1. Decolonization Bellwork
Which state was created by the U.N. as opposed to an independence movement?
Israel
What is apartheid?
Segregation system in South Africa
What areas discussed in class gained independence through violent revolution?
Vietnam, Algeria

2. Objective
WWBAT: Discuss the collapse of major communist powers in the second half of the 20th Century
WWBAT: Introduce the changes and developments of the global economy after WWII

3. Interactive Notebook Setup
5/3/2016
The Collapse of Communism and the Global Economy
This will be two pages

4. China: Abandoning Communism
General Failures of Communism
China: Abandoning Communism
The Collapse of The Soviet Union

5. The Transformation of the World Economy
Circulation of People and Money
Transnational Corporations

6. Varied Results of Economic Experiments
Successful Economic Growth
Little to No Economic Growth
East Asian countries  ex: South Korea, Taiwan, Singapore, Hong Kong, CHINA!
Most of Africa
India  growing high-tech sector and middle class
Most of the Arab world
Oil-producing countries  especially since the 1970s when demand for oil skyrocketed
Parts of Asia
Several Latin American countries  ex: Chile, Brazil

7. General Failures of Communism
Economic failures
By late 1970s = communist economies showed no signs of catching up to more advanced capitalist countries
Soviet economy = stagnant
People had to wait in long lines for consumer goods, which were poor in quality and declining in availability
Citizens waiting in line for goods in the Soviet Union
Photo = circa the late-1980s

8. General Failures of Communism
Moral Failures
Many incidents invalidated communist claims to moral superiority over capitalism
Horrors of Stalin’s “Terror” and the gulag
Mao’s Cultural Revolution
Genocide in communist Cambodia
Simultaneously = overall global political culture was more widely embracing democracy and human rights as the intended legacy of humankind
The site of one of Cambodia’s “killing fields”

9. China: Abandoning Communism
1976 = death of Mao Zedong
Successor =
Deng Xiaoping Committed to fostering political stability and economic growth
Social and political reforms:
Previously banned plays, operas, films, and translations of Western classics = allowed again
“Literature of the wounded” released = exposed the suffering of the Cultural Revolution under Mao
About 100,000 political prisoners released

10. China: Abandoning Communism
Deng Xiaoping’s economic reforms:
Dismantled collectivized farms and returned to a system of small-scale private agriculture
Managers of state enterprises given more authority and were encouraged to act like private owners
Opened China to the world economy and welcomed foreign investment
Local governments and private entrepreneurs created thousands of “township and village enterprises” that produced food, clothing, building materials, and more

12. China: Abandoning Communism
Positive Results of Economic Reforms
Negative Results of Economic Reforms
Rapid and sustained economic growth
Better diets
Lower mortality rates
Declining poverty
Massive urban construction
Surging exports
New prosperity and increased standard of living for millions
Corruption among Chinese officials
Widening gap between the rich and the poor
Urban overcrowding
Pollution in the cities
Periodic inflation
Street crime
Prostitution
Gambling
Drug addiction
A criminal underworld

13. China: Abandoning Communism
China had developed a capitalist economy, but Deng Xiaoping did NOT want to give up his political monopoly or promote democracy
Deng Xiaoping declared that democracy would lead to chaos and anarchy

14. China: Abandoning Communism
1980s = a democracy movement led by university and secondary school students surfaced
Deng ordered the brutal crushing of this demonstration in Beijing’s Tiananmen Square
Recorded by the media  brought to television sets around the world

15. The Collapse of The Soviet Union
In 1985 Mikhail Gorbachev became the leader (General Secretary) of the Soviet Union
Gorbachev committed to tackling the country’s many problems
Economic stagnation
Growing black market
Public apathy
Cynicism about the Communist Party

16. The Collapse of The Soviet Union
Perestroika (Restructuring) was Gorbachev’s economic program launched in 1987
Freed state enterprises from government regulation
Permitted small-scale private businesses
Offered opportunities for private farming
Began to welcome foreign investment
Resistance to these reforms led Gorbachev to seek allies outside of his official circles

17. The Collapse of The Soviet Union
Glasnost (Openness) policy of permitting a much wider range of cultural and intellectual freedoms in Soviet life
Goal = to overcome the distrust that had grown between society and the government
The information that poured into the Soviet Union as a result of glasnost led to the mass movement towards democratization in the Soviet Union

18. The Collapse of The Soviet Union
Democratization = involved the creation of a new parliament with real powers
Would be chosen in competitive elections
1989 elections = dozens of leading communists were rejected at the polls

19. The Collapse of The Soviet Union
In foreign affairs, Gorbachev moved to end the Cold War
Made cuts in Soviet military forces
Engaged in arms control negotiations with the U.S.
Refused to intervene as communist governments in Eastern Europe were overthrown
President Ronald Reagan and Mikhail Gorbachev in 1985

20. The Collapse of The Soviet Union
Events in the Soviet Union influenced Eastern European nations  if the USSR could practice glasnost and hold competitive elections, why couldn’t they?
“Miracle Year” of 1989
Massive demonstrations, last-minute efforts at reforms, the breach of the Berlin Wall, and the surfacing of new political groups all overwhelmed the unpopular communist regimes of Poland, Hungary, East Germany, Bulgaria, Czechoslovakia, and Romania
Communism was swept away in Eastern Europe
This success inspired nationalists and democrats in the Soviet Union  brought the communist regime in the USSR to its end in 1991

22. The Collapse of The Soviet Union
1991 the Soviet Union disintegrated into 15 new and independent states
1990 was the year German
reunification

23. The Collapse of The Soviet Union

24. The Transformation of the World Economy
Economic globalization began to accelerate quickly following World War II
1944 = Bretton Woods Conference
Held by the capitalist victors (led by the U.S.)
Goal was to avoid a worldwide depression like the one following WWI
Created many international agreements and institutions to maintain a strong global economy
World Bank
International Monetary Fund
Photograph of delegates at the Bretton Woods Conference

25. The Transformation of the World Economy
This “Bretton Woods system” did the following:
Negotiated the rules for commercial and financial dealings among the major capitalist countries
Promoted free trade
Stabilized currency values and linked them to the U.S. dollar
Promoted high levels of capital investment
Pictured above: Treasury Secretary Henry Morgenthau speaking at the opening of the Bretton Woods conference on July 8, 1944.

26. The Transformation of the World Economy
New technologies developed in the 2nd half of the 20th century contributed to the acceleration of economic globalization:
Containerized shipping
Huge oil tankers
Air express services
Fiber-optic cables
Internet

27. The Transformation of the World Economy
Entire world increasingly seen as one single market
Neo-Liberalism favored:
Reduction of tariffs
Free global movement of capital
A mobile and temporary workforce
Privatization of state-run enterprises
Stopping government efforts to regulate the economy
Cuts in taxes and government spending
A call center in India

28. Reglobalization
The world began to “reglobalize” after WWII, following the contractions of the 1930s
The process by which regional economies, societies, and cultures have become integrated
Involved the accelerating circulation of:
Goods
Capital (money and investments)
People
Political ideas

29. The Transformation of the World Economy
As world trade skyrocketed, an increased number of goods began to circulate around the globe
Supermarkets, stores, and so on now stock their shelves with products from every part of the globe

30. The Transformation of the World Economy
Regional Trading Alliances were created among nations with shared political and economic interests to promote trade
ASEAN (Association of Southeast Asian Nations) 1967
EC (European Community) 1967
EU (European Union) 1993
NAFTA (North American Free Trade Agreement) 1994
AEC (African Economic Community) 1991

31. Circulation of People and Money
Money has become extremely mobile in three major ways:
Foreign direct investment = when a company or firm in one country opens a factory in another country
- Rich countries and companies are always after: cheap labor, tax breaks, and looser environmental regulations
Ford recently opened a new engine plant just outside of Mexico City

32. Circulation of People and Money
2) Short-term movement of capital = when investors buy foreign currencies or stocks likely to increase in value and sell them quickly thereafter
3) Personal funds of individuals = international credit cards, transfer of money across international borders, etc.

33. Circulation of People and Money
Increasing numbers of people continue to migrate seeking work, a better life, or refuge from political oppression or civil war at home
Example #1: Mexicans, Cubans, and Haitians in the United States
Example #2: Highly educated professionals (doctors, engineers, etc.) leaving the Global South for more developed countries

34. Transnational Corporations
Transnational Corporations (TNCs) = global businesses that produce goods or deliver services simultaneously in many countries
Multinational Corporations
Companies with multinational ownership and management
Daimler Chrysler (now in bankruptcy)
Ford
Easier to outsource production
Easier to relocate if pollution laws are too strict
Bottom-line more important than workers rights or environment

35. Transnational Corporations
Example: Mattel Corporation’s Barbie doll made in factories in Indonesia and China, using molds from the U.S., plastic and hair from Taiwan and Japan, and cotton cloth from China

36. Circulation of People: A Quick Glance at the U.S.
Benefits
Problems
Many of these workers provide much needed and sought after skills, services, intelligence, etc.  think about doctors from India, engineers from China, and so on  this can boost the U.S. economy
Workers able to provide for their families back home
Maintains tradition of the U.S. as a land of opportunity to all, melting pot, culturally rich and diverse society, etc.
Many workers have to migrate illegally
Cheap source of labor can take away jobs from legal citizens
Increased political and cultural tensions
Increased prejudice, discrimination, racism, conclusions founded upon stereotypes, etc.
Overpopulation

37. Global South vs Global North

38. Varied Results of Economic Experiments
Various reasons for such sharp differences in economic results:
Geography and natural resources
Differing colonial experiences
Variations in regional cultures
Degree of political stability and social equality
State economic policies
Population growth rates
Varying forms of involvement with the world economy
Cocoa Farming in Ghana
Durban, South Africa