v Chapter 31 Overview:

Ø Review of history two decades following Versailles:

§ Experiments in politics & economic life occurred

§ Two broad factors shaping these experiments:

· 1. Political face of Europe had been transformed

¨ WWI, Russian Revolution, & Peace Settlement

¨ Impact: new political regimes emerged in =>

Ø Germany, Austria-Hungary, & Russia

Ø New governments faced immediate challenges of:

§ Postwar reconstruction

§ Economic dislocation

§ Nationalistic resentments

¨ Also face many who questioned legitimacy of Govs.

· 2. Great Depression begins to spread (early 1920s)

¨ Attributed to a combination of:

Ø financial turmoil in major industrial nations

Ø collapse of commodity prices in export nations

¨ Events produce ripple affect throughout world

Ø Political instability & economic crisis

§ Governments respond with various political & $ measures

· Many European states resort to authoritarian regimes

· US responds w/greater role for Federal Government

v After Versailles: Demands for Revision & Enforcement

Ø Paris Settlement=> resentment & discontent

§ Major factors for the next two decades:

· Germany humiliated & bitter (argues over reparations)

· Successor states (Austria-Hung) dissatisfied w/results

¨ Believe injustice committed & unfulfilled expectation

Ø “Self-determination” objective remained unmet

· Victors (France) believe treaty provisions not enforced

§ Domestic turmoil across Europe rampant

· Cynically exploited for political domestic gains

Ø Toward The Great Depression in Europe

§ Three major factors=> intensify & extend severity:

· $$ crisis drawn directly form WWI & its peace terms

· Crisis of production & distro of goods in global market

· Lack of strong, competent economic & political leaders

§ Financial Tailspin

· France determined to collect Ger. reparations in full

¨ Help to repay US loans (with US insistence)

· US determined to collect on its loans in full

· Major diplomatic crisis of 1920s=> Germans default

· Major political & economic actions taken by France?

· Major political & economic actions taken by France:

¨ France occupies Ruhr=> mining & manufacturing

¨ Weimar Republic urges passive resistance=>

Ø General strikes soon follow

¨ French send civilians to run Ger. mines & railways

Ø Action alienates Britain=> sympathy twd Ger.

¨ French & Ger. inflation rise=> serious $$ damage

· Int’l response to Fr. invasion=> ease Ger. reparations

¨ US plans: Dawes Plan (1924) & Young Plan (1929)

¨ US investment capital also pours into Europe’s $$$

· 1928: US investment $$$ diverted to Wall Street

¨ Investor speculation on margin at market’s top!

· 1929: Market “bubble” bursts=> credit curtailed

¨ Banks fail across nation=>

Ø little $$ available for European investment

· May 1931: the Kreditanstalt collapsed:)

¨ Impact especially on Central & Eastern Europe?

¨ German bank system severely stressed

· Pres. Hoover declares moratorium on int’l debts-1 year

¨ Prelude to what? (Lausanne conference 1932-result?

§ Role of Agricultural Commodities in $ depression?

§ Problems in European Agricultural Commodities

· Contraction in market demand for Euro’s goods (1920)

¨ Relative to production capacity (more supply avail)

· Agro production capacity rises as global demand falls

¨ Improved farm techniques & wheat strains (surplus)

¨ Improved tillage & extensive transport capability

· Result: greater surplus of grain avail=> lower demand

¨ Impact on prices? (record lows)

¨ Farmer incomes decline vs. industry good price rise

Ø Many farmers default on mortgages & op. debts

§ Acute in Central & East Europe

¨ Farmers become disillusioned w/liberal Gov policies

Ø (prime source of future Nazi supporters)

· Other areas (especially in export nations)=>

¨ Commodity production outstripped demand

Ø Glut of supply (in exports) but little demand

Ø Producers unable to buy finished goods of West

Ø Exacerbated by contraction of global credit

Ø Agricultural sector of global economy fails

¨ Result: =>stagnation & depression of whom?

Ø Who sells finished goods to Cent/E Euro farmers?

Ø With less demand for industrial goods=> lay offs

Ø unemployment spreads to finished goods sector

§ Depression and Government Policy

· Government policies made problem worse

¨ Reduced Gov. spending=> reduced demand

· By 1930=> Depression takes on life of it own

¨ Spreads fear of economic insecurity

¨ Concern about job security & life styles

¨ Frustrated normal social & economic expectations

Ø Fostered social discontent

· Late 1920s/early’30s=>

¨ Gov. structures & ideology ill prepared for problem

Ø Citizens demand action=> Gov. response?

§ Depended on $$ severity & self confidence

· Britain & France pursue moderate political course:

¨ 1924: GB Labour party attempts=> mixed results

¨ 1936: Fr Popular Front Ministry more successful

Ø addressed major Labor problems

¨ Both approaches only had domestic impact

· Political changes having int’l & historic impact?

¨ Those occurring in Russia, Italy, & Germany

Ø Communism, Fascism, & Nazism

§ How did the Soviet Union’s experiment unfold?

Ø The Soviet Experiment

§ Bolshevik Revolution=> responsible for establishing=>

· Most extensive & durable authoritarian Government

· 1917-1991: major influence on Euro & global politics

· Bolsheviks seized power through revolution

¨ Fought armed opposition & difficult civil war

Ø Made Soviet leadership insecure (some paranoid)

Ø Communist party very small elite (1% - total pop)

§ Soviets embraced collective $$$ & opposed Capitalism

· Attacked right wing dictatorships

· Pressed for spread of Marxist-Leninist ideology

§ Containment of USSR & communism shaped West’s FP

§ War Communism

· Trotsky’s Red Army, Cheka, & Proletariat dictatorship

¨ Put down civil war & roll back foreign intervention

· Focus of Gov.=> centralization of $ & political control

¨ Confiscated banks, transportation, & heavy industry

¨ Requisition grain by force to feed factory city labor

· War Communism won civil war & defeated for. forces

¨ Also created domestic hardship & incited opposition

Ø Strikes, peasant resistance, mutiny (Kronstadt)

§ The New Economic Policy (NEP)

· By late 1920s=> Soviet approach stood alone

¨ Domestic hardship & unrest continued to rise

· Mar 1921: Lenin made crucial strategic retreat

¨ Granted private enterprise in most $$ sectors

Ø Exceptions: banking, transport, heavy industry,

§ Also international commerce

¨ Peasants allowed to farm for profit & sell surplus

Ø Acknowledged peasants held key to Rev.’s success

¨ Result: after 1921 countryside stable & food secure

Ø USSR appeared to have transformed its economy:

§ => Yeoman farms & small merchant shops

§ Stalin vs. Trotsky

· Intense power struggle unfolded in 1924- why?

¨ Two factions vied for control of Party’s body & soul

· Initially ideological struggle over industrialization path

¨ 1. Trotsky’s faction advocate rapid industrialization

Ø Left Wing=> farmers volunteer to collectivize

Ø Also pressed for global spread of communism

¨ 2. Stalin: continue NEP & gradual industrialization

Ø focus on domestic communism inside Russia

· Who was the victor of this power struggle and why?

§ Decision For Rapid Industrialization

· Stalin attracted to political power than ideology

¨ Actually supported Trotsky’s position later

· NEP produced prosperous Kulaks (less than 5% pop.)

¨ 1928-29: Kulaks withhold grain from market (why?)

Ø Result: food shortages ensue in cities=> unrest

¨ Stalin’s conclusion? NEP no longer met its goals

· Result: Stalin reversed his position on industrialization

¨ Pressed for rapid indust. to match West (Trotsky’s)

¨ Stalin’s aim: match West’s economic & military pwr

¨ Strategy: collectivize Agro=> export grain=> why?

Ø (Sell grain to buy heavy equipment from West)

Ø Side benefit: free up peasants for factory labor

· Agricultural Policy

¨ Stalin also commenced elimination Kulaks as class

Ø Broadened definition of Kulak to suit his needs

§ (ie. Any peasant disagreeing with Stalin)

¨ Many did & resist collectivization=> slaughter stock

Ø Stalin briefly hesitates=> “dizziness of success”

¨ Soon resumed forced collectivization with vengeance

Ø What were the results? (Cost vs. benefits?)

¨ Results of Stalin’s forced collectivization program:

Ø 10M die, more to labor camps=> famine 1932-33

Ø Dramatic change in Russian farming:

§ 1928: 98% private farms=> 1938: 90% collect

§ State controlled food supply for the nation

Ø Still couldn’t produce sufficient grain to feed pop.

· Five Year Plans

¨ Collectivization achieved its aim (at very high costs)

Ø Grain supply rose: for export & fed factory labor

Ø Achieved impressive advances in heavy industry

§ 1928-40: 400% increase>industrial production

· iron, steel, coal, electricity, tractors, railway

· What was not produced by Soviet industry?

Ø NTL=> internal labor supplied & tech. barrowed

¨ Organizational vehicle use: 5 Year Plans (1928 1^st)

Ø “Gosplan” supervised program

§ Extremely centralized & complex program

§ Too many variables for accurate projection

Ø Labor force regimented to meet centralized aims

§ Propaganda used to motivate workers

¨ In contrast to West during depression- impressive

Ø West’s intellectuals praise- what did they ignore?

§ The Purges

· Stalin fears threats to his control began in 1933=>

¨ Aim: preclude possibility of effective rival emerging

· 1 Dec 1934: Sergei Kirov assassinated

¨ Stalin seizes event as opportunity=> 1000s arrested

¨ Reality: Stalin likely set it up himself (Kirov threat)

¨ Only the beginning…

· 1936-38: Show trials of Moscow amaze world

¨ Soviet leaders of Politburo confess political crimes

Ø Convicted & executed based on false confessions

· Next: Army leadership & senior officer corps is purged

¨ (major impact during early 1940s)

· Rationale for Purges?

¨ Found only in Stalin’s paranoid mind

· Many western intellectuals ignored Soviet repression

¨ Hoped for society’s utopian & equalitarian change

¨ Soviets were enemy of Fascist & Nazi dictatorships

¨ Also USSR appeared to be means for freedom

Ø Escape colonial chains of European empire

v The Fascist Experiment in Italy

Ø Italian Dictatorship in response to Bolshevik spread

§ Derived from Italian Fascist movement of Mussolini

· Anti-democratic & anti-parliamentarian

· Anti-Marxists & anti-Semitic

· Aim: make world safe for mid-class, small Bz & farms

§ Rejected legacy of French Rev. & 19^th century Liberalism

· Parliamentary politics & parties mired in petty disputes

¨ Sacrificed national honor & greatness in the process

§ Aim: overcome Marxist class & liberal party conflict

· Consolidate all groups/classes toward national purpose

· Single party dictatorship based on mass polit. parties

· Mussolini: “…state is all embracing…” (p. 888)

Ø Rise of Mussolini - background

§ Benito Mussolini led “Fasci” (Band of Combat) (ex vets)

· All resented failure of Italy at 1919 Peace settlement

¨ Failed to gain Fiume & northern end of Adriatic

¨ Feared Socialism, inflation, & labor unrest

§ Benito was ex-school teacher, paper editor, & veteran

· Political opportunist ready to change position on dime

· Primary political philosophy: political survival

Ø Mussolini’s rise to power:

§ Italy’s post-WWI parliament unpopular (above reasons)

· Expressed by Nationalist writer D’Annunzio

· Leads band to capture Fiume (briefly holds)

· When Gov. expels him-> unpopular move

§ 1919-1921: Italy wracked by social turmoil

· Factory strikes/occupation & peasant land seizures

· Parliament incapable of dealing with the unrest

§ Many people fear rise & spread of communism

· Conservative middle & upper classes concerned

· Mussolini ultimately sided with above interest

· Fascist attacked Socialist strikers & farm workers

§ 1921: Fascist power grows=> “March on Rome”

· Fascist tactics intimidate King Emmanuel

· Prevents security forces from stopping march

¨ Cabinet resigns in protest

· King asks Mussolini to become Prime Minister (PM)

§ So technically Mussolini rose to power thru legal means

· In reality- how did he do it?

Ø Fascist in Power

§ Once in power=> cautious consolidation pursued

· Mussolini was able to pull it off because:

¨ Rival appeared to be impotent to stop him

¨ Mussolini’s very effective use of PM office

¨ Power & influence over masses

¨ Mussolini’s ruthless tactics to get his way

§ 23 Nov 1922: King & Parliament grant “dictatorial pwr”

· Revise election law- Fascist favor(plurality= 2/3 seats)