EFFECTS OF GREAT DEPRESSION The Great Depression had devastating

effects in countries rich and poor . Personal income , tax, revenue, profits and
prices dropped, while international trade plunged by more than 50%.
Unemployment in the U.S. rose to 25%, and in some countries rose as high as
33%. Cities all around the world were hit hard, especially those dependent on
heavy industry. Construction was virtually halted in many Countries. Farming
and rural areas suffered as crop prices fell by approximately 60%. Facing
plummeting demand with few alternate sources of jobs, areas dependent on
primary sector industries such as cash cropping, mining and logging suffered
the most. Some economies started to recover by the mid-1930s. In many
countries, the negative effects of the Great Depression lasted until after the
end of World War II.

GREAT DEPRESSION IN INDIA The Great Depression of 1929 had a very

severe impact on India, which was then under the rule of the British Raj . The
Government of British India adopted a protective trade policy which, though
beneficial to the United Kingdom, caused great damage to the Indian
economy. During the period 1929–1937, exports and imports fell drastically
crippling seaborne international trade. The railways and the agricultural sector
were the most affected. The international financial crisis combined with
detrimental policies adopted by the Government of India resulted in soaring
prices of commodities. High prices along with the stringent taxes prevalent in
British India had a dreadful impact on most Indians. The discontent of farmers
manifested itself in rebellions and riots. The Salt Satyagraha of 1930 was None
of the measures undertaken as a response to heavy taxation during the Great
Depression. The Great Depression and the economic policies of the
Government of British India worsened already deteriorating Indo- British
relations. When the first general elections were held according to the
Government of India Act 1935 , anti-British feelings resulted in the pro-
independence Indian National Congress winning in most provinces with a very
high percentage of the vote share.

1. DECLARATION OF INDEPENDENCE On December 31, 1929, at a

session of the Indian National Congress held on the banks of the river
Ravi in Lahore, Jawaharlal Nehru unfurled the tricolor and declared that
complete independence from British rule would, henceforth, be the goal
of the Congress. This was a remarkable shift of policy for the Indian
 National Congress as it had, till now, been a staunch advocate of
dominion status. This declaration also triggered the
2. 40. SALT SATYAGRAHA The Salt Satyagraha formed the highpoint of
the Civil Disobedience Movement. While the heavy salt tax was always a
burden to the poor peasant, the widespread poverty during the Great
Depression made it even more difficult for the commoner to procure
salt. In response to this tax, between March 12, 1930 and April 5, 1930,
Mahatma Gandhi marched with over 30,000 followers to the coastal
town of Dandi in Gujarat , where they illegally manufactured salt and
defied the Government monopoly on salt. Subsequently, similar
satyagrahas were organized at Dharasana and Vedaranyam. The
Government responded with a massive roundup, but by then, the march
and the media coverage had radically molded international opinion.
COUNTRIES • • • •
USA • HARDEST HIT COUNTRY, EXTREME DEPENDENCE ON INDUSTRIAL AN
AUSTRALIA EXPORTS
EAST ASIA • UN-EMPLOYMENT REACHED A RECORD HIGH OF 32% IN 1932
FRANCE • AN INCREASE IN WOOL AND MEAT PRICES LED TO A GRADUAL RECO
GERMANY • MINOR IMPACT, JAPANESE ECONOMY SHRANK BY 8% IN 1929 -31
INDIA • THE INVASION AND SUBJUGATION OF MANCHURIA INTO A JAPANES
• MANCHURIA PROVIDED JAPAN RAW MATERIALS AND ENERGY, AND
TO GROW AFTER 1932.
• THE GREAT DEPRESSION BEGAN TO EFFECT FRANCE FROM 1931.
• FRANCE’S RELLATIVELY HIGH DEGREE OF SELF SUFFICIENCY MEANT T
CONSIDERABLY LESS THAN IN NATIONS LIKE GERMANY
• GERMANY’S WEIMER REPUBLIC WAS HIT HARD BY THE DEPRESSION,
LOANS TO HELP REBUILD THE GERMAN ECONOMY STOPPED.