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History of the world economy - Polyak GB

29.2. Dynamics and forms of development of leading countries

During the 25 postwar years, the economic development of Western European countries was stable. From 1948 to 1973 years. The total GNP of this region did not show the slightest sign of a contraction. Economists - contemporaries of this period - abandoned the former terms of economic theory and replaced them with new ones. Instead of a crisis - a recession, a business cycle - a cycle of economic growth, a crisis policy - point regulation.

The postwar development of the economies of the West is characterized by its rapid growth in the 1950s and 1960s. The average annual growth rates of the German and Italian economies quadrupled, France more than doubled, and the UK almost doubled. The dynamic development of Western countries was facilitated not only by the Marshall Plan, but also by the expansion of the domestic market, the growth of international trade, the era of cheap oil from the Persian Gulf countries, the qualitative restructuring of industry through the introduction of scientific and technical developments during the war, the policy of Western governments aimed at supporting the economic Growth.

Recessions

The first decline in business activity in Europe was manifested in 1948-1949, but it was insignificant. More serious was the decline of 1951-1952, which swept all the countries of Europe. This recession was a consequence of the Korean War (1950-1953) and fears that it could grow into a world war.

The recession of 1957-1958 . Covered not only the countries of Europe, but also spread to the United States and Japan. The way out of the recession was facilitated by measures taken by governments to reduce taxes, ease the terms of lending, etc. A new factor, the creation of the European Economic Community (EEC) in 1958, also had a beneficial effect on economic development .

The recession of 1966-1967 . And the economic recovery that followed was short-lived, since by 1971 it had already been impacted by the money crisis and the 1973 oil embargo - two factors that had a negative impact on the cycle of economic growth in Europe. During the recession of 1974-1975, The physical volume of industrial production of all industrially developed countries, taken together, decreased by 5%, and the international commodity turnover - by 4%.

Economic growth stopped. There were interruptions in supplying the West with raw materials and, above all, with oil. The rise in oil prices has led to a rise in the price of all goods and services. The rise in prices, inflation became the main economic problem. And as a consequence of the difficult economic situation in the 1980s, the neo-conservatives came to power in most Western countries.

World oil reserves in 1981

Features of economic development of Great Britain

The pace of development in the UK in the 50's was lower than in other European countries. By the beginning of the 1970s, only a number of islands in the World Ocean remained from the British Empire, and it itself was transformed into the British Commonwealth , the intergovernmental organization of the countries previously part of it and recognizing links with the former metropolis. The liquidation of the empire raised the question of her participation in European integration.

The UK took a number of measures aimed at stabilizing the economy. Since 1947, it was announced that the economy would be implemented, which included freezing wages, income, and limiting the consumption of citizens. A serious problem for the country was the agreement on the Anglo-American loan of December 6, 1945 (the US government provided the UK with long-term loans, subject to the conversion of the pound sterling, which sent the flow of the holders of pounds to the dollar).

Investments in industry contributed to the growth of labor productivity, already in 1948 the industry was able to achieve and exceed the pre-war level of output. The four-year program for the development of agricultural production adopted in 1947 contributed to an increase in output. By the early 1950s, the country's economic potential was largely restored.

In the 1950s, the country's economic development accelerated. This was facilitated by the following factors: the impact of the scientific and technological revolution, the improvement of the management method, the state's large investments in production, and structural changes in industry.

Established in 1960 under the leadership of the European Free Trade Association (EFTA) , which united countries not included in the EEC (Austria, Denmark, Norway, Portugal, Switzerland, Sweden), failed to create favorable conditions for English goods, so already since 1961 England begins negotiations on accession to the Common Market, which succeeded only in 1973.

In the second half of the 60-70's. The economy of the country was in a difficult situation. This was facilitated by the global energy crisis of 1973, the cyclical crisis of 1975, and the high costs of the social programs of the Labor government. Thatcherism

The approach to power in England was led by the government led by Margaret Thatcher in 1979. The concept of Thatcherism, like Reaganomics, was included in the world economic literature, reflecting new conceptual visions of economic policy (within the framework of neo-liberalism, or "new conservatism" , Rejection of the concepts of neo-Keysian regulation).

* Neo - liberalism is a direction in economic science and practice in the management of economic activities, whose supporters advocate the principle of self-regulation, free from excessive regulation. Neoliberalism is usually attributed to three schools: Chicago (Milton Friedman), London (Friedrich von Hayek), Freiburg (Walter Oyken, Ludwig Erhard).

Neo - Keysians - followers of Keynes, supplemented and concretized the provisions of his theory of effective demand. They created a theory of regulation of the economy in various market conditions (recession and growth) through the state budget.

In politics, Reagan and Thatcher were convinced conservatives. The policy of encouraging competition, which was made a reality, gave dynamism to the American and British economies. Reagan announced the launch of a large-scale tax reduction program and a monetarist policy in the sphere of monetary circulation. The example of the United States was followed by the United Kingdom and the Federal Republic of Germany. The consequences of monetarist policies have caused a long period of stagnation in OECD countries, an increase in unemployment. But due to a weakening of imports and an increase in the sale of industrial products to oil-exporting countries, the trade balance of the OECD has improved. The reduction of taxes contributed to the growth of investment, the revival of economic life.

Under Thatcher, structural changes were made in the UK economy, modernization of the production apparatus. The growth of gross domestic product reached the highest level in Western Europe, labor productivity increased. In the early 80-ies began an economic recovery.

Development of the French economy

The war and the four-year occupation caused considerable damage to the country's economy. In 1944, an interim government was formed headed by S. de Gaulle, which existed until 1946. The government included representatives of various parties that reflected the interests of individual segments of the population.

In matters of the financial and economic field, there was no unity of opinion in the government. Proposed by the Minister of National Economy P.M. Frans, the monetary reform, which was supposed to freeze wages and prices, in order to prevent inflation, and simultaneously to block bank accounts and start a forced exchange of banknotes, was rejected by de Gaulle. He spoke in favor of the draft reform, developed by the Minister of Finance R. Pleven, which was based on the issuance of a large domestic loan. Communists and some representatives of the "left" in the government considered the most important tasks to be the nationalization and solution of social and economic problems.

During the period 1945-1947. In the country, one-fifth of French industry was nationalized. As in other developed capitalist countries, nationalization has not affected all major industries. Despite the limited nature of nationalization, it to a certain extent contributed to limiting the dominance of monopolies, on the one hand, and, on the other hand, to an increase in the inflow of capital into the national industry. By the end of the 40-ies. The economy of the country was restored.

In the autumn of 1947, the new Minister of Finance, R. Meyer, put forward a plan that broke with the system of fixed prices and introduced a variety of exchange rates. His policy was crowned with success.

In 1947-1955 years. A wide network of allied treaties and mutual assistance agreements has been established.

In 1948 an agreement was signed in Paris on economic cooperation with the US - the Marshall Plan. By 1958, the total US aid to France amounted to $ 12 billion. Most of this amount was intended to develop the industrial potential of the country.

In the post-war period in France, the production of means of production prevails over the production of consumer goods. Changes in the structure of industry began with the rapid development of the automotive industry. By the end of the 1950s, the country had three sectors in the industry: traditional industries (textiles, metallurgy, engineering, luxury goods), new industries (automotive, aircraft, refining) and the newest (nuclear power, electronics, plastics).

Changes in the economic strategy in the 1950s and 1960s were reflected in the re-equipment of the industry with new equipment, increased investment in industry and trade, militarization of the economy associated with obligations to the Allies in NATO blocs (1949), SEATO (1954), Western European Union (1955) Actions in Vietnam (1946-1954) and Algeria (1954-1962), as well as programming of economic development: First Plan (1947 - 1953), Second Plan (1954-1957), Third Plan (1958-1961) (plans were not Obligatory, they had a recommendatory character).

France's active participation in Western European integration and the scientific and technological revolution had a significant impact on the country's economic development in the field of industry and agriculture. For ten years (1958 - 1968) the volume of industrial production increased by 60% with an annual growth rate of 5.5% per year, agricultural products production by 66%.

Since 1969, with the election of the new president, J. Pompidou, changes have begun in the country's financial policy, which resulted in the devaluation of the franc, the blocking of prices in order to increase the competitiveness of French goods in foreign markets.

The seventh plan (1976-1980) envisaged industrial reorientation, connected with the adaptation of the country's economic structure to the conditions of international economic integration, with the development of state industry programs - nuclear power engineering, computer science, aircraft building, and intensive methods of agricultural production.

Despite the crisis of the 1970s, the "oil shocks", which reduced the growth rate of industrial production by more than half, the economic position of France in the world remained stable, the country was one of the five largest capitalist countries.

In the early 80's. The economy of France was seriously damaged by the US monetary and financial policy associated with the artificial overvaluation of the dollar. The growth of the dollar led to a sharp deterioration in the country's balance of payments, as a third of French imports were paid in American currency. To stimulate French exports, the government had to go to the devaluation of the franc, the restructuring of the production and financial structure.

In 1982, a law was passed on the nationalization of the largest industrial groups, commercial and business banks. The share of the public sector in the sphere of financing and credit was 95%. These measures led to the stabilization of the economy, in 1984 economic growth was 1.75%, in 1985 - 2%.

In 1986, a new administration came to power in the country, which began to denationalize, reduce taxation, and deregulate various spheres of economic activity. Since 1987, enterprises have been given the right to independently set prices for their products, prices have been regulated only for medicines, books, tariffs for light, gas and rail transport.

These measures have had a positive impact on the economy of France. A huge impact on the economic development of France has its participation in the European Union (EU). Within the EU, France specializes in the export of small cars, women's clothing, footwear, linen. The alignment of the economic structure has made France an equal partner in the EU.