Effects of Cold War in Economic Development Essay

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Europe

The cold war impact in Europe with regard to economic development had greater strength in Germany. Germany became economic powerhouse after the cold war. Many industries and new technologies were developed in the Europe. This industrial and technology development was based in the Germany’s steel and coal industries. The industries produced defensive materials which were made of steel and coal and they were supplied to French and other countries.

The increasing demand for the arms by many militaries increased the supply of the weapons and this and subsequent income increase to the manufacturing industries and the need for more and advanced technology to create the weapons. This increased the competition between the United States and the European industry and consumer market. The industries provided job opportunities to the Europeans and this increased the investment rate, formation of political parties and a general economic growth due to implementation of right to welfare, health insurance systems and general social relation.

Asia

In Asia, the economic development was limited by the cold war. This is because countries like Japan were occupied by the Americans and they gave military force. Since the United States was rivals with the Soviet Union, little (if any) was provided to the Japanese and this limited the supplies of raw materials to their industries. They subsequently lacked food, became unemployed and bankruptcies increased. This led to recession of the country.

United States

Cold war encouraged the growth of nuclear capabilities in America. People got chances to have their won economic decisions as a result of democratic localism which was enforced. This made growth in economy, and subsequent capitalism renewal. The Americans prospered as a result of freedom in many aspects of their lives.

The welfare state and consumer culture in relation to cold war developments

The consumer culture in United States encouraged the development of cold war, because the United States airlifted supplies that were to be used to open up the Berlin city, which the Soviet Union had blocked to limit the United States plan to limit Russian expansion in the city. The United States military power continually increased against the European Military (Pearson 2008).

The welfare state in Europe meant that the European economy and well being relied on the government programs. This means that the European government was accountable for many income-generating practices and businesses in the Europe. For example the Airbus Company is fully under the European government programs. On the other hand, the United States applied the consumer culture where individuals could access and own companies and other income-generating businesses. For example the Boeing Company is owned by individuals in United States. The welfare state in Europe enhanced economic recovery after the war.

Command economy in U.S.S.R was inefficient and appeared like a prison to the civilians. What was to be sold was dictated by the government, but buying was not limited. This meant that the workers worked hard to meet the command economic demand without involving in the market thus not benefiting from the economy and the market.

The market economy enhances wealth creation for big companies. The Majority of the wealth created is kept by the big businesses, while leaving very little (if any) to the workers. The workers are not given the free will to the market; instead they are leveraged to resources that are not in the market. Despite how much creative the workers were, they always got orders in order to be paid.

The command economy limits individuals from personal participation in the economy, giving chances to proxy. The economy doe not empower individuals. (Herrick 2007). The commodity gap in some country’s remained high, since few commodities were produced to meet the demand. A good example is in Japan where lack of raw materials for the industries and unemployment made people experience food, shortages. The United States continued to persist since there was a disparity between the power and number of weapons in the U.S.S.R and the ballistic missiles arsenals of the United States.

Reference

Herrick, S. Fair and free: Part II. Celsias 2007. Web.

Pearson Education, Inc. Eastern Europe and Western society during Cold War. Pearson Education. 2008. Web.

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