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Post-war USSR and Germany 1918-1924

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Introduction

Post-war USSR and Germany 1918-1924 Compare and contrast the economic and political developments in the USSR and Germany 1918-1924 Word Count: 1621 Date due: April 1st, 2008 By: Rasmus Puggaard Hansen 2.u Birker�d Gymnasium CONTENTS Introduction ................................................................................................................ 1 Treaty of Versailles.................................................................................................... 1 Occupation of the Ruhr and the Dawes Plan ........................................................... 2 Russia's economical problems .................................................................................... 2 War Communism and the NEP ................................................................................ 3 As World War One ended in 1918, all of the nations involved had suffered extreme losses. Vast casualties along with economical and political instabilities were facts that had to be dealt with at the end of the war, even for the victories nations. However, the two worst hit were the defeated Germany and the USSR who were forced to pull out of the war. Germany had been in total war1 in the whole duration of WW1, a state which is not durable in the long term. Following the war, Germany's economy therefore collapsed, due to the absence from the labour force, as the generations of the youth were killed in the war, and due to the intense war debts that Germany were to pay. The political state of Germany were also hugely affected at the close of the war. ...read more.

Middle

After the war years, in 1921, there were 64 marks to the dollar, while in November 1923 it had changed to 4,200,000,000,000 marks to the dollar. This hyper inflation was caused by the demand for goods which simply couldn't be produced due to the lack of raw materials, and unemployment reaching alarming levels. Politicians in the USA and Britain began to realize that Germany would never be able to repay its war debts imposed by the Treaty of Versailles if its economy wasn't working. They realized the treaty was too harsh, and in April 1924, Charles Dawes proposed the Dawes Plan. This plan would be beneficial towards the Germans as the total sum to be repaid would remain the same, but annual debts were decreased and Germany was granted a loan. The plan was accepted by Germany and as a result, the German mark began to stabilize and Germany was able to repay its debts on time for a while. Russia's economical problems Russia, on the other hand, was also economically crippled at the end of the war on onwards, but this was largely caused by its own people. Revolutions in Russia led to very instable political systems. ...read more.

Conclusion

War communism was replaced by the NEP as a result of the uprisings. In conclusion, it can be said that both Russia and Germany suffered greatly in the aftermath of World War One. Germany, having to pay the war debts to the victories nations of the war, was in a serious economical state as they were close to bankrupt at the end of the war. However, with loans from abroad and a strong will to survive, Germany conquered its extreme economical condition against all odds, and became a powerful nation once again. Russia on the other hand, can be concluded to have been inflicting damage to itself, as the Bolsheviks who seized power in the middle of the war, were partially responsible for a clear deterioration in the country's economical state due to harsh leadership and the outbreak of a severe civil war. Also, an interesting point to note is how Lenin didn't want to accept loans from abroad to tackle the economical crises, which Germany happily did and thereby improved its economy. Russia was more or less isolated in the years 1918-1924 and thereby depended on itself alone to improve conditions. Ultimately however, both Germany and Russia survived the aftermath of WW1, not without consequences though., but in the end they both recovered from the economical and political instabilities. ...read more.

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