Hist P1: Growth of Global Economy
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58 Terms
US: Basis for IOs/IAs
Atlantic Charter
US: Funded ___, ___
IMF, IBRD
US: BWS maintained ___ until ___
Gold-Dollar convertibility until 1971
Benefits brought about by IOs/IAs
Strong foundation, conducive global economic environment
IMF: Year
1944
IBRD: Year
1945
GATT: Year
1947
BWS: Year
1958
IBRD: Amount of financial aid by 1961
$610mil
GATT: Features
Trade liberalisation through reduced tariffs
GATT: US set an example by ___
cutting tariffs by 35%
Greatest contributing factor in 1950s-60s
US MNCs
US MNCs: What did they do?
Exported production and technology to countries with lower-cost labour
US MNCs: Results of transferring technology
Productivity and technology gap of WE/J closed by 1960s
US MNCs: __% of global industrial production by ___
30% by 1969
US MNCs: Produced $___ in ___ (1969)
$140bil in goods, larger than all national economies
US MNCs: Top FDI provider $___ in 1967
$56.6bil
US MNCs: __% of US GDP (year)
7.1% (1967)
US MNCs: Sustained __% of GDP growth
4.8%
US MNCs: ___-fold increase in trade of ___ products
10-fold increase in trade of industrial products
US MNCs: Annual __% increase in industrial production
5.6%
US direct aid: (Year) ___ Plan to US
US direct aid: 1948 Marshall Plan provided $___
$13bil
US direct aid: (Year) ___ in WE + purpose
1948 Operation Bird Dog, reformed the Reichsmark
US direct aid: (Year) ___ Plan in Japan
1949 Dodge Plan
US direct aid: 1949 Dodge Plan provided $___
$2.3bil
US direct aid: Results in WE/J
Economy returned to pre-war levels by 1948
WE: Miracle on the Rhine (production indicators)
50% increase in production in 1948 alone
WE: Miracle on the Rhine (GNP indicators)
9-10% GNP growth (1950-57)
JP: Annual GDP Growth (Years)
10% annual GDP growth (1952-73)
US defence subsidies: (Year) Treaty with Japan
1960 US-JP Mutual Security Treaty
US defence subsidies: 1960 US-JP Mutual Security Treaty — US actions
Absorbed JP’s defence spending
US defence subsidies: 1960 US-JP Mutual Security Treaty — impact on JP
Defence share of GDP below 1% by 1970s
Access to US markets: OEEC exports amounted to ___% of US imports by (Year)
50% of US imports by 1960
Access to US markets: US absorbed __% of JP’s exports
30%
Access to US markets: US cut tariffs by __%
20%
US as driving force behind IOs, IAs: (Union) only started because of $__ grant from US
EPU only started because of $500mil grant from US
US as driving force behind IOs, IAs: Which organisation was mostly funded by US?
IBRD
WE regional role
WE commitment to free trade enhancing growth and economic development
WE: Regional efforts
EFTA, EEC: lift of tariff and trade restrictions
WE: % of Intra-EEC trade ___ from (Years)
Quadrupled from 1958-69
WE: Contributed average __% of sustained growth in international economy
8%
JP: Flying Geese Model’s ___ Effect
Ripple effect
JP Flying Geese Model: $___ reparations to SK + Reasons for doing so, led to ___
$800mil because of lower cost of labour, led to SK rapid industrialisation
JP Flying Geese Model: $___ investments into Taiwan’s ___ industries (examples)
$321mil into secondary industries (chemicals, electronics)
JP: Founded _____ in (Year) as vehicle for JP-led investment in Asian countries
Asian Development Bank (1966)
Driving force in 1970s
WE/JP MNCs
WE/JP MNCs: Why did they rise in prominence?
Economic recovery by 1960s
WE MNC: Volkswagen
Exported car production to South America and Africa
WE MNC: Hoechst
Opened 117 factories in 45 countries
JP MNC: By (Year), JP ___ manufacturers more __ , outcompeting __
1980s, automobile manufacturers more efficient, outcompeting US domestic manufacturers
Decreased US role in 1970s: Share of US overseas investments decreased from __% in (Year) to _% in (Year)
70% (1957) to 58% (1976)
Underlying → Immediate → Secondary
US financial aid → WE/J domestic governments → MNCs
Definition of ‘Golden Age of Capitalism’
1948-73. Period of unprecedented speed of economic recovery and uninterrupted growth among capitalist economies that was supported by widespread scale of international cooperation and trade.
Growth Feature 1: Rapid postwar reconstruction and economic recovery
WE/J back to pre-war levels by 1948
Growth Feature 2: Unprecedentedly high and sustained economic growth
Annual average GDP growth of 4.8% in OECD countries from 1950-73
Growth Feature 3: Massive expansion of global trade
$62bil → $310bil (1950-70s)
Growth Feature 4: Greater productivity, lower unemployment
Labour productivity increased 6x (1950-75)
Note 
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