Europe in a New

Generation
University of Nicosia
.MA International Relations and European Studies. Fall 2019
Course code: MIREL: 510

.Prepared by: Salah Eden Shambi- U184N3823

1 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
 Contents

- Introduction 3-4
- Europe Recovery Program 4-8
- Disintegration of Communism 8-10
- Economic Growth 11-12
- Conclusion 13-
15
- Bibliography 16

2 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
 Europe in a New Generation
World War II:

In the course of thirty years, the world was plunged into the crisis of
the start of the First World War and the end of the Second World
War. Whereas Europe was the trigger and center of the wars, as
conflicts between European states triggered the balance of power
plunging the nations of the world into war. At the heart of the World
Wars was the conflict of the superpower nation Germany and its
European neighbors. These were the most developed countries in
the world and yet they sought to destroy each other.

Therefore, to be exact, World War II, the most brutal of both wars,
lasted from 1939 to 1945. The level of brutality was twice bloodier
than the Great War ever was. Responsible, for the deaths of 40 to 70
million people, and many of them were civilians. Being the first war
that claimed the lives of civilians more than soldiers. The war was
fought by main parties and alliances that assisted each other in this
gruesome time, such as Axis Powers being lead by Germany, (Axis
Powers… including Italy and Japan) and Allies, that was formed by
Britain and France to stand against German invasions ( Allies…
including the United States, and the Soviet Union).

3 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
Therefore, after World War II, the beginning of a new era came to
play in the whole world. Where the war redistributed the whole
world power, and the new superpowers emerged such as the United
States, the Soviet Union, during the beginning of the Cold War that
took place after WWII. On the other hand WWII, drastically
devastated previous Superpowers such as Germany and Japan, after
being permanently damaged by the horrific destruction imposed on
the countries and its civilians.

The consequences of the war have not only been seen in Europe but
throughout the world. The wanton destruction of homes created
thousands of refugees and displaced persons. The world became
bipolar after the emergence of the United States and the Soviet
Union as the two largest powers in the world, and then returned and
became unipolar after the disintegration and collapse of the Soviet
Union in the 1980s of the last century.

On the economic side, the Second World War led to huge economic
losses in all countries of the world, especially the defeated countries
such as Germany. However, not just affecting the defeated countries,
as the repercussions imposed by the destruction of the war lead to
70% of the European economy collapsing and industrial
infrastructure shutting down completely as they were affected by the
damages. Although, there was a huge backlash created from the
destruction of many countries and cities, (whether in Europe, the
Soviet Union, Japan, etc.,) a more positive outcome was later
displayed, as these countries later rose, especially Japan and

4 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
 Germany to become two of the most famous industrialized countries
in the world.

i. Europe Recovery Program.

- World War II led to a great extent of the destruction and

disintegration of the European economy, causing widespread
poverty and unemployment, which created fertile ground for the
spread of communism as was evident from the Soviet plans at the
time. The US government moved quickly, along with the European
and Japanese bourgeoisie, in two directions. The first and foremost
direction, was the Marshall Plan, for the reconstruction of the capital
in Europe generally. Aiming to stop the revolutionary tide of
liberation in the first place, especially in France and Italy, and also to
control the capitals in each of these countries, (this is what I will
mention in detail later.) Secondly, the plan was to rebuild capitals in
Germany and Japan, whose societies were characterized by relative
trade union and political weakness. Which meant greater
profitability for American capital and for the German and Japanese
bourgeoisie, not to mention the greater potential for growth and
expansion in these two countries. This was the beginning of the
emergence of a new balance of power and the cold war.
- The Marshall Project (officially launched as the European Recovery
Program, ERP), is an economic program that encourages European
countries to work together for economic recovery after World War II
(1939-1945).In June 1947, the United States agreed to help Europe if
they agreed to meet to decide what they needed. The official name
5 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.
.Course Code: MIREL 510
 of the project was the European Recovery Program. And he's been
divorced. It has the name of the Marshall Plan because U.S. Secretary
of State George Marshall was the first to propose it.

- Marshall's offer of assistance did not come from a political vacuum.

Marshall's predecessor, U.S. Secretary of State James Burns,
delivered a speech of hope nine months earlier, specifically in
September 1946, in Stuttgart, Germany. In his speech, Burns pledged
that the United States would help rebuild Germany and reintegrate it
into the European economy. He also pledged to commit to a long-
term U.S. presence in response to a massive Soviet presence in the
Soviet occupation zone.

- In mid-1947, delegations from 16 Western European countries met

in Paris for the first meeting of the newly formed European Economic
Cooperation Committee. The Soviet Union had a strong desire to
keep the Eastern European countries as its protective zone, refusing
to allow Czechoslovakia, Poland, and other countries to attend the
meeting. The European Economic Cooperation Commission spent six
weeks drawing up a detailed list of economic projects. But U.S.
officials rejected the proposals, saying that the proposals
represented 16 lists separate from each other, not a single logically
coherent plan. A few weeks later, the commission sent a revised
report to the United States that met U.S. requirements. The
introduction of the report marked a new phase in European
economic cooperation. The report contained very detailed
assessments of the European economy at a time when production
capacities were often considered national secrets. This requirement
6 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.
.Course Code: MIREL 510
 of financial transparency was one of the reasons why the Soviet
Union refrained from participating in the Commission.

- The Marshall Project began in April 1948, when it agreed the U.S.
Congress is passing a law allowing the U.S. administration to
establish the Department of Economic Cooperation to oversee
assistance to Europe. The United States has sent approximately $13
billion worth of food, machinery, and other products to Europe. One
of the project's aims was to absorb unemployment, which could
create a climate beneficial to left-wing movements and communist
parties, in order to actively support their positions in Europe's
capitalist countries. The availability of purchasing power and the
transformation of these communities from consumer to producer
also achieve strong competition with socialist Europe. As opinions
differed on the motives of this project, they differed in terms of the
effects and results it achieved; Successful in restoring Europe's
productive capacity, controlling inflation risks and reviving free trade
between European countries at the end of the project in 1951, by
one third more than it was. The assistance ended in 1952. In 1961,
the OECD replaced the Department of Economic Cooperation, with
20 countries, including the United States and Canada, forming the
Organization for Economic Cooperation and Development (OECD) to
increase the economic growth of members and to help developing
countries.

- In my point of view, Marshall's plan was not to help Europe as much

as it was to help the United States itself. In other words, this project

7 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
 was not to help Europe in its human sense, because there were
hidden objectives behind the United States' intention to help Europe.
The conflict between the capitalist West and the communist states
created two opposing poles, which led to the declaration of the Cold
War and divided Europe into capitalism allied with the United States
and socialism allied with the Soviet Union. At that time Communist
parties had achieved strong positions of influence within Western
Europe, especially in France and Italy. The United States recognized
that the continued collapse of the economic situation will help the
communist movements and make them progress in controlling the
democracies in a democratic manner. This was an important reason
to make the United States protect its interests, and thus, present the
Marshall Plan. Which, was politically intended to stop the communist
tide and revolutionary movements regardless of what Europe would
gain.

ii. Disintegration of Communism.

- The period before the disintegration of communism was called the

Cold War, a war that divided the European nation lasting from 1945
to 1990. The war was composed of the Eastern Bloc or otherwise
known as the Eastern Camp, which was under the ruling of the Soviet
Union and its allies. The other side of Europe was known as the
Western Bloc or otherwise known as the Western Camp, composed
of the United States and their allies. The war was marked by a
mutual sense of mistrust and bad faith. The United States and its

8 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
 allies accused the Soviet Union of spreading communist ideology
around the world, while the Soviet Union accused the Western bloc
of spreading imperialism and preventing revolutionary movements.
The cold war continued after World War II until 1990 where the
Soviet Union disintegrated.
- In the allied summit meeting in Yalta 1945, leaders agreed to divide
Europe at the end of the war into ‘spheres of influence'. This
agreement intended to be a temporary agreement, but it soon
became permanent.
- As a result of the cold war, conflicts of interest grew between some
parties on the same side. Leading to the division of Germany in 1947.
East is for the Soviet Union and West standing by the U.S.A. With a
wall built in the middle of Berlin to separate both sides. This action
was one of the biggest conflicts that occurred during the cold war,
eventually creating tensions between the parties, whereas this
period enforced serious disagreements and arguments, leading to
permeated political clash, military tensions, proxy wars, military
coalitions (NATO, Warsaw Pact), espionage, and the arms race.

- The first crack in the wall of communism was through the unrest that
spread throughout Eastern Europe, which culminated in 1956. In
which, Poland and Hungary showed massive demonstrations against
Communism influence. Leading to Hungarian rebels standing on their
own and declaring neutrality during the Cold War. They looked
forward to United Nations for assistance in the stance they took. In
November of 1956 Soviet army raided Hungary to suppress what was
now being called the Hungarian Revolution. Many Hungarians died as

9 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
 a result of the attack, sending waves of concern throughout the
western world.

- In 1985 the Soviet Union had a change of power, in which Mikhail

Gorbachev became in power. He declared reforms such as
“as perestroika  (“restructuring”) and glasnost (“openness”)” which
were aimed to changing the Soviet Union old rules. In which the new
rules purpose was to provide more freedom and democracy in the
nation. He had a high status in the West, as the West viewed
Gorbachev a man they could work with and trust. Furthermore,
United States President Ronald Reagan and United Kingdom Prime
Minister Margaret Tatcher started negotiations with the Soviet
Union.
- Negotiations lead to finally allowing for citizens of communist
countries to cross the borders. Hungary is the first of which opened
its western borders with Austria. Leading for the escape of Eastern
citizens to the West. Eventually, Germany’s Berlin wall crumbles to
and for the first time in 30 years the Berlin Wall falls due to the fact
that citizens were crossing and traveling through the borders from
Eastside to Westside. Finally One by one, like dominoes, Communist
governing regimes in Eastern Europe began to topple. Hungary and
Poland were the beginning of the wave in 1989, and then followed
Czechoslovakia, Bulgaria, and Romania.

- In my opinion, the collapse of communism and its allies, and the

disintegration of the Soviet Union amid 1989-1991 was the biggest
change within the world since the 1940s. Economically, countries
emerging from the ruins of communism faced massive challenges in

10 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
 terms of re-molding education and markets to convey development
and success for their citizens. The scale of the issues was most acute
for the countries within the previous Soviet Union. These countries
had financial structures that were harmonic to satisfy the central
arranging framework inside the Soviet Union: for this group, the
challenge of building self-functioning market-based economies was
especially severe. The international community recognized from the
beginning, that the support should be ready-made to assist the
transition process in Central and Eastern Europe and the newly
independent states of the Former Soviet Union.

iii. Economic Growth.

- The growth of the economy after the war went through three
phases. Phase one, was after 1945, in this period the economy has
developed rapidly. Changes in Western European countries produced
higher employment rates as it was moderate. The second phase was
characterized by slow economic growth, it was dominated by large
and frequent fluctuations because of the "oil shocks" and increasing
inflation rates in the 1970s and early 1980s. The third phase, called
the "Great Moderation", prevailed until 2007 and was characterized
by smooth and modest changes in production and reflected a
gradual decline in the inflation rate.

- After WW II, Western Europe countries, had a remarkable outcome

in their success as they took part in the quick integration into the
global economy. Although, the war had reduced foreign trade to the
lowest level until it reached what was recorded before the First
11 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.
.Course Code: MIREL 510
 World War. To later increase the volume of exports, and consolidate
the free trade in both western and Eastern Europe, and the volume
of Intra-European trade had been activated. Also, the rebirth of
Germany after the disintegration of communism and reunite the East
and West again is a real example of state-building after grinding
wars. Slowly, Germany began to build its economy, raising the
standard of living of the German people, exporting local goods
abroad, reducing unemployment, increasing local food production,
and reducing the black market. The main reason behind the German
revival after WW II is the industrial revolution that took place in
Germany in various fields, especially in the heavy industries. Which
made Germany one of the most powerful economies in the world
today.

- After the collapse of the Communist regime in Eastern Europe and

the rapid integration of these countries into their European
surroundings. European integration features began to emerge. The
aspiration was that this integration would include the common
economy and the unification of European markets. The revival of
European integration has started in the mid-1970s to the late 1980s,
according to the Maastricht treaty then followed by a treaty
“Amsterdam” in the late 1980s and 1990s.

- From the economic side as a first step, all European Union member
states became involved in the Exchange Rate Mechanism (ERM)
which began in July 1990. In October of that year, the European
Council agreed that the next stage of the Economic and Monetary
Union (EMU) would begin in January 1994 and the Treaty on

12 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
 European Union set up the institutional framework to further
Economic and Monetary Union. EMU was completed in three stages
during the 1990s, culminating in the introduction of euro notes and
coins on 1 January 2002. However, European integration road to
success was not easy, especially from economic aspects. It was
accompanied by some negative impacts, especially in less developed
countries. For instance, in Croatia, the freight forwarding industry
was affected by removing customs barriers in terms of decreasing
incomes generated out of customs brokerage. Since many freight
forwarders have based their business activities on customs
brokerage.

Conclusion:

In conclusion, the fact remains that Europe went through very

difficult periods after the Second World War to reach what it is
today. Witnessing the horrors of the first systematic genocide in
history. Nations such as Britain and France were affected by the wars
heavy artillery and aerial bombing, that lead to the demolition of the
nations and many surrounding nations cities, towns and villages, for
they were used as war zones. During a rain of a seven-year interval
war, that was responsible for 40 to 70 million deaths, many of them
which were civilians. Europe found itself divided into parties and
alliances governed by interests. It tried to rise but found itself
between the hammer of capitalism and the anvil of communism,
divided into two sections, each belonging to a pole. The economy
collapsed because of the war and suffered huge economic losses,

13 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
 especially defeated countries like Germany. Foreign countries such
as the United States tried to help Europe and provide aid, the most
important of which was the Marshall Plan, which was no secret to
anyone that its motives were political, not just economical. Although
the Soviet Union rejected the Marshall Plan, it managed to keep a
part of Eastern Europe as a protection zone, and refused to allow
Czechoslovakia, Poland, and other countries to attend the meeting in
1947. Nevertheless, Western European countries were able to move
forward with this project and recover their economy after the crises
which were caused by the war. Europe suffered a division because of
the ruling communist regimes in many countries of the East, and the
result from this conflict was the start of the Cold War. Which, had
negative consequences for the whole world not only Europe. Leading
to the destruction and invasions of countries even outside Europe
such as Afghanistan, as a result of arms race and proxy wars.
However, this war generated pressures that resulted in Europe
reintegration and collapse the communist regime.

A common expression that leads Europeans to never look back to

taking actions through war after 1945 was “Never again,” which
symbolized a universal desire to avoid another world war. The
people of Europe were especially committed to this ideal after
watching their families torn apart and their homes destroyed.
Nevertheless, many felt that peace in Europe could be guaranteed by
dealing with nationalism. As the wars were created through the
nationalism that laid in Europe’s balance of power. Nationalism
pushed the greatest powers in Europe, the United Kingdom, France,

14 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
 Germany, and Russia to compete against each other. Competing for
economic and military dominance even over time of peace between
the nations. Therefore, trading barriers and turfs were established in
European countries. These issues made one thing clear, Europe
needed to be integrated, eventually being noticed and taken into
consideration by many political intellects. Instead of competing
between European states for simple issues that could lead to greater
wars, there was a need for creating a system in which cooperation
was the goal of the nations and not partition.
This shows clearly that the economy of Europe advanced and
developed significantly due to many factors. The most important of
which was the integration that took place in Europe and one of the
most important things that helped Europe today. Stopping
nationalism and allowing a system of co-operation in which
European states didn’t find the need to compete against one another
or have to invade one another the way Germany tried to do,
eventually misleading to war. Although the integration system had
some negative impacts that accompanied it, it fixed so much and the
integration system remains the nucleus of a unique system that has
no similar system in form or function.

15 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
Bibliography:

- Annesley, C. (2005), A Political and Economic Dictionary of Western Europe, Europe

Political and Economic Dictionaries Series. London.

- Broadberry, S. O'Rourke, K. (2010), the Cambridge Economic History of Modern Europe:

Volume 2, 1870 to the Present, Cambridge University Press, New York.

- Stanković, Ratko; Šafran, Mario; Božić, Diana. 2018, IMPACT OF EUROPEAN

INTEGRATION PROCESSES TO THE FREIGHT FORWARDING INDUSTRY, Horizons Series A,
Vol. 23, p629-638. 10p.Berle Jr., A. A.(2015), The Marshall Plan in the European
Struggle, Social Research, Vol. 82 Issue 1, p199-218. 20p.

- Holm, Michael. (2019) The Marshall Plan: Dawn of the Cold War,  Historian, Vol. 81 Issue
2, p309-310. 2p. DOI: 10.1111/hisn.13154.

- Hein, David. (2017), The Marshall Plan,  Modern Age, Vol. 59 Issue 1, p7-18. 12p. 

- https://www.thoughtco.com/the-downfall-of-communism-1779970

16 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510
- https://carleton.ca/ces/eulearning/history/

17 University of Nicosia- MA International Relations and Europe Studies- Fall 2019.

.Course Code: MIREL 510