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Economic Growth and Globalization since 1850

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Presentation on theme: "Economic Growth and Globalization since 1850"— Presentation transcript:

1 Economic Growth and Globalization since 1850

2

3 The Age of Globalization
Exponential change

4 I. Introduction: A. Global time line
Industrialization and growth of international trade Inter-war years Liberalization and Acceleration of trade/ Development of Communist Economic Model

5 B. Successive Shifts of Power 19th-21st Centuries
British Hegemony American Century Multipolar World

6 II. Stages of Economic Growth
How did the world progressively enter into a system of production of wealth?

7 A. 19th Century Economic Growth since 1850
Since 1850, continual acceleration of technical progress and strong economic growth Sustained demographic growth Inequalities in development continue

8 3 stages of economic growth
Entering a world of intensive growth Increasing world growth after 1945 Capitalism in Crisis

9 1st Stage: Intensive Growth
From the 18th Century, western European countries, facing rapid increase in population growth, begin industrializing Intensive growth = wealth production surpasses basic needs of the population Capitalism, well-established in the 19th c. in Europe, contributes to this trend Despite the rise in global population, economic growth enabled improvement in standard of living.

10 2nd Stage: Increasing world growth after 1945
19th C industrialization accompanied by weak growth rates even for the most advanced countries a. newest technologies extremely dynamic (e.g. textile, steel, railroads) b. continued importance of agricultural sector into the 20th c. c. low domestic consumption

11 2nd Stage: Increasing world growth after 1945
After 1945, world growth rate increases Stimulated by the gradual liberalization of trade From 1970’s by acceleration of globalization Between 1945 and 1975, growth originates mostly in the industrialized nations (western Europe and Japan)

12 2nd Stage: Increasing world growth after 1945
Early 21st C. highest economic growth rates in emerging countries BRIC nations (Brazil, Russia, India, China) + South Africa since 2011 Known for rapid growth of their industrial sectors Capitalizing on their advantages (e.g. natural resources, labour, infrastructure) Strong state intervention

13 BRIC nations

14 3rd Stage: Capitalism in Crisis

15 3rd Stage: Capitalism in Crisis
Series of financial/economic crises highlight the limits of capitalism and the interdependence of the world Stock market crash 1929, end of period of strong growth of US economy, warning to speculators Collapse of 1st economy in the world causes contraction of international trade and massive increase in unemployment around the world

16 3rd Stage: Capitalism in Crisis

17 3rd Stage: Capitalism in Crisis

18 3rd Stage: Capitalism in Crisis
Periods of Crisis enable capitalism to adapt and for new powers to emerge. Slowing down of growth in Europe Birth of multinational corporations Progression of international trade Appearance of new competition in Europe (Germany) and outside of Europe (U.S. / Japan)

19 3rd Stage: Capitalism in Crisis
Financial crisis in 2008 leads to growing intervention of international regulatory organizations IMF G20

20 The Global Power Shift

21 Key Words capitalism: economic system which relies on the private ownership of the means of production (e.g. factories, machines). Owning capital produces revenue. The end goal of the system is the accumulation of profit Growth: constant increase in the production of wealth. Prior to 1750, the rate is low, but demographic growth in Europe subsequently helps to increase the development of industry and services

22 Key Words Innovations:
inventions which have industrial applications and which stimulate the growth of new sectors. Globalization: the process whereby (1) economies and societies become interconnected; (2) a global stage exists for the free exchange of goods, services and information

23 Globalization: the process whereby economies and societies become interconnected and a global stage for the free exchange of goods, services and information

24 Key Terms Emerging Countries:
underdeveloped countries which have become more developed thanks to their successful integration in the globalized economy. By attracting foreign investors, they have been able to develop. Consumer society: According to the economist Rostow, the last stage of industrial development, characterized by the democratization of mass-produced industrial products (e.g. cars, appliances, etc.)


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