Chapter 7: A New Order? (1919-1929)

Europe consisted of approximately 20 independent states before the First World War, with significant variation in size and power.
- Six were classified as 'great powers' (population over 30 million).
- The majority had populations below 10 million, except for Spain, a middle-ranking power with around 20 million.
- Only two states (France and Switzerland) were republics; the remainder were monarchies.

The number of European states increased to 26.
- Disintegration of Austria-Hungary reduced great powers from six to five.
- Addition of Poland, Czechoslovakia, and Yugoslavia as new middle-ranking powers.
Decline of monarchy: Only two great powers remained monarchies, with new socialist republics formed in several nations (Germany, Hungary, Austria, Turkey).

Woodrow Wilson's belief in self-determination and democracy.
- Hoped to establish peace, prosperity, and democracy across Europe.
Vladimir Lenin’s consolidation of Bolshevik power aimed at a new revolutionary age.
- Communists were largely autonomous in shaping their futures, creating distinct political dynamics.

Although there were new nations and an expanded diplomatic order, many old structures persisted.
- Conflicts arose between self-determination and ethnic nationalism; democracy began to erode in some countries, notably Italy.
Political instability increased across Britain, Germany, Spain, Poland, and Hungary.

Managing the peace was the primary challenge facing Europe in 1919.
Comparisons with post-World War II: Fewer pre-war rehabilitation plans existed before World War I.
The war’s physical and economic impacts were significant, including an unprecedented number of casualties.
- Estimated casualties: 9.4 to 11 million people, over 1% of Europe’s 1913 population.
- Country-specific losses:
  - Germany: 2,037,000; Russia: 1,811,000; France: 1,398,000; Austria-Hungary: 1,100,000; Britain: 723,000; USA: 114,000.
Population recovery occurred, with growth driven by:
- Early marriage rates.
- Improvements in nutrition and healthcare.
- Notable demographic trends included high emigration rates, especially to the USA.

Extensive physical damage in Northern France, Belgium, and Western Russia:
- France experienced about $17 billion in damages.
Financial repercussions included the collapse of European debt systems:
- Britain and France accrued substantial debts in their war efforts, particularly to the USA.

Transition of financial pre-eminence from Britain to the USA post-war:
- The USA emerged as the world’s greatest creditor nation, influencing the global economy.
American business practices brought both admiration and resistance, characterized by 'Americanization'.
- Henry Ford’s production methods gained global recognition.

Initial post-war optimism met with economic realities:
- A temporary boom from 1919 to 1921, followed by downturns in traditional industries.
- Countries faced structural economic challenges, particularly within heavy industry.

Woodrow Wilson's Fourteen Points aimed for a flexible peace settlement.
- Contradictions arose between ideals and actual negotiations among the ‘Big Four’ (US, UK, France, Italy).
John Maynard Keynes criticized the Treaty of Versailles for its punitive terms toward Germany.
German delegates were not consulted during negotiations, resulting in humiliation and resentment:
- The signing occurred on June 28, 1919, at Versailles, symbolizing a fundamentally altered Europe.

Germany's territorial losses: Over 27,000 square miles and approximately 7 million people.
Major territorial changes included:
- The return of Alsace-Lorraine to France.
- Formation of a Polish corridor granting Poland sea access.
- Reconfiguration of Danzig as a Free City.
Military restrictions imposed on Germany:
- Army limited to 100,000; High Seas Fleet abolished.
Controversial 'war guilt' clause blamed Germany for the war.

Initial lack of mention of reparations during 1918 negotiations.
Subsequent electoral pressures forced leaders to demand reparations from Germany:
- Britain and France’s desire for heavy reparations created diplomatic tensions, particularly with the USA.
Disparities emerged between Germany's reparation capabilities and the Allies’ war debt obligations.
- This complicated post-war economic recovery efforts in Europe.

Wilson envisioned a League to maintain peace and foster international cooperation.
- However, American Senate resistance hindered its establishment.
The League proved weak without American backing, affecting European stability.

Creation of new states from former empires, emphasizing self-determination but faced with challenges of mixed nationalities.
New nations struggled with ethnic tensions and borders based on arbitrary decisions from the peace settlements.

Bolsheviks faced internal challenges and intervention from Allied powers.
- Resulted in a reassertion of control in the aftermath of the war.
- Development of the Comintern aimed to propagate worldwide Communist revolutions.

Italy faced political chaos and disappointment among its population following the war.
- The rise of Mussolini and the Fascists represented a response to leftist movements and dissatisfaction with traditional political systems.

The decade from 1919 to 1929 saw Europe in flux, with many nations grappling with new identities and enduring socio-economic frustrations.
The rise of extreme political ideologies foreshadowed future conflicts.

Interwar years characterized by polarization between leftist and rightist movements, culminating in aggressive nationalist politics that paved the way for World War II.