MAKING OF A GLOBEL WORLD • By globalization we mean increasing integration between different economies of the world. • The making of the globel world has a long history of trade ,migration of people in search of work. • Trade and culture exchange through the silk route. • Traders and travellers introduced new crops to the land through the silk route.
The 19th Centuary(1857-1914) • Economist identifies thre types of flows . • a.The first is the flow of Europe . • B.Second is the flow of trade. • C.Third is the flow of capital.
WARTIME TRANSFORMATION • The first world war was faught between two power block. • In one block- Britain, French and Russia. types of flows a.The first is the flow of Europe • In another block-Germany,Austria-Hungery and Turkey. • This was the first modern industrial war. • During this war,Industries were restructured to produce war related goods. • Many countries borrowed loans from U.S.A. • The war transformed U.S. from an international debtor to an international creditor.
POST WAR RECOVERY • After the war production contracted and unemployment increased. • Many agricultural economy were in crisis. • Rural incomes declined,Farmers felt deeper into debt
The great economic depression • The great depression began around 1929 and lasted till the mid 1930. • All countries faced declines in production, employment,incomes and trade. • Agricultural overproduction remained a problem. • Many countries financed their investments through loans from U.S. • The withdrawal of U.S. loans affected much of the rest of the world. • By 1935, a modest economy was under way in most industrial countries.
2nd world war Economy • Second world war began in 1939. • It was faught between Axis powers-Germany,Japan,Italy. • The allies power-France,Soviet union and U.S. • The second world war was the dominance of the soviet union.
AFTER THE SECOND WORLD WAR • Main aim of the post war ecnomic system was to preserve economic stability and full employment in the industrial world. • Bretton-Woods conference established the international Monetary Fund. • World Bank was set up to finance post war reconstruction.
DECOLONISATION AND INDEPENDENCE • Developing countries organised themselves as a group-the group of 77. • It demand a new international economic order.(NIEO) • By NIEO they meant the system that would give them real control oer their natural resources.