The Rise of Nation States in Europe

    It violated the agreement in the Congress of Vienna and broke the Concert of Europe (the Congress System). * In the incident of Belgium, the powers had different stand. Afterwards, the powers divided in to 2 rival camps: * Austria and Russia--- Conservative (suppressed revolutions and maintained the monarchial system).

  1. To what extent did nationalism within the Austria-Hungarian Empire contribute to the outbreak of ...

    Those Powers which were already established resented what they saw as the reckless and threatening assertion of German power: there was rivalry with Britain, particular over naval policy; Alsace-Lorraine and Morocco soured Franco-German relations, while Germany's claim to influence in the Near East aroused strong Russian apprehensions.

  2. Free essay

    Economic consequences of the first world war

    The First World War completely shattered and devastated many European economies. In Germany alone the cost of the war was estimated at $40 billion USD. When considering the fact that there has subsequently been 87 years of inflation since this expenditure, in modern terms the figure would be closer to $1100 billion USD1.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work