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Germany, Japan and Italy ) Lost their influence in world affairs ii) Germany and Japan were occupied by the Allied Powers. Iii) Italy became a democratic nation after the fall of Fascism in Asian and African Nations Got independence in the post-war period D. Eastern European States I) Set up Communist governments after the war ii) Became satellite States Of the Soviet Union E. The Soviet Union I) Became a superpower after the war ii) Controlled the Communist states in Eastern Europe F. The United States 1943. C. Ii) Took over Britain’s and France’s position in world affairs What was the Cold War about?

It was a fight over different political and economic ideas. It was a clash between communism and capitalism. It was the result of growing suspicion between capitalist USA and communist Soviet Union. The fears of LISA and USSR Aqua’s fear: The Soviets would spread communism to the rest of Europe and Asia). User’s fear: USA would attack them in order to destroy communism. Between 1 946 and 1991, these two sides did many things to oppose each other. The Capitalist Bloc The Communist Bloc The United States and Western democratic nations The Soviet Union and Communist States in Eastern Europe

US-Soviet Rivalry in Eastern Europe The Soviet Union set up satellite states in Eastern Hungary Hungary Rumania Poland Czechoslovakia Bulgaria East Germany Military Opposition Formed two rival armed alliances: NATO (North Atlantic Treaty Organization) and the Warsaw Pact They threatened each other: – especially in the nuclear arms race. They supported small wars between their allies: (e. G. Korean and Vietnam Wars). On April 4, 1949, twelve Atlantic nations formed the North Atlantic Treaty Organization (NATO). The United States Canada Norway Luxembourg Britain Portugal The Netherlands Denmark

Belgium Iceland Italy France In 1 955, eight Communist nations set up the Warsaw Treaty Organization (Warsaw Pact) with its headquarters in Moscow. The Soviet Union Albania Romania Political Opposition They were both members Of the Security Council Of the United Nations. However, they often opposed each other using their individual power of veto. Both the IIS and Soviet governments spread lies and half-truths about each other. Why was it a ‘Cold’ War? There was no actual fighting between the CICS and USSR during this period. All the two sides did was to make trouble for the other side.

The danger was that any mistake could turn the ‘cold’ war into a ‘hot’ (nuclear) war! Methods of ‘fighting’ used Use of propaganda (using mass media to spread rumors and half-truths about the other side) Building up of armaments (especially nuclear ones) Supporting wars between smaller countries (Korea and Vietnam Wars). Origins of Capitalism and Communism Capitalism Grew as a result of the 1 9th Century Industrial Revolution in Europe. It is a system in which private companies compete to sell goods and services. The aim is to make profits for the owners.

The gap between rich owners and poor workers is always wide. Communism Came from ideas of Karl Marx. He believed that workers should overthrow capitalism. Industries should be state-owned and benefit everyone. State should provide free education, health care and welfare for all. A. Ideological differences Capitalist bloc Free economy free elections people own properties freely Communist bloc State owns all resources in the interests of society as a whole Result: Mistrust between the two blocs B. Economic Differences CAPITALIST Market economy Competition keeps prices down and quality up

Wide range of goods for sale COMMUNIST Planned economy Government controls both production and prices Poor choice, supply and quality of goods C. Social Differences Greater freedom: if people worked hard, they could improve their lives. Great inequality – many differences between rich and poor. COMMUNIST Limited freedom Fairer society -? fewer differences between rich and poor State provides health care, education and welfare D. Differences in Government Multi-party or parliamentary system. Government holds public discussion before carrying out its decisions.

People can change the government peacefully – by voting in elections. COMMUNIST One-party system: only communist party is allowed. Strong government -? no opposition or debate is allowed! People can’t change the government peacefully if they don’t like its policies. Our World Today: Communist or Capitalist? Most countries follow a mixture of some capitalist and communist ideas. Communist countries (like China) have some private industries and markets. Capitalist countries (like the USA) have some government-controlled services and industries.

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