{"id":237991,"date":"2023-04-14T21:03:22","date_gmt":"2023-04-14T15:33:22","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=237991"},"modified":"2023-04-14T21:03:22","modified_gmt":"2023-04-14T15:33:22","slug":"for-our-world-in-flux-some-hard-lessons-in-history-from-the-1930s","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/for-our-world-in-flux-some-hard-lessons-in-history-from-the-1930s\/","title":{"rendered":"For our world in flux: Some hard lessons in history from the 1930s"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cFor our world in flux: Some hard lessons in history from the 1930s\u201d <\/strong>published in the \u201cmint\u201d <\/strong>on 14th April 2023<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3- Global economy. GS2- Global politics<\/p>\n

News<\/strong>– The article explains the prevailing uncertainty in global politics and economy and compare with situation in 1920s<\/p>\n

How is the world in a state of flux today?<\/strong><\/h2>\n

Global politics<\/strong>– The geopolitical divides<\/strong> are sharper than they have been for decades. International relations are strained<\/strong>, and there are several potential flashpoints. <\/strong><\/p>\n

Economy<\/strong>– The coronavirus pandemic prompted repeated lockdowns<\/strong> across the world, it led to sharp contraction in output and employment everywhere. The economic recovery has been slow.<\/p>\n

In many countries, national income in 2022 just about returned to its 2019 levels. The recovery has been K-shaped<\/strong>, so economic inequalities<\/strong> have continued to rise. The pandemic also disrupted integrated global production networks<\/strong>. It stifled international trade and investment flows.<\/strong><\/p>\n

The situation might have improved in early 2022. But the Russia-Ukraine war<\/strong> disrupted global supply-chains <\/strong>in food, fuels and fertilisers. The sharp rise in food and fuel prices pushed inflation to double-digit levels in most countries.<\/p>\n

The response of central banks has been raising interest rate<\/strong>s. It will stifle investment and dampen consumption<\/strong>, instead of curbing inflation.<\/p>\n

In fact, the prospect of recession in the world economy looms large. The continuing war<\/p>\n

Ukraine has enhanced uncertainty and risk<\/strong>. It has made markets nervous. Large international firms are relocating and re-shoring<\/strong> their production. Globalisation is at risk.<\/strong><\/p>\n

Regional politics<\/strong>– There are resurgent nationalisms<\/strong> due to populist or chauvinist sentiments.<\/strong> In rich countries, nationalist-populist political parties, or far-right xenophobicleaders<\/strong>, exploit fears about immigration and trade.<\/p>\n

In poor countries, nationalist-populist political parties<\/strong> exploit religious beliefs or ethnic divides<\/strong> to create identity politics<\/strong>. Such populist-authoritarian regimes are now present across countries and continents.<\/p>\n

What are many strong parallels with the world that existed a century earlier? <\/strong><\/h2>\n

The preceding era of globalisation<\/strong> during 1870-1914, was brought to an abrupt end by World War I. In 1918, Spanish Flu caused a worldwide pandemic that cost 50 million lives.<\/p>\n

In the 1920s, Europe struggled with problems of reconstruction, slow growth and hyperinflation<\/strong>.Economic inequalities<\/strong> between and within countries rose. This was conducive to the rise of nationalism and militarism<\/strong>. Mussolini captured power in Italy.<\/p>\n

Unequal terms in the Treaty of Versaille<\/strong>s had economic and political consequences.<\/strong> In October 1929, the Great Crash in stock markets of the US led into the Great Depression.<\/p>\n

Economic troubles led to political instability<\/strong> in many parts of the world. The political uncertainty<\/strong> led to the rise of nationalism and militarism<\/strong> in some countries.<\/p>\n

By 1930, the Nazis were the second largest political party in Germany. In 1933, Adolf Hitler was appointed chancellor. The Great Depression<\/strong> also led to the rise of militarism<\/strong> in Japan during the 1930s.<\/p>\n

Economic nationalism <\/strong>surged almost everywhere as countries adopted \u2018beggar-thy-neighbour\u2019 policies<\/strong>. They restricted imports to protect domestic output and employment.<\/p>\n

Both Germany and Japan aspired to a larger role in a world dominated by the<\/p>\n

US and Great Britain. In this quest, during the late 1930s, Germany pushed Europe closer to World War II. Japan did so in December 1941.<\/p>\n

What are striking similarities between this past and our present?<\/strong><\/h2>\n

The financial crisis of 2008<\/strong> spread worldwide. The Great Recession f<\/strong>ollowed in its aftermath disrupted globalisation<\/strong>. The covid pandemic was perhaps the last shock for globalisation.<\/p>\n

Inequalities in income and wealth<\/strong> between and within countries are unprecedented. Slow growth, persistent inflation, and a possible recession<\/strong> can increase discontent among people. The Ukraine war could have global implications<\/strong>. Russia wants to regain its position.<\/strong> There is a pronounced shift in the balance of economic power<\/strong>, from the West to Asia, and from the US to China.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cFor our world in flux: Some hard lessons in history from the 1930s\u201d published in the \u201cmint\u201d on 14th April 2023. Syllabus: GS3- Global economy. GS2- Global politics News– The article explains the prevailing uncertainty in global politics and economy and compare with situation in 1920s How… Continue reading For our world in flux: Some hard lessons in history from the 1930s<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,216,11125],"class_list":["post-237991","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-gs-paper-3","tag-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1700591266},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/237991","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=237991"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/237991\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=237991"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=237991"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=237991"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}