What this lesson teaches
I can judge which factors did most to grow the global economy after 1945, and how this changed over time.
Syllabus 9174, Paper 1, Theme II, Learning Outcomes. evaluate the factors that contributed to the growth of the global economy over time
Make a guess
Global growth from 1945 to 2000 had several causes. Do you think one factor was most important all the way through?
- No, the most important factor changed over time.
- Yes, US leadership was the key factor throughout.
- No, growth had no clear causes and came mostly from luck.
Show the answer
No, the most important factor changed over time.
US leadership and reconstruction led early on; after 1973, Japan, East Asia and MNCs mattered more.
The most important factor changed over time. US leadership and reconstruction dominated early; MNCs, Japan and the wider world mattered more later.
The syllabus asks you to evaluate the factors "over time". The best essays compare periods instead of treating 1945 to 2000 as one block.
1945 to 1973: reconstruction, US leadership and the Bretton Woods system worked together. Growth was fastest in this period.
1973 to 1990: growth slowed after the oil crises. Japan, the newly industrialising economies of East Asia and MNC investment became more important sources of growth.
1990 to 2000: the end of the Cold War opened Eastern Europe, China and India further to world markets. The WTO, MNC production networks and information technology drove a new wave of globalisation.
The factors depended on each other. MNCs needed open trade rules. Those rules depended on US leadership. US leadership worked because Europe and Japan used the openings it created.
- Golden Age
- 1950-1973.
- Slower growth
- After 1973, with the oil crises.
- Globalisation
- 1990s: end of the Cold War, WTO, information technology.
Real examples to use
The World Wide Web, 1991
Information technology became a new driver of growth and trade in the 1990s, alongside open markets.
Former communist states, 1990s
Eastern Europe and the former USSR opened to world trade and investment after 1991, widening the global market.
Worked example: Setting up a judgement
How can you argue for one main factor?
- Criterion: which factor made the others possible?
- Case for the USA: it built the rules and supplied the money.
- Case against: its role declined after 1971 while others grew.
- Judgement: US leadership was the foundation, but not enough on its own.
Watch out for this
One factor was most important for the whole period.
The balance shifted. US leadership mattered most early on, while MNCs, Japan and the WTO mattered more later.
Check your understanding
Which period saw the fastest global growth?
- 1973-1990
- 1990-2000
- 1950-1973
Show the answer
1950-1973
Right. It is called the Golden Age.