DECS / HDECE / BEdECE Individual Assignment Cover Sheet

Student Name: Inpreet Kaur Student No.: 19035277

Student E-mail: 19035277@stu.yccece.edu.hk

Course Code: GEN5121 History and Econ

Course Title: GEN5121 History and Econ

Course Lecturer: Dr. Frank Lam

Due Date: 21/12/22

Assignment Information:

Student Declaration:

This assignment is entirely my own work except where I have duly acknowledged other sources in the
text and listed those sources at the end of the assignment.

This assignment has not previously been submitted for assessment in any other course.

Signed: Date: 21/12/22

 1. In this essay, I will state the relationship between war and economy in recent history,
in which I would use Russian-Ukraine war as my focus of recent history.
Ukraine was attacked by Russia on February 24, 2022. As a result, numerous international
sanctions have been imposed on Russia to defuse the situation. Although intended to harm
Russia, the sanctions imposed on Russia have had unintended consequences for the global
economy, primarily by disrupting global supply chains. It is causing supply shocks to energy,
commodities, and trade. This has led to higher prices for energy, commodities, and food,
accelerating global inflation in some countries. Although Israel served as a peace broker
between Russia and Ukraine, the economic fallout of the crisis continued to be felt in much
of Europe and beyond.
The Russo-Ukrainian War has had multiple effects on the global economy. Disruption to
global supply chains is the first significant impact. Military actions during Russia's invasion
of Ukraine have had a significant impact on the operations of many industries due to
disruptions in global supply chains. Global supply chains are hampered by Russia's export
embargo, Russia's embargo on foreign imports, and Russia's disputed denial of passage of
foreign goods by air and water. A deficit will make imports more expensive. Businesses
predicted that the difficulties caused by trade restrictions and cross-border blockades would
encourage people to hoard goods and raise prices. In addition, cargo flows and border
operations can be disrupted and delayed as border officials screen refugees before they even
pay attention to cross-border goods. This will therefore exacerbate the current supply chain
disruptions and push up import costs.
Second, the COVID pandemic, limited energy resources, and rising tensions between Russia
and Ukraine were some of the reasons for higher energy prices ahead of Russia's invasion of
Ukraine. Before the invasion, oil prices were always between $80 and $95. After the
invasion, oil prices exceeded $100 a barrel in US dollars. As the world's second-largest oil
producer, Russia exports most of its oil to refineries in Europe, so an invasion could make
energy supplies from Russia more difficult. Moreover, Russia is the region's largest supplier,
covering nearly two-fifths of Europe's natural gas demand. Russia's invasion of Ukraine is
expected to lead to disruptions in energy supplies and steadily rising energy prices due to
Russia's significant involvement in global oil exports. This damage could be exacerbated if
Russia retaliates by banning energy supplies to Europe and elsewhere. Global energy supplies
will be severely disrupted by Russia's retaliatory oil embargo, pushing up energy costs. Oil
prices could rise above $140 a barrel as a result of the conflict between Russia and Ukraine,
significantly slowing projected global economic development and leading to recession in
some European and non-European countries. There is also a possibility. Residential gas costs
are likely to rise due to concerns about global energy supply disruptions.
Third, continued aggression would raise the cost of living in most European countries,
including Germany and the UK. For example, UK inflation is very high at her 5.5%. 4 This
suggests that consumers are already buying fewer items at higher prices. Oil, gas, food and
food ingredients will all increase in price as a result of the struggle. As a result, mortgage
deductions, vehicle and lighting prices could rise dramatically, pushing up the cost of living.
Developing countries dependent on energy imports will also be affected. Income levels will
remain the same, but developing countries will pay higher prices for energy imports. This
could lead to higher local fuel pump costs, higher food prices and an overall increase in
commodity imports. As a result, inflation increases and the cost of living in developing
countries rises. Wealthy and developing countries working together could result in higher
global inflation and a higher cost of living.
In this essay, I will discuss that economy deterioration is being the cause of war using Second
World War as an example.
Leaders of the world's great powers gathered in Paris to discuss the extent of the death and
destruction caused by World War I, hoping that the results would ensure that such a
catastrophe never happened again. Unfortunately, a misguided peace treaty and the worst
economic recession the modern world has ever experienced has caused global relations to
sour, resulting in a war far more disastrous than its predecessor. will be triggered.
First, the Paris Peace Conference that led to the Treaty of Versailles, despite the best efforts
of its authors to preserve world peace, was the seed that, if grown on the ground of economic
catastrophe, would lead to war, not peace. That was the irony of the meeting. It started with
Article 231, also known as the "War Crimes Clause", which held Germany responsible for
starting the war and required it to pay reparations as punishment. The Germans were, of
course, bitter about the treaty because it required them to abandon their colonial lands and
disarm them militarily in exchange for such huge reparations.
Second, as early as 1923 he began delaying reparations payments by the newly formed
Weimar Republic, leading to reprisals from France and Belgium. The industrial centers of the
Ruhr Valley were occupied by both countries, thereby controlling the production of coal and
metals in the region. Since much of Germany's industry depended on coal and metals, the loss
of these industries provided a negative economic shock that led to a deep recession. This
recession and the government's continued printing of money to fulfill its responsibilities
related to internal strife led to a runaway hyperinflation. Hyperinflation destroyed a good
chunk of middle-class savings, but America's 1924 Dawes Plan played a role in eventual
price and economic stability. The enormous distrust to which the liberal democratic Weimar
government was exposed would have dire political consequences. This mistrust and
dissatisfaction with the Treaty of Versailles can be attributed to the growing popularity of
more extreme political groups on both the left and right.
Third, the outbreak of the Great Depression shattered attempts to build a more peaceful
postwar society. Loans sent to Germany under the Doze Plan were not only stopped, but
completely withdrawn when the American stock market crashed in 1929. As a result of
currency and credit restrictions, a wave of bank failures began in 1931, with the failure of
Austria's largest bank spreading throughout Central Europe and leading to the complete
collapse of the German banking system. Moreover, the growth of the Nazi party from a small
fringe group in Germany to the largest political force was facilitated by Germany's economic
recession. Hitler's soaring popularity among voters electing him Chancellor of Germany in
1933 was fueled by Nazi propaganda that blamed most of Germany's economic woes on the
Treaty of Versailles.
Fourth, more international alliances began to form between different countries. Unlike
Germany, Italy, and Japan, Britain, France, the Soviet Union, and America all had major
colonial empires they could count on for access to much-needed raw materials. As global
trade dwindled, regional trade blocks built by "have" countries along colonial lines
proliferated, such as Britain's imperial preference system. Thus, during imperialist conquests,
such as the Japanese invasion of Manchuria in the early 1930s, the Italian invasion of
Ethiopia in 1935, and the German annexation of much of Austria and part of Czechoslovakia
in 1938, new territories were acquired.
Despite the best efforts to bring about peace, the Paris Peace Conference's conclusion, which
singled out Germany as the cause of the First World War, served more to stoke hostility.
Later, the Great Depression and the resulting economic protectionism would function as a
trigger for hostility to emerge in the shape of the Nazi Party and growing imperialist
aspirations among international powers. It was only a matter of time until those little
imperialist victories led to economic unrest and decline in their individual nations, which in
turn sparked the start of the Second World War.
 References
Averre, D. (2016). The Ukraine conflict: Russia’s challenge to European security
governance. Europe Asia Studies, 68(4), 699-725.
Chassang, S., & i Miquel, G. P. (2009). Economic shocks and civil war. Quarterly Journal of
Political Science, 4(3), 211-28.

Johnston, M. (2022, February). Economic conditions that helped cause World War II.
Investopedia. https://www.investopedia.com/articles/markets/022516/economic-
conditions-helped-cause-world-war-ii.asp#citation-1

U.S. Department of State. (n.d.). “The Paris Peace Conference and the Treaty of Versailles”
U.S. Department of State. https://history.state.gov/milestones/1914-1920/paris-peace