The Modern EraThe Modern Era

Paradoxes of Paradoxes of Global AccelerationGlobal Acceleration

1945-20041945-2004

The World in 1945:The World in 1945: 50 million people killed during WW II50 million people killed during WW II

Parts of Europe, Asia, and North Africa in Parts of Europe, Asia, and North Africa in ruinsruins

World trade severely damagedWorld trade severely damaged

Much of Much of the world the world

looked looked pretty pretty bleak.bleak.

In Europe In Europe Economies in ruinsEconomies in ruinscolonial empires crumblingcolonial empires crumbling

Nationalist movements in Africa and AsiaNationalist movements in Africa and AsiaMandela in S. AfricaMandela in S. AfricaGandhi in India Gandhi in India

U.S. the major industrial & atomic powerU.S. the major industrial & atomic power

The world entered a new The world entered a new era.era.

Cold War policies developed:Cold War policies developed:

The USSR occupied Eastern Europe and part The USSR occupied Eastern Europe and part of Germany.of Germany.U.S. wants to stop spread of CommunismU.S. wants to stop spread of Communism

““Containment Policy”Containment Policy”system of alliances and military aid to system of alliances and military aid to rebuild Europe ($13 billion)rebuild Europe ($13 billion)

““Iron Curtain” Iron Curtain”

tense relations b/w US & allies v. USSR tense relations b/w US & allies v. USSR & Soviet Bloc (nations under USSR & Soviet Bloc (nations under USSR control)control)

The World became divided into The World became divided into two hostile camps: The U.S.S.R. two hostile camps: The U.S.S.R. and the U.S.and the U.S.

Joseph StalinJoseph StalinPres. Harry Pres. Harry

TrumanTruman

1946-1946-6060

The Cold War: USSR & USA never fought directlyThe Cold War: USSR & USA never fought directly

Followed a policy Followed a policy of Mutual Assured of Mutual Assured Destruction (MAD)Destruction (MAD)..

The U.S. and U.S.S.R The U.S. and U.S.S.R had enough nuclear had enough nuclear bombs to destroy the bombs to destroy the world about 400 world about 400 times. times.

I guess I guess it made it made sense at sense at

the the time.time.

Each side threatens to use Each side threatens to use nuclear weapons against each nuclear weapons against each otherother

Fights over Communism spreading in Asia:Fights over Communism spreading in Asia:

•1950-53 – Korean War1950-53 – Korean War•1963-1972 – Vietnam War1963-1972 – Vietnam War

The Cold War: battle on other The Cold War: battle on other frontsfronts

During the Cold War many During the Cold War many former colonized peoples former colonized peoples created new nations. created new nations. India (1947) & Ghana (1957) gain India (1947) & Ghana (1957) gain

independence from Britain.independence from Britain.

Indonesia independence from Indonesia independence from Dutch (1949)Dutch (1949)

By 1965 most former European By 1965 most former European colonies had become newly created colonies had become newly created independent nation-statesindependent nation-states..

. .

The U.S. and the U.S.S.R. The U.S. and the U.S.S.R. competed for the loyalties of these competed for the loyalties of these new nations. new nations.

Colonialism left new nations “Underdeveloped.”

This table shows how shares of world Gross Domestic Product changed between 1870 and 1998.

DateDate IndiaIndia ChinaChina AfricaAfrica JapanJapan Western Western Europe and Europe and U.S.U.S.

18701870 12.212.2 17.217.2 3.63.6 2.32.3 42.542.5

19131913 7.67.6 8.98.9 2.72.7 2.62.6 52.652.6

19501950 4.24.2 4.54.5 3.63.6 3.03.0 53.653.6

19731973 3.13.1 4.64.6 3.33.3 7.77.7 47.747.7

19981998 5.05.0 11.511.5 3.13.1 7.77.7 42.542.5

What might we learn from this table about What might we learn from this table about patterns of economic development in the world?patterns of economic development in the world?

In 1750, China and In 1750, China and India provided 57% of India provided 57% of world manufacturing.world manufacturing.

In 1953, they In 1953, they manufactured only manufactured only 4% of the world’s 4% of the world’s goods. goods.

What caused such a What caused such a dramatic change?dramatic change?

In the 1960s, as the colonized people gained independence, the world-wide split between the North –rich industrial nations—and the South – poor “third world” nations—grew wider.

How did Western leaders try to How did Western leaders try to restore world trade after World restore world trade after World War II?War II?

In 1944:In 1944:Created the World Bank. Created the World Bank.

Established the Established the International Monetary International Monetary Fund. Fund.

Established stable Established stable currency exchange rates.currency exchange rates.

Ushered in global Ushered in global economic cooperation.economic cooperation.

Eventually led to Free Eventually led to Free Market Capitalism Market Capitalism

However, these However, these agreementsagreements did not did not include the Soviet bloc include the Soviet bloc nationsnations

Post WWII, move towards Free TradePost WWII, move towards Free Trade

In theory, free world trade encourages In theory, free world trade encourages greater economic specialization, more greater economic specialization, more productivity, and greater wealth. productivity, and greater wealth.

Efficient use of world Efficient use of world resourcesresources

Tariffs (trade taxes) are eliminated.Tariffs (trade taxes) are eliminated.

Businesses can move whereBusinesses can move wheremake more profits.make more profits.

More jobs are created.More jobs are created.

People have more money People have more money

And each country can concentrate on what it does best.

In the 1980s the U.S. moved to expand In the 1980s the U.S. moved to expand free market capitalismfree market capitalism

Little gov regulation in the marketLittle gov regulation in the marketFreedom of choiceFreedom of choiceBorderless market economyBorderless market economyPeople should be free to pursue People should be free to pursue economic self-interesteconomic self-interestConsuming goods a major valueConsuming goods a major value

What is What is free free

market market capitalism?capitalism?

However, most nations However, most nations continued to pursue some continued to pursue some forms of economic forms of economic nationalismnationalism

In the 1980s China moved toward a free-market system and joined the global economy.

China’s Trade surplus balance with U.S. $666.2 billion in the 2004,

China’s economy will probably equal that of US. In twenty-five years.

China now buys from 1-2 billion China now buys from 1-2 billion dollars of the U.S. debt each dollars of the U.S. debt each day.day.

In 1989, the Berlin Wall came down and the Cold In 1989, the Berlin Wall came down and the Cold War ended. War ended.

•E. European countries broke away from USSRE. European countries broke away from USSR

• USSR broke into 12+ new states.USSR broke into 12+ new states.

The Berlin Wall was The Berlin Wall was built in August 1961built in August 1961

The Wall was The Wall was destroyed destroyed on November 9, on November 9, 19891989

In 1991, India embraced a free market system and joined the global economy.

India is now the fourth largest world economy after the U.S., China and Japan.

India’s growth rate has averaged about 5.8% for the past 15 years.

Major exports include

Clothing

Automobiles

Handicrafts

With the collapseWith the collapse

In the 1990s, Globalization In the 1990s, Globalization now embraced the majority now embraced the majority of the world’s economies. of the world’s economies.

U.S., the major world power, became the U.S., the major world power, became the chief advocate of free market capitalism chief advocate of free market capitalism for the global system. for the global system.

What is What is GlobalizatiGlobalizati

onon??

Increasing global Increasing global connections connections

Faster communication Faster communication and transportationand transportation

Rapid growth of worldwide Rapid growth of worldwide social relationships. social relationships.

Swift and free flow of Swift and free flow of money, goods, people, & money, goods, people, & ideas across national ideas across national bordersborders

GlobalizationGlobalization

billions7

6

5

4

3

2

1

1803 - 124 yrs 1927- 33 yrs 1960 - 14 yrs 1974 - 12 yrs 1986 – 13 yrs

The time it takes to add one billion people grows shorter.

World population has been World population has been rapidly increasing.rapidly increasing.

Wow! Wow! More than More than

6 6 billion billion people people

now alive.now alive.

Life expectancy is rising, but it varies world wide.

CountryCountry Average Life Average Life ExpectancyExpectancy

SwedenSweden 79.279.2

FranceFrance 7878

United United StatesStates

71.171.1

BangladeshBangladesh 62.862.8

BotswanaBotswana 40.140.1

ZimbabweZimbabwe 39.239.2

Average life Average life expectancyexpectancyfor the world for the world is 70 years.is 70 years.

Speed of travel has increased dramatically.

World wide communication is almost instant

19811981

19771977

19571957

19821982

Look at this Look at this antique computerantique computer. .

It doesn’t even It doesn’t even have a hard drive!have a hard drive!

19621962

The computer has been changing The computer has been changing billions of lives.billions of lives.

Where are the Where are the books I ordered?books I ordered? I’m applying I’m applying

to college.to college.

IT Engineer IT Engineer seeks house..seeks house..

We’re catching We’re catching up with the U.S. up with the U.S. economy.economy.

Will you be my Will you be my E-pal?E-pal?

I raised my I raised my campaign funds campaign funds via the internet.via the internet.

But what does

globalization have to do with me?

Jeans from Jeans from

MalaysiaMalaysia

Backpack Backpack from from ChinaChina

Shirt Shirt from from MexicoMexico

Cap from Cap from BangladeshBangladesh

Video gameVideo gamefrom Japanfrom Japan

Sneakers from Sneakers from

IndonesiaIndonesiaSoccer ball Soccer ball fromfromPakistanPakistan

Expanding technology

makes possible a

cornucopia of new products

for us

New technologies allow humans New technologies allow humans to control nature like never to control nature like never beforebefore

More goods are being More goods are being produced, bought, and sold produced, bought, and sold worldwide than ever before.worldwide than ever before.

What shall I buy

next?

GlobaGlobalization also spreads ideas lization also spreads ideas and valuesand values..

Democratic ideas have spread to Democratic ideas have spread to more countries than ever before.more countries than ever before.

IndiaIndia

KoreaKorea

JapanJapan

TaiwanTaiwan

MalaysiaMalaysia

QatarQatar

MaliMali

BrazilBrazil

South South AfricaAfrica

                       

But globalization But globalization brings high human brings high human

costs.costs.

Although the world’s people are producing Although the world’s people are producing more than 47 trillion dollars in wealth, these more than 47 trillion dollars in wealth, these riches are not distributed equally.riches are not distributed equally.

20% get most of the wealth.20% get most of the wealth.The U.S. owns 11 trillion dollars of The U.S. owns 11 trillion dollars of this wealth. this wealth. 2 billion of the world’s people live 2 billion of the world’s people live on less than $2 a day. on less than $2 a day. Peasants are forced to leave the Peasants are forced to leave the land as money and wage land as money and wage economies spread.economies spread. Workers without education and skills Workers without education and skills are often left behind. are often left behind.

The growing gap between the The growing gap between the rich and the poor continues to rich and the poor continues to increase.increase.

Some big Some big multinational multinational corporations corporations have more have more wealth than wealth than many nations.many nations.

Ranking GDP/value added $trillion

1 United States 9.9

2 Japan 4.7

7 China 1.23

    $billion

40 Malaysia 89.7

41 Colombia 81.3

42 Philippines 74.7

43 Chile 70.5

44 Wal-Mart Stores 67.7

45 Pakistan 61.6

46 Peru 53.5

47 Algeria 53.3

48 Exxon 57.6

49 Czech Republic 50.8

50 New Zealand 50

51 Bangladesh 47.1

52United Arab Emirates 46.5

53 General Motors 46.2

54 Hungary 45.6

55 Ford Motor 45.1

56 Mitsubishi 44.3

57 Mitsui 41.3

58 Nigeria 41.1

59 Citigroup 39.1

60 Itachu 38.4

Gross DomesticGross DomesticProduct (GDP) Product (GDP) of Selectedof SelectedCountries and Countries and CorporationsCorporations20022002Corporations in bold faceCorporations in bold face

In poor countries child labor is In poor countries child labor is widespread. Some 212 million children of widespread. Some 212 million children of ages 5-14 are working instead of going to ages 5-14 are working instead of going to school. school.

These young These young girls work 12 girls work 12 hours a day, 6 hours a day, 6 days a week, days a week, earning $2-3 per earning $2-3 per week.week.

Most child labor Most child labor involves involves high energy work. high energy work.

                              

                           

          

                 

Outsourcing is increasing.Outsourcing is increasing.In 2003, U.S. lost 234,000 information techn jobs. In 2003, U.S. lost 234,000 information techn jobs. An estimated 14 million more jobs may move An estimated 14 million more jobs may move overseas.overseas. But U.S. loss is a gain for India, China, Ireland, But U.S. loss is a gain for India, China, Ireland, Korea and other nationsKorea and other nations

Narayana Murthy (right) and his Narayana Murthy (right) and his Infosys Information Technology Infosys Information Technology complex in Bangalore, India.complex in Bangalore, India.

Keep business away:Keep business away: Strong labor unionsStrong labor unions High wages High wages Environment Environment

protection laws andprotection laws and Unstable Unstable

governmentsgovernments

Manufacturing and capital flows to the areas of the world where they can make the most profits.

..

The speed of globalization results in environmental The speed of globalization results in environmental problems fromproblems fromover-cutting forests.over-cutting forests.burning fossil fuels.burning fossil fuels.producing more industrial and consumer waste.producing more industrial and consumer waste.

Growing threats to the Growing threats to the environment affect all peopleenvironment affect all people

Lots of people question Lots of people question globalization.globalization.

..

Hollywood Hollywood is ruining is ruining our our children. children.

Globalization Globalization is forcing my is forcing my child to work. child to work.

Free trade Free trade is destroying is destroying us farmers.us farmers.

Industrial Industrial countries are countries are leaving us out leaving us out of Globalization. of Globalization.

Development Development is destroying is destroying our rain forest. our rain forest.

We have 50 We have 50 million people million people living in poverty.living in poverty.

Globalization involves Globalization involves contradictions.contradictions.

Profitable industry but widening gap Profitable industry but widening gap between rich and poor?between rich and poor?

Lots of cultural pluralism but people Lots of cultural pluralism but people becoming “homogenized?” (losing becoming “homogenized?” (losing culture, becoming the same)culture, becoming the same)

Increasing interdependence but small Increasing interdependence but small communities banding more tightly communities banding more tightly together?together?

Huge wealth in industrialized nations Huge wealth in industrialized nations but great poverty in other countries?but great poverty in other countries?

You mean You mean it’s not good it’s not good

for for everyone?everyone?

Some people believe that globalization is “cultural imperialism”.

Can you interpret how Can you interpret how this cartoon depicts this cartoon depicts the idea of “cultural the idea of “cultural

imperialism?”imperialism?”

Some:Some: wholeheartedly wholeheartedly

embrace it. embrace it.

seek to maintain their seek to maintain their traditionstraditions

fight for more economic fight for more economic fairness.fairness.

turn to religion.turn to religion.

turn violentturn violent

try to manage it for try to manage it for greater human good. greater human good.

People respond to globalization differently.

A house in Figuig, an oasisA house in Figuig, an oasisin Morocco on the edge of the in Morocco on the edge of the Sahara Desert. This family Sahara Desert. This family reaches out to the world through reaches out to the world through its satellite dish.its satellite dish.

Terrorism has ushered in a new Terrorism has ushered in a new global threatglobal threat..

             

                    

Modern military strategies Modern military strategies and weapons are often and weapons are often ineffective against suicide ineffective against suicide attacks.attacks.

Terrorists communicate and Terrorists communicate and spread their ideologies using spread their ideologies using cell phones and the Internet.cell phones and the Internet.

Terrorist groups may have Terrorist groups may have cells in many nations. cells in many nations.

In 2002, the United States In 2002, the United States government adopted policies of government adopted policies of massive military intervention as part massive military intervention as part of a war on terror.of a war on terror.

2002 – U.S. forces invaded Afghanistan to topple the 2002 – U.S. forces invaded Afghanistan to topple the government of the Taliban, which was cooperating with government of the Taliban, which was cooperating with international terrorists.international terrorists.

2003 – U.S. forces invaded Iraq to overthrow the government 2003 – U.S. forces invaded Iraq to overthrow the government of Saddam Hussein. The U.S. accused him of supporting of Saddam Hussein. The U.S. accused him of supporting terrorism.terrorism.

Are we entering a new era of Are we entering a new era of international relations?international relations?

In this new era will the U.S. act as In this new era will the U.S. act as democratic leader, the supreme world democratic leader, the supreme world power, as an empire?power, as an empire?

owns about one fourth of owns about one fourth of the world’s wealth.the world’s wealth.working to create working to create democratic institutions in democratic institutions in Afghanistan, Iraq, and other Afghanistan, Iraq, and other countries. countries. has military force equal to has military force equal to the next 20 countries the next 20 countries combined.combined.striving to be a model of striving to be a model of democracy for the world.democracy for the world. maintains 725 military maintains 725 military bases, valued at $118 billion, bases, valued at $118 billion, with 254,000 military with 254,000 military personnel in 153 nations. personnel in 153 nations.

Do these Do these factors help factors help

us answer the us answer the question?question?

Your decisions and actions will Your decisions and actions will help shape the future.help shape the future.

Will we cooperate to Will we cooperate to fight terrorism and fight terrorism and work to ensure that work to ensure that all people live in all people live in dignity? How these dignity? How these issues turn out is issues turn out is really up to us.really up to us.

One person can make a One person can make a difference.difference.

Your World Your World History History

course may course may end here, end here,

but it’s not but it’s not over yet!over yet!