Decolonization - San Marcos Unified School District

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Empires to Decolonization to Neocolonialism
(Globalization and economic relationships vs. Modernization)
Welfare states and distribution of wealth
Nation
Nationalism and self determination
Today’s
World
Ties to colonial power
& type of colonization
World
Economic role (sans Globalization)
Mercantilism to capitalism to interdependency
POLITICAL
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Competing Economic Models
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After World War II most of Europe was in ruins.
One quarter of Germany’s cities were rubble
Yugoslavia had lost approximately 10 percent of its population
27 million people had died in the Soviet Union
In China, survivors faced famine, disease, civil war, and
revolution
• Britain and France were bankrupt.
• Forty four nations met at the original session of United Nations
in July 1944 at Bretton Woods, New Hampshire to ensure post
war economies did not return to the Autarky and Protectionism
that had led to the rise of dictators.
• The Bretton Woods Conference created the International
Monetary Fund, as well as the International Bank for
Reconstruction and Development (The World Bank)
Decolonization following wars
• Causes instability in the region
• After World War I
– League of Nations mandates for Great Britain and
France
– Self-determination & Atlantic Charter
• After World War II
– Post World War II settlements helped provide stability
especially for the defeated Axis powers creating
“economic miracles” for Japan, Germany and as a
secondary effect for France.
– Marshall Plan, Bretton Woods & IMF, Common market
(later EU)
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Post WWII to present
End to European colonial Empires
– Nationalism and independence
– Different roads to freedom
– Global impact
• About 90 new countries
• Pursuit of modernization
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Cold War goes global
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Superpowers
Nonaligned nations
Cold war ends (effects of dissolution of USSR 1990s)
Ethnic conflict
New nations seek stability
Regional and global organizations
– UN
– NGO
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Global Issues
– Culture clash
• Weapon escalation
• Terrorism
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Human rights
Intervention
Population shifts and control
Environmental
Culture clash
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Post-Surrender Terms for Japan
Occupation of Japan (August 1945 - April 1952)
Condition of Japan following war and peace treaty of October 1951 carried out by the Us (McArthur)
– Japan was devastated as the cities (except Kyoto), the industries, and transportation networks were
severely damaged.
– A severe shortage of food continued for several years with Inflation– the cost of living rose by 10 percent
each month for about two years.
– The chief objective of SCAP were demilitarization and democratization as there would be continued U.S.
military presence to protect it from communism & Okinawa was to remain under U.S. occupation (1972);
retaining rights to military bases.
Demilitarization
– The remains of Japan’s war machine were destroyeddisarmed but eventually able to maintain “selfdefense” forces
– Japan basically lost all the territory seized after 1894,
Democratization
– Economic reforms
• Effort to eliminate big business conglomerates; independent companies such as Honda, Toyota, and
Sony emerged.
• Land reform program to achieve a more equitable distribution of wealth.
• nuclear power instead of petrolm based dependency
• Keiretzu or Horizontal and vertical integration
– Educational reforms
• Efforts to remove militaristic and ultranationalistic influences from schools so suspended the teaching
of Japanese history and geography until new textbooks could be written & encouraged students to
think (no rote learning).
– Political reforms
• Eliminate the power of the emperor (figurehead); announce that he was not divine; peerage
eliminated included war crimes trials
• Make the executive power of the government responsible to the people or the representatives.
• Establish a legislative body that would be directly responsible to all adult citizens (universal suffrage).
• Develop democratically controlled political parties.
• Eliminate ties between the government and Shinto shrines.
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Post
War
Western
Europe
Marshall Plan aid helped western Europe begin recovery in 1947
Korean War in 1950 stimulated economic activity.
Economic growth became a basic objective of all western European governments.
Governments accepted Keynesian economics to stimulate their economies.
– Addresses the issue of relationship between the public and private sectors of business
and the need for International economic institutions
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Germany and France were especially successful and influential.
In most countries many people willing to work hard for low wages; expanding
industries benefited.
Increased demand for consumer goods.
Many economic barriers eliminated and a large unified market emerged: Common
Market created in 1957
– Created out of a coal and steel agreement
– Eventually created the Economic Union and the more current Maastricht Treaty which
includes 27 countries
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Combined free-market economy & extensive social welfare network inherited from
Nazi era.
By late 1950s, West Germany had robust economy, full employment, a strong
currency and stable prices while France used Marshall Plan aid money and the
nationalized banks to funnel money into key industries, several of which were
state owned.
Combined flexible planning and a “mixed” state and private economy to achieve
most rapid economic development in its history.
Henry David Thoreau
Resistance to civil government
• 1846 Thoreau chooses to go to jail.
• Protesting Poll Tax (opposing
Mexican-American War (18461848).
• Passive resistance (later adopted by
Gandhi and Dr. King)
• “The individual, Thoreau claimed, is "a higher
and independent power," from which the
state obtains its power.
Civil Disobedience vs. Terrorism
• The individual, Thoreau claimed, is "a higher and
independent power," from which the state obtains its
power.
• Civil Disobedience
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Refusal to obey civil laws
• People practicing civil disobedience break a law because
they
– 1. consider the law unjust
– 2. want to call attention to its injustice
– 3. hope to bring about its repeal or amendment.
• They are also willing to accept any penalty, such as
imprisonment, for breaking the law.
– This is what separates them from other protesters/lawbreakers or
terrorists.
Go Against the Flow…
• “If a man does not keep pace with his
companions, perhaps it is because he
hears a different drummer. Let him
step to the music which he hears,
however measured or far away.”Thoreau
Characterized by level of violence
• Gandhi-Passive Resistance.
– This is more effective in India because of the
numbers of people.
– Any massive action would totally disrupt
governmental activities.
• King-Non-Violent Resistance.
– Action against the law other than just marches.
• Mandela-Militaristic Resistance.
– The more violent the reaction against the
disobedience the more violent the resistance
becomes.
Quotes
"Nonviolence is the greatest force at the disposal of mankind. It is
mightier than the mightiest weapon of destruction devised by
the ingenuity of man."
Mohandas K. Gandhi on nonviolence
"Generations to come will scarce believe that such a one as this
ever in flesh and blood walked upon this earth."
Albert Einstein
"Gandhi was inevitable.
If humanity is to progress,
Gandhi is inescapable.
He lived, thought and acted,
inspired by the vision of humanity evolving toward
a world of peace and harmony.
We may ignore Gandhi at our own risk."
Dr. Martin Luther King Jr.
Phases of modern national expansion
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Period of exploration and ‘discovery’
Period of early contact, conquest, settlement and colonization
Establishment of permanent European settlement,
colonization or exploitation
Climax of the scramble for colonies, markets, and raw
materials
Ex-colonies are formally decolonized and independent, yet
still economic dependent on the West
Cold War proxies and social transformations to welfare states
are the end game in the late 20th century
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Former colonies discarded by superpowers
Lesser countries such as France and Great Britain discard former
colonies as they attempt to protect their citizens from risk in the new
welfare states of the Post World War II era
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Methods-Issues-Stages
Young educated (mostly western educated) such as Young Turks of Ottoman Empire
and May 4th movement of China or Aung San of Burma
Three patterns:
– Civil war (China) Three People’s Principles (Nationalism-Democracy-Welfare of the People
through food, clothing, housing, and transportation) Both Kuomintang and CCP as May 4th
Movement
– Negotiated independence (India and much of Africa)
– Incomplete de-colonization (Palestine, Algeria and Southern Africa, Vietnam)
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Empires and issues
– British – 1931 Statute of Westminster
– converted the British Empire into the British Commonwealth also allowed varying degrees
of autonomy (Australia, New Zealand, Dominions of Canada
– 1941 – Atlantic Charter written by Roosevelt and Churchill – affirming all nations the right
self determination
– French colonies were given representation in French parliament in the Fourth French
Republic in 1947
– 1960 the United Nations General Assembly passed Resolution 1514 that supported the
end of colonization
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Pan African Congress & African National Congress
Indian National Congress & Muslim League
Pan American Union evolves into Organization of American States in 1947
Chinese May 4th movement or (Kuomintang & CCP) after Japanese occupation
and the CCP’s Long March of 1937 drumming up peasant support while the
Kuomintang lost to the Japanese many people thought the CCP had inherited the
right to the tenets of the May 4th movement after Mao Zedong’s May 1939 speech
and formation of New Cultural movement
Causes and Impact
• Three main issues lead to decolonization:
– desire for independence and issue of self-determination
– European distraction with internal affairs and their
security (social welfare states)
– resentment against discrimination
• Further issues were promises of independence
during WWII, increased education and a wave of
nationalism separated Africa from Latin America
• The results of decolonization include political
instability, economic weaknesses and debt lead to
dependency of the former colonies
Changing patterns of Life due to Decolonization and
Globalization
• New roles for women
– Feminist movement
– Nationalist struggles
• Science and Technology
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Green revolution
Space race
Computer revolution (age of Information to Age of access)
Medical breakthroughs
• Urbanization
– New definitions of community and older rural beliefs challenged
– Shantytowns
• New Global Culture
– Westernization
– Preservation of old and blending of artistic traditions
4 effected Empires throughout the World
British, French, American, Dutch
• Latin America (United Fruit Company)
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Mexico (early 20th Century)
South America (1920s and 30s)
MesoAmerica (Nicaruaga, Guatamala, El Salvador 1980s)
Cuba 1950s
• South Asia (*Afghanistan is considered Middle East and was
never a colony of the British although occupied by them)
– India, Pakistan and later Bangladesh
• Southeast Asia
– Vietnam, Cambodia, Laos, Burma was under the British Rag until 1948
and became Union of Mayamar
• Africa
– Madagascar
– 1960 – Year of Africa
• Middle East (mostly as mandates by 20th century and as a result of dissolution of
Ottomans following WWI)
– Syria, Lebanon, Jordan, Saudi Arabia, Egypt
– United Arab Emirates, Bahrain, Qatar, Kuwait, Oman as British withdrew
in 1961
The Global Impact
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Around 90 countries will emerge during this Great Liberation, some large (India) some small (Kuwait)
These new nations (as well as those in Latin America became known as the “developing world”. Although
each differs from each other, they share common goals:
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Determined to pursue MODERNIZATION (stable governments & economies)
Decolonization Map – 1960 Year of Africa
Africa
Decolonization in Asia after
World War II
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British in South Asia
India was a British colony from the late eighteenth century to the mid-twentieth century.
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Britain developed the infrastructure of India in the form of harbors, railroads, modern cities, and
cotton and steel mills.
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The Raj with Zamidars and Nabobs
British rule was provided by a viceroy and administered by the Indian Civil Service.
English rule provided many benefits.
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First controlled by the British East India Trade Company
Robert Clive and Battle of Plessey
English became the lingua franca for a land with many different languages. English rule also created
Western-educated professionals and bureaucrats who were to become the leaders of the independence
movement.
These individuals were scrupulously honest and imbued with a sense of duty toward the Indian people.
Movements
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1885 Indian National Congress included both Muslims and Hindu
Muslims, founded the All-India Muslim League in 1906, thus giving India not one, but two independence
movements
1909 Legislative councils were formed and Morley-Minto Act insured that Muslims would be included
Rowlett Act prompts Gandhi to propose strikes which cripple the British but result in some violence
including the Amristar Massacre
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The Amritsar Massacre of April 1919 where 300-400 protesters, unaware of public assembly ban included in the
ROWLETT ACT of March 1919, were marching in protest of heavy taxation and conscription into British army
(Sepoy Revolt of 1857)
Reinforces satyagraha or peaceful non-cooperation movement as British are horrified at the Massacre
Montagu-Chelmsford Reforms lay the foundation for Home Rule and Gandhi become the leader
Independence was granted gradually with full independence coming only after World War II on
August 15, 1947 after many acts of civil disobedience including the Salt March and salt protests
of the early 1930s.
They did, however, try to control the influx of technology and industry and were prejudiced
against dark-skinned people.
Conflict begins
What happens after Independence
 Jawarlal Nehru
 Ally of Gandhi.
 1st Prime Minister
of India, 1947-1964
 Advocated
Industrialization.
 Promoted “Green
Revolution”.
 India's "Green Revolution"
allowed farmers to triple
their crop by using modern
science and technology.
 Mixed Economy
 Nonaligned Movement
Green Revolution
Major problems & Issues in India today
• Overpopulation
• 1 billion & climbing
• Economic development.
• Hindu-Muslim tensions
• Gender issues
• dowry killings
• Caste bias
• discrimination against untouchables continues
• The Kashmir dispute and nuclear weapons
• Political assassinations
• Growing gap between haves and have nots
Cold War influences in area
Non-aligned
1971 India – Pakistan War
India vs. Egypt
• Similarities
– both nations typified by overwhelming population
growth that ate up much of gains
– both engaged in state stimulation of economy state
financed education, land redistribution (although largely
unsuccessful)
• Differences
– no military intervention in India, retention of civilian rule
– India had a larger industrial and scientific sector, also
better transport and communication infrastructure
– India had larger middle class than Egypt
– India state intervention in economy less direct than in
Egypt
– India had greater access to international capitalization.
Negotiated Independence in India and Africa
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In India and much of colonial Africa, independence came with little bloodshed.
– The British withdrew after WWII.
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Pakistan and India gained independence in August, 1947.
– Problems in India between Hindu majority and Muslim minority.
• Gandhi shot dead by a Hindu zealot in 1948.
• India’s first prime minister, Jawaharlal Nehru was committed to the goal of state-directed
modernization.
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Within a decade and a half of Indian independence, most of the African states
also gained their sovereignty.
– In 1957, the Gold Coast (renamed Ghana) became tropical Africa’s first independent state.
– By 1963 all of British-ruled Africa except for Southern Rhodesia was independent.
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In each of these colonial possessions, charismatic nationalist leaders took
charge of populist political parties and became the leaders to whom the British
turned over power.
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Decolonization in much of French-ruled Africa followed a similarly smooth path,
though the French were initially more resistant than the British.
– At first, treated decolonization as assimilation.
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France dissolved its political ties with French West Africa and French Equatorial
Africa in 1960, having already given the protectorates in Morocco and Tunisia their
independence in 1956.
Decolonization IndoChina
•French Indochina (Laos, Cambodia, Vietnam)
•The French granted limited
autonomy
•to Laos and Cambodia after World War II.
•Negotiations with the Vietminh (Ho Chi
Minh’s)
•later Viet Cong government broke down in
1946.
•War erupted which continued for eight years
until the French lost the battle of Dien Bien
Phu and 10,000 soldiers.
• Vietnam
– split in two at the 17th parallel and elections were supposed to be held.
It never happened.
• SEATO (South East Asian Treaty Organization) to stem the flow of
communism.
• Malaya
– gained independence from British but asked for help to keep Chinese
communists from taking over
• Philippines
– Independence from U.S. on July 4, 1946.
• Indonesia (Dutch)
– Revolution broke out before the war ended, gained independence in
1948.
Southeast
Asia
Preconditions of Revolution in both China
and its former satellite, Vietnam
• Both suffered heavily from the assaults and exploitive
terms of exchange imposed by the imperialist powers;
• each contended with underdevelopment, overpopulation,
and poverty;
• both saw their ancient traditions, embodied in the
Confucian system, collapse in face of outside influence
and failure of Confucian-style elites to organize
resistance;
• both countries gained little, if anything, from years of
European domination;
• both already had, prior to Western incursion, a strong
sense of identity, common language, and unifying polity.
Vietnam and China still regional
• Although traditional imperial, Confucian dynasties
were destroyed, some concepts typical of ancient
Chinese culture retained
• still bias against commercial and business classes
• emphasis on necessity of rulers to promote the
welfare of the mass of the people
• ideological systems stress secular, social harmony
• lack of religious emphasis
• continued sense of cultural superiority
• reassertion of elitist thinking and bureaucratic control
in China
• continued patterns of family and household from
past.
Vietnam Decolonization differs
• Most third world decolonization achieved without violence
• no tradition of peaceful colonialism as in most third world
nations Vietnamese experience totally violent
• French rule promoted Vietnamese sense of separate identity
– Confucian tradition regarded French as barbarians
– any Vietnamese who supported French rule was regarded as a traitor
– failure of Confucian empire to resist foreigners led to complete
abandonment;
– left no cultural tradition to defend
• led to radical revolutionary means
• no strong religious basis as cultural unity
• French destroyed bourgeois political organizations.
Civil War in China
• Communist movement in China grew as poverty & civil unrest spread.
– Rise of Mao Zedong (Communist)
– Party membership swelled from a mere 40,000 in 1937 to over a million in 1945,
mostly peasant support after Long March
• After Japan surrendered to end World War II, the civil war between the
Nationalists and the Communists resumed.
• U.S. supports Chiang Kai-shek and his Nationalists
– Never fully recovered from its demoralizing defeat at the hands of the Japanese.
(Lost popular support)
– Corrupt and inefficient government.
Faced with Communist victory, the
Nationalist leaders
escaped and set up a rival Chinese
state on the island of Formosa
(Taiwan) in 1949.
Decolonization Middle East
• After World War II the Middle East became a powder keg of
conflicting interests
– Flood of Jewish refugees from Europe and other parts of the world
created considerable conflict
– Britain turned mandate over to the United Nations for arbitration
– State of Israel created out of British mandate of Palestine in 1948.
– Conflict in that region ever since
• 1954 Egyptian seizure of Suez Channel and nationalization of property
• 1973 Six Day War
• 1979 Iranian Revolution & Fundamentalism
– Revolution aimed at Westernized regime that was demonstrably unIslamic although composed of indigenous rulers
– Khomeini claimed to be divinely inspired leader for return to pure forms
of Islam typical of the days of the Prophet
– promised rebels instant paradise should they fall during revolution
– Fundamentalists attempted to spread Islamic revolution to other
neighboring regimes
– continued conflict of Shi'ite versions of Islam versus Sunnite regimes.
• Iraq and Sunnis vs. Iran and Shi’ites
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Southwest Asia to 1945
Egypt was an English protectorate
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Arabia
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British diplomats, officers dominate foreign policy, military to protect canal
Egypt was scene of fighting in both World War I and II
Wahabis conquer Hejaz (Mecca); Create a united Arabia (Saudi Arabia)
British control Aden, Oman, UAE; protectorates over Kuwait, Bahrain, Qatar
Turkey
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Turkey was partition between Greek, British, French, Italians, Armenians
Rise of Turkish nationalist movement under Mustafa Kemal
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Created a modern, westernized state
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Sought peace treaty, alliance, arms from Soviet Union
Stopped Greek invasion of Anatolia; pushed Greeks out of treaty lands
Expelled all Greeks from 3,000 year old homelands
Dropped use of Arabic script, created a modern Turkish script based on Latin alphabet
Relied on secularized law, institutions to run state; women no longer veiled, acquired many rights
Negotiated the return of the straits and other areas with Western Allies
Partition Armenia with USSR
Iraq, Transjordan, Palestine, Syria, Lebanon
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Arab aspirations unrealized; Western nations refused to allow creation of Arab states
Arabs very disappointed that they were not given independence
League of Nation Mandates; British military occupation
British set up former rulers of Hejaz as kings in both Jordan, Iraq; allowed self-government
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Zionist dream of a Jewish state in Palestine
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Zionism affirmed by Balfour Declaration, 1917, and Paris peace talks
Britain supported Zionist effort, but limited Jewish migrants to Palestine
Conflicts between Arab Palestinians and Jewish settlers, 1920s and 1930s
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Arab Palestinians resisted both British rule and Jewish settlement violently
Increased Jewish migration to escape Nazis; armed for self-protection
Independent Arab states opposed a Jewish state
Southwest
Asia
since
1945
Arab states, except Palestine, gained independence during, after World War II
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British suppress Iraqi nationalist uprising in 1941; expel Vichy French from Syria
British, US force French to grant Lebanon, Syria independence in 1943
Creation of Israel
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Unable to resolve conflict, Britain turned Palestine question over to UN, 1947
UN proposed dividing into two states, Palestine and Israel; Arabs opposed
1947, British withdrew, civil war broke out, Jews proclaimed the state of Israel
Egypt, Jordan, Syria, and Iraq declared war on Israel
Israel achieved victory in 1949; claimed territories larger than what was granted by UN
Egypt
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Military leaders under Gamal A. Nasser seized power in 1952
Nasser became prime minister, a leader of pan-Arab nationalism
Egypt neutral in cold war, accepted aid from both powers
Nasser dedicated to ending imperialism and destroying state of Israel
Suez crisis, 1956, greatly enhanced Nasser's prestige
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Canal controlled by Britain; Nasser nationalized it to build Egypt's economy
Attacked by British, French, and Israeli forces, which retook canal
Both superpowers condemned military action, forced them to withdraw
Suez crisis divided United States and its allies in western Europe
Pan-Arab Nationalism
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Sought to unify Arabs in one secularized state; downplayed Islam
Egypt, Syria, Yemen united in 1968; union late broke down
Strongly influenced by Arab-Israeli conflict
Ba’ath Parties in Syria, Iraq strongest Pan-Arab Parties
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Arab-Israeli Conflict
Arab-Israeli Conflict
– 1947:Began over partition of Israel, Arab invasions
– 1956: Israeli invasion of the Sinai
– 1967: Seven Day War
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Egypt planned to annihilate Israel
Israel struck first annihilating armies and airforces of Syria, Egypt, and Jordan
Capture West Bank, Sinai, Jerusalem, Golan Heights
Israelis open West Bank to settlement by Jewish settlers
– Founding of Palestinian Liberation Organization
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Hundreds of thousands of Palestinians displaced 1947-67
Camps set up in Lebanon, Syria, Jordan, elsewhere
Goal was to destroy Israel, create Arab state in Palestine
Used terrorism as means to an end
– 1973 Yom Kippur War nearly destroyed Israel
• Israelis recover with US help, key Israeli ally; nearly destroy Egyptian army
• Arabs retaliate with Oil Embargo through OPEC
• US brokers Camp David Accords ending Egyptian, Israeli hostilities
– 1982 Israel invasion of Lebanon to evict PLO attacking Israel
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Beginning of the End
– Jordan, Lebanon, Morocco agree in principal to Camp David Accords
– 1990s
• Arab Intifada in West Bank against Israeli occupation
• Oslo Accords leads to Israeli withdrawal of most settlers, troops
• Israelis hand over much of area to Palestinian Authority
– Palestinian self-rule over much of Gaza, West Bank
– Issues left unresolved: Israeli security, status of Golan Heights, Jerusalem
Islamic Resurrgence
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Muslim revival and Arab disunity
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Cold war split Arab-Muslim world; pan-Arab unity did not materialize
Israel became a staunch ally of United States; many Arab-Islamic states allied with USSR
Israel defeated Egypt and Syria in 1967 and in 1973
Egypt's president, Anwar Sadat, ended alliance with USSR in 1976
Sadat signed peace treaty with Israel in 1980; was assassinated, 1981
PLO leader Yasser Arafat, Israeli prime minister Yitzhak Rabin signed peace treaties 1993-1995
Islamism: revival of Muslim traditions
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Reasserting Islamic values in Muslim politics
Resentment at European and American societies
Extremists embraced jihad, or duty to defend Islam from attack; justified terrorism
Represented by Islamic Brotherhood (Islamic world), Hezbollah (Lebanon), Taliban (Afghanistan)
Activities, funding reach around the world
The Iranian revolution, 1979
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CIA helped anticommunist Shah Mohammed Pahlavi gain power, 1953
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Khomeini attacked United States for support of the shah
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Shah supported anti-communism of US, armed Iran to status of a regional power
Became major oil supplier of the US, increasing westernization of Iranian society
Repressive rule overthrown by Islamist followers of Ayatollah Khomeini, 1979
Militants held sixty-nine Americans hostage for 444 days; shut down U.S. military bases
Movement encouraged other Muslims to undertake terrorist actions
Islamic Republic of Iran 1979 – Present is a radical opponent of western influence
Afghanistan
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USSR invades in 1980 to prop of pro-Soviet regime which was threatened
Nine year guerrilla warfare follows between Soviets, Muslim guerrillas
USSR withdrew in 1989 leaving Mujahedeen, Taliban in control of radical Muslim state
US destroys Taliban state, invades in 2002 after Taliban supports September 11 terrorist attacks on USA
Pro-Western regime installed
Iran-Iraq war, 1980-1988
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Iraqi president Saddam Hussein launched attack on Iran in 1980
War dragged on till 1988; killed one million soldiers
Next, Iraqis invaded Kuwait in 1990, inciting Gulf War, 1991
Gulf Wars 1990-91, 2002-3 and Iraq
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Saddam Hussein annexes Kuwait; UN coalition drives him out in 1991
UN sanctions fail to disarm Iraq; eventually US led effort topples Hussein in 2003
Democratic, representative regime trying to form now but threatened by civil war, guerrilla war, terrorism
Role of the United States
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Middle East
– Prime Minister Mohammed Mosaddeq nationalized the Anglo-Iranian Oil company
– 1953
• CIA aided coup d'état in Iran and installed Shah Mohammad Reza Pahlavi which ruled
until 1979 Islamic Revolution
– 1956
• Egypt’s Gamal Abdel Nasser nationalizes the Suez Canal
– 1956
• Israel, France, and Britain invade Egypt; Eisenhower forces them to abandon the
invasion; US replaces Britain as a major power in the region
– 1957
• Eisenhower doctrine: US will defend the Middle Eastern governments from
communism and Arab nationalism
– 1958
• Eisenhower sends 5,000 troops to Lebanon to protest pro-Western Christian
government against Nasser
Example of Latin American and Caribbean Involvement
– Jacobo Arbenz Guzmán announces plans to nationalize United Fruit Company
– 1954
• CIA coup d’etat in Guatemala overthrows Guzman and installs a military dictatorship
– 200,000 die in repressions in the following years
– 1993
• CIA helps restore democratic government in Guatemala
Military junta entering Guatemala City in a jeep driven by CIA agent Carlos
Castillo Armas
Populist politics
• Populism in Latin America was typified by
mobilization of support from labor, poor;
• strong nationalism particularly directed against
foreign ownership of resources
– often led by military figures who wished to retain structure
of government.
• Following general failure of liberal governments in
Latin America with Great Depression, number of
populist movements resulted in conservative, military
responses;
– Peron in Argentina,
– APRA in Peru,
– Vargas in Brazil
• populism continued to play a role in all revolutionary
movements since the 1930s.
LA and African Neocolonialism = Dependency
• Political instability with Marxist and capitalist
influence
• Continuing friction from racial inequalities
• Economy drained of natural resources with no
opportunity to diversify from its colonial export of
cash crops
• Because of competing loans from US and USSR
areas left with large debts in which the lenders tried
to exploit
– Salvadore Allende in Chili
– Fidel Castro in Cuba
• Corruption and misconduct of dictators and caudios
allowed social issues like health care, education were
ignored and the infrastructures weak, including both
the political and economic institutions
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Latin American Dependence starts in IR
Colonial legacy
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Prevented industrialization
Spain, Portugal never encouraged industries
Limited success at industrialization
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1820 – 1850: Economic Stagnation
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Wars of independence had disrupted economy
Most wealth tied to land, agriculture
Export of primary, unfinished goods especially guano, coffee, hides
Too many unsolved social problems retarded industrialization
Economic growth part of 2nd Industrial Revolution
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Change grew out of liberalizing effects, reforms in late century
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Entrepreneurs, intellectuals, landowners brought in foreign investments
Facilitated by new technologies (railroads, steamships)
Great Boom driven by exports
•
•
•
•
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Demand for rubber, copper, tin, silver, beef, bananas, oil, coffee, cocoa
Capital intensive development of primary product exports
Trade increased by almost 50% from 1870 – 1880
British initially preeminent; Germany and US increasingly rivals for area
Mexico, Brazil, Argentina
•
•
•
•
Society, infrastructure transformed by this Great Boom
But wealth often in hands of foreigners, upper elite
Growth was often at the expense of local interests, poor, minorities
Liberal idealism often sold out to wealth of elite, profit
Comparative Revolutions
• Mexican Revolution of 1910 has some similarities with the
Cuban revolution of the 1950s.
– both were launched against long-standing personal rules (Diaz,
Batista); both were nationalistic responses to foreign control of internal
resources and economy;
– both involved demands for redistribution of land;
– both involved what was essentially guerilla warfare against national
military forces.
• the outcomes of the revolutions were different;
– Cuban revolution resulted in establishment of Marxist-Leninist socialist
government; Mexican government enacted constitution of 1917 which
appeared to establish liberal democracy;
– actual government controlled by single party.
• Also Cuba and Guatemala in the 50’s
– both based on populist appeal of laboring groups, nationalist
expropriation of foreign capital, land redistribution.
– Guatemalan reform movement under Arevalo and Arbenz halted by
intervention of U.S. Central Intelligence Agency in support of business
interests while Cuban revolt under Castro resulted in creation of
Marxist-Leninist state with economy dependent on Soviet Union;
succeeded where Guatemalan thwarted by U.S. intervention.
Mexican Revolution
class struggle
Carranza –
More Conservative
Tries to end peasant
revolts
Has Zapata killed
Buys off Villa
Reluctantly allows new
Constitution
Killed by Zap followers
Diaz Diaz- tries to modernize &
industrialize but allows foreign
interests & allows peasants to squalor
goes into exile -
Caudillos – rich, land owners
Conservative
Madero –
demands elections
Both sides feel too
little has been granted
to them
Killed by conservative
general
Villa
•S. Mexico
•Bandit
•Loots from land
owners (Robin
Hood analogy
Zapata
•N. Mexico
•Leads peasants
•Desire for land reform
•Passionate &
charismatic leader
Middle class – desired democracy
(bourgeoisie)
Often liberal
Peasants – desired land and basic
reforms
PRI
Middle ground
Brings stability to country
Social & political reform
i.e. land, education
Latin America 1914-Present
•
Latin America Changes
–
World War I
•
•
–
1920s – 1940s
•
•
•
•
•
•
Led to upsurge in exports
Development of industries
Depression, World War II hurt economic growth
US initiates Good Neighbor Policy to try to improve US-Latin relations
Formation of Organization of American States to support American neutrality in early war
Some sympathy for fascists especially in Argentina, Brazil
Some states declared war against Axis and joined United Nations
Mexico after the revolution
–
–
–
–
•
Liberal constitution of 1917 guaranteed land and liberty to Mexico
Subsoil assets claimed by Mexican government; redistribution of land to peasants
After 1930s, conservative governments dominated by Institutional Revolutionary Party (PRI)
In 1990s, PRI dictatorship challenged in open, free elections
Argentina: return to military rule
–
–
–
–
–
–
•
Leader of Latin American struggle against U.S. and European intervention
Gradual shift to free elections, but often reverted to military rulers
Militarist Juan Peron was elected president, 1946; immensely popular
His wife, Eva Peron, was national heroine for her service to the poor
Peron ousted in 1955; three decades of military dictators followed
Late 1970s, death squads conducted "dirty war" against dissidents
Patterns of economic dependence in Latin America
–
Need to reorient economies from export to internal development
•
•
–
Raul Prebisch, Argentine economist, crafted theory of "economic dependency"
•
•
•
Much of Latin America exported raw minerals, food stuffs, oil to Western World
Need to develop domestic industry, consumer industries rather than import
Developed nations controlled world economy at expense of undeveloped ones
Developing nations needed to protect domestic industries
Spread of Democracy
–
–
–
Liberalization begins in 1980s as elections becomes freer, open to opposition
Mexico, Argentina, Chile, Brazil, Venezuela, Peru, Colombia are all part of trend
Many socialist like, reform oriented parties gain strength; not always pro-American
•
Revolutions in Latin America
Post-War US Policies in Latin America
–
–
–
–
–
•
Cuba: from American dependency to communist state
–
–
–
–
–
–
–
•
Cold War, Protection of Panama Canal shaped U.S. policies Latin America
US opposed
• Nationalization of US property as it attacked American property
• Any perceived interference by USSR, revolutionaries
US support
• Land owners, militaries, elites in Latin America against any perceived radical elements
• Aide primarily military
US will intervene in Latin America
• Support military takeovers in Guatemala, El Salvador, Chile, Peru, Bolivia
• US direct interventions: Haiti, Dominican Republic, Nicaragua, Panama, Granada
US returned Panama Canal in 1999
Batista regime in Cuba was corrupt, influenced by Mafia
Rebels led by Fidel Castro located in Sierra Madre drive out regime
Rebels openly declare themselves to be communists in 1960
Nationalized private holdings, industry instituted land reform, social revolution
US plots to overthrow Cuba led to Soviet missiles in Cuba
US/Cuba hostile to each other ever since
Cuba has strongly influenced Nicaragua, Venezuela
Nicaragua: American interference
–
–
–
–
–
Somoza regime (1934-1980), brutal dictators but anticommunist U.S. ally
Overthrown by Marxist Sandinistas in 1980
Created a communist state allied to Cuba
Reagan reversed policy; supported Contras, rebels opposed to the Sandinistas
Costa Rican president negotiated end to Contra war, new coalition government
Mexico, Argentina, and Brazil: a comparison
• Until 1910 Mexico, Argentina, and Brazil shared a common history and
similar culture but their political histories diverged radically.
– Mexico underwent a traumatic and profound social revolution.
– Argentina and Brazil remained under the leadership of conservative regimes
that were devoted to the interests of the wealthy landowners and which were
periodically overturned by military coups
• Emerging economies
– Brazil
– Argentina
– Mexico
• NAFTA (North American Free Trade Agreement)
– 1994 agreement between Canada, Mexico and US that
– eliminates tariffs
– Maquiladoras - originated as part of the Mexican government’s 1965 Border
Industrialization Program.
» Most maquiladoras are foreign-owned, controlled or subcontracted
manufacturing plants that process or assemble imported components for
export.
» Maquiladora inputs are generally imported duty-free, and countries, like
the U.S. only tax the value-added portion of mapuiladora exports.
» Maquiladoras accounted for 49% of Mexico’s exports
» Low cost of labor sent Industrialists to mostly areas that border US and
employ mostly females between ages of 18-25
African Liberation
• nonsettler colonies vs. those with substantial white settler
populations.
• Although there was some resistance, particularly in the
British colonies, nonsettler colonies proceeded to
independence more rapidly and without violence
• best example is Ghana; Kenyatta led nationalist movement
that utilized Indian model of non-violent resistance to
achieve independence in 1957
• white settler colonies resisted independence movements
from nationalist groups
• led to violent resistance in Kenya, Algeria; in both colonies
rebellions defeated by colonial powers, but independence
granted as a result of war weariness
• only South Africa able to retain minority, white regime.
– Apartheid (separateness)
Incomplete Decolonization: Algeria & South Africa
•
The presence of sizeable European settler populations complicated the path from
colony to nation.
– Algeria: 1 million Europeans
• French leaders claimed that Algeria was an integral part of metropolitan France.
• The colons constituted a minority to the 9 million indigenous Arabs and Berber peoples.
– South Africa: 4 million Europeans
• Minority white rule (Afrikaners) persisted.
•
After winning the elections of 1948, the Afrikaner-dominated National Party in South
Africa enacted an extreme form of racial segregation known as apartheid.
• Apartheid laws stripped Africans, Indians, and colored persons (mixed descent) of their few political
rights.
• Schools segregated; country divided into racial “homelands”
– The African National Congress opposed this legislation.
• After the Sharpeville massacre of 1960, peaceful protest turned into violent protest.
• Nelson Mandela was sentenced to life in prison in 1962.
•
•
The West (U.S.) supported South Africa as a bulwark against the spread of communism in Africa.
The Algerian War of Independence
– The war dragged on for eight years (1954-1962), at a cost of as many as
300,000 lives.
– At home, French society was torn apart.
•
The negotiations to end the war began only after an insurrection led by colons
and army officers had caused the French Fourth Republic to fall in 1958 and
brought Charles de Gaulle to power.
– By 1962, more than 9/10ths of the European population had departed.
Decolonization of Africa
•
Forcing the French out of north Africa
–
France in Africa
•
•
•
–
War in Algeria, 1954-1962
•
•
•
–
•
1950s and 1960s, French granted independence to all its African colonies except Algeria
Two million French settlers in Algeria
Revolt of May 1954 was repressed by French; eight thousand Algerian Muslims died
Algerian nationalists pursued guerrilla warfare against French rule
By 1958, a half-million French soldiers were committed to the conflict
Atrocities on both sides; heavy civilian casualties; Algerian independence, 1962
Revolutionary writer Franz Fanon urged violence as weapon against colonial racism
Black African nationalism and independence
–
Growth of African nationalism
•
•
–
Obstacles to African independence
•
•
•
•
•
Began as grassroots protest against European imperialism
African nationalism celebrated Negritude (blackness), African roots
Imperial powers assumed Africans were not ready for self-government
White settlers opposed black independence
Anticommunist fears justified interference in African politics
Economic and political instability often hampered postindependent Africa
Freedom and conflict in sub-Sahara Africa
–
Ghana (Gold Coast) first to gain independence, 1957
•
•
•
–
Kwame Nkrumah, nationalist leader, jailed and censored for political actions
Eventually released, Nkrumah became Ghana's first president, 1957
Side-by-side posters presented Queen Elizabeth and Nkrumah as equals, 1961
Anticolonial rebellion in Kenya
•
•
•
•
•
Violent clashes between native Kikuyu (Mau Mau) and European settlers after 1947
1930s and 1940s, Kikuyu pushed off farm lands, reduced to wage slaves
Labeling Mau Mau as communist subversives, Britain gained U.S. support
Kikuyu uprising crushed by superior arms in 1955; twelve thousand Africans killed
Political parties legalized, 1959; Kenya gained independence, 1963
•
•
•
•
Africa after 1945
Aftermath of decolonization
–
Organization of African Unity created 1963 to maintain peace, promote pan-African unity
–
Artificial boundaries imposed by colonialism were ruled inviolable
–
Ghana and many other states became one-party military dictatorships
South Africa
–
Transformation of South Africa
•
Gained independence in 1901, but denied civil rights to black population
•
South African economy strong, both mining and industry; prospered during WWII
•
Black workers demanded political change
–
Apartheid: harsh legal system imposed in 1948, designed to keep races separate
•
87 % of South African land was for white residents, others classified by race
•
African National Congress, led by Nelson Mandela, launched campaign to protest
apartheid
•
Severe government repression provoked international opposition after 1960
–
Black agitation and international sanctions brought end to apartheid in 1989
–
1994, under new constitution, Mandela won free election as first black president
Democratic Republic of Congo (Zaire)
–
First prime minister, a Marxist, killed in a CIA-backed coup, 1961
–
Dictator Mobutu ruled from 1965 to 1997; plundered Zaire's economy
–
Mobutu ruled Zaire in dictatorial fashion and amassed huge personal fortune
–
Lawrence Kabila ousted Mobutu in 1997, changed country's name back to the Congo
–
Kabila killed, 2001; replaced by his son Joseph; no elections yet
Developing economies of Africa
–
Africa has 10 percent of world's population but less than 1 percent of industrial output
–
Rich in minerals, raw materials, agricultural resources
–
Lacking in capital, technology, foreign markets, and managerial class
Liberation Theology of Latin America vs.
Black Theology of South Africa
• Liberation Theology
–
–
–
–
–
Commitment to end historical social inequality
Against injustice to poor
Committed to change social structure
Rooted in Catholic teachings and based on the bible
Non-violent principles
• Black Theology
–
–
–
–
–
Committed to ending apartheid (seperatness)
Against injustice based on race
Trying to change social structure
Rooted in teachings from the Bible
Based on non-violent principles
• Although similar in their attempts to change social inequality,
Liberation Theology differed from Black Theology as the
Liberation fight against inequalities was based on economic
inequalities while Black Theology’s fight against injustices
was based more on racial distinctions.
End of Empires- New non-aligned
•
•
•
•
•
•
•
•
•
•
•
Burma
– Aung San (1915-1947)
India & Pakistan
– Jawaharlal Nehru (1947-1964)
– Muhammad Ali Jinnah (1876-1948)
Palestine
Israel, 1948
Ghana
– Kwame Nkrumah (1957-1966)
Kenya
– Jomo Kenyatta (1963-1978)
Indochina
– Ho Chi Minh (1890-1969)
– French defeated, 1954
Algeria
– Franco-Algerian War, 1954-1962
South Africa
– Afrikaner Nationalist Party from1948
– Apartheid
– "No Trial" Act, 1963
Indonesia
– Ahmed Sukarno (1949-1966)
– Suharto ousts Sukarno
Bandung Conference 1955 of non-aligned countries
Industrialization fueled Imperialism which caused over expenditures
•
Industrialization fueled imperialism
– Industry needed raw materials, specialized crops
• Rubber, tea from SE Asia
• Gold, diamonds, copper, coffee from Africa
• Cocoa, hemp from Latin America
– Industry needed cheap laborers
– Entrepreneurs needed markets
– Colonies seemed one easy answer
•
Technology applied to colonial problems
– Infrastructure built up to exploit colonies
• Railroads and ports were first to be created
• Bridges, roads also built
– Technology used to extract minerals from mines
– Science applied to farming to increase yields
•
Demand for raw minerals, markets produced horrible violence
–
–
–
–
•
British destroy Indian textiles to sell British goods to Indians
British, Americans, French fight Opium Wars to sell opium to Chinese
Belgian atrocities in creating the Belgian Congo
British Boer War to obtain gold, diamonds of Afrikaaners
Important Fact: Colonies never paid for public expenditures
– Expense by Western governments exceeded what was earned from colonies
– Wealth, profits went to Western businessmen, companies
– Only France and UK benefited from colonies but it was not economic
• In World War I: French African troops saved France at Battle of Marne
• In World War I and II: British Indian Army provided England with an edge to survive
Notice Indonesia
Pacific Rim
•
The Pacific Ocean is the center of world today
–
–
–
Mediterranean Sea was the ocean of the past
Atlantic Ocean was the ocean of the present: 1450 – 1945
Pacific Ocean is the ocean of the future
•
•
•
Key Players
–
–
–
–
•
China, Japan, South Korea, Taiwan, Singapore, Hong Kong
United States, Canada, Australia, Mexico, Chile
•
•
1st Economy of the World: US
2nd Economy of the World: China
•
3rd Economy of the World: Japan
High technology, consumer electronics, computers, and automobiles
Major financial investment of US, China, Japan in each other, region
Impact on Region
–
–
–
•
1970 – 1982: US trade with Europe was up 400%
Same time period US trade with Asia Pacific was up 800%
Technology has hurt small producers, traditional markets
Shift of industry, agricultural production around Pacific
Massive immigration of Asians to the United States, Canada, Australia, Latin America
Threats to Prosperity
–
–
Warfare and conflicts: Korean War, Vietnamese War
Potential for conflict between China and Taiwan
1989: A YEAR OF CHANGE
• Influences
–
–
–
–
Gandhi, Martin Luther King were world symbols
End of Cold War and Victory of the West
Gorbachev’s Perestroika, Glasnost
Influence of Pope John Paul II
• Revolutions
–
–
–
–
Popular revolutions usually peaceful
Brought down, ended dictatorship
Parties in power rarely fought back
Romania and China used violence but only China succeeded
• Around the world
– Eastern Europe overthrows Communist regimes
• Poland, E. Germany, Hungary, Czechoslovakia, Bulgaria, Romania
• Lithuania, Latvia, Estonia
–
–
–
–
Russians withdraw troops from Afghanistan
South Africa: Apartheid Ends
People Power of Corazon Aquino overthrows Marcos in Philippines
Tiananamen Square Demonstrations in China
Global Terrorism
•
The weapon of the stateless, powerless
–
–
–
•
Those out of power
Of anticolonial and revolutionary movements
Cheapest way to oppose someone
Not New in History
–
–
–
•
Assassins of Post-Classical SW Asia struck fear in Muslim world
Thuggees devoted to Kali ritually murdered people in India
Boxer Rebellion and others attacked foreigners
Terrorism (opposite of civil disobedience)
–
Difficult to define terrorism, separate from guerrilla movements, independence movements
•
•
–
–
•
Terrorism is defined by the U.S. Department of Defense as "the unlawful use of -- or threatened use of -- force or violence against
individuals or property to coerce or intimidate governments or societies, often to achieve political, religious, or ideological objectives."
The systematic use of terror, the deliberate creation and exploitation of fear for bringing about political change
Deliberate violence, terror against civilians to advance political or ideological cause
Rarely successful; often discredits potentially worthy causes
Examples
–
–
–
–
–
–
–
•
Irish Republican Army violence in 20th Century Ireland, North Ireland against British
Chinese Communist Rebellion in Malaya defeated by British
Mai Mai Rebellion in Kenya targets Europeans in 1960s
Algerian campaign against French colonial targets
PLO attacks on Israeli settlements
Basque ETA group in Spain
Baader Meinhof, Red Army (Communist) Terror in Germany, Italy in 1980s
11 September 2001 focused international attention on terrorism
–
–
–
•
Coordinated attack on World Trade Tower and Pentagon
Source identified as Islamic militant Osama bin Laden and al-Qaeda network
Angered by U.S. presence in Saudi Arabia; proclaimed jihad, holy war
Islamic State of Afghanistan was established 1996 by Taliban
–
–
–
Imposed strict Islamic law: regulated dress, entertainment, media
Women barred from education, work, health services
November 2001, U.S. forces invaded Afghanistan, drove out Taliban, al-Qaeda
•
Globalization
World War II, the Cold War globalized the western economy
–
–
–
–
•
Council for Economic Cooperation and Development
–
–
•
Expanding trade, foreign investments, privatization of industry
Free trade: free of state-imposed restrictions
Perils of the new economy: vulnerable to global forces
–
–
•
Formed in 1947 as vehicle to promote free trade
In 1994, 123 GATT members created Word Trade Organization (WTO)
Dramatic growth in world trade, 1966-1990
Global economy evident after collapse of communism
–
–
•
American led economic effort to cooperate in capitalism, free trade, development of industry
Pumped billions through Marshall Plan into allies to prevent communist takeover
General Agreement on Tariffs and Trade (GATT)
–
–
–
•
Western allies coordinated their resources to defeat Axis and communists
US took the lead especially in aid to develop economies
Us built whole industries abroad to supply its troops, allies: became world corporations
American, European, Japanese companies began to operate outside of home country
Investors withdrew support from Thailand in 1997
Ripple effect: contraction of other Asian economies
Critics of globalization
– To supporters
• Global economy efficient
• Best path to global prosperity
– To critics
• Widens gap between rich and poor
• Destroys environment
• Threatens local and traditional crafts and economies
•
Multi-National Corporations
Global corporations symbols of the new economy
–
As defined: Exxon, Ford, Boeing, Phillips, General Motors, Nissan Bank, Shell, Alcatel
•
•
–
Multinational businesses
•
•
•
•
•
•
•
An industry which only becomes cost efficient in large production
Able to minimize costs, take advantage of mass production
Exploit expensive technologies
Transfer technologies, capital easily across borders
Forces change from GNP to GDP
–
GNP: Gross National Product
•
•
–
–
Value of all goods and services produced in your home country
Includes difference between imports and exports
GDP: Gross Domestic Product
•
•
•
Operate apart from laws and restrictions of any one nation
Move capital to maximize profit (lower business costs)
Able to get around expensive labor, labor restrictions
Seek cheapest labor and resources
Prefer lax environmental laws
Pay less in taxes in developed world than formerly
Economies of Scale
–
–
–
–
•
Branches in many different countries
25% of business is in a country other than home country
Value of all goods and services produced in your home country
And foreign countries IF the corporation is majority owned by a citizen, national corporation
Switch shows influence of Trade, Multinational Corporations
Problems
–
–
–
–
MNC tend to diminish national sovereignty and ignore smaller nations’ laws
MNC have no political or social agenda short of maximization of profit
MNC ignore labor laws, environmental restrictions
MNC will often sell products to countries totally at odds with mother country
Developing Nations
•
LDC vs. DC
–
•
Emerging economies
Developing nations or Emerging Nations
–
–
–
–
–
–
Dependence on agriculture, commodities, & labor-intensive, low value-added
manufacturing
Weak institutions
Strong historical commitment to protectionism
Small middle class
Often former colonies
Often struggling with ethnic or religious tensions
•
Identify of classes in development
•
Affluent middle class:
•
•
North America, Northern Europe, Japan
Rising middle class :
–
•
Singapore, Latin Europe, Mexico, Argentina
Emerging middle class:
–
•
China, India, South America, Southeast Asia
Non-developing:
–
Sub-Saharan Africa & the Middle East
Economic Worlds
•
•
Simplified way of looking at world c. 1980 - Present
1st World: US, Western Europe, Canada, Japan, Australia
–
–
–
–
•
2nd World: PRC, former states of the USSR, Eastern Europe, N. Korea, Cuba, Vietnam
–
–
–
–
•
Nations with resources, educated population, capital to develop
Hampered by wars, dictatorships, internal ethnic strife, including economic problems
4th World and 5th World: Most of West Africa, East Africa
–
–
–
–
•
Communist and ex-Communist command economies
Tendency to outdated technology: heavy industry, mining; few consumer industries
Means of production owned largely by state, private property limited
Great environmental damage
3rd World: South Africa, Iran, Indonesia, Malaysia, Philippines, Peru, Colombia, Nigeria
–
–
•
Capitalist, high industrialized economies
Stable democracies with high standard of living, social index
Private property, economic decisions left up largely to free market
Heavy trade and high technology sectors; large service sectors, capital markets
Nations with few if any natural resources short of populace, which is poor, uneducated
If any resources, tend to be cash crop or one crop, resource export dependent
Often exist as subsistence economies: labor intensive, little capital, little trade
5th World is poorest: often seen as nations which exist merely on paper with simplest economy
Newly Industrializing Nations: 4 Tigers, India, Brazil, Mexico, Argentina, Chile
–
–
–
–
–
Often called Newly Industrialized Economies
Former 3rd world nations which have significantly modernized industries, trade, resources
Population has education, abilities to advance, innovate, progress
Private property generally respected; active participants in trade
Rule of law and government stability relatively new, or stability subject to strife
•
Western Europe
Trading Blocs
– European Coal and Steel Union
• Begun as a coal and steel tariff union of Italy, France, West Germany, Benelux
• Became Economic Communities (EEC) in 1970s
– Added UK, Ireland, Greece, Denmark in 1970s; Spain, Portugal join in the 1980s
– A common market, free trade, free travel within the Union
• Expectations of eventual European political union leads to European Union
• Eleven members adopted a common currency, the Euro, in 1999
– EFTA: European Free Trade Association
• •
&, nbsp; Sweden, Finland, Norway, Denmark, UK, Austria, Switzerland
• Many nations have today joined the EU
•
•
COMECON: Communist version of the Warsaw Pact Treaty nations
Organization of Petroleum Exporting Countries (OPEC)
–
–
–
–
•
Cartel established in 1960 to raise global oil prices
After Arab-Israeli war of 1973, OPEC placed embargo on oil to United States
Price of oil quadrupled from 1973 to 1975, triggered global recession
Overproduction, dissension among members diminished influence
Regional trade associations
– Formed to establish free-trade zones for member states
– Association of Southeast Asian Nations (ASEAN)
• Grew from Singapore, Indonesia, Malaysia, Thailand, Philippines in 1967
• Today includes Vietnam, Cambodia, Laos, Myanmar (Burma)
– North American Free Trade Agreement (NAFTA)
• Signed in 1993: US, Canada, Mexico
– MERCORSOR
• 1993: Argentina, Uruguay, Paraguay, Chile form, trend is to link it and NAFTA
Population Issues
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