Sin título 1

61. Western Europe. 1.1. Democracies and dictatorships.Democratic political systems were established in some western european countries after, in others did not arrive until 1970. Dictatorship in Portugal and France until 1974. Franco’s dictatorship from 1939 until 1975, in spain.1.2. Economic expansion in Western Europe. Factors: 1. The application of technological advances in the production process increased productivity. 2. The expansion of international trade, thanks to reduction of customs tariffs. 3. Increasing demand for labour in developed countries resulted in the emigration of workers. 4. Increasing demand for consumer goods, as a result of the greater number of workers with better wages.1.3. A period of intense social change. Welfare state: this system protects the health and well-being of its citizens. Consumer society: expanded as the middle class grew quickly into a large social group.1.4. Economic crisis. Oil crisis (1973): Organization of Petroleum Exporting Countries (OPEC), increased oil’s price. The USA and Allies suffered an oil embargo because of Arab-Israeli war. Oil crisis (1979): Iranian oil production felt due to the war. Recession spread and unemployment increased. Neoliberal policies in the UK (privatizing the public sector, decreased the public spending). Financial crisis (2007): Speculation in US stock market, extended to Europe. Cuts in public spending and government investment.1.5. An ageing population.Is the result of higher life expectancy and declining birth rates in Europe in the 1980s, which created demand for specialised health care, pensions… 2. The European Union. 2.1. The birth of the EEC. Objectives: To establish a single common market by eliminating customs tariffs. Avoid new wars and establish a bloc to compete with the US and USSR. In 1951: The creation of the European Coal and Steel Community (ECSC), by the treaty of Paris that included, France, Italy, Luxemburg, West Germany, Belgium and Netherlands. In 1957: The creation of the European Economic Community (EEC) and the European Atomic Energy Community (EURATOM), both created by the treaty of Rome. 2.2. From a single european act to the EU. Single European Act: was the first major revision of the treaties of Rome, it committed the member countries to strengthen the EEC institutions, to move forwards a single European currency. The Maastricht Treaty, was created in 1992 and their bases are: 1. Single common market, to include the future adoption of a single currency, (euro). 2. Common foreign policies and security policies. 3. Joint cooperation of member countries in justice and internal affairs. 4. Policies in industries, communication and energy networks. 5. European citizenship, EU citizens could travel and live in any EU countries. In 1997: The treaty of Amsterdam was formed. They had fundamental rights, EU targets to promote progress and the Schengen Agreement, which is an EU law that abolished border checks for all member countries except Britain and Ireland.

6. Changes in east Asia. 6.1. Economic growth of Japan. Causes: 1. A very productive industry with high quality products. 2. A flexible industrial organisation with a combination of multinational corporations and small companies. 3. An abundant, well-qualified workforce. 4. Substantial investment in research and development. 5. Significant foreign investment, in the developed world.6.2. The four Asian tigers.Taiwan, South Korea, Singapore and Hong Kong. These territories were open to western influence, and they applied similar economic policies to the Japanese, its difference was that their governments preferred to create new companies by providing direct help and by liberalising their markets.6.3. China under Mao Zedong. Mao Zedong: established the People’s Republic of China after communist revolution in 1949. He ruled China from 1949 until 1976, following the soviet model. In 1958: A five-year economic policy. Great leap, (organised population into people’s communes). It failed, and caused famine and millions of deaths (increased opposition). In 1966: Cultural revolution to strengthen his position , built up a cult personality (made his book Little Red Book that was distributed).6.4. Chinese Economic reforms. Deng Xiaoping made the following reforms after Mao Zedong died: 1. Opening up to foreign trade. 2. Less state-controlled planning of the economy. 3. The emergence of the free market in certain economic sectors. 4. Money from foreign  investment built factories.11. Globalisation in the world today.Globalisation is the process by which countries around the world are increasingly interconnected and interdependent.11.1. Characteristics of Globalisation. 1. The opening up of international trade, more efficient transport and free trade agreements. 2. Freer financial market, free movement of money between countries, and fewer restrictions on stock market operation and investment between countries. 3. Outsourcing, to reduce production costs, they transfer different stages of the production process to outside suppliers, rather than completing these processes internally. 4. Multinational companies exert great influence on governments and international institutions thanks to their size and their sources. 5. Improvement in information and communication technology (ICT), increased internet speed and connections, smart phones, and communications networks have facilitated the production and distribution. 6. International institutions, such the world trade organization, that are controlled by the world economic powers.11.2. Globalisation and Neoliberalism.Globalisation is taking place at a time when neoliberalism dominates economic thinking. Neoliberalism advocates: 1. The economy should be liberated from state intervention, and financial and labour markets should not be subject to government laws. 2. The market should be free of legal obstacles and taxes in order to open up international trade. 3. Private enterprise and private investment should  replace the public sector.