CONDITION OF EUROPE
AFTER WORLD WAR II
Aftermath of the Second World
War
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Europe in ruins in the aftermath of the Second
World War
The
toll of the Second World War in terms of both human and material resources was the
heaviest that mankind had ever known. Although the conflict had a global
dimension that was even more pronounced than the 1914–1918 War, it was Europe that was the principal victim of this
confrontation. The total number of victims is estimated at almost 60 million,
more than half of whom were civilians. Following all the deportations and
expulsions, there were, in 1945, nearly 20 million displaced persons awaiting
repatriation. The unprecedented racial, religious and political persecutions
and the mass deportations into labour or
extermination camps had stirred up hatred among the peoples of Europe. The discovery of mass graves in the concentration
camps appeared to shake the very spiritual and moral foundations of Western civilisation. The Germans were overwhelmed by a feeling of
guilt, which fuelled an intense ethical debate and only added to the disarray
of the defeated nation.
Europe was in ruins and reduced to total
confusion: factories and transport links destroyed, traditional trade
dislocated, livestock wiped out and shortages in raw materials and foodstuffs
prevalent. The war was being prolonged by purges and the settling of old
scores, which were once again tearing apart the liberated countries.
Reconciliation seemed extremely difficult. It was impossible to imagine that,
one day, yesterday’s enemies might join together to form a common organisation. There were three basic questions for the
peoples of Europe exhausted by the conflict.
The first was economic: how could material damage be repaired and economic
activity revived on the old continent? The second was political: how could the
return of a conflict which had set Europe and
the whole world ablaze be prevented? The third was cultural: how could the
survival and renaissance of European civilisation be ensured in the face of the increasing threats, which
seemed to be embodied in the ideological schism and confrontation between the
victorious American and Soviet blocs?
The
economic and social consequences
The immediate effects of the Second World War on the European
economy had been disastrous. Damage to communications networks disrupted the
transport of raw materials and finished products. The irregularity of supplies
to industry and the destruction inflicted on the production apparatus resulted
in a considerable number of temporary lay-offs and, consequently, in a
reduction in purchasing power at a time when all kinds of requirements
continued to grow. Even in the victorious countries, food rationing continued
well after the end of the war, and the black market fostered dangerous social
inequalities. Crime, juvenile delinquency and prostitution increased. The
simultaneous reconstruction of accommodation, industry and the transport
infrastructure was stifling national economies. Under these conditions, people
were first and foremost preoccupied with the restrictions affecting everyday
life and often had difficulty in thinking about their long-term future. The
shortage of coal in the very hard winter of 1946–1947 led to widespread strikes
and mass demonstrations.
The specter of inflation and currency devaluation, which
reminded people of the economic crises and stock-exchange crashes of the
inter-war years, led European leaders to take rigorous measures. The persistent
imbalance between supply and demand in domestic consumer products was pushing
prices higher and exacerbated budget deficits both internally and externally.
Countries were going into debt in order to finance reconstruction programs and
to rectify social inequalities. In 1944, Belgium went ahead with a major
program to restore the franc, which involved a drastic reduction in the
circulation of banknotes and deposits. Some essential sectors of the European
economy had been nationalized, and modernization and retooling programs were
gradually put in hand. While unemployment was affecting a large part of the
continent, some countries were paradoxically faced with a shortage of labor in
those very sectors essential for economic revival. Although thousands of German
prisoners of war had been set to work, programs involving the large-scale
migration of foreign workers had been put in place in order to meet the
particular needs of agriculture and of the coal and steel industries. It was in
this difficult economic context that Belgium
and France concluded with Italy a protocol on cooperation and immigration
that provided for coal to be supplied to Italy, which its economy
desperately needed, in exchange for thousands of Italian workers unemployed at
home. More than 500 000 Italians emigrated to
countries in Western Europe between 1946 and
1955.
Devastation
of Europe: homes, factories, infrastructure
Europe
was devastated after WW II. Battles had been fought throughout the continent,
covering much greater area than in WW I. Air bombardment meant that most of the
major cities had been badly damaged, with industrial productionespecially
hard-hit. Many of the continent’s greatest cities, including Warsaw
and Berlin,
were in ruins. Others, such as London and Rotterdam, were severely
damaged. The region’s economic structure was ruined, and millions had been made
homeless. …the general devastation of agriculture had led to conditions of
starvation in several parts of the continent, which was to be exacerbated by
the especi9ally poor winter of 1046-1947 in northwestern Europe.
Especially damaged was the transportation industry as railways bridges, and
road had been heavily targeted by air strikes, while many merchant shipping
boats had been sunk.
Originally, it was hoped that little would need to be done to
rebuild Europe and that the United Kingdom
and France,
with the help of their colonies, would quickly rebuild their eonomies. However, by 1947, the European economies did not
seem to be growing as high unemployment and food shortages led to strikes and
unrest in several nations. Inß 1947 the European
economies were still well below their prewar levels and were showing few signs
of growth. Agricultural production was 83% and 1938 levels, industrial
production was 88% and exports only 59%.
The shortage of food was one of the most acute problems. As
important for the overalls economy was the shortage of coal, aggravated by the
cold winter of 1946-47. In Germany
homes went unheated and hundreds froze to death. In Britain the situation was not as
severe, but domestic demand meant that industrial production came to a halt.
Postwar
Britain
The immediate postwar period was one of severe privation.
More than 4 million houses had been destroyed or badly damaged; the result was
an acute shortage of housing, especially after soldiers returned from the war.
Commodity shortages meant the continuation of wartime rationing. Rationing also
had to be extended to include items that had not been rationed during the war.
For the first time since the 18th century, Britain became
a debtor nation. The loans it had taken out from foreign nations to finance the
war exceeded the money it could raise in taxes and other revenues. Their
expenditure for the war effort was about $120 billion. Without U.S. and Canadian aid, Britain would
have defaulted on its considerable debts. Even so, the flood of wealth out of
the country was considerable. The winter of 1947 was probably the lowest
economic point of the century. Fuel shortages, gas rationing, inadequate food
and shelter, and one of the coldest seasons on record all added to the nation’s
problems. Unemployment reached 2.3 million, and the monetary crisis worsened.
(MSN Encarta)
Postwar
Germany
After World War II the German economy lay in shambles. They
had spent approximately $272 billion on the war. The war, along with Hitler's
scorched-earth policy, had destroyed 20 percent of all housing. Food production
per capita in 1947 was only 51 percent of its level in 1938, and the official
food ration set by the occupying powers varied between 1,040 and 1,550 calories
per day. Industrial output in 1947 was only one-third its 1938 level. Moreover,
a large percentage of Germany's
working-age men were dead.
(www.econlib.org/library/Enc/GermanEconomicMiracle.html)
Most of the major cities had been badly damaged, with
industrial production especially hard-hit. Many cities lay either in ruin or
were severely damaged. The economic structure was ruined and millions had been
made homeless. The shortage of food was one of the most acute problems. The
situation was especially bad in Germany
where in 1946-47 the average calorie intake per day was only 1800, an
insufficient amount for long-term health. Western Europe
in 1946-47 had only 4/5 of its 1938 supply of food. Its population had increased
by 20 million, more than a tenth, even after accounting for military and
civilian deaths.
As important was the shortage of coal, aggravated by the cold
winter of 1946-47. In Germany
homes went unheated and hundreds froze to death. German coal production in 1947
proceeded at little more than half of the pre-war pace.
Postwar
France
Though France
was occupied by Germany
throughout most of the war, their economy still had to be rebuilt following the
cessation of hostilities in 1945. Not only did France have serious financial
problems, but it was also faced with wartime destruction, social dislocation,
and political turmoil. For example, the destruction of 4/5 of its railway cars
hampered transportation. The purge of Vichy
collaborators, which took thousands of lives, brought the country close to
anarchy. Over 5000 collaborators were killed by partisans.
Postwar
Italy
Italy
had spent about $94 billion on World War II.
Coming out of the Second World War completely ruined and crippled
by the severe territorial restrictions imposed by the peace treaty (Paris, 1
February 1947), the new Italian
Republic had to face the
many problems of material and moral reconstruction. Like the other European
nations, Italy
had suffered severe casualties of both its military and civilian populations.
In addition, the Allied campaign in Italy left some cities and some of
the countryside in shambles. Roads and bridges had been destroyed..
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