Post-WWII World: Rise of Superpowers and Cold War Dynamics

Introduction

At the end of World War II, the world was dominated by two powers: the United States and the Soviet Union. Bloc politics led to the alignment of many countries in the world in one way or another. The Soviet Union became the strength of the field, exerting its influence over vast territories.

1. United States: Leader of the Capitalist World

1.1. The Assertion of American Power

The prevalence of the U.S. rested on three pillars:

  • The technological and economic superiority.
  • The political prestige.
  • The military power.

The U.S. action focused on two objectives: to maintain its supremacy over the capitalist world and stop the spread of communism. It believed that to stop the Soviet advance, the best weapon was to help Europe financially (Marshall Plan) and establish a military pact to isolate them (NATO).

1.2. Political Developments

Since 1960, U.S. superiority in the world began to erode:

  • In the economic sphere, it had to face competition from Europe and Japan.
  • On a social scale, there was evidence of a large sector of the poor and marginalized, as well as a problem of racial discrimination with respect to the black population.
  • Politically, the Soviet Union, which possessed missiles capable of reaching U.S. territory, raised fears.

In 1960, J.F. Kennedy won the election with a program intended to boost the economy and address social inequalities. After his assassination, the program was continued by his successor.

2. Western Europe (1945-1973)

2.1. The Reconstruction of Europe

After the Second World War, European countries were ruined. In Western Europe, measures and agencies were created to ensure post-war reconstruction. The most important initiative for the reconstruction was the Marshall Plan. In return, receiving countries should commit to fighting communism. A step towards European economic reorganization was the creation of an economic entity of supranational cooperation. Thus, on March 25, 1957, many countries signed the Treaty of Rome, which gave birth to the European Economic Community (EEC).

2.2. The Years of Economic Growth

In the fifties, Western Europe entered a period of economic growth.

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In general, it experienced an improvement in income per capita, rising wages, and low unemployment rates. Many countries began to modernize their production equipment, and traditional sectors gave way to new industries. The development was accompanied by state intervention in economic matters. There was an incorporation of women into the workplace.

4. The Soviet Union: A Powerful Force

4.1. Economic Reconstruction

The USSR emerged from the war torn but greatly enhanced as the leader of the communist world. In the four years following the end of the war, the USSR rebuilt its economy, reaching the level of pre-war production. Priority was given to heavy industry, weapons, and communications. In agriculture, it continued with the collectives, while mechanization was developed. Economic growth was undeniable but resulted in a very unbalanced model with a very weak consumer industry versus heavy industry.

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4.2. Soviet Society

Soviet society had two social groups formed by employees and farmers’ cooperatives, and professional workers and professional privilege. The real ruling class was made up of those groups who wielded political power, especially those linked to the Communist Party. The entire population gradually attended to improve the standard of living, especially after 1956.

5. The Spread of Communism

5.1. The Democracies of Eastern Europe

The Eastern European states conformed, after 1945, to political regimes called popular democracy. Reconstruction programs were developed by combining socialist measures with other capitalist ones. The Cold War led to the East’s development towards alignment with the Soviet Union. Since 1947, pressure from the U.S., exercised in Europe with the Marshall Plan, worried the Soviets. The USSR forced the communist people’s democracies to impose the socialist path and align with Soviet foreign policy. As a result, Soviet-controlled countries were integrated into the CMEA, a sort of common market for the Soviet area. The Warsaw Pact joined various Soviet armies under sole command.

5.2. The Influence of the Soviet Model

The Soviet model was attractive for countries with no democratic tradition and economic and social problems.

  • In Latin America, the triumph of the Cuban Revolution in 1959 became the model of revolutionary movements.
  • In Asia, communist influence spread in Korea, Indochina, and China.
  • In Africa, some Maghreb states adopted socializing systems while extending Soviet influence in Ethiopia. Communist influence also spread to sub-Saharan Africa.

6. Economic and Political Crisis in Industrialized Countries

6.1. The End of Growth: The 1973 Crisis

The economy of the industrialized Western countries had a serious crisis in 1973-1974. The origins of this crisis are complex. In 1973, there was an oil crisis. OPEC raised oil prices, and this pushed up the prices of all products. There was a decline in sales, a corporate crisis, and rising unemployment. Only the strongest companies survived, and there was a greater concentration of economic power. In addition, to reduce fiscal and wage costs, some companies moved to Third World countries. Thus began the process of industrial relocation.

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7. Crisis and Collapse of Communism

7.1. The Problems of the Soviet Model

For decades, the USSR was the second military power in the world and the benchmark for many countries, but its economy had serious problems, and the standard of living of its population was low. The imposition of the Soviet model in Eastern Europe was carried out with problems, and there were attempts at uprisings.

7.2. Gorbachev’s Reforms

In 1985, Gorbachev was elected general secretary of the Communist Party of the Soviet Union and initiated a reform process to address the problems of the USSR.

  • On the economic front, perestroika proposed a plan to revitalize the economy and increase the production of consumer goods.
  • In the political arena, glasnost abolished censorship and introduced a degree of democratization. It abolished the Communist Party’s political monopoly.
  • In 1990, he convened the first free elections.
  • In foreign policy, there was a rapprochement with the United States to advance disarmament.

7.3. The Disappearance of the Eastern Bloc

The reform movement began in Poland, where elections were won by the Catholic trade union Solidarity, which the Communist Party faced. The reform movement put an end to the Communist regimes in Eastern Europe. The Polish example was followed by the fall of communist regimes in Hungary, Czechoslovakia, and Bulgaria. The most important events took place in East Germany. In November 1989, the opening of the Berlin Wall was managed, and the following year, the treaty on unifying the two Germanys was signed.

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7.4. The Dissolution of the USSR

Gorbachev’s reforms aroused the opposition of the most immobile of the CPSU, who did not want to lose the monopoly of power and its ancient privileges. In August 1991, these sectors staged a military coup in Moscow, which was defeated by the resistance of the Russian population. Yeltsin decreed the suppression of the communist regime and dissolved the CPSU. It recognized the independence of the Baltic republics, Ukraine, and Belarus. The USSR eventually divided into 15 independent republics, and Gorbachev resigned in 1991.