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WW1
World war one was a war to end all wars. This war was a global bloodbath. At first there was minor conflict though nations began picking sides and things quickly escalated. After a while European colonizers began calling upon their colonies for troops. Eventually this led to the iconic Treaty of Versailles.
After world war 1 the world economy was in poor shape and allied countries were in debt. In response to this debt the Treaty of Versailles would make Germany pay compensations. -
Treaty of Versailles
The Treaty of Versailles was an important treaty sign between Allied nations and Germany to settle world war 1. The treaty stated that Germany would pay reparations for Allied nations and that Germany would give up their colonies to Allied nations. This agreement negatively effected Germany's economy leading to Hitlers election campaign to restore Germany's economy. After world war 1 many allied nations were in debt due to borrowing money to afford war efforts which the treaty would pay for. -
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The Great Depression
The Great Depression was a time when the global economy was in a downturn resulting in many loosing their jobs. After a fall in stock price people lost money after investing it due to the idea of get rich quick.
This was felt globally especially for industrial industries around the world. The United States took the hardest blow as their unemployment rate skyrocketed during the Great Depression. -
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Stalin's Rule
After Lenin died Stalin assumed leadership and took control over the country. During his time he formed the Soviet Union and turned it into a global superpower using his ideology of Stalinism (Stalinism was a mix between Marxism and Leninism).
During this time the Soviet Union became a strong voice in the world and a contender economically for the United States due to Stalin's rule. -
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Rise of Communism
After the formation of the Soviet Union communism was on a rise and became a strong competitor against capitalism. The ideology of communism is working towards a better class less society so everyone benefits equally. With Stalin's iron grip he helped give communism a reputation of strength though never achieved a full communist society. To ensure the wealth of the Soviet Union they went through industrialization rapidly and started making lots of exports. By doing this they could build wealth. -
Hitler is elected into Government
After the NSDAP winning the election the Nazi Party quickly created a Totalitarian government and became a dictatorship all in the name of repairing Germany's economy. This quickly led to the policy of Nazism in Germany.
Nazi Germany then invaded Poland becoming one of the major events that kickstarted WW2. -
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WW2
The second world war was a war between the allies and the axis. The conflict had effected everyone through blood or money. The economies of the countries participating shifted from civilian based production to military based production and mass amounts of money were put towards funding the war. -
Bretton Woods Conference
The Bretton Woods Conference was a conference with hundreds of delegates from 44 different countries. The conference debated how to prevent another world war despite the fact WW2 wasn't over yet. In the end the the Bretton Woods agreement created the World Bank and the International Monetary Fund.
Both the World Bank and the International Monetary Fund were created to relieve financial damages of the world war. -
World Bank
The World Bank was made to lend money to war torn countries to rebuild, he nations develop and industrialize, and give long term loans to increase productivity of a country. This was in the name of rebuilding a country better than before. Today the World bank aims to increase growth and help develop impoverished nations. As well they help fund certain infrastructure projects if needed.
The World Bank is owned by governments that are members. -
International Monetary Fund (IMF)
The IMF was originally made to set exchange rates and create stable global trade. This was important in assuring fair trade between nations to avoid conflicts starting over economic decisions. Today the IMF provides emergency relief through short term loans.
The IMF is funded by countries worldwide that are members and contribute based on their wealth. -
General Agreement on Trades and Tariffs (GATT)
The GATT was an agreement between countries to eliminate trade tariffs. This would make trade cheaper and thus more economically beneficial between nations. This agreement also help rebuild world trade. Later this became the a part of the World Trade Organization once it was created. -
World Trade Organization
The WTO is very similar to the GATT as it did originate from it though the WTO also focuses on enforcing trade rules between International bodies. By regulating trade the WTO can ensure fair trade and revise trade rules if necessary. In a situation where nations need to change trade rules they can use the WTO to help officially establish new rules.