4 I. Introduction: A. Global time line Industrialization and growth of international tradeInter-war yearsLiberalization and Acceleration of trade/Development of Communist Economic Model
5 B. Successive Shifts of Power 19th-21st Centuries British HegemonyAmerican CenturyMultipolar 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 growthSustained demographic growthInequalities in development continue
8 3 stages of economic growth Entering a world of intensive growthIncreasing world growth after 1945Capitalism in Crisis
9 1st Stage: Intensive Growth From the 18th Century, western European countries, facing rapid increase in population growth, begin industrializingIntensive growth = wealth production surpasses basic needs of the populationCapitalism, well-established in the 19th c. in Europe, contributes to this trendDespite 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 countriesa. 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 increasesStimulated by the gradual liberalization of tradeFrom 1970’s by acceleration of globalizationBetween 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 countriesBRIC nations (Brazil, Russia, India, China) + South Africa since 2011Known for rapid growth of their industrial sectorsCapitalizing on their advantages (e.g. natural resources, labour, infrastructure)Strong state intervention
15 3rd Stage: Capitalism in Crisis Series of financial/economic crises highlight the limits of capitalism and the interdependence of the worldStock market crash 1929, end of period of strong growth of US economy, warning to speculatorsCollapse of 1st economy in the world causes contraction of international trade and massive increase in unemployment around the world
18 3rd Stage: Capitalism in Crisis Periods of Crisis enable capitalism to adapt and for new powers to emerge.Slowing down of growth in EuropeBirth of multinational corporationsProgression of international tradeAppearance 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 organizationsIMFG20
21 Key Wordscapitalism: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 profitGrowth: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.)