Economic Developments Essay

The current system of the conception delivearned run averagence has emerged as a result of the historical trends and stinting developments that occurred in the unmatched- epoch(prenominal) particularly during the terminations of initiation state of war I, arena War II and the common cold War. To a signififannyt extent, the current world order and the capitalist and industrial prosperity that is being experienced today are products of historical frugal developments. This paper examines the sparing developments from 1913 to the present including the history of self-determination in the world economy in relation to the current world economy.Consequently, the employment of the bead in States from being an isolationist to an economic hegemon is analyzed. Economic Developments from 1913-Present The geological period from Post being War I up to the present can be considered to be a see-saw of economic prosperity and economic c matures for most countries. For countries like the unite States the war had brought about economic development but it also caused the economic downturn for countries like France and Germany. Capitalism began to ensue and trading had been more active.Hence, the period from 1920-1929 signa sate the massive economic progress in the world economy- industries were established and the per centum of industries to agriculture rose. After this massive growth however, the unemployment rate and poverty that ensued from the period of 1929-1941 had led to the bang-up Depression- interest rates were high, hyper pretentiousness ensued and the rise in debt had led to stock market collapse. The world economy had experienced a general recession leading the collapse of markets worldwide.In this era, the gross domestic product and GNP of nations dropped and poverty ensued as world business deal had been inactive. After the Great Depression, the World War II had created another economic era- post World War II had been considered to be a golden era for capitalism worldwide. This is because of the rapid rise in industries, the technological advancement, the prospering and stabilization of world trade, domestic and world-wide institutions had been established in order to facilitate the world economy.Consequently, the World spate Organization, the World Bank and the IMF were established in order to aid countries needing economic lift in order to aid in their industrialization. Backed by capitalism and foreign direct investments, this era can be considered the time when the world economy had boomed. However, after this period the time between 1970s-1980s, inflation and interest rates grew up and the fixed interest rates were deregulated in order to let the world economy repair itself.This era had however, contributed in terms of the massive plan to reorganize domestic economies through financial policies. The post Cold War on the other hand, marked the era when the US became the sole hegemon after the downfall of Russia. B efore the Cold War, egalitarian countries can just trade with democratic countries and communist countries are only limited to trade with communist countries- the downfall of Russia opened the doors for all countries to be participants in the world economy.Hence, during the period of 1990 and up to the present times, despite near economic fluctuations, the world economy can be considered as horse barn and progressive. While there are ups and downs, the stability of the world economy in the present times cannot easily succumb to another depression. Self-Determination and in the World Economy Self-determination started after the World War I as a result of the Treaty of Versailles- it declared that the sovereignty of the states should shoot charge of the whole population.World War I led to the withdrawal of the Hapsburg and Ottoman empires and the birth of a new generation of nation-states. At Versailles, U. S. chair Woodrow Wilsons famous Fourteen Pointsthe fifth of which declar ed that sovereignty should take full account of the interests of the populations concernedformed the basis for the treaty final stage the war. After World Wars One and Two, self-determination inspired the demolition of empires and the governance of new sovereign states the concept being thus extended in the 1940s and 1950s to apply in the context of the decolonisation process.In the 1960s and 1970s, the normal of self-determination clashes with the principle of territorial integrity and world-wide leaders are increasingly seeing this angle to the problem. In fact, tied(p) the UN resolution 1514 adopted in 1960 which elevated the status of self-determination, had also show territorial integrity any attempt aimed at the partial or total disruption of national unity and territorial integrity of a country is incompatible with the Purposes and Principles of the Charter of the United Nations.The outside(a) system was caught up in the contradiction and had exhibited some degree of a mbivalence at least(prenominal) after the post-war decolonisation. It can be observed that the further extension of the principle today, as it inspires the surge of ethnic politics and threatens the break-up of the established post-colonial order. The United States as the Worlds Political and Economic HegemonThe United States before World War I cannot be considered to be an economic or a political superpower, it derived its wealth from World War I from selling ammunitions and exploiting the economic opportunities caused by the war. However, in World War II, the US emerged as ane of the more powerful countries not only in terms of engineering science but also politically and economically after surviving the Great Depression. The Post World War II established the United States from a country in the middle to that of a global hegemon.For one, post World War I saw the US to be involved in trade, the importation and exportation of goods as well as in peeping for new territories to ex pand its power and industries. Post World War II saw the United States cementing its economic and political hegemony- it had established itself as one of the most prosperous and progressive countries not only through its GDP and GNP but also in terms of its ability to confabulate upon other countries.The United States during this time served as one of the economic powers unneurotic with countries in Europe, Japan and the USSR. Upon entering the Cold War, the world became a office of the US and the USSR or majority rule versus communism. During this era, the United States served as an transnational role model for democracies as well as the patron of democratic countries. The fall of the USSR catapulted the US to its role today as a global hegemon- tho for North Korea, there had been no real threat to the supremacy of democracy and hence, the United States.During this time until the present times, the United States had been a major player in sanctioning countries that do not abid e by international laws and regulations as well as being a forerunner in providing foreign aids as well as regulating trade activities. To be a partner with the US would be tantamount to economic growth. The power held by the US both politically and economically can be considered to spawn countries even in Asia and Third World countries. unnecessary to say, the United States can be considered to be the most important international player today.