The document discusses the economic consequences of World War I and World War II. It notes that WWI marked a shift in the international economy as it destroyed economies across Europe. The war caused major disruptions to international trade and economic relations. It also led countries to pursue more nationalistic and protectionist economic policies. WWII had even more devastating economic impacts due to extensive bombing and property damage. The war involved the entire global economy and cost over $1 trillion. Rebuilding economies after the war in Europe proved extremely challenging.

1. INTERNATIONAL ECONOMIC DISINTEGRATION
Economical changes, use to occur in large processes, unlike political changes, as the
World War.
The World War marks a shift in the international economy, this war destroyed the
economy and when the it ends, it was to late for the economy to be recovered.
Before this huge mark in the economy, in other words, before the world war, Europe
was a prosperous continent, with a high lever of well-being and a ver rich population.
After the conflict nothing was the same.
The consequences of the Big War
The huge impact that the First World War had, made that the population who lived in
those times named this conflict the name of The Big War, not only because it has huge
consequences but also because the fear lived in that moment. Some of the consequences
were, firstly, and the most striking one was the high number of deaths registered, people
not only died fighting, but also many people died because of hunger, ills, or even
because of the bad standard of living, leaving nearly 10000000 of deaths after
war. Moreover, the Big War had a wide range of economical consequences such as the
huge cost of the war, that stands up to 200000 $, and the consequent interruption of the
economical relations. This fact was still important after the war: Before the conflict the
economy works out freely, and efficiently, and after it, Governments retire the control
that they had during the war but the economy did not went to normality.
The War caused the interruption of the international trade, many powers became
independent from the foreign markets and the global agriculture was unbalanced
(overproduction and fall of prices). For instance, Britain diminished its exports to have
it as reserves and to be able to survive during the hard times of the War. However, USA
increased its exports to give them to its allies and neutral countries of Europe.
Economic consequences of the peace.
The peace was established through peace treaties as the Peace of Paris, instead of
solving the economical problems, they make them bigger. The economical problems
were, on the one hand, the increasing of the economical nationalism and on the other
hand they caused financial and monetary problems. After the War, two new powers
appeared after the dismemberment of the Austro-Hungarian Empire. The fear of a big
power could dominate the world, made these countries defend their economic
spheres. However, due to its limited size, this was not enough. Others countries as
Russia, also wanted to be economical independent.
During the War, many countries put restrictions to the economic transactions with
other powers such as using duties. After the war, these countries did not eliminate the
duties but they try to promote the protectionist economies.
All these consequences lead to a desintegration of the international economy.
THE GREAT CONTRACTION

2. USA emerged form the war stronger than ever. They became creditors instead od
debtors. It seemed that they had the key to the prosperity.
In 1929, in october 24- black thursday. It was a wave of panic which caused a
massive sale of shares in the stock market, causing prices to plummet these. In
october 29 – black tuesday. The stock prices continued falling, putting the entire
financial system under a unbearable pressure. The financial markets stabilized, but
the prices of godos fell increasingly.
The fall of the stock market was not the cause of the contraction, but was a signal
that was starting. Several countries strongly affected by the fall in prices of
primary products had already abandoned the gold standard.
Without an international standard common, currency values fluctuate randomly.
The international market fell dramatically.
One of the principals characteristics of the decisions of the economic politic had
been an unilateral application, without considering the consequences of responses
from other affected parties.
RIVAL ATTEMPTS AT RECONSTRUCTION
Roosevelt took ofice as the 32 president of the USA, the nation lay in the grip of it’s
worts crisis since the civil war. Industry had virtually shut down and the banking
system was on yhe verge of complete collapse. Violence ruled in city áreas.
Roosevelt had called for a NEW DEAL for America, turning out a new legislation.
This legislation had more laws than any other american legislation. This legislation
was based in the economic recuperation and the social reform. The most
characteristic law was National Industry Reconstruction. This law created the
National Reconstruction Administration (NRA). Their mission was to monitor the
development of “codes of fair competition”. The NRA was very similar to the
indsutrial organization of the Fascist system. In conclusion, it was a planification
system of industrial autonomy.in 1934 the Supreme Court declared the NRA
unconstitutional. Rosselvet achieved his goals by new laws. In 1937 the economy
suffered a new recession. In 1941 USA returned to war. The NEW DEAL was no
more able to cure the depression than contemporary programs in Europe. The
depression struck later in France than elsewhere and was perhaps less severe, but
it was longer lasting. The depression spawned social protest and a new crop of
extremist organizations. The Popular Front was no more succesful than previous
ones.
Most of the countries that traded extensively with britain also left the gold
standard and aligned their currencies on the pound sterling. In the Tripartite
Monetary Agreement of 1936 the goverments of Britain, France and USA
undertook to stabilize exchange rates among their respective currencies.
The rise of Fascist dictatorships. The earliest was Italy. Benito Mussolini.
The nazis had much more success than Italy fighting the recession. Germany was
the first industrial nation which achieved a full recovery with a large-scale
program of public works that gradually led to a rearment program. They relied on
coerción and control to achieve their goals.
One of the main economic objectives was to achieve self-sufficiency in the
economy in case of war. Their policy was the autarchy. In Spain happened very
similar.

3. The Russia Revolutions and the Soviet Union.
The imperial Russia entered the First World War to get the victory over the Central
Powers. At the beginning of 1917, the economy was in ruins that led strikes and
riots in Petrograd, the current St. Petersburg. Due to this situation, it ended the
rule of the Romanov and gave way to a provisional government.
The provisional government, was a collection of aristocrats, intellectuals and
parliamentarians, in which there was only one socialist Alexander Kerensky. In
addition the government had to share with the Petrograd Soviet.
This new regime, proclaimed freedom of speech, press and religion. It also wanted
to make a social reform and land redistribution. It wanted to convene a constituent
assembly to determine the form of government too.
Lenin was the leader of the Bolsheviks in the Russian socialist parties, after
spending several years in exile, returned to Petrograd, and soon dominate the
Soviets and he organized a campaign against the Provisional Government. In
response, the Provisional Government offered little resistance and could not cope
with the occupation of the Winter Palace by the Red Guards.
This situation of rivalry and continuous civil war continue four years. In March
1918, the government ended the war with Germany in the Treaty of Brest-Litovsk.
In the expected elections to the Constituent Assembly, the Social Revolutionaries,
opponents of the Bolsheviks, won at great length. Before this meeting, Lenin sent
troops to dissolve but in response, the social revolutionaries made their tactics of
murder and managed to wound Lenin
In 1922, against the advice of his specialist nationalist problems, Stalin, Lenin
decided to create a federation that the Union of Soviet Socialist Republics (USSR)
was called.
From the economic point of view, the economy was shattered. They had
established a "war communism" that only served to defeat the enemy but
obviously could not serve as the basis for the economy. Besides the peasants had
their land taken from them so this generated a big malaise in society.
Finally, the Bolsheviks managed to win the war with a hard dictatorship and they
militarized the society. In 1921, when the war ended, the Russian system had
become a totalitarian one-party system.
Economic Aspects of World War ll
The Second World War was the most massive and destructive of all wars.
Increasing reliance on science as the basis of military technology. They used
propaganda at home and abroad. This war involved directly or indirectly every
continent and almost every country in the world. The war which had been
primarily a war of option, it was a war of movement. Through land, air and sea.
The economic and especially the industrial capacities of the belligerents acquiered
new importance. The ultimate secret weapon of the victors was the enormous
productive capacity of the American economy.
The cost of the war have been estimated at more than 1 trillion dollars. The
number of war-related deaths at about 15 million in Western Europe. Millions

4. more were wounded, made homeless, and died of starvation or nutrition-related
disease. For Russia it is estimated that more than 15 million died and in China 2
million military deaths. The Japanese lost more than 1,5 million military.
Property damage was for more extensive than in World War l, largely because of
aerial bombardment. All combatants resorted to economic warfare, a new phrase
for an old policy. As in World War l and the Napoleonic Wars, Britain imposed a
blockade, to which Germany retaliated with unrestricted submarine warfare. In
addition to its ersatz commodities, such as gasoline made from coal, Germany
could command the resources of the occupied countries.
At the end of the war in Europe the economic outlook was extremely bleak.
Industrial and agricultural output in 1945 was half or less than it had been in 1938.
In addition to the property damage and human casualties, millions of people more
faced the prospect of starvation. To make matters worse, the institutional
framework of the economy had been severely damage. Reconstruction would be
no easy matter.