UNIT 10: CAPITALISM AND SOCIALISM. TWO RIVAL SYSTEMS. 1. THE CAPITALIST BLOC The capitalist bloc was led by the USA, which defended the establishment of democracies in Europe. These democracies guaranteed rights and freedoms. There were two exceptions where there were dictatorships, which were Spain and Portugal. Capitalism was the economic system they followed, based on private property and free market. There was an important economic and social growth in this bloc after WWII, which involved the establishment of the welfare state in most of Europe and the growth of the middle class. Q1. What were the characteristic of the capitalist bloc?

1.1. The USA. The USA was the leader of this bloc and had two main stages: Between 1945 and 1960 there were many anticommunist measures implemented by the presidents Harry S. Truman and Dwight Eisenhower:  A blacklist was drafted with all those likely communist sympathisers within the USA. It is the so-called McCarthyism or Witch-Hunt. The Democrat John Fitzgerald Kennedy became the president in 1961 and tensions with the eastern bloc were reduced. Moreover, there were mobilisations in favour of civil rights for black people led by Martin Luther King against racial segregation. Civil Rights Act was finally passed in 1964, where all discrimination was abolished. After many years of war and many protests within the USA, the Americans left Vietnam. Q2. What was the McCarthyism? Q3. Comment the picture. Q4. What was the Civil Rights Movement? Comment the document: I have a dream that one day this nation will rise up and live out the true meaning of its creed: "We hold these truths to be selfevident, that all men are created equal." I have a dream that one day on the red hills of Georgia, the sons of former slaves and the sons of former slave owners will be able to sit down together at the table of brotherhood. I have a dream that my four little children will one day live in a nation where they will not be judged by the color of their skin but by the content of their character. I have a dream today! Martin Luther King, I Have a Dream Speech (August 28, 1963)

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1.2. Japan. Japan was occupied after WWII by the Americans, who forced the establishment of a democracy in the empire. Japan’s sovereignty was restored in 1951 once the parliamentary monarchy and democracy were fully established. There was an economic miracle which made Japan the second largest economy in the world in the 1960s. It could be achieved thanks to the American investment and the attitude of the Japanese. 2

Q5. How did the Japanese miracle occur?Comment the graphic below.

1.3. Europe Meanwhile, the entire West Europe was composed of democracies (save Spain, Portugal, and Greece). The Marshall Plan allowed the creation of an essential market for the USA. Some European democracies agreed on the foundation of some common institutions to create a European identity: The British Prime Minister, Winston Churchill, suggested in 1946 that Europe could compete with the USA and the USSR as a leading nation. The French Minister of Foreign Affairs, Robert Schumann, proposed on 9 May 1950 the creation of a common market of coal and steel to avoid rivalries and to be more competent. Hence, that day is commemorated as the Day of Europe since it is considered the foundations of the European Union. Q6. What countries in Europe were undemocratic? Q7. What was the role of Robert Schumann in the foundation of European Union? Shortly after, some treaties were signed by some European countries in order to fulfil that goal: Benelux Customs Union (1948). It was an agreement that was signed by Belgium, the Netherlands, and Luxembourg in order to remove customs and to promote free movement of capital, goods, and workers. Treaty of Paris (18 April 1951). It involved the creation of the European Coal and Steel Community (ECSC).  It was signed by France, Western Germany, Italy, Belgium, the Netherlands, and Luxembourg.

 It created a free-trade area for coal and steel in the signing countries.  It has been considered the basis for the future European Economic Community.  Its functions were assimilated by the future European Union, since it expired in 2002. Treaty of Rome (25 March 1957). It constituted the creation of the European Economic Community (EEC) or Common Market.  Its main objectives were the free movement of people, goods, services, and capitals by suppressing the customs duties among the member countries.  It was signed by West Germany, France, Italy, Belgium, the Netherlands, and Luxembourg.  It also involved the creation of Euratom (European Atomic Energy Community) for the development and research of the nuclear energy with pacific goals as well as creating a common market of nuclear fuels. EXERCISES Q8. What was the Benelux? Q9. What was the purpose of the ECSC? Q10. What was agreed in the Treaty of Paris?And in the Treaty of Rome? “…Determined to lay the foundations of an ever closer union among the peoples of Europe, Resolved to ensure the economic and social progress of their countries, Affirming as the essential objective of their efforts the constant improvement of the living and working conditions of their peoples…” Treaty of Rome. Preamble (March 25, 1957)

1.4. The welfare state. The decades between the wars had shown how unstable democracy could be if citizens did not feel that their governments responded to their needs. New social policies adopted after the war were intended to guarantee a satisfactory level of life to every member of the population; the result came to be known as the welfare state. Social programs varied from country to country, but usually included health insurance, free public education, generous unemployment insurance, old age pensions, and subsidized cultural activities. Tax policies were deliberately designed to promote greater social equality by transferring income from rich to poor. EXERCISES Q11. What new policy appeared in Western Europe after WWII?

2. THE COMMUNIST BLOC The regime of the communist countries was the so-called dictatorship of the proletariat, although everything was controlled by the Communist party and the USSR. Economy was completely state-controlled with collectivised land and national industry. All these states had full employment, which was guaranteed by the State. Moreover, basic services were also provided by the State, such as education and health. This bloc was quite backward in technology and standard of living compared to the capitalist bloc. Q12. What was a dictatorship of the proletariat? Apart from East Europe, communism also spread to Cuba, North Korea, Mongolia, North Vietnam, and China, which has become a superpower. Some African countries also adopted communism, such as Angola.

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2.1. Expansion of communism in East Europe Stalin wanted to reach the same production of weapons as the USA. He wanted to avoid a likely invasion. He accomplished the atomic bomb in 1953. The USSR controlled all East Europe after Hitler’s fall. Q13. Comment the picture. 4

Communist parties seized the government in East Europe assisted by the Soviet army and created people’s republics which worked as buffer-states with the western democracies. Hungary was controlled in 1949. In Bulgaria the king Simeon II was expelled in 1949. In Romania there was a quick process when the king Michael was expelled in 1947. Poland was a much more complex case due to the British support, although anti-Communists left the country after the Soviet repression in 1947. Czechoslovakia associated the Soviet bloc freely after the legal victory of the communists in the elections in 1946. It was completely controlled by the USSR after the resignation of the noncommunist ministers in 1948. In Yugoslavia the communist partisans were really appreciated due their actions during WWII. Josif Broz, Tito abolished monarchy once the king Peter was expelled. Besides, he did not align with the communist bloc in 1948. In Albania a pro-Soviet regime was established after WWII and the expulsion of the king Zog. EXERCISES Q14. Why wasn’t Yugoslavia part of the Warsaw Pact?

2.2. The USSR and East Europe after Stalin When Stalin died in 1953 he was succeeded by Nikita Khrushchev, who began a process of DeStalinisation to fight the abuse of power of cult of personality of the previous leader. Khrushchev allowed some level of freedom and speech. The relations with the capitalist bloc enhanced a lot in this period. However there were some critical moments due to Cuba or Berlin. Q15. What was the De-Stalinisation? Leonid Brezhnev led the USSR between 1964 and 1982. He stopped all Khrushchev’s reforms. His external policy switched from coexistence to tension with the USA. There were anti-communist revolts within the communist bloc in East Europe:  Poland (June 1956). Revolts became once the miners in Poznan rose up against the communist regime.  The communist government pleaded for help and the USSR invaded Poland so as to restore the order.  Hungary (December 1956). The country began its De-Stalinisation in 1953.  Imre Nagy, Hungarian president, wanted to proclaim the neutrality of the country in December 1956 in order to establish a democracy.  The Soviet army invaded Hungary.  All the leaders were executed.

 Czechoslovakia (January-August 1968). The communist leader Alexander Dubcek implemented some measures that gave more liberties and restricted totalitarianism within the country. It is the so-called Prague Spring.  Censorship was put into an end and there were measures to legalise non-communist political parties.  The USSR and the allied of the Warsaw Pact (save Romania) invaded Czechoslovakia in August 1968 and those measures were completely stopped. EXERCISES Q16. What happened in Hungary in 1956? Q17. What was the Prague Spring? Comment the picture.

2.3. The collapse of the Soviet Union When Mikhail S. Gorbachev became general secretary of the Communist Party of the Soviet Union in March 1985, he realised that he had inherited significant problems. Even as the USSR competed with the United States for global political and military leadership, its economy was struggling, and its citizens were chafing under their relatively poor standard of living and lack of freedom. Those difficulties were also keenly felt in the Communist nations of Eastern Europe that were aligned with and controlled by the Soviets. Gorbachev launched his nation on a dramatic new course. His dual program of “perestroika” (“restructuring”) and “glasnost” (“openness”) introduced profound changes in economic practice, internal affairs and international relations. Within five years, Gorbachev’s revolutionary program swept communist governments throughout Eastern Europe from power and brought an end to the Cold War. Gorbachev’s actions also inadvertently set the stage for the 1991 collapse of the Soviet Union, which dissolved into 15 individual republics. He resigned from office on December 25, 1991. EXERCISES Q18. Why did Gorbachev start reforming the Soviet Union? What were perestroika and glasnost? What were the effects of perestroika and glasnost?

2.3. China  After WWII China suffered a civil war between the Nationalists or Kuomintang, led by Chiang Kai-Shek (president of the Republic), and the Communists, led by Mao Zedong (Mao Tsetung):  Mao led a communist revolution which Chiang Kai-shek wanted to put down.  Mao’s final victory took place in 1949.  Chiang Kai-shek and his supporters left China and took refuge on Formosa, where they created the so-called Republic of China (Taiwan). EXERCISES Q19. How did Mao and the CCP keep control of China? Q20. Is Taiwan part of China? Why or why not?Why do the Taiwanese call their country China?  The People’s Republic of China was eventually proclaimed by Mao Zedong on 1 October 1949.  The new republic became a communist regime where there was a fierce repression of the opposition and complete control of the society.  The control was stronger during the Cultural Revolution (1967-1971), which made people leave their traditional ways of life.  Chinese economy was based on two fields:

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 Collectivisation of the land, which was organised in communes, which were selfsufficient.  Promotion of heavy industry after 1958; the so-called Great Leap Forward. EXERCISES Q21. What was the Great Leap Forward?  China invaded Tibet in 1950 and influenced over the neighbouring countries, such as North Korea, Mongolia, Laos, Cambodia or North Vietnam.  China and the USSR had excellent relations after the Revolution. They signed a treaty of friendship.  However, Mao’s communist theories differed a lot from the USSR after Stalin’s death and he considered it was a treason of Marxist principles.  Hence, Maoism criticised the Soviet policy and created its own economic system away from Soviet principles. EXERCISES Q22. Which Asian countries became communist?Which Asian countries are still communist dictatorships? Beginning in early 1980s, after Mao, China changed its economic strategy from self-sufficiency to export orientation by introducing private ownership, market economy, and less governmental control contributing to robust economic performance. The shift was pivotal to the growth rate of China’s GNP: from 1978 until 2013, unprecedented growth occurred, with the economy increasing by 9.5% a year. EXERCISES Q23. What was the economic development in China after Mao?

3. OTHER COUNTRIES 3.1. Arab-Israeli conflicts The UN decided to create in 1947 a new state by dividing Palestine into two sectors: a Jewish area and an Arab area, whilst Jerusalem would be internationally controlled. Palestine attacked the new Israeli towns since they did not accept that division. The State of Israel was eventually proclaimed on 15 May 1948 and the British troops left the area.  Arab armies from Egypt, Jordan, Iraq, Syria, and Lebanon attacked Israel, but it resisted.  A ceasefire was signed in July 1949 and the territory was divided again:  The Gaza Strip should be controlled by Egypt.  The West Bank was given to Jordan.  Negev Desert and Galilee were kept by Israel. EXERCISES Q24. Why did the Israeli–Palestinian conflict start? In 1964 the PLO (Palestine Liberation Organisation) was established in order to create an independent Palestinian state. They have received a massive support from the Arab countries. Its main leader was Yasser Arafat.

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EXERCISES Q25. What were the goals of the PLO? Did they achieve their goals? There have been more wars between Israel and its neighbouring states:  Six-Day War (1967). Israel launched a surprise attack on Egypt, Syria, and Jordan to prevent a likely Arab invasion and due to the blockade of the Gulf of Aqaba by Egypt.  Israel conquered many territories in just six days:  West Bank from Jordan.  Sinai Peninsula and Gaza Strip from Egypt.  Golan Heights from Syria.  The new capital of Israel was fixed in the newly conquered Jerusalem.  Many Jewish colonies were built in those territories.  Yom Kippur War (1973). Arab forces made an alliance launched a surprise attack on Israel during their holy feasts.  Israel counterattacked quickly and re-took over many territories.  The Arab countries threatened the world by raising the price of petroleum, which caused a major economic crisis worldwide.  Peace mediators put this war to an end.

EXERCISES Q26. What are the differences between the Six Day War and the Yom Kippur War?? There have been attempts to reach agreements between Israel and its neighbouring countries.  Camp David Accords were signed in 1978 between Israel and Egypt.  Israel agreed on returning Sinai to Egypt.  Egypt acknowledged the State of Israel.  Oslo Accords were signed in 1993, where Israel agreed on granting autonomy to the West Bank and Gaza Strip and to be ruled by Palestinian authorities. Nowadays there are still many conflicts since there are still Jewish settlements in Palestinian lands, whereas Palestinians still attack Israel.

EXERCISES Q27. What were the Camp David Accords?

REVIEW R1.- Answer the key questions:  What role did the United States play in the postwar period?  How was the reconstruction of Western Europe? What was the welfare state?  What happened in Japan after WWII?  What role did the Soviet Union play in the postwar period? Where did communism expand in the middle of the 20th century?  Why did communism collapse in the Soviet Union? R2.- Read the document and answer the question. Why do you think she took the fridge? “Shortly after graduating in 1976, on a trip to Leningrad, Angela Kasner met a fellow scientist, Ulrich Merkel. They were married the following year. While Merkel completed a doctorate, her husband paid the rent on (and renovated) the flat they shared. The doctorate complete, Angela left her husband, taking the only thing of any value in the flat – a fridge – with her. There was no discussion and no note. She divorced him in 1982.”

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R3.- Draw the map of EU countries.

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R4.- Read the document and answer the questions. “In the long history of the world, only a few generations have been granted the role of defending freedom in its hour of maximum danger. I do not shrink from this responsibility--I welcome it. I do not believe that any of us would exchange places with any other people or any other generation. The energy, the faith, the devotion which we bring to this endeavor will light our country and all who serve it--and the glow from that fire can truly light the world. And so, my fellow Americans: ask not what your country can do for you--ask what you can do for your country. My fellow citizens of the world: ask not what America will do for you, but what together we can do for the freedom of man. Finally, whether you are citizens of America or citizens of the world, ask of us here the same high standards of strength and sacrifice which we ask of you. With a good conscience our only sure reward, with history the final judge of our deeds, let us go forth to lead the land we love, asking His blessing and His help, but knowing that here on earth God's work must truly be our own. John Kennedy, Inaugural Address (January 20, 1961) a) Why is freedom in danger? b) What did Kennedy say to American citizen? c) What did Kennedy say to citizens of the world? d) Write a brief biography about Kennedy.  R5.- Make a brief summary of the movie Forrest Gump. What historical events did Forrest witness?