Economic Interdependency

WWII leads to re-structuring of the world economy along the lines of "economic interdependency" among nations – globalization

Technology (air transportation/computers/radar/penicillin) plays a significant role in victories - Churchill: "a wizard's war"

Point of view that emerges: Undo the pattern of recycled wars - Teach each nation its prosperity is tied to the prosperity of others

The outcome is a world in which innovation is the primary basis of competition.

Institutions: World Bank, IMF, WTO/GATT, UN – In sum, to give the effort teeth, each has a specific role – Mission creep eventually distorts that or, depending on your point of view, gives evidence that the project is doing well.

Personalities and their ideas:

Monnet (Jean)

De Gaulle

Gandhi

Yoshida

It is an international effort, not an American effort alone, and succeeds because of international commitment

After three years of peace, world GDP dominated by Americans; about 50% global GDP;

Europe still devastated (5000 German bridges, concentration of gold, Europe's harsh winter, communist threat in Italian election; business relationships destroyed, soil damaged)

Response: Marshall Plan, in Europe (1948-1952)

American goals: It needed markets to buy its goods, but also humanitarian

Results over time:

Growth in Global GDP and decrease in U.S. share

Finding opportunities to innovate

Multiple markets, one economy

French company becomes more Dutch, German becomes more American, etc

Rise from poverty for millions but inequities persist

Anecdotes

FDR and assessment of his allies

Akio Morita, Sony and AT&T

WWII leads to re-structuring of the world economy along the lines of "economic interdependency" among nations – globalization

Technology (air transportation/computers/radar/penicillin) plays a significant role in victories - Churchill: "a wizard's war"

Point of view that emerges: Undo the pattern of recycled wars - Teach each nation its prosperity is tied to the prosperity of others

The outcome is a world in which innovation is the primary basis of competition.

Institutions: World Bank, IMF, WTO/GATT, UN – In sum, to give the effort teeth, each has a specific role – Mission creep eventually distorts

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