Two Superpowers Emerge

NATO and the United States

  • Much of Western Europe's Cold War activity was deeply connected to US policies.
  • The US had significant military, economic, and political influence.
  • NATO was a military defense pact between Western European nations and the US against Soviet expansion.
  • An attack on one member would be considered an attack on all.

US Economic Influence

  • World Bank (1944):
    • Established to provide loans for rebuilding countries.
    • Aimed to prevent another global economic catastrophe like the Great Depression.
  • International Monetary Fund (IMF) (1944):
    • Facilitated international currency exchange.
    • Encouraged global trade.
  • World Trade Organization (WTO) (1995):
    • Responsible for generating and enforcing international trade rules.
    • Replaced GATT.
    • Reduced tariffs between member nations to promote free trade.
  • The West experienced political and economic success.

The USSR and the Soviet Bloc

  • Countries in the Soviet Bloc were under the USSR's military, political, and economic control.
  • COMECON:
    • The Soviet response to the IMF, World Bank, and Marshall Plan.
    • Aimed to create a mutually reinforcing economic system, making states dependent on the Soviet Union.
  • Warsaw Pact:
    • The Soviet answer to NATO.

Similarities and Differences

  • Western Europe was dependent on the US, while Eastern Europe was dependent on the USSR.
  • Soviet Bloc nations did not experience the same economic flourishing as Western Europe.
  • Planned Economies:
    • The economic output of satellite states was planned by committee within the USSR.
    • Each state was told what to produce, how much to produce, and where to sell it.
    • Production was for the overall benefit of the Soviet Union, often at the expense of the satellite states.
  • Stalin’s 5-Year Plans:
    • Collectivization led to the death of 5 million people.
  • Social welfare benefits were poorly implemented (e.g., state-sponsored housing).
  • Universal education was used for communist indoctrination.

Centralization and Control

  • The Soviet Union removed civil liberties and individual rights to achieve centralization.
  • Secret police networks were used in the Soviet Union and Soviet Bloc to suppress dissent.
  • Immigration from the Soviet Union was severely restricted.
  • The Berlin Wall was built to prevent people from leaving.

Khrushchev and De-Stalinization

  • Khrushchev came to power in 1956 and denounced Stalin.
  • De-Stalinization:
    • More freedom was granted to artists.
    • Many of Stalin’s political prisoners were released.
    • The secret police were scaled back.
    • Economic policies were implemented to help average Soviet citizens (e.g., 40-hour work week, freedom to choose careers).
    • Easing of Soviet influence on the Soviet Bloc allowed for more civil liberties and limited free trade.
  • The Soviet economy entered a recession from 1953-1964, and promised economic reforms did not materialize.
  • Many Soviet Bloc countries found it difficult to tolerate Soviet oppression, leading to revolts.

Revolts

  • Hungarian Revolution (1956):
    • Imre Nagy demanded free elections and independence for Hungary.
    • The Soviets killed 3,000 people and crushed the revolution.
    • The Soviet grip on Hungary tightened, and Nagy was executed for treason.
  • Invasion of Czechoslovakia (1968):
    • A reform-minded leader was elected and enacted liberal reforms.
    • Warsaw Pact troops invaded Czechoslovakia and stopped the reforms.
    • This strengthened the oppressive wing of the Communist Party.

Gorbachev and the Collapse of the Soviet Union

  • Peaceful revolutions occurred in 1989 as a result of Gorbachev's announcement that the USSR would no longer intervene militarily in the Soviet Bloc.
  • In 1990, Hungary elected a democratic government.
  • By 1991, Gorbachev's policies of glasnost and perestroika led to the collapse of the Soviet Union.
  • Soviet Bloc states experienced a surge in nationalism and broke free.