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Period: to
WWI
World War I was the first time that countries collaborated without the motive of colonization. Many economies had entered a recession, but the distribution of weapons and goods was at its highest peak. In fact, a lot of modern warfare first occurred at this time period and weaponry advancements were made. Therefore, this greatly changed the military overall, including our countries prioritize their military budgets and spending the modern world. -
Treaty of Versailles
This treaty decided to blame Germany for all the destruction and loss in WWI. This left Germany in billions of dollars of debt and took away most of its armed forces as well as its territories. This led to Germany's economy to crumble and it was nearly finished as a nation. While this didn't impact the global economy too much, this treaty also eventually led to the rise of Hitler, causing a war that does affect the economy a lot. -
Rise of Communism
Russia became the first constitutionally communist country in 1922 after Vladimir Lenin rose to power. He initially start centralizing all the main farmlands and then easing the country into communism. However, once he died, Stalin took over and accelerated communism and immediate had everything in government control. He forced farmers to mass-industrialize. This, along with the famine due to the quotas of grains, completely crumbled Russia's economy. During this time, Russia exported a lot. -
Stalin
Stalin was responsible for affecting World War II and mass-industrializing Russia with his 5 year plan. Stalin forced immediate centralization and demanded high demands of grain exportations. These quota became unrealistic eventually because many farmer's burned their own land to prevent it from being under government control. Additionally, many people were high executed during this time period, making the situation worse. Eventually, this led to a mass famine, despite the 2 mil tons of exports. -
The Great Depression
The Great Depression led to the creation of different market philosophies and the boom bust cycle. It occured when banks started to give out free credit cards and people went buying stocks and a lot of products. This made business thrive, but eventually the demand fell and the producers didn't stop production. When banks charged loans, people lost their jobs and homes, crashing US's economy. Therefore, the US asked back all the loans from other country. Therefore, this affected the entire world. -
Hitler's Rise
Hitler lead to the mass privatization of companies and industries, while controlling everything as the dictator. Additionally, he lead to the second world war, which further put countries into debt. He was also responsible for making Germany self-sufficient for the time. -
WWII
WWII is infamous for the amount of Jews killed and tortured. However, it was also responsible for the creation of nuclear weapons and digital computing that eventually creates entire new industries, that is worth around 1.7 trillion dollars in current day. Additionally, it also to led to the emphasis of GDP to prevent warfare. -
International Monetary Fund (IMF)
The IMF is responsible for the normal wellbeing for most countries. It often offers financial advises and even gives out small loans. Without it, it would be extremely difficult for countries to seek minor financial support and having a global economic stability. -
World Bank
The World Bank is similar to the IMF but it is mainly committed to helping developing nations and reducing poverty. It also helps countries that declare bankruptcy and often gives out big loans to make the global economy interconnected. -
Bretton Woods Conference
This conference helped create the IMF and World Bank. These two organizations helped maintain the wealth inequity and also emphasized that the country GDP was a way to prevent wars. -
General Agreement on Trades and Tariffs (GATT)
It is an international agreement that helps boost trade, by reducing tariffs on any trade from member countries. It helped make the world more interconnected through trade and is later superseded by the World Trade Organization. -
World Trade Organization (WTO)
It supersedes GATT and is the only global organization that is responsible ensuring that countries may conduct trade as smoothly as possible. It is responsible to the increase flow of currency and boost the economic globalization.