Unit 15 Western Europe's Golden Age, Introduction Flashcards
Introduction 15.1 Europe transformed, 15.2 The thirty glorious years; Europe’s economic golden age
Some Dutch reaction in 1960’s (the Provos) is anti-consumerist (especially as the Dutch had suffered such hunger at the end of the war) - start of the ‘protest generation’
It was rising living standards that saw off the challenge from the left - capitalism’s success Mazower
This exceptional period is usually taken to end in 1973 with the first big rise in oil prices, resulting from the Yom Kippur War between Israel and its Arab neighbours, brought to to an abrupt end the cheapness of oil.
15.2 The thirty glorious years; Europe’s economic golden age 2
One reason for this European rush to manufacture/build was ‘catch up’: the rapid growth achieved by reversing the loss of output and destruction caused by WWII
Enormous potential for European manufacturers to improve production simply by copying (or receiving as in the Marshal Plan, e.g. Fiat, Renault) US expertise, technology and methods.
One other way is when US companies open up branch plants in Europe e.g. Ford, GM.
In this period there is another (as in the past) move from the country to the towns (and other countries), especially in Southern Europe
British economy doesn’t seem to be doing as well as France, Germany, and Italy (old methodologies a lot of industry and management had remained intact post WWII)
15.3 The role of the state
State intervention and European integration, if state so dominant and successful, why was it abandoning its powers to suprastate organisations (European Coal sn Steel federation?)
States needed a much wider political consensus and would do this by doing more to improve the lives of its citizens (interventionist)
Three groups with demands that needed to be met according to Millward: Organised labour (by maintaining full employment), agricultural producers (through price support for small farmers), and a ‘diffuse alliance of lower and middle-income beneficiaries of the welfare state
15.3 The role of the state 2
Millward suggest ‘transfer payments’ raise demand and help create economic stability i.e. tax the rich to finance benefits for the poor and pensioners
The nation state had to re-win the trust of its people (post war) by doing more for them
Millward posits that states could not achieve growth or security on their own, they needed interstate cooperation. Interstate subsidies lets Belgium maintain its uneconomic coal industry and preserve jobs ergo the development of the EEC is a hard-headed bargain to ensure security
15.3 The role of the state 3
Eichengreen EU countries encourage growth by fostering institutions that were favourable to it.
Neo-corporatist institutions which brought together employer federations and trade unions, basically unions agreed to hold down wages to create more capital for investment in exchange for improved social benefits
The Bretton Woods System (22/7/1944) stabilises the exchange rates . It ties currency to gold (like the gold standard where paper money is directly linked to the amount of gold you have) and sets up a system of rules, institutions and procedures to regulate the international money system . Creates the IMF and the international Bank for a reconstruction and a development
US pulls out in 1971
15.3 The role of the state 4
Role of institutions in shaping markets, the theory of ‘path dependancy’ , markets are never free but are constrained by the ‘rules of the game’ Eichengreen 1990
Olson - major disruptions such as war can give a spurt to growth by clearing away ‘the inheritance of vested interests and restrictive institutions and arrangements clogging the operation of the economic system’
Eichengreen’s arguments fit Scandinavia and Low Countries well but less so to the UK where employers and unions rejected national wage bargaining
15.4 European integration
European integration a key element in the postwar transformation of Europe - Mazower
Benelux customs union started during the war between the governments in exile
Marshall Plan $12.3 billion pumped into Europe 1948 - 51 to avert political and economic turmoil
ERP European Recovery Programme starts a French initiative to bind Germany and France more closely - the European Coal and Steel Community 1951 (includes the 3 Benelux countries). This becomes a transnational organisation creating a Joint High Authority to which all member states delegated power
15.4 European integration 2
Establishment of the EEC via The Treaty of Rome in 1957
It has economic advantage and businessmen (in films) very optimistic despite possible risks of tarif-free trade, German businessman finds British delivery times not up to scratch
Complacency and old construction practices at Imperial typewriters, whilst typewriter production (Taylorism and conveyer belt methodology) at Olivetti is like a car assembly line
Britain declines membership due to Imperial commitments
15.4 European integration 3
Eu wants more harmonisation, co-ordination, even unification as per Hallstein. But Britain is interested in the dismantling of trade barriers, cooperation to happen over time - The British memorandum and EU reply
As EU becomes a powerhouse, Britain tries to join in 1961 but is vetoed by De Gaulle and joins 12 years later
15.5 The impact of economic change; 15.5.1 The Netherlands: A living nation builds for its future
In Europe there are fears about the adoption of American spending patterns and aspirations. -Americanisation - Britain and France fear a less deferential society
Social and cultural consequences of modernisation, how is it to be managed, controlled or changed?
In the Netherlands there is a hope that the division of the country into confessional and political ‘pillars’ (the organisation of society. 4 main Catholics, Protestants, liberals and Socialists whose heyday was 1920s - 1960s) would be swept away in a spirit of national unity
The term ‘pacification democracy describes the carefully managed political system)
15.5 The impact of economic change 2
central planning office set up and it is decided that there is a need for radical change, not least in terms of government intervention and an active industrialisation policy is pursued
indicative planning directs investment away from traditional textiles and food-processing to metal working and chemical it growing by 60% 1950-63
a new cooperation between capital an labour, social welfare extended and swapped for wage restraint
Land recovery creating a farming community that would excel that common in the Netherlands
15.5.2 Coal in Scotland
1913 was the year of peak production, in interwar years plagued by stagnant production, small conservative firms and appealing industrial relations
1 January 1947, coal nationalised by Labour (coldest winter) reveals a shortage of stocks and inadequacy of supply lines, factories close, power cut for up to 5 hours a day
New Rothes pit in Fife built to try and meet demand going to be the largest and most modern colliery ever planned in Scotland but runs into severe flooding production started 1957 and ceased n 1962
Steel mills also built e.g. Ravenscraig, but prove to be ‘White elephants’
15.5.2 Coal in Scotland 2
Bad planning, poor equipment and officials, inadequate labour force, continued tensions, unrealistic expectations from government all lead to failure - Barrister, miner an Englishman working in Scotland
The legacy of the past was not only physical, industrial relations continued to be difficult
An ideology in mining which was fraught with dissension, contradictions and suspicions (former private ownership, the depression, unemployment and bitter social strife)
The same owners and managers still in charge in nationalisation and doing the same things
15.5.3 Migration in Italy
Dualism in the Italian economy, i.e. differences between north and rural south, between advanced, export orientated industrial areas and small-scale traditional ones, between skilled labour markets with well-paid secure jobs and unskilled precarious ones
Industrial cities Milan, Turin, Fiat, Olivetti,
South still large land owning peasant areas controlled by fiefdoms
1950s and 60’straditional industries develop develop to become highly competitive export ones with textiles and food processing
15.5.3 Migration in Italy
But a different culture and almost racism exists between resident Turinese and migrants from the south
Postwar Italian governments under pressure from a combination of northern industrialist and Southern landowners, opened for free-market policies and limited state intervention
Thus the route to economic growth taken in Italy was rather different fro that say, in the Netherlands. It too was effective, but at high social cost
State planing throughout Europe and Britain was an essential part of postwar economic modernisation
