The Development of the Global Economy
“American contribution to the growth of the global economy from 1945 to 1973 has been over-rated.” How far do you agree? The global economy from 1945 to 1973 grew at an astounding rate even though many of the countries had been badly affected after World War II (WII) in 1945. Many factors have resulted in the explosive growth, and the role of the Americans is one of them. The Bretton Woods System and multi-national companies (MNCs) have also contributed to the growth. However, I do not agree that the American contribution was over-rated because we see that the Americans are involved in all of the factors, and have thus played a very significant and important part. Firstly, the USA’s contribution of financial aid and economic stability contributed greatly to the growth of the global economy. The Americans sought to quickly help speed up the recovery of global economy after WWII, in fear that Communism would spread to weak and unstable countries, and one of its plans involved the Marshall Plan that provided US$13 billion to Europe. Similarly, countries in Asia received US$5.9 billion. These enormous sums of aid was extremely vital in helping to kick start the recovery of economies worldwide because governments now had funds needed to rebuild their capital and infrastructure. The results were soon evident in the 1960s when the rise of European and Japanese economies added rise in global output and capitalization, thus benefitting the global economy tremendously. Furthermore, the USA opened their market to the world, allowing goods and services from newly built factories to enter the market and make profits. We see here that the USA’s actions allowed economies to be self-sufficient by buying their products and helped them generate income indirectly for their countries. With an increase in their gross domestic product, national income would thus rise, ensuring the constant growth of global economy....
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