Biographies Characteristics Analysis

What is the period between the world wars called? Italy between the First and Second World Wars

The consequences of the First World War for England. The First World War had severe consequences for the British economy. Despite the fact that she was among the victorious countries and one of her main competitors, Kaiser's Germany, was defeated, England emerged from the war very weakened.

The war put a lot of stress on the economy. Never before has the country produced so many weapons for such a huge army and navy. If in 1914 military spending accounted for 19% of the national income, then in 1916 it was 56.3%. While the industries that worked directly for the war were intensively developing, the rest were in decline: in general, industrial production decreased by 20%. Hundreds of thousands of able-bodied people were mobilized into the army, industry experienced a shortage of labor. During the war years, foreign trade turnover more than halved, exports suffered especially, the exchange of banknotes for gold ceased, the pound sterling depreciated, taxes increased almost sevenfold. The British government was forced to sell £800 million worth of foreign securities. Art., which, along with internal and external loans, served as a source of financing military spending.

During the war, the tendency to rally English entrepreneurs in the face of objective difficulties intensified noticeably. In 1916, the Federation of British Industry was created, which united thousands of firms and hundreds of associations and had the goal of resisting foreign competitors in the struggle for sources of raw materials and markets. Later, already in the post-war years, the British Bankers Association (1920) arose.

During the war years, the British government tried to protect domestic industry, so import duties were set on a number of goods in the amount of 33% of their value. In particular, these duties greatly helped the young British car industry in its fight against American competitors.

In the same period, England faced a rather acute food problem, since military operations prevented the import of food, and there was simply not enough money to buy it. This forced the government to take a number of measures aimed at supporting the country's agricultural sector. In 1917, state purchases of agricultural products from farmers at favorable prices were introduced, and a guaranteed minimum wage was established for employees working on farms. Land formerly occupied by pastures was re-ploughed, increasing the area under grain crops by 3.75 million acres. This made it possible to raise the grain harvest by a third, but the food problem was never solved. England was still forced to buy large quantities of food from abroad.

At the end of the war, the British government managed to carry out a number of measures to maintain the living standards of workers employed in the branches of the military-industrial complex, as well as soldiers demobilized from the front. So, from November 1917, 200 thousand workers began to receive increased (by 12.5%) wages, and demobilized soldiers were guaranteed benefits up to their employment. Of course, not all 4 million demobilized military personnel were able to find work. Most of them, in the conditions of post-war stagnation, remained outside the scope of production activities. Unemployment benefits were also paid to workers employed in military production if their enterprises ceased to operate.

As a result of the war, England lost 743 thousand people killed, 1.5 million were injured, the country lost almost a third of its national wealth. A significant part of the navy was destroyed during the fighting, in addition, up to 70% of the English merchant fleet was sunk.

And although under the Treaty of Versailles, England received a significant part of the reparations from Germany, the British financial system was in a deep crisis. Since the total cost of the war exceeded 11 billion pounds. Art., domestic public debt increased by more than 12 times compared with the pre-war level (from 0.6 billion pounds. St. in 1914 to 7.8 billion in 1918). External debt by the end of the war amounted to 1.15 billion pounds. st., of which 850 million (or $4 billion) is debt to the United States. Payments on this debt dragged on for many years, they annually accounted for up to 40% of all expenditures of the state budget of the country. London gradually lost its role as a global financial center. In this capacity, New York and Amsterdam became more and more famous, and England turned from a world creditor into a debtor (primarily the United States).

The fact that after the revolution in October 1917, Russia, which had previously acted as its traditional partner, dropped out of the sphere of investment of British capital had a great influence on the economic situation in England. England lost huge incomes from the mining, oil, coal mining and gold mining industries. The traditional Russian market for the sale of industrial goods was also lost. This forced the British government to take an active part in the military intervention of the Entente countries against Russia, but this action did not bring success to England.

Under the Versailles Peace Treaty, almost all German and Turkish colonies in the Middle East, Africa and Oceania passed to England. Southwest Africa, most of Tanganyika, a third of Togo, parts of Cameroon and New Guinea, the Solomon Islands, Mesopotamia, Transjordan, Palestine and others fell under British control. The British colonial empire increased to 35 million square meters. km, and its population was now 450 million people. Half of Africa's population lived in the British colonies.

The expansion of the colonies made it possible to improve the supply of raw materials and food to the metropolis. Nevertheless, the reduction of international economic ties and the weakening of the world positions of England had a negative impact on its relations with countries that are in the sphere of British interests. The presence of American and Japanese goods and capital was increasingly felt in the markets of colonial and dependent countries.

For more than two centuries, England dominated the oceans. It has always been believed that the power of its fleet should be at least no less than that of the fleets of any two countries in the world combined. But at a conference in Washington (1922), England had to agree to bring its fleet to the level of the American one. This decision had a significant impact on the international prestige of Great Britain and hurt the pride of British politicians.

Immediately after the First World War, the British economy experienced a short-term recovery, which was associated with the export of equipment to Europe to restore the destroyed economy, as well as with the partial satisfaction of the population’s demand for consumer goods that had been postponed during the war. But by the end of 1920, this revival of the economy began to wane.

In 1919-1928, the British economy experienced a period of prolonged chronic depression, resulting in a decline in economic activity. England was one of the few industrialized countries that never managed to reach the pre-war level by the mid-1920s: the total industrial output in 1924 was only 91% of the same figure in 1913. And it was only in 1929 that industrial production reached its pre-war levels with difficulty.

The inevitable process of post-war conversion was associated with a reduction in the role of the state in the economy. The implementation of this task was entrusted to the government of David Lloyd George (one of the leaders of the Liberal Party), which already in 1919 abolished almost all the control bodies created during the war. But despite the fact that the government organized the sale of a significant number of military factories, four times more enterprises remained in the hands of the state than before the war. This indicated that the government had no intention of abandoning state regulation of the economy.

So, in 1921, control over the railways was partially restored, for which the railway companies were combined into four regional groups. The state began to play a prominent role in the social sphere, it carried out programs for housing construction and assistance to the unemployed, and developed the system of public education. Since 1918, the country introduced universal primary education for children under 14 years of age free of charge. The same social programs were carried out by the Labor government led by James MacDonald, which won the 1924 elections. In the same years, indirect taxes (excise taxes on tea, sugar and other products) were partially reduced.

The state of the English economy in the 1920s. While many countries experienced a period of partial stabilization and economic growth between 1924 and 1929, there was no noticeable rise in industrial production in the English economy, the index of which in 1929 was only 100.5% relative to 1913. And this meant that the British economy during this period was basically "marking time" on the spot. The share of England in world industrial production fell from 14.8% in 1913 to 9.8% in 1929.

Of course, not all industries were in a state of depression. Some of them, especially new ones - automotive, aviation, engine building, chemical, electrical, etc., showed a noticeable growth: car production in 1928 increased by more than 6 times compared to 1913, electricity production - 3 times, artificial fiber - almost 2.5 times, etc.

On the one hand, these enterprises were equipped with new equipment, and on the other hand, their products were protected by high import duties and, moreover, were consumed mainly in the domestic market. But it should be noted that the share of these industries in the total volume of industrial output was small (less than 10%), so they did not determine the main trends in the economic development of England.

As for the old industries (coal mining, textiles, metallurgy, shipbuilding), in the 1920s there was a noticeable decline in production. These enterprises were never able to reach the pre-war level, although they represented a significant sector of the economy (they employed 20% of industrial workers). Thus, coal mining for 1913-1928 decreased by 18%, the production of woolen fabrics - by 35%, cotton - more than 2.5 times. While worldwide iron production increased by 12%, in England it fell by 55%.

This was primarily due to the fact that in the old industries, equipment dating back to the period of the industrial revolution was used, which is now fundamentally outdated. For example, the average "age" of most large coal mines ranged from 50 to 100 years, the factories used equipment that should have been in museums, but industrialists and bankers preferred to export capital abroad rather than finance the reconstruction of domestic enterprises.

Technical stagnation led to an increase in production costs in industry, which led to a decrease in the competitiveness of British goods on the world market: English textiles were clearly inferior in quality to Japanese ones, and German and Polish manufacturers were serious competitors in the coal market. But the main rival of England, even in the market for products of new industries, where her position has traditionally always been stronger, was the United States.

Under these conditions, British enterprises took unconventional measures: they began to produce cars, motorcycles, aircraft, small arms, fabrics and other goods that were of very high quality and were in demand among especially wealthy foreign consumers, even despite relatively high prices. But these goods were produced in small batches and did not occupy a significant share in the total GDP.

Foreign trade problems were aggravated by the fact that in 1925 the British government again returned to the gold standard, which was abolished in 1919, raising the value of the pound sterling to the pre-war gold parity of $4.86. This was done because England sought to regain its role as world banker and strengthen the prestige of the national currency. The pound has appreciated significantly against other currencies. In the end, it was the big banks who won, since about £1 billion in Art. their incomes from foreign investments, loans, issue of securities, etc. have increased. The real value of the public debt has increased by about £750 million. Art. But the introduction of the gold parity hit the interests of the English industrialists, who now had to sell their goods abroad for a depreciated currency. In fact, the prices of British goods on world markets rose by about 12%, which, of course, reduced the volume of sales.

The development of English exports was hampered by protectionist measures that began to prevail in world trade, as well as the growth of production in the dominions and colonies, where the products of British enterprises were usually sold. This trend was confirmed by the decline in the share of England in world exports from 13.9% in 1914 to 10.9% in 1929. The difficulties in the English economy were aggravated by its huge dependence on imports. In the mid-1920s, 100% of the consumed cotton, 90% of wool, more than 2/3 of iron ore and over 60% of food were imported into the country. In 1924–1929, imports grew one and a half times faster than exports, which reinforced the passive character of the trade balance. As at the turn of the 19th and 20th centuries, “invisible exports” occupied a large place.

As a response to economic difficulties in the 1920s, the tendency to create the largest monopolies in various industries increased: radio and electrical, automotive, rubber, cotton, metallurgical and many others. So, on the basis of the merger of four trusts in 1926, the diversified concern Imperial Chemical Industries (IKI) arose, which seized a dominant position in the chemical industry, and also exercised control in the production of copper, nickel, steel, and weapons. The founding fund at its creation amounted to more than 18 million pounds. Art. The interests of this concern went far beyond the borders of the country.

In 1929, on the basis of the merger of the English Lever Trust and the Dutch Margarine Union, one of the largest international companies, Unilever, was formed, which monopolized the production of laundry soap, margarine, glycerin and other goods. The raw materials for this company mainly came from the English colonies located in West Africa. Concern "Unilever", covering hundreds of enterprises in various parts of the world, managed to establish control over the market for soap and margarine with the help of monopoly prices.

The five largest monopolistic associations also included a steel concern headed by the English Steel Corporation and the military-metallurgical concern Vickers/Armstrong. As a result of the process of concentration of production in metallurgy, 70% of the output of iron and steel was concentrated in 20 firms. One of the most famous monopolies was the Dunlop trust (1896), whose enterprises produced up to 90% of all rubber tires in the country.

During 1918-1924, a series of mergers formed the leading "five" of the largest joint-stock banks: Midland, Lloyds, Barclays, Westminster and National Province, and Midland Bank eventually turned into the largest in the world. It was the financial power of this "five" that contributed to the further development of the British economy. Nevertheless, it should be noted that the level of monopolization in England (as well as at the turn of the 19th and 20th centuries) lagged significantly behind similar processes in Germany and especially in the USA.

Government attempts to bring the economy out of stagnation resulted in an increase in the tax burden on British workers, who, according to the British economists and politicians of the time, received too high incomes compared to workers in other European countries. As a result, only indirect taxes increased in 1924 (in relation to the level of 1913) five times.

Such steps of the government caused active protest from the workers. In 1926, England was seized by a grandiose general strike, started by the miners and supported by workers in other industries. More than 5 million people took part in it. The economic life of the country was paralyzed for several months. As a result of this strike, the Law on Industrial Conflicts and Trade Unions (1927) was adopted, according to which the rights of workers to strike were significantly limited, it was forbidden to hold general strikes and solidarity strikes.

In the 1920s, England experienced another blow: in some parts of the British Empire, a movement for national liberation unfolded, especially fierce in Ireland, India, and Egypt. In 1921 Ireland became a dominion and declared itself the Irish Free State. In 1922, the British government had to agree to the abolition of the protectorate over Egypt, although there was still a British military presence there. The liberation movement in India was suppressed, and she failed to achieve independence during this period.

The economic crisis of 1929-1933 in England. The world economic crisis affected England a few months later than most industrialized countries, since the British economy developed much more slowly than, say, the American one, having not even reached the pre-war level by 1929 in many respects. It was only at the beginning of 1930 that sales problems became more acute in England, difficulties arose in obtaining loans, markets were overstocked and prices rapidly declined, production began to decline, enterprises closed, and unemployment increased. And although the overall decline in economic activity in England by 1933 was noticeably less than in other countries - only 18% (in the entire Western economy - 36%, in the USA - 46.2%), the crisis had a very severe impact on the British economy, even despite the fact that in the 1920s England did not experience a pre-crisis recovery.

The crisis hit the traditional sectors of the economy most severely. So, if the volume of industrial production as a whole decreased by 23%, then in individual sectors the decline was much more significant: in 1929-1933, iron production decreased by 53% and approached the level of the 1860s, steel production - by 46%, mining iron ore - by 45%. Shipbuilding was in the most difficult situation. The total tonnage of built merchant ships during the years of the crisis decreased by more than 11 times (from 1522 thousand tons to 133 thousand tons of total capacity).

Many cities and towns in Wales, Northumberland, Lancashire, on the Clyde River, where old industrial enterprises - textile, coal mining, shipbuilding, metallurgical enterprises, have long been located, have been called "affected areas", in which more than half of the able-bodied population were unemployed, while in general national unemployment in 1932 amounted to approximately 3 million people, or 25.2% of the able-bodied population of England. A wave of strikes, demonstrations, "hunger campaigns" with the participation of hundreds of thousands of people swept across the country.

But the situation was also difficult in new industries, and the impact of the crisis here was uneven: electricity generation fell by only 2.3%, car production - by 5.4%, while the volume of engineering products - by 25%, chemical industry - by 20%.

English agriculture also suffered from the crisis. Since England was among those countries where food at dumping prices rushed from abroad, there was a decrease in prices for domestic agricultural products by an average of 34%. This led to a reduction in sown areas, the ruin of many farmers.

The crisis has affected foreign trade quite tangibly, where the turnover has decreased by 2.5 times over the years. The trade balance was in a chronic deficit. Great losses to the British economy brought a depreciation of 24% of foreign investment. The volume of "invisible exports" was sharply reduced, so in 1931, for the first time in modern history, the country's balance of payments was reduced to a liability of 110 million pounds. Art.

The Labor government, again led by Prime Minister J. MacDonald since 1929, sought to alleviate the socio-economic crisis by increasing state intervention in the economy. At the first stage, it agreed to the introduction of a 7.5-hour working day for miners, approved a new law on unemployment insurance. In order to combat unemployment, the government allocated special allocations for public works and for the movement of the population from the "affected areas", provided the unemployed with small plots of land for agricultural use. Then an action was taken to resettle the unemployed in the colonies and dominions, but this measure was not successful. Most of the workers taken to Canada have returned as the crisis paralyzed the Canadian economy as well.

It should be noted that the economic crisis strengthened the monopoly tendencies in the British economy, which were supported by the state, and above all the desire of the monopolies to establish uniform industry prices. The state developed special schemes for merging firms, used various sanctions or credit privileges to stimulate an increase in the level of monopolization. For example, in 1930, forced cartelization was carried out in the coal industry. The government also helped the Lancashire Cotton Corporation to buy up 139 businesses, making it the largest monopoly in the industry. The state, in turn, carried out its own entrepreneurial activities within the framework of mixed public-private companies, such as the Anglo-Iranian Oil Company, the Anglo-Dutch Oil Trust, etc.

The economic situation of the country deteriorated noticeably in the spring of 1931. The government failed to bring down the wave of unemployment, public works were suspended due to lack of funds. More and more people were subject to restrictions on receiving unemployment benefits: seasonal workers, persons without continuous work experience, as well as part-time workers, married women, etc.

In general, the unemployment rate between the two world wars was quite high. From 1920 to 1938 this figure in England averaged 14% and never fell below 9%. The British government was looking for various sources to pay unemployment benefits. And here the following pattern can be traced: the more generous the benefits were, the higher the unemployment rate became. Thus, among adolescents who received lesser benefits or did not receive them at all, there were much fewer unemployed than among the adult population. And when the allowances for married women were cut in 1932, the rate of unemployment among them fell markedly in comparison with men.

The outflow of gold from the country became more and more noticeable. In January-March 1931, £7 million worth of gold was exported from England. Art., and in July-September - by 34 million pounds. Art. In the same period, many European states (Belgium, Switzerland, Holland) began to withdraw their gold from British banks. So, France seized gold for 25 million pounds. Art., which led to a sharp reduction in the country's gold reserves. The deficit of the state budget of England amounted to 120 million pounds. Art.

In March 1931, a special commission was set up to develop a "national economy plan", headed by a major banker, J. May. To get out of the difficult financial situation, a sharp reduction in government spending on unemployment benefits and wages for public sector employees, an increase in direct and indirect taxes, and other unpopular measures were proposed. But the publication of this program caused a violent protest of the population and led to the resignation of the government.

In 1931, J. MacDonald formed the so-called national government, in which the main posts were occupied by conservatives. The new government tried to remedy the dire financial situation by obtaining international loans from the US and France in the amount of £50 million. Art. But this money was quickly spent without having a noticeable impact on the economy. To obtain new loans, it was necessary to switch to the austerity regime provided for by May's program. And despite the fact that this program did not meet with approval in the country, the government was forced to adhere to this “economy plan” in its activities.

The Prime Minister called on the population to "tighten their belts" and set an example himself - he reduced his salary by 20%, and the English King George V reduced his "private income" by 10%. Unemployment benefits were cut by 10%, and a means-tested law was enacted, under which unemployment benefits were not issued to those who were dependent on the family. In the autumn of 1931, the wages of civil servants and military sailors were reduced.

One of the government's steps towards economic stabilization was the abolition in September 1931 of the gold standard of the pound sterling, which led to the depreciation of paper money by almost a third. As a result, the competitiveness of British goods on world markets increased markedly, and the share of England in world exports increased from 9.4% in 1931 to 10.9% in 1932.

Strengthening the position of England in the international financial market was facilitated by the creation in 1931 of the "sterling bloc", i.e. currency group, within which all international payments were tied to the pound sterling, and all member countries of the bloc had to transfer their foreign exchange reserves to a common reserve fund located in London. By the way, the members of the bloc devalued their national currencies at the same time as the pound sterling.

In addition to the countries of the British Empire (with the exception of Canada), this block included the Scandinavian states, Argentina, Brazil, Bolivia, Paraguay, Holland, Portugal, Greece, Turkey and some others. Joining the bloc led to a certain dependence of these countries on England, since it encouraged them to increase the sale of raw materials and food for her needs and at the same time to purchase products of British industry. Until the Second World War, the pound sterling remained the main monetary unit in international settlements, serving almost half of the world's trade (even with the abolition of its gold standard).

The problems of aggravated competition in world trade forced England to completely abandon the traditional policy of free trade and establish high customs tariffs in 1931-1932, which meant a transition to a policy of protectionism. By February 1932, in accordance with the law on import duties, import duties ranged from 10 to 33% of the value of imported goods, and for some of them - up to 100%.

At the same time, England sought to strengthen economic ties within the British Empire (since the early 1930s, it became known as the British Commonwealth of Nations, and since 1947 - simply the Commonwealth). At the 1932 Imperial Conference in Ottawa, England established preferential (preferential) tariffs on the export of British goods to Australia, New Zealand, India, Canada, the Union of South Africa, at the same time allowing duty-free imports from these countries of agricultural products and mining industry. In fact, it was a closed customs union, within which the share of these countries in British exports increased from 44% to 50% in 1929-1938, and in imports - from 29% to 40%.

Changes in the tariff policy rather quickly affected the English foreign trade turnover. As early as 1932, imports had fallen by £100 million. Art., which contributed to the reduction of the balance of payments deficit. England was once again able to impose on her trading partners such conditions under which her goods were provided with a monopoly position in their markets. Thus, Denmark had to cover up to 80% of its needs in coal, iron, and steel through imports from England.

The economy of England on the eve of the Second World War. Gradually, England began to emerge from the crisis, but it happened very slowly. The first signs of an improvement in the economic situation began to appear at the end of 1933, and in 1934 the economy had already reached its pre-crisis level. And yet the volume of industrial production in 1937 was only 22% more than in 1913.

In the mid-1930s, England began to carry out partial modernization of equipment, which had already been carried out by other industrialized countries in the 1920s. Under the influence of this process, economic growth accelerated noticeably. But it took place in different industries in different ways: for example, the capacity of power plants increased significantly, housing construction gained a large scale, which had a positive effect on the production of building materials.

Since Europe was rapidly approaching war, this was reflected in the dynamics of Britain's military spending. Thus, if in the fiscal year 1935/36 these expenditures amounted to almost 137 million pounds. Art., then in 1938/39 - 254.4 million, and in 1939/40 - 624.4 million pounds. Art., i.e. increased by more than 4.5 times. British enterprises connected with military orders developed especially rapidly. Large sums of money were spent on the creation of the navy and air force of the country, on the direct production of military equipment, ammunition, equipment, uniforms. In addition, large sums were directed to the manufacture of "dual-use" products - motors, cars, radio engineering and communications equipment.

The renewal of fixed capital also took place in traditional industries - metallurgy and shipbuilding. In the 1930s, the policy of "cheap money" (i.e., cheap loans) and restrictions on the export of capital, aimed at attracting them to the domestic economy, began to prevail in the country. In 1931 domestic investment was £89 million. Art., in 1934 - 160 million, and in 1936 - 217 million pounds. Art. The growth rate of foreign investment was noticeably lower: from 41 million pounds. Art. (1931) to 61 million pounds. Art. (1936).

However, such old industries as coal mining and textiles were still in deep crisis. At many enterprises, the practice of direct destruction of obsolete looms, cotton spindles and their scrapping, conservation of mine equipment, blast furnaces, etc. has become widespread. All this was called the process of "recovery" of the national economy, as a result of which the production of pig iron in 1937 decreased by 1.7 million tons compared to 1913, and coal production - by 47 million tons. The liquidation of a number of shipyards led to a reduction in the share of England in the world tonnage from 41% in 1914 to 26% in 1937.

The government was looking for a way out of the crisis in strengthening the monopolization of production. In particular, in 1938, the English Parliament adopted another special act on forced cartelization in the coal industry. But as noted above, in terms of the pace of monopolization, British industry was clearly inferior to American, Japanese and German.

England continued to lag behind their main rivals in other ways as well. So, in the late 1930s, it accounted for only 12.5% ​​of world industrial production (excluding the USSR), while the US accounted for 41.5%. In 1938, England produced steel 2.1 times less than Germany, and 2.8 times less than the United States, and electricity production was only 56% of the level of Germany and 20% of the United States. At the end of 1937, another decline in production began, as a result of which industrial output fell by another 14%. England was able to get out of this crisis state only during the Second World War.

As for agriculture, its development was also affected by the economic crisis. Since customs duties did not apply to certain agricultural products, imported primarily from the countries of the British Commonwealth, English farmers were not protected from competition. Therefore, the government was forced to subsidize the agricultural sector by establishing guaranteed prices for basic agricultural products (milk, meat, wheat, etc.).

These measures supported farmers to some extent, but did not stimulate the further development of domestic production to the extent that it fully met the needs of the country. Moreover, the total area of ​​arable land decreased by 25% in the 1920s and 1930s. On the eve of the Second World War, England met the needs for food at the expense of its production by only 30%. 84% of fats and sugar consumed in the country, 88% of wheat and flour, 91% of oils were imported from abroad.

This meant that England had great difficulty in ensuring her food security, especially in the event of war. Therefore, starting from 1937, the government began to increase state influence on this sector of the economy, encouraging representatives of big business to invest in agriculture. Large corporations tried not to miss the opportunity to monopolize the production and marketing of agricultural products. So, in the late 1930s, up to 70% of the capacity of flour-grinding production was concentrated in the hands of the three largest firms. Under the control of monopolistic associations were also the main enterprises for the processing of milk and dairy products. They also set monopoly purchase and retail prices for these products. On the eve of the war, in fact, there was not a single type of agricultural production left in the country that did not depend (directly or indirectly) on large industrial, banking or trade monopolies.

Despite the transition to a preferential system and a policy of protectionism, it was increasingly difficult for England to maintain its position in the world market. So, just before the war, the United States achieved equal conditions with England in trade with Canada. A much more difficult situation developed in competition with Germany, especially in the field of exports of finished industrial products - machinery, electrical, chemical, steel and other industries. And although the preferential system made it difficult for German goods to access the markets of the countries of the British Commonwealth, nevertheless, in the states of Western and South-Eastern Europe and Latin America, British goods were almost replaced by German ones. While Germany did not hesitate to apply dumping prices, England could not do this because of the obligations under the preferential system.

It should be noted that the economic growth of Germany was largely the result of the credit policy pursued by the British industrial and banking monopolies in relation to it back in the 1920s (for example, financing of railway companies, the Rhine-Westphalian Coal Syndicate, etc.). As is known, England, France and the USA not only postponed the payment of German reparations in accordance with the Dawes and Young Plan (see Chapter 6), but also sought to invest huge amounts of money in the German economy: for example, in 1934 the Bank of England provided a large loan Reichsbank, and English private banks invested in the chemical concern IG Farbenindustri, the Vereinigte Stahlwarke trust, and others, whose enterprises were directly connected with the German military-industrial complex. Thus, it can be said that British capital largely contributed to the formation of the German military machine, which, a few years later, unleashed aggression against Great Britain itself.

The economic struggle in Western Europe continued in geopolitical contradictions. Western countries tried to ignore the direct threat to them from Germany and its allies - Italy and Japan. England, along with other countries, adhered to a policy of non-intervention, while Germany freely captured Czechoslovakia and Austria, Italy - Ethiopia and Albania, the fascist German-Italian intervention in Spain was unleashed, and Japanese troops occupied China, Korea, etc. This policy of appeasing the aggressors eventually led to World War II, which Britain entered on September 3, 1939.

The socio-political and economic factors of the period of 1900-1920s, complicated by wartime conditions, led to serious changes in the activities of the school, in the approach to pedagogical problems. The first wave of reforms of this time took place in 1918–1922. and was associated with increased centralization in school management and the extension of study periods in most countries (A.N. Dzhurinsky, A.I. Piskunov).

On the eve of the First World War and especially after its end, experimental educational institutions based on the ideas of reformist pedagogy began to appear, for example, the Decroly school in Belgium, the Cousinet school in France, community schools in Hamburg, experimental schools in Bremen, and a number of schools in the USA. These educational institutions were opened in cities and intended for incoming children. Most of them were not secondary, but elementary schools. Their organizers paid the main attention to the change in the nature of education, its harmonization with the mental characteristics of children of different age groups. The experimental schools were characterized by the use of a comprehensive system of education instead of a subject system, the replacement of the class-lesson organization of education by individual independent work of students or classes in groups voluntarily created by children. The content of education, the selection of topics by which educational material was grouped, were determined, as a rule, by the interests of children, which led to a violation of the systematic nature of education. Parents of students, representatives of local self-government were involved in cooperation with the school. Children participated in solving issues not only of school life, but also of the life of their city. This was especially characteristic of the experimental schools in Germany and the USA; the teachers of these schools were carried away by the ideas of free education.

However, experimental schools were a single phenomenon in mass educational practice, the relative conservatism of the internal activities of the mass school did not allow it to quickly respond to changes in society, so the state began to actively intervene in the organization of school life. In particular, in England in 1918, the Fisher Act was adopted, extending the terms of compulsory education to 14 years and dividing primary school into junior (7-11) and senior (11-14), which made it possible to improve the general education of students. In 1926–1928 Mind tests were legalized for graduates of junior primary school, according to the results of which the best students could enter grammar schools, while the rest continued their education in senior primary school.

In the United States in connection with the economic crisis of the 1930s. the content of education changed, in which the share of applied knowledge and skills increased, but by 1935 decisions were made to harmonize the scientific and practical functions of the school.

In France, where the district education system operated, by the 1930s. there were 17 educational districts. In 1923 confessional schools were abolished, as a result of which the mass school in France became secular. Since 1933, education in secondary school, with the exception of the last class, preparatory to the university, was free, and in 1936, the terms of primary education increased to 8 years and the preparation for the application of the acquired theoretical knowledge in practice became the obligatory task of the school.

In Germany, until 1933, the activities of the school were subject to a single legislation regulating all aspects of the life of the school. The main types of compulsory free primary school were the general and vocational school, which taught children from 8 to 18 years old, in addition, an additional five years of education was provided after the general school. With the coming to power of Hitler, discipline in schools increased, additional schools were abolished, and six-year and secondary schools were reorganized. In 1933, the "Adolf Hitler" schools appeared, in the program of which geopolitics and racial studies were introduced.

The economic development of Japan in 1919 - 1939. During the years of the First World War, Japan greatly enriched itself and ensured the further growth of its industry. However, the post-war economic crisis of 1920 - 1921. hit Japan especially hard because of its exclusive dependence on the external market. The crisis simultaneously highlighted the weaknesses of the Japanese economy:

  • 1) uneven development of individual industries;
  • 2) backwardness of agriculture;
  • 3) the emergence of numerous speculative enterprises. During the years of the crisis, Japanese exports fell by 40%, imports - by 30%, and the level of industrial production fell by 20%.

In addition, on September 1, 1923, a powerful earthquake occurred in Japan. The Tokyo-Yokohama area suffered the most. 140 thousand people died, material losses were estimated at 5 billion yen. The Japanese government provided assistance to the victims and, first of all, to large entrepreneurs. They were deferred all types of payments and paid compensation for the damage caused. Such assistance became a significant basis for the implementation of the industrial rise of Japan.

During 1924 - 1926. there is a rapid growth in the construction, metallurgical, shipbuilding and other industries, as well as trade. As a result, the value of gross output of factory production increased from 6.6 billion to 7.1 billion yen. The greatest successes were achieved in the metallurgical, machine-building and chemical industries. However, the leading role was still played by the cotton industry, which accounted for over 40% of all industrial production. Moreover, Japanese products successfully competed on the world market with goods from other countries.

During the period of industrial upsurge (1924-1926), the formation of Japanese engineering as an independent industry was completed. Every year the number of engines that were used in plants and factories increased. So, from 1918 to 1929, their power increased by more than 4 times and amounted to 4.5 million hp. At the same time there was a process of concentration of production. In 1929, enterprises employing over 50 people produced 61% of all industrial output.

Japanese big business increasingly consolidated its hegemony in the most important sectors of the economy. Thus, the concerns Mitsubishi and Sumitomo increased their capacities in heavy industry, Mitsubishi and Yasuda - in the branches of credit and foreign trade. The processes of concentration of production and capital in the war and post-war period completed the formation of monopolistic associations in the form of family concerns - zaibatsu, uniting dozens of various enterprises under the control of the parent family company, which covered the main sectors of the economy. Unlike the financial and industrial monopolies of the West, zaibatsu were formed not as a result of competition, but through special commercial and industrial privileges that were given by the state to special family clans. The close ties of monopolistic associations with tribal families made the zaibatsu closed-type concerns, the shares of which were not widely traded.

A characteristic feature of the zaibatsu was their versatility. So, the Mitsubishi concern in the 20s. controlled about 120 companies with a total capital of 8,900 million yen, including railway, electrical companies, as well as enterprises in the metallurgical, mining, shipbuilding and cotton industries. The Zaibatsu maintained a close relationship with the ruling circles.

The state continued to play the role of the largest entrepreneur in the 20s. The technical level of state-owned enterprises was significantly higher than that of private ones. The state provided about 2/3 of all investments in the country's economy. Most of them were provided by the zaibatsu.

However, Japan's economic situation was tense. Characteristic was the huge liability of foreign trade, which testified to the weak competitiveness of goods. Often, Japanese entrepreneurs resorted to exporting their goods at low prices in order to maintain their position in Asian markets.

The industrial boom in Japan was short-lived and fragile. Already at the end of 1926 - the beginning of 1927, a reduction in the volume of industrial output began. In 1927, most factories were underloaded by 1/4. During 1925 - 1927. the number of workers decreased by 10%. The industrial crisis in March-April 1927 was supplemented by a financial one. It covered the credit and banking system and manifested itself in the bankruptcy of a number of trading houses and banks. At the same time, the power of the largest banks strengthened. So, five of them (Mitsui, Mitsubishi, Yasuda, Sumito and Daiichi) in 1928 had 35% of all bank deposits in the country, and together with other nine banks - 55% of deposits. "It should also be taken into account that more and more Japan's dependence on foreign markets and sources of raw materials increased.

Japan's agriculture was in fact in a state of crisis during 1919-1928. This was the main reason for the low standard of living of the working people. In addition, Japanese employers sought to make their profits by intensifying the labor of workers. All this led to internal political instability in the country. As a result, in March 1927, the government of General Tanaka came to power, who developed his plan called the "Tanaka Memorandum", which provided for a strategic course for establishing the virtual world domination of Japanese imperialism through violent aggression. The beginning of this plan was to be Japan's attack on China. However, the manifestation of the first symptoms of the approaching world economic crisis and the intensification of the internal political struggle in July 1929 led to the resignation of the Tanaka government.

Thus, 1919 - 1928. became for Japan a period of searching for ways to further develop the economy, where measures of forceful pressure on entrepreneurs were closely intertwined with encouragement and assistance to them. The greatest results were achieved in the branches of heavy industry, a characteristic feature of which was the orientation towards the production of armaments.

At the end of 1929, an unprecedented economic crisis broke out in the capitalist countries, which began in October with a stock market shock in the USA. Due to the close economic ties between these countries, the crisis hit Japan very hard. It highlighted the economic weakness and comparative backwardness of Japanese capitalism. Gross value of products of the factory industry for 1929 - 1931. decreased from 7.4 billion to 5 billion yen, or 32%. Significantly decreased production volumes in the coal, metallurgical, cotton industries and shipbuilding.

An even more severe blow was dealt to agriculture, the value of which decreased by almost 60% during this period. It should be borne in mind that agriculture played a much greater role in Japan than in other capitalist countries. The agricultural sector of the economy was among the first to feel the brunt of the decline. A particularly threatening situation developed in sericulture, where about 50% of peasant farms were employed, and the export of raw silk reached 30% of Japanese exports abroad. As a result of the crisis in the United States - the main importer of Japanese raw silk - its exports decreased, and prices fell catastrophically. The decline in prices for silk, rice, etc. led to a reduction in agricultural production by 40%.

During the years of the crisis, Japanese exports as a whole have decreased. In 1931, it fell by 2 times compared to 1929. It should be taken into account that about 20% of the country's gross national product was exported. The narrowing of both the external and internal markets led to a huge accumulation of unrealized commodity values.

It should be emphasized that in most industries that served the domestic market with traditional Japanese goods - national clothes, shoes, umbrellas, ceramics, etc. - the industrial revolution was not yet completed.

In such difficult conditions, Japanese government circles tried to find a way out of the crisis, shifting its main burden onto the shoulders of the working masses. There were widespread job cuts. The number of unemployed for 1929 - 1933 increased to 3 million people, wages decreased. The rationalization of production, its concentration and centralization accelerated, which was accompanied by the massive ruin of the petty and middle bourgeoisie. The already harsh exploitation of the colonies increased.

In this situation, the military-nationalist layers both in the government and in the opposition, being active supporters of Japan's aggressive foreign policy and militarization of the Japanese economy, voiced open calls for an even greater intensification of these processes. A course was developed for the development of a military-inflationary environment. In accordance with it, an embargo on the export of gold and the abandonment of the gold standard of the yen were introduced. The accelerated issuance of paper banknotes, not backed by either gold or a commodity equivalent, and the flooding of the market with government debt created an opportunity for the government to use additional appropriations for military needs. Military production brought Japanese entrepreneurs the highest profits. So, for 1932 - 1936. leading concerns received military orders worth 5.5 billion yen, and the net profit of Japanese joint-stock companies from 1931 to 1936 increased 2.3 times. If in the 1935/36 budget year the share of military orders was 45% of all budget expenditures, then in 1937/38 they reached 73.5% of the Japanese budget expenditures.

Thus, the difficult economic situation in both Germany and Japan in the post-war period was due to a decline in industrial production, a drop in exports, which led to a reduction in the number of workers and an increase in unemployment.

militarization japan germany dawes

1. World community between world wars.

The time between the two world wars in the history of European countries consists of two periods: 1918 - early 1920s. and 1924-1939. The main content and distinguishing feature of the first is that Europe is covered by a "revolutionary wave", which led to the collapse of the empire in Russia, Austria-Hungary, Germany, to the emergence of new independent states. There are revolutions in which national liberation and social tendencies are considered.

1918-1919 distinguished by the upsurge of the revolution, the proclamation of Soviet republics in Bavaria, Hungary, and Slovakia. In 1919-early 1920s. reaction grows and fascism arises in Italy.

The second period is characterized by the fact that in 1924-28. there comes a relative environmental stabilization, the development of new industries.

During the years of the global economic crisis, there were various options for overcoming the crisis. These are: 1) liberal-reformist; 2) social reformist; 3) totalitarian. These options were discussed on the topic “Place of the 20th century. In the world-historical process.

At the same time, such a way of overcoming crisis upheavals and social conflicts as the development of the fascist movement was gaining more and more strength. The crisis in Germany brought to power an extreme product of reaction - fascism.

Fascism - (from Italian fascio - bundle, bunch, association) is an extremely anti-democratic, radical extremist political movement, tending to establish a terrorist dictatorship.

In 1919 In Italy, the fascist organization "Fato di Combatimento" (Union of Struggle) was first created. Later, similar political movements arose in some other countries. The German fascists formed the National Socialist German Workers' Party (NSDAP) and began to call themselves "Nazis". Fascism and the old conservatism had common features: nationalism and racism.

Nationalism is an ideological and psychological political trend that develops under the influence of national ideologies that clothe the requirements of a specific ethnic community of a self-cultural and general civil nature in the form of political goals and power claims.

Racism is a system of views and practices based on beliefs about the physical and psychological inequality of the human races. Racism is characterized by misanthropy, the division of people into higher and lower races, where the former have the right to dominate, and the latter are doomed to be objects of humiliation.

But there were also very significant differences.

First of all, the fascists replaced the idea of ​​a strong state with the idea of ​​a totalitarian state absorbing the entire society. The old conservatism, reflecting the interests of the elite strata of the population (aristocracy, big financiers), saw in fascism a threat to its privileges, because fascism turns into mass movements of numerous groups of the population (small merchants, entrepreneurs, artisans, officials, peasants) who are afraid of the collisions of the beginning of the century.

The next difference between fascists and old conservatives is violence. It was the armed assault SA, security SS in Germany and the "blackshirts" in Italy that were recognized as a strike force in the fight against their political opponents and in building the future world order.

Speaking about the inclusion of the term "socialist" in the name of their party, the Nazis promised to solve socio-economic problems when "internal enemies" - communists, democrats, Jews, gypsies - were destroyed in the country.

In 1923, the Nazis became the largest political force in Germany. The military-bureaucratic elite contributed to the fact that on January 20, 1933. Adolf Hitler became the head of government - the Reich Chancellor.

That. Germany's largest financial magnates, realizing the impossibility of maintaining their dominance with the help of bourgeois democracy, began to rely on the establishment of a fascist dictatorship in the country. The way out of the crisis through an arms race was especially attractive to German industrialists.

In 1933 trade unions were dissolved, and all German workers were forcibly united in the German Labor Front (FAF), which included entrepreneurs.

All other political parties are banned. Open terror is unfolding against political opponents. The Law “On the Protection of the People and the State” grants unlimited rights to punitive bodies and eliminates the principle of separation of powers. Legislative functions are transferred to the government. After Henderburg's death in 1934. Hitler was given the powers of the President. That. All power was in the hands of Hitler. Power at all levels passed to officials appointed from above. Hitler's slogan about replacing the class struggle with "the unity of the whole people" was carried along: every German was involved in one organization or another, depending on profession, age and gender.

Germany was not satisfied with the results of World War I and the conditions of the Versailles-Washington system. Since 1936 The economic preparation for the war was headed by Gerinth G., who became authorized to implement the 4-year plan.

Thanks to the great mobilization capabilities of the created system and the liberalization of the country () 58% of the budget), the heavy industry of Germany by 1939. 1.5 times exceeded the pre-crisis level, unemployment was quickly eliminated. All this, combined with internal stability and foreign policy successes, created a broad social base for the fascist regime. The established fascist regimes in Italy, Spain, Portugal, etc. were deprived of the integrity inherent in Nazi Germany in the 30s and was aimed at developing a world war.


3. The international situation in the 1930s was tense.

In the late 1920s and early 1930s, the world economic crisis broke out. The rivalry of the leading capitalist countries intensified, which was especially evident in the point of armaments.

The governments of a number of capitalist countries sought to overcome the crisis by means of an aggressive war. There was an increase in military danger.

During the years of the crisis, the situation in the Far East became aggravated. China remained a field of rivalry for influence between Great Britain, the USA, and Japan. Japan aspired to monopoly domination in the region, wanting to create a Greater Asia. This plan began to be carried out with the capture of Manchuria by Japan in September 1931. This is where the first hotbed of war arose. A direct threat has arisen to our Far Eastern borders. The General Staff of the Japanese Army developed a plan for war with the Soviet Union (OTSU plan), according to which the territory of northeastern China was to become a springboard for an attack on the USSR.

In the early 1930s, the situation in the center of Europe sharply worsened. Mass unemployment, a sharp deterioration in the labor situation in Germany led to the fact that the economic crisis began to quickly turn into a political one. In January 1933 The Fascist National Socialist Party came to power. It set the task of overcoming the restrictions on the country's armaments and preparing for a violent redivision of the world.

Preparing for war, Germany quickly began to militarize the country. Material and ideological preparations for war began.

In the six pre-war years, 90 billion Reichsmarks were spent for these purposes, which amounted to more than 24% of the country's national income. The largest Western monopolies (the groups of Rockefeller, Morgan, Mellen, and others) provided the widest possible financial and military-technical assistance. The flow of military-strategic materials to Germany increased significantly.

The balance of power in capitalist Europe has changed. Germany overtook England and France in economic development, becoming a dangerous competitor to the United States. Yes, and Japanese imperialism, which entered the world arena belatedly, left its competitors far behind in terms of the pace of development.

In the conditions of aggravation of contradictions in the capitalist world, the fascist states united into an aggressive military-political bloc. Germany and Japan in November 1936 signed the so-called anti-Comintern pact. A year later, fascist Italy joined him. This is how the aggressive triangle "Berlin-Rome-Tokyo" took shape.

The international situation demanded from the USSR effective measures to strengthen peace and eliminate the threat of a second world war. The USSR put forward the concept of creating a system of collective security in Europe and the Far East. European states did not support the USSR.

Then the USSR agreed to sign a tripartite agreement with France and Germany. But Germany did not want to join this treaty of mutual assistance.

In 1934 The USSR joined the League of Nations. Thus, the problem of European security has expanded its geographic boundaries. In 1935 On May 2, an agreement between the USSR and France was signed on May 16, 1935. with Czechoslovakia. However, the Czechoslovak government linked the section of the mutual assistance treaty with the subsequent actions of France. This revealed the dependence of the security of the Czechs and Slovaks on the political games of the French. Indeed, the position of France was inconsistent. She followed the line of the British policy of "appeasement", calculated on the preservation of European peace through concessions to the aggressors.

In assessing the international situation in the 1930s, there was no unanimity in the leadership of the country. Stalin, Molotov, Voroshilov and others considered fascism as one of the varieties of imperialism. His military threat to the USSR was underestimated by them.

Bukharin, Lionov, Tukhachev, Uborevich, Egorov adhered to a different position. They regarded fascism as a qualitatively new political phenomenon in the system of imperialism. They put forward ideas about the possibility and inevitability of creating an anti-fascist alliance with Western countries.

Bukharin declared at the 17th Party Congress that the fascist ideology was preaching and practicing "open robbery" in Germany itself: Uborevich and Tukhach. They talked about the inevitability of creating an anti-fascist alliance with Western countries. And the West pursued a policy of "appeasement of the aggressor." Given the current situation in the Far East, in March 1936. The USSR signed a protocol on mutual assistance with Mongolia.

Economic consequences of the First World War. The economy of Germany in the 20s. Germany, which played the most active role in the preparations for the world war, became its most humiliated victim. She not only failed to achieve a redistribution of the world in her favor, but also lost vital resources, territories, and people. With particular satisfaction, Germany's opponents in the war invited her delegation on May 7, 1919 to the Palace of Versailles to get acquainted with the draft peace treaty. “The hour of heavy reckoning has come,” said the chairman of the Paris Conference of the victorious countries, French Prime Minister Clemenceau. “You asked us for peace. We are inclined to grant it to you. We hand you the volume containing our peace conditions.” These conditions actually brought Germany to its knees, surrounded on all sides, like an exhausted, driven wolf, tied with thousands of threads, like a defeated Gulliver.

In the next 23 days, given to Germany to put its views on the treaty in writing, it opposed many provisions of the treaty in 20 notes, but these claims were rejected and followed by an ultimatum to sign the treaty within seven days.

The stormy debate in the German parliament on the issue of signing the treaty, during which Reich Chancellor F. Scheidemann said: "Let the hand that imposes these fetters on itself and on us," wither, led to a change in government, which instead of Scheidemann was headed by G. Bauer. On June 23, 1919, the German parliament voted by a majority vote in favor of signing a peace treaty on the proposed terms. And already on June 28, in the mirror hall of the Grand Palace of Versailles, where in 1871 the creation of the German Empire was proclaimed, the Minister of Foreign Affairs. G.Müller and Minister of Justice I.Bell put their signatures under the humiliating contract. Germany's consent to the predatory treaty was largely due to the fear of an increase in the Bolshevization of the country in the event of a continuation of the confrontation with the Entente. Under the Treaty of Versailles, the territory of Germany was significantly reduced. Germany was supposed to return Alsace and Lorraine, seized from her in 1871, with rich iron ore and potash deposits to France. France was also transferred to the ownership of the coal mines of the Saar (albeit with the right to buy), and the Saar region itself for 15 years came under the control of the League of Nations (the League of Nations is an international organization created in accordance with the Treaty of Versailles to maintain peace and international security. Charter of the League nations provided for the application of economic, financial and military sanctions (precautions) to the state that committed an act of aggression.), After which it was planned to hold a plebiscite in the Saarland populated mainly by Germans regarding its nationality.



The newly formed Polish state in 1918 was given a number of regions of East Prussia and Pomerania, annexed in the 18th century, during the divisions of the Commonwealth, the provinces of Poznan and West Prussia, mainly populated by Pomerania. As a result, Poland received a "corridor" between the German territories to the coast of the Baltic Sea. Poland also claimed the largest port of Danzig (Gdansk), but it was declared a "free city" and passed under the control of the League of Nations.

Based on the results of the plebiscites held, the Eupen and Malmedy districts, the territory of Morena, went to Belgium, and Northern Schleswig to Denmark. Czechoslovakia was transferred to the Gulchinsky district. The Memel region came under the control of the League of Nations, and in 1923 Memel (Klaipeda) was transferred to Lithuania. Subject to the conscientious fulfillment by Germany of the above obligations, it was envisaged to sequentially withdraw the groups of occupation troops of France, England and Belgium from the city of the left bank of the Rhine in 5, 10 and 15 years.

In general, under the Treaty of Versailles, as a result of the transfer and plebiscites, Germany lost about 73 thousand. km 2, or 13.5%, of the former territory, which was inhabited by 6.5 million people, or 10% of the population. The lost lands accounted for 75% of iron ore and zinc mining, 20% of coal mining, and 20% of iron smelting.

In addition, Germany, starting the war, sought to redistribute the colonies in its favor, but practically lost their weight and was forced to abandon foreign property. The German colonies, as mandated territories of the League of Nations, were distributed to the most influential members of the winning coalition. Britain and France divided Togo and Cameroon between themselves. England also got East Africa. The British dominions - the Union of South Africa, Australia and New Zealand - got Southwest Africa, the northeastern regions of New Guinea with the adjacent archipelago and the Samoa Islands. Japan passed the Caroline, Mariana and Marshall Islands in the Pacific Ocean, as well as the rights of Germany on the Shandong Peninsula (lease of the territory of Jiaozhou, etc.). Belgium received part of East Africa. Thus, Germany has lost many sources of raw materials and markets.

In accordance with the Versailles Treaty, the amount of reparations from Germany was later determined in the amount of 132 billion gold marks as compensation for the damage caused by the war to the victorious countries. 20 billion marks had to be paid as an advance within the next two years. As payment for reparations, 5,000 locomotives, 150,000 wagons, and 140,000 dairy cows were confiscated. In the next 10 years, Germany was supposed to supply coal, building materials, chemicals, dairy cattle as reparations. Such payments went to France, Belgium and Italy. The victorious countries were also guaranteed trade and investment incentives. Even the costs of maintaining the occupying troops on the left bank of the Rhine were assigned to Germany.

In order to weaken the military potential of Germany, it was obliged to reduce the army to 100 thousand people, of which officers - up to 4 thousand. Conscription was replaced by free employment, the German General Staff was disbanded, the production of weapons was strictly regulated in Germany, it was forbidden to have heavy artillery, tanks, submarines , military aviation. The navy was limited to six ironclads and a few smaller vessels. The Rhineland was to become completely demilitarized. Germany's losses under the Treaty of Versailles were great, but no less devastating were the losses resulting from hostilities and the destruction of the economy. Killed on the fronts, Germany lost 1 million 800 thousand people, and together with the prisoners and the wounded, the losses amounted to 7.5 million people. The total cost of waging the war reached 150 billion marks, and the resources accumulated over the four years of the war did not exceed 32-35 billion marks.

As a result of unproductive spending on the war, the material resources of the country were sharply depleted. This applied to stocks of ferrous and non-ferrous metals, fuel, chemical industry products, and means of transport. The total volume of industrial production in 1918 decreased in comparison with 1913 by 43%, and national wealth was halved. In agriculture, the gross harvest of oats decreased by half, wheat and potatoes - by 45%, rye by 35%. The number of livestock, fertilizers, agricultural machinery has decreased.

During the war years, the social situation of the majority of the population deteriorated sharply. Since 1916, many Germans have been starving, unemployment has become massive, real wages have decreased, which in 1918 compared to 1900 amounted to 72%. Industrial injuries increased by 50%. All this caused social unrest, a revolutionary situation, the victory of the democratic revolution in November 1918, the formation of the Weimar Republic (The name Weimar Republic comes from the name of the provincial German city of Weimar, where the constituent adopted the Constitution of the democratic republic took place.) in accordance with the Constitution adopted on July 31 1919

In general, it should be noted that the German economy, as a result of the war unleashed by it, was on the verge of collapse, and what was left of it became easy prey for the victorious countries.

After the end of the war and until 1924, the economic crisis continued in Germany. The production of industrial products was falling, the process of demilitarization of industry was proceeding painfully, and the domestic market was significantly reduced due to the impoverishment of the population. The situation was aggravated by the unfolding in 1920-1921. world economic crisis.

The greatest calamity was inflation. The issue of paper money has acquired astronomical proportions. By the beginning of 1920, the amount of paper money in circulation had increased 25 times compared to 1914, and this process did not stop. If in 1913 4 marks were given for one dollar, then in 1920 - 65, in 1922 - 191, in January 1923 - 4300, and in November of the same year 8 billion marks. Twenty state printing houses worked at full capacity, printing paper signs. This resulted in money becoming cheaper than the paper it was printed on.

The purchasing power of money declined sharply. So, in 1918, 10 tram tickets could be purchased for one mark in Berlin, in 1919 - already 5, in 1921 - 1. In July 1923, a tram ticket cost 1,000 marks, in August - 10,000, in September - 600,000 marks, and in November 1923 the amount turned into a fantastic one - 150 billion marks. By the end of the year, the real purchasing power of the population was 15-17% of the pre-war level.

Inflation contributed to the enrichment of the most enterprising industrialists. By the end of 1922, they were able to obtain from the state credits and loans in the amount of 422 billion marks, which quickly depreciated. The loans were returned at face value. For example, on July 1, 1922, the well-known industrialist G. Stinnes received a loan from the government in the amount of 5 million marks with payment on January 1, 1923. With this money, dollars were immediately bought at the rate of 117 marks for 1 dollar, and in total - 43 thousand dollars. By the time the debt was paid, the dollar had risen to 4,279 marks. For the full payment of the loan, Stinnss paid only $1,160, while the remaining $41,840 remained with him. Currency speculation contributed to the intensive growth of the Stnnnes concern. His capital was estimated at 8 billion in gold. The concern owned 290 coal mines, 200 iron ore mines, and 190 power plants, 65 transport enterprises, 285 companies, 160 other enterprises.

Inflation was also used by the landowners, who freed themselves from huge debts to banks, paying them 18 billion marks, worthless paper money.

In the autumn of 1923 the rise in prices reached 16% per day, and in 1923 wages increased 1 billion times. The daily wage of a skilled worker in Berlin in November 1923 was 3 trillion. 38 billion marks, but it was not even enough for food. Such a salary had to be carried in baskets. Real wages fell by 25% compared to the pre-war level. All this required a monetary reform in 1923, which would stabilize the mark.

Despite the difficult economic situation, Germany was forced to pay reparations. In 1919 - 1923. 8 billion marks were paid in terms of gold.

In addition, the situation was complicated by the fact that in February 1923 the Franco-Belgian troops occupied the Ruhr region, as a result of which Germany lost 88% of coal production, 70% of iron smelting, 40% of steel smelting, as it was the main industrial center of the country.

The economic crisis caused a revolutionary situation. In 1923, workers' governments were established in Thuringia and Saxony, and an armed uprising took place in Hamburg. The growth of social tension and revolutionary speeches forced the victorious countries to make some concessions to Germany.

In the summer of 1924, at the London Conference, the so-called Dawes Plan was adopted, named after the chairman of the international expert American banker Ch. Dawes. The Dawes plan provided for a sharp reduction in annual reparation payments: 1 billion gold marks in the 1924/25 budget year, 1.2 billion in 1925/26. In the next 4 years, it was planned to increase payments to 1,750 million marks, and from 1929 Germany had to pay 2.5 billion marks each. The Entente countries guaranteed Germany the stability of the currency up to the suspension of the transfer of reparations abroad in the event of fluctuations in the exchange rate.

The main part of the reparation payments came from the introduction of high indirect taxes on consumer goods: sugar, tobacco, beer, fabrics, shoes. A smaller share of payments was to be covered by the revenues of industry and railways.

It was envisaged to stop the occupation of the Ruhr coal basin. In order to prevent a revolution in Germany on the Russian model and reduce social tension, it was decided to significantly increase loans and direct investment in German industry.

Since 1924, the stabilization of the German economy begins. The decisive role in this was played by loans in the billions provided by the United States of America and England. The total amount of foreign investment in 1924 - 1929 reached 21 billion gold marks, which was 2 times the amount of reparations. 70% of loans came from the USA. Credits accounted for approximately two-thirds of the fixed capital of German industry, and the long-term credits received by the German monopolies amounted to 12 billion marks. Some loans were provided for 20 - 30 years and were used for modernization. The government itself immediately received a loan of 800 million marks.

The exit of the industry from the crisis was accompanied by the intensification of monopolization processes. Established in 1925, the chemical concern "IG Farbenindustri" immediately became the largest in Europe. The enterprises of the concern produced 100% German synthetic gasoline and dyes, 80% synthetic nitrogen, 25% rayon. The six Ruhr concerns "Vereinigte stalwerke", Krupp, Hesch, Haniel, Mannesmann and Klöckner controlled 65% of iron production and 60% of hard coal production. The Stinnes concern, which went bankrupt in 1925, was revived in 1926 in the form of the Steel Trust, which controlled 43% of the production of pig iron, 40% of the production of steel and iron, which had about 300 enterprises employing about 200 thousand workers. The electrical industry was dominated by the concerns of the General Electricity Company (AEG) and Siemens.

In 1928, the pre-war volume of industrial production was surpassed by 8%. Heavy industry developed at an accelerated pace: coal mining increased by more than 1/3, brown coal - by almost 3/4, iron smelting - by about 1/2, steel smelting - by more than 1/3. Mechanical engineering, electrical and chemical industries have achieved major successes. The production of synthetic gasoline and artificial silk was mastered. In terms of total industrial production, Germany has become the second largest country in the world after the United States.

German industrialists managed to restore their international positions. They bypassed England in the export of machinery and equipment. The value of German exports in 1929 exceeded the pre-war value by almost 3 billion marks. German finance capital participated in 200 of the 300 international monopolies. In 1926, at the initiative of German industrialists, the European Steel Cartel was created, which smelted 75% of the steel in Europe.

At the same time, many social problems were rather exacerbated. Wages were 60 - 70% pre-war, about 20% lower than the wages of French workers and 40% lower than the wages of workers in England. At the same time, the working day in 1927 was increased to 10-12 hours. Unemployment in 1924-1929. ranged from 3.5 to 19 million people.

Thus, the 20s. for the German economy, they were first years of the greatest devastation and national humiliation, but then a period of gradual overcoming of the crisis and restoration of the economy. Economic recovery 1924 - 1928 contributed to foreign investment and loans, renewal of fixed capital and modernization of production, monopolization and the possibility of entering foreign markets.

Economy of Germany during the World Economic Crisis (1929-1933). In October 1929, the crash on the New York Stock Exchange ushered in the most devastating overproduction crisis in industrial history, which engulfed the economies of developed countries for four years. Germany was one of the hardest hit countries, as its economic success was largely based on foreign loans and investment.

The continuous decline in industrial production continued from the end of 1929 until July-August 1932. The volume of industrial output during this time decreased by 40.6%. In the heavy industry, the decline in production was even greater: steel production decreased by 64.9%, pig iron - by 70.3%, production in the machine-building industry - by 62.1, shipbuilding - by 80%. Entire industrial regions were idle. For example, in Upper Silesia at the beginning of 1932 all blast furnaces were in operation. Construction has stopped. In 2.5 times - the turnover of foreign trade fell. The industrial enterprises of Germany in 1932 used their capacities only by 33.4%.

Germany has set a European record for unemployment. By the beginning of 1933, according to official figures, the number of unemployed was approaching 9 million people, which accounted for half of the wage laborers. Meager unemployment benefits received about 20% of their total number. Craftsmen, builders, merchants, and freelancers also became unemployed. They were almost completely deprived of the right to benefits. In addition to the completely unemployed, several million people were partially unemployed, employed in production 2 to 4 days a week. They made up about a quarter of the working population. At the beginning of 1933, almost 60 thousand employees and officials lost their jobs.

People were unemployed for two to four years. Their families were doomed to a slow death. It is no accident that an average of 21,000 people commit suicide every year.

The position of those who remained in production was not the best either. General payroll in 1929 - 1932 decreased by 20 billion marks, or almost twice. According to some reports, in 1932 the average weekly wage of a German worker was 21.74 marks, while the official living wage was 39.05 marks.

During the crisis, all segments of the population suffered. The turnover of handicraft production decreased from 20 billion marks in 1928 to 10.9 billion marks in 1932, the turnover of petty trade decreased over the same period from 36.3 billion to 23 billion marks. At the same time, the number of these strata of the population was quite large: 5 million people, and together with families - 12-13 million.

Under the influence of the industrial crisis, the agricultural crisis also deepened. The decline in the purchasing power of the population limited the sale of agricultural products. At the same time, the implementation of the protectionist policy even led to an increase in wheat harvests. State subsidies were received mainly by large Junker farms. Small farms, of which there were more than 5 million (77.8% of all farms, 9.5% of land area), had mainly livestock specialization and did not produce grain. They were forced to buy bread and fodder for livestock, which led to ruin for many. As a result, in 1932, 560 thousand hectares of peasant land were sold at auction.

Formed in the spring of 1930, the government of G. Bruning sought to overcome the crisis, liquidated the social insurance system, introduced new direct and indirect taxes, increased import duties on agricultural products, etc. In December 1931, unemployment benefits, pensions, and salaries of civil servants were reduced. For the first time, the government invaded the system of tariff contracts, prescribing a general reduction in wages by 10-15%, to the level of 1927. At the same time, the democratic rights of the population were limited, the Reichstag was gradually removed from solving state affairs, a style of governing the country was formed, in which the leadership was actually introduced into the hands of a narrow group of people with a significant influence of military ranks.

Due to the difficult economic situation, Germany was practically unable to carry out the Dawes plan. Therefore, the Western countries, which themselves experienced a crisis, also stopped investments in the German economy, provided for by the Dawes plan. The German government turned to the victorious powers with a request to lighten the burden of reparations. In August 1929 and January 1930, reparations conferences were held at which it was decided to give Germany benefits, and a new plan for the payment of reparations was adopted, which was called the Young Plan, after the American banker, chairman of the committee of experts.

The Young Plan provided for an early termination of the occupation of the Rhineland in 1930. The total amount of reparations was reduced from 132 to 113.9 billion marks, the payment period was provided for in 59 years, and annual payments were reduced. In 1931 - 1934 the amount of payments was to increase, starting with 1 billion 650 million marks. In the next 30 years, reparations were to be paid at 2 billion marks. In the remaining 22 years, the volume of annual contributions decreased. It was decided to abolish control over the German economy. Natural deliveries were reduced. Part of the reparations belonged to the category of unconditional, and they were intended to pay off inter-allied debts. For the next 10 years, unconditional reparations were determined at 700 million marks. To implement the decisions taken, the Bank for International Settlements was created, which was located in Basel.

However, the deepening of the crisis continued, the economic and social situation in Germany worsened, so the implementation of the Young Plan was considered dangerous. As early as June 1931, US President Hoover demanded the suspension of reparations payments for one year. In June 1932, the Lausanne conference reduced all payments to 3 billion marks and fixed the term of their payment at 15 years.

Thus, the devastating consequences of the global crisis for the German economy were catastrophic. Industrial production was reduced by almost half, agricultural - by 31%. The share of Germany in world industrial production fell from 14.6% in 1928 to 8.9% in 1932. German exports fell by 58%. Only a third of German workers had a full work week. At the height of the crisis, German industry was only 35.7% loaded. The average weekly wage of German workers in 1932 was 47% less than in 1929. Germany was turning into a country of poverty, unemployment, chronic malnutrition, hopelessness and despair for millions of people.

The coming to power of the Nazis and their economic policy. The deepening of the economic crisis caused the collapse of the German political system (the end of the Weimar Republic). The ruling economic and political elite came to the conclusion that the democratic methods of governing the state have no further prospects. The Reichstag was relegated to the background, and even to the third plan, and all power was increasingly concentrated in the presidential palace, the owner of which was P. Hindenburg, a militarist who dreamed of revenge. Hindenburg and his entourage were very impressed by the chauvinism and revanchism of the Nazis, their calls for strict order and forcible redrawing of the map of Europe. Thus, Minister of War A. Trainer, having first met A. Hitler on January 11, 1932, spoke of him at a meeting of the Ministry of the Interior as "a nice, modest, decent person striving for the best," whose goals are good, although not all funds are acceptable. Hitler became more and more popular. He promised the Germans not only the return of the "bright past", but also an even more "bright future", and, above all, general employment, order in the country, and over time - the expansion of living space, wealth and domination over the "lower" races.

In February 1932, Hindenburg declared: "It is becoming more and more clear that the people want Hitler ... Then let the young man show what he is capable of."

On January 30, 1933, the newly elected President Hindenburg appointed Hitler Reich Chancellor and since then a period of fascist dictatorship began in Germany. Its essence was to create a comprehensive system of state-monopoly regulation, the maximum centralization of the economy in the hands of the state, the fascist party and the top financial and industrial circles.

On February 1, 1933, the parliament was dissolved ahead of schedule and new elections were scheduled for March 5. The Nazis sought to secure a majority in the Reichstag and give their rule a certain respectability. On February 20, at a narrow meeting with the largest industrialists - Krupny, Vogler, Bosch, etc., Goering assured the monopolists that if the Nazis win the elections, then "these will be the last elections in Germany for 10 years, and maybe for 100 years ". The monopolists supported the Nazis both morally and financially. Rallies, demonstrations, torchlight processions were organized in their support. 5 days before the elections, on the night of February 27-28, the Reichstag was set on fire in order to compromise political rivals - the communists. In this case, 10 thousand people were arrested, including the famous Georgy Dimitrov, who brilliantly defended himself and was acquitted by a German court.

The next day after the Reichstag fire, the president, by an emergency decree, abolished the most important democratic rights and freedoms: the communist and social democratic press were banned, the inviolability of the person, freedom of speech, assembly, and the press were abolished. However, despite the terror, demagogy and fraudulent vote counting, 22 million voted against the Nazis, i.e. more than half of the voters. And, only by declaring illegal 81 mandates received by the communists, the Nazis received a "majority" in the Reichstag. On March 24, 1933, the new parliament gave Hitler's government emergency powers, which essentially abolished the Weimar Constitution of the Republic.

In June 1933, the General Council of the German Economy was organized under the Ministry of Economics, which directed the state economic policy. It included 12 representatives of the largest monopolies - G. Krupp, F. Thyssen, G. Fegler, F. Flick and others, as well as 5 representatives of the fascist bureaucracy. In 1934, a decree on the labor front was issued, which prohibited strikes and the transfer of workers from one enterprise to another. Collective agreements were abolished, and business leaders received dictatorial powers. A system of forced labor began to formally take shape.

At the same time, a forced concentration of production was carried out, which was beneficial to large monopolists. In 1933, a law was passed on compulsory syndication, according to which individual enterprises were to be part of existing cartels or syndicates. This trend was consolidated in 1934 by the law on the organic construction of the German economy, in accordance with which enterprises were forcibly united according to industries and territorial regions.

The Organization of the Fishery was created, which was divided into six imperial groups: industry, energy, trade, crafts, banking and insurance. Along with the sectoral structure, a regional management structure was also created: the whole of Germany was divided into 18 economic regions. Each region created its own economic chamber, which was the highest body of economic power on the spot. The economic chambers were headed by large monopolists, who received the title of economic leaders. For example, the largest industrialist Thyssen became the economic leader of the northwestern industrial region, and Flick became the economic leader of Central Germany.

The territorial economic chambers were led by the imperial economic chamber, which in turn was subordinate to the Ministry of Economics. Imperial groups and district economic chambers, headed by the largest industrialists and financiers, completely controlled the economy: they created and dissolved industrial associations, regulated the distribution of orders, loans, raw materials, controlled production volumes, directions of its development, price levels.

Direct administrative dictatorship became the main method of managing the economy. For example, the reform of joint-stock companies liquidated all companies that had less than 100 thousand marks of capital, and it was allowed to open joint-stock companies only with a capital of 500 thousand marks or more. The so-called "Aryanization of capital" also contributed to monopolization, during which, under the pretext of fighting "non-Aryan" elements in banks and industry, monopolists close to power seized banks and industrial enterprises. Thus, the Mannesmann Concern acquired 8 rolling mills and doubled the production of sheet iron in the course of "Aryanization". Gradually, 30-40 richest families occupied key positions in the economy.

The militarization of the German economy was carried out at an accelerated pace. In September 1936, a four-year plan was approved to mobilize its economic resources, accumulate scarce materials and expand the production of military equipment. In militarization, the German monopolists saw a way out of the crisis.

The extraction of iron ore was expanded, as well as its import from Sweden, Norway, Belgium, Luxembourg, France and their colonies. If the import of iron ore in 1929 was 15.8 million tons, then in 1939 it was 22.1 million tons. This allowed Germany to smelt 23.3 million tons of steel in 1938 and reach this indicator by first place in Europe. In addition, nickel, tin, tungsten, molybdenum, chromium, platinum, bauxite, which were almost absent in Germany, were bought abroad. Import of bauxite for 1933 - 1938 increased 5 times, and in 1939 aluminum smelting in Germany reached 30% of its world production, which put Germany in first place in this indicator.

The production of petroleum products, synthetic rubber, automobiles, and machine tools increased. Germany accumulated resources for the war, largely using the resources of those countries with which it was going to fight. The United States made the largest investment in the German economy. In 1937, the American company Brassert built metallurgical plants, which formed the largest military concern, Reichswerke Hermann Goering. US corporations passed on technical secrets to Germany: the production of rubber, radio installations, equipment for diesel engines, etc. American factories in Rüsselheim, Brandenburg, and Cologne supplied cars to the fascist army. Contributing to the preparation for war of a potential aggressor, the United States, as well as England, Denmark hoped to push Germany and the USSR into a war, receiving economic and political dividends from this.

State orders have become a source of colossal enrichment for the largest monopolies. The gross income of the I.G. Faroenindustry concern, which in 1932 was 48 million marks, in 1939 increased to 363 million marks. The profit of the Krupp concern increased from 118 million marks in 1933 to 395 million in 1939. Goering became the largest monopolist, at whose enterprises 600 thousand people worked. Hitler himself became the owner of a publishing house and only for the release of his "labor" "My struggle", which was distributed forcibly, received 4 million dollars. income.

The militarization of the economy led to a way out of the crisis and a significant increase in production. For 1929 - 1938 the volume of industrial output increased by 25%. At the same time, output in the light industry declined.

The production of military equipment - aircraft, tanks, artillery - increased at a faster pace. 3/5 of all investments were directed to heavy and military industry. "Militarily decisive" and "militarily important" enterprises were primarily supplied with credits, raw materials, and labor. As a result, heavy industry in 1934 reached the pre-crisis level, and by 1939 it had exceeded it by 50%. Military production and expenditure on armaments for 1932 - 1938. grew 10 times. The latter before the start of the war amounted to 58% of the state budget.

By 1937, more than 300 military factories began to work, including about 60 aviation, 45 automobile and tank, 70 chemical, 15 military shipbuilding, etc. If in 1931 13 aircraft were produced in Germany, then in 1933 - 368, in 1939 - 8295.

The slogan "guns instead of butter" has acquired a real meaning. A direct ban was imposed on investments in industries that produced consumer goods, the production of which by the beginning of the war had not reached the level of 1928.

Gradually introduced a system of forced labor in production. Starting from 1935, labor service was introduced for young people aged 18-25, and in 1938 it became universal. Already in 1934, metal workers were forbidden to change their place of work, and since 1935 special work tickets were introduced in order to account for and mobilize the workforce. The working day lengthened, and on the eve of the war it reached 10-14 hours.

By the end of 1933, agriculture was also reorganized. The agrarian policy was designed to create food reserves by the beginning of the war. A system of forced deliveries of agricultural products was introduced, and the trade union of agricultural workers was liquidated. The law "On hereditary yards" issued in 1933 declared farms from 7.5 to 125 hectares inalienable and exempt from inheritance and land taxes. Such farms were inherited only by the eldest son.

By 1941, 730,000 hereditary households had been created, which was approximately 1/10 of the total number (6,663,000) of agricultural enterprises.

The law divided the rural population into peasants and rural owners. Only owners of hereditary households of Aryan origin received the right to be called peasants. Since the hereditary yards were transferred only to the eldest son, all other children of the peasants had to get "living space" in the ranks of the army with weapons in their hands, conquer new lands. Farmers, who owned small plots of land, bore the brunt of the duties of preparing food supplies for war. They were instructed what to sow, rent and at what prices. They could not even sell chicken without the permission of the authorities. As a result, for 1933 - 1939. about one and a half million farmers went bankrupt.

By 1938, Germany had become a powerful military power and in industrial production came out on top in Europe and in second place in the world. However, the German economy was geared towards military preparations. The democratic rights of citizens were abolished, and a fascist dictatorship was established. German militarism was preparing a catastrophe on a planetary scale.

The economic development of Japan in 1919 - 1939. During the years of the First World War, Japan greatly enriched itself and ensured the further growth of its industry. However, the post-war economic crisis of 1920 - 1921. hit Japan especially hard because of its exclusive dependence on the external market. The crisis simultaneously highlighted the weaknesses of the Japanese economy: 1) the uneven development of individual industries; 2) backwardness of agriculture; 3) the emergence of numerous speculative enterprises. During the years of the crisis, Japanese exports fell by 40%, imports by 30%, and the level of industrial production fell by 20%.

In addition, on September 1, 1923, a powerful earthquake occurred in Japan. The Tokyo-Yokohama area suffered the most. 140 thousand people died, material losses were estimated at 5 billion yen. The Japanese government provided assistance to the victims and, first of all, to large entrepreneurs. They were deferred all types of payments and paid compensation for the damage caused. Such assistance became a significant basis for the implementation of the industrial rise of Japan.