The growth of the global economy, 1945-2000

H2 History - syllabus 9174, 2027

Why the world economy grew so fast after 1945: reconstruction, the USA, Western Europe and Japan, multinational corporations, and international organisations, and how their importance changed over time.

• Post-war reconstruction, 1945-1960

  Rebuilding after the Second World War started a long boom. Pent-up demand, new technology and American aid came together.

• The role of the USA

  The USA led the post-war economy by supplying money, markets and rules. Its dominance declined after the 1960s.

• The roles of Western Europe and Japan

  Western Europe and Japan became new engines of growth, through integration in Europe and export-led industry in Japan.

• Multinational corporations

  Multinational corporations spread capital, technology and production across borders, which tied national economies together.

• International organisations and arrangements

  The IMF, World Bank and GATT created stable rules for money and trade, and regional arrangements widened markets.

• Weighing the factors over time

  The most important factor changed over time. US leadership and reconstruction dominated early; MNCs, Japan and the wider world mattered more later.

• Put it together: Which factor drove growth?

  Pick a factor and test it against the evidence.