Impact of World War II on Post-War Europe - Research Paper Example

Impact of World War II on Post-War Europe and the Shift in the European Destiny The Second World War (WW-II) is one of the most significant events in the annals of 20th century history, which has left indelible marks on the social, political, economical and cultural outlooks of nations across the globe. The impact of the war, however, is most evident in Europe, which accounts for most of the great nations that have taken part in the war and, thus, this region has undergone a massive transformation in the aftermath of the war. The post WW-II period from “1950-73” is considered as a truly exceptional era in the “process of modern economic growth” while the growth and development that occurred subsequently has remained satisfactory.1 The war had wreaked heavy damage on European countries and in its aftermath, there had been brisk reconstruction activities in all the nations. The development of technology during this period also had contributed to the pacing up of the reconstruction process. As a result, employment opportunities were available in abundance and this led to the overall economic development in the European countries. Due to this, despite the “devastating” effects of the war nations were able to recover from the negative impacts in an “impressive” manner, which marked the “beginning of a new era” in the annals of the history of the European Economic Development.2 The period from 1950-73, known as the “Golden Age” of the growth in the European economy, has been a unique stage in the social, political, economic, educational as well as the technological development of Europe, which has far-reaching implications on the world in general. Various elements have contributed to this growth and it has effects on the “conditional convergence, human capital and endogenous technical change” on global economy.3 WW-II has had far-reaching consequences on the economy of the world in general and European countries in particular. The period, specifically known as the Golden Age, has witnessed drastic changes in the economic status of nations across the world, which, in turn, has brought major social changes besides enhancing the standard of living. The “catch-up” that occurred after the war has been a significant element that facilitated the economic growth in Europe but this has not been an “automatic phenomenon.”4 It becomes evident that several factors such as the “Great Depression, autarky, war and reconstruction” have contributed to the post war economic growth in Europe.5 In order to understand the economic growth, it is necessary to evaluate the interplay of various factors that favored this trend in Europe. An investigative study of this nature will enable a proper understanding of various elements that have helped the economic growth in Europe as a result of the reconstruction after the World War. It transpires that various factors have contributed to the “exceptional speed and stability” of the economic growth in Europe during the fifties and sixties.6 These factors include the many elements that affected the production system as well as the macroeconomic structure and how it interacted with the “singularly apt institutional arrangements” within individual nations as well as international level.7 Countries like UK and Germany have relied on mass production, with the support from imported technology from the US and countries began to emulate the prosperity in America. The economic growth in most of the countries can be attributed to the investment in the fields of education, technology and various industries in the public sector. Evidence suggests that the consumer prices as well as the “gross weekly earnings of adult male workers” have increased by about “33%” during the period from 1947 to 1954.8 As a result of massive reconstruction work, industries received a boost and production in various industries increased as result of this. The period also has seen an integration of German coal into French steel industry through the “monitoring and surveillance technologies” by European Coal and Steel Community (ECSC).9 Evidence further suggests that WW-II and the Soviet domination of Eastern Europe have facilitated the “liberation from Nazi occupation” and the relationship with Russia has had major impacts on the “social and political development” of these countries.10 Mark Harrison, in his work titled, “The Economics of World War-II: Six Great Powers in International Comparison,” contends that the process of world economic integration has received a “decisive boost” as a result of various outcomes of the world war.11 In the aftermath of the war, nations across the globe have actively participated in the “multinational institutional framework of postwar global economy” and the resultant growth has stabilized European economy.12 It is needless to mention that the war itself has necessitated a lot of investment in different industries but the industrial growth after the war has been much more than it has been before or during the war due to the reconstruction activities and the integration of various industries as well as import and export activities among different countries. Besides, once the war was over, every nation embarked on concerted efforts to overcome the damages and for various developmental activities. A research study by Iris Kesternich and others finds that WW-II has been one of the “major transformative events of the 20th century” which has entailed the loss of a large volume of human capital.13 The war has seen an unprecedented death toll of around 10 million civilians, apart from the military casualties, who have been slaughtered by the “Nazi regime” and nations like “Germany and Poland” had “borne the brunt” at a higher rates.14 Thus, during the phase of the reconstruction, there has been a high demand of human capital, which accounts for economic prosperity of the workforce available. This trend reflects in most of the nations across the world in general and Europe in particular and, as a result of the availability of large scale employment opportunities, the per capita income has increased. The study further identifies the “long-term macro-effects” on the “demographics and economic trends” such as “fertility rates and migration patterns.”15 The ensuing trends such as baby boom and the alteration in the migration patterns have contributed to the economic growth in Europe as well as the other world nations. In his study of the European growth in the Golden Age, Peter Temin emphasizes the significance of the “economic growth” between WW-II and the “first oil crisis,” the difference of the growth rates among various nations across the globe and the reasons for the growth coming to an abrupt end in understanding the phenomenon of the economic development after the war.16 The study also identifies a “disequilibrium” that remained unnoticed so far as the reason for the “rapid and varied growth” during the Golden Age.17 The author further attributes the rate of slow growth during the period between 1913 to 1950 to the WWs I and II coupled with the Great Depression and the consequent fall in industrial production. Thus, while this slow growth in Europe pulled the potential GDP to a low level, the fast paced growth after the war pushed it “back to its growth path.”18 The study also finds a transition in the society in terms of the shift of people from the agricultural rural to the industrial urban has made workers more productive and, hence, the “national income grew” during this stage.19 Another reason for the rapid postwar economic can be discerned as the trend of massive immigration to countries like Germany and France where the employment opportunities have been “most promising.”20 Thus, despite the ravages and damages of the WW-II and the untold human miseries and sufferings that entailed in its wake, the fact remains that in its aftermath, the countries across the world, especially the nations in the European continent have attained considerable economic growth and development primarily as a consequence of the subsequent reconstruction efforts. From the evidence emerging from the literature review, this research will determine the factors that have basically been responsible for the dramatic change and evaluate their role in bringing about the economic growth. It will also examine the various developments that have contributed to the economic growth in the postwar Europe and assess their overall impact on the economy of the world in general. Based on such findings, the study will present its finding and deductions on how various elements have brought out the economic development in the world in general and Europe in particular. Bibliography Crafts, Nicholas and Toniolo, Gianni. Economic Growth in Europe since 1945. Cambridge: Cambridge University Press, 1996. Gella, Aleksander. Development of Class Structure in Eastern Europe: Poland & Her Southern Neighbors. Albany: State University of New York Press, 1989. Harrison, Mark, ed. The Economics of World War II: Six Great Powers in International Comparison. Cambridge: Cambridge University Press, 1998. Kesternich, Iris et al. The Effects of World War II on Economic and Health Outcomes across Europe. Munich: RAND Labor and Population, 2012. http://www.rand.org/content/dam/rand/pubs/working_papers/2012/RAND_WR917.pdf (Accessed Mar.18, 2013). Messina, Anthony M. The Logics and Politics of Post-WW II Migration to Western Europe. Cambridge: Cambridge University Press, 2007. Temin, Peter. The Golden Age of European Growth Reconsidered, European Review of Economic History, No.6 (Cambridge: Cambridge University Press, 2002), pp.3-22. http://128.97.165.17/media/files/Temin.pdf. Read More