IB HISTORY
THE MOVE TO GLOBAL WAR
CHAPTER 3: INTERWAR CONDITIONS IN EUROPE AND ITALIAN
FOREIGN POLICY 1933-36
1. The economic and political effects of the Great Depression
Turning point in interwar history: weaken economic, political and social industry and dealt a devastating
blow to the LoN and international cooperation.
Economic effect
1929-1932: following Wall Street Crash: world trade declined by 70% = mass unemployment. Global
banking industry was in crisis, loans were recalled as stocks lost value and industry shrank. Eventually,
banks all over the world began to collapse.
Trade barriers
To keep money and investment within their borders, most nations erected trade barriers by taxing
imports, further hindering world trade and an economic recovery. Countries as Germany and Japan,
which depended heavily on import/export, suffered badly. Nations also turned to their colonies to
protect their own industries and only exported products within their empire (France and Britain). Vast
counties such as USA and Russia contained many of the needed resources and could turn inward during
economic crises. → smaller countries aimed to expand empire as this would help the economy recover.
Political effect = Great Depression brought political crises to several countries
The USA
Republican party fell from political power; Roosevelt won the elections and the Democrats took control
of politics. Introduction of: higher taxes, more trade barriers, more governmental spending, deficit
spending. The USA also kept itself isolated form European affairs and conflicts.
Britain
Britain’s government was headed by the Labour Party until 1931, which eventually was short on money
and entered into a coalition with other parties forming the National Government (mainly dominated by
the Conservative Party) The NG achieved economic stability by 1934 (imperial preference).
International impact of British economic policies
British trade barriers caused countries outside the empire to economically gravitated towards Germany,
which helped Germany’s economy recover and also made those countries more depended on Germany.
Effect on military programmes
All political parties had to compromise in some ways to make sure that the NG remained in power. The
Labour Party, however, wouldn’t compromise on the issue of military spending → British military stayed
week during the 1930s preventing aggressive responses to Italian/German challenges and worked toward
international disarmament.
France
The French Government established a very strict quota on imports of all kinds; government wages were
reduced and spending was slashed; France also didn’t suffer that badly from mass unemployment as many
French worked in agriculture and conscription was used to keep young men. Stable economy but
extremely unstable government: coalition government; collapse; coalition government; collapse …
Germany
Germany was one such country at the time led by a chancellor: kept currency at a high exchange;
reduction of prices; keep government’s budget balanced. → FAILURE: mass unemployment, reparation
payments from the Treaty of Versailles were suspended indefinitely because economic conditions were
that poor.
National Socialism versus communism
As the coalition government failed to bring stability, the Socialism and Communism became more
popular. In Germany by 1932 the Nazis were the most popular. Adolf Hitler, their leader, lost at
, running for president against Paul von Hindenburg in 1932, but became better known amongst the German
people.
Hitler’s beliefs:
• Germany should take its place on the world stage and thus end the humiliation of Versailles
• Achieve independency of Germany’s economy from other countries
• Lebensraum: in lands conquered by Germany in WWI but taken away in Versailles (Poland…)
• Hatred of minorities
• German as a master race meant to rule over other nationalities
→ Nazi ideology appealed more to people than strict communism ideology as communists opposed the
concept of nationalism and saw working-class people around the world as equal. Also: Industrialists and
large landowners naturally opposed communism and supported the Nazis economically.
Hitler comes to power
Economic crisis → Nazi Party’s per cent of representatives in the Reichstag grew drastically from 1928-
32 (2.6-37.3) even though Hitler was still not elected as president. 1933: President von Hindenburg
appointed Hitler as chancellor. In an election in March 1933: the Nazi Party won 44% of the seats
(Hitler as chancellor had outlawed the Communists and had made the Nazis attack other candidates);
Enabling Act was passed:
→ Hitler had the power to rule without the Reichstag (popular amongst the citizen as they believed Hitler
would solve their economic problems)
International diplomacy in the early 1930s
= complex system of alliances, treaties, pacts and commitments to the LoN
League of Nations
By 1934 the LoN included all European states but was severely weakened by the Manchurian Crisis
(→ collective security was flawed and main powers were weak) Its strongest powers, France and Britain,
were in debt and economically weakened and therefore not able to enforce collective security with
their armies.
France
• Aimed to isolate Germany diplomatically and created an alliance of states which would come
to aid if Germany would attack the French again.
• Together with Britain, France worked to include Italy in international diplomacy so that
Germany would’ve no state to turn to.
• Insisted on the disarmament of Germany (whilst still keeping its on army → tension with
states)
Governmental instability in France: Growing power of fascists (desiring a large military to destroy the
communist Soviets) but also socialist and communist parties (opposing the fascist and the build-up of
the military)
1935: France couldn’t react to Germany’s rearmament programme and Italy attacking Abyssinia
partly due to its divided government and economic stress.
Britain
• Germany’s economic rehabilitation (= develop stronger economic relations with Germany)
• More concerned with the Soviet Union and its communism than with Germany (feared the
spread of communist governments
→ Britain wanted Germany to return to normalcy and thus refused to participate in France’s
encirclement and isolation of Germany.
Germany
• End the humiliation imposed on them at the Treaty of Versailles
• Not accepting its borders in the East Germany was interested in getting back Poland (many
Germany living there), the city of Danzig
→ Germany still couldn’t afford a huge military and couldn’t protect itself from hostile France and
Poland
Soviet Union
THE MOVE TO GLOBAL WAR
CHAPTER 3: INTERWAR CONDITIONS IN EUROPE AND ITALIAN
FOREIGN POLICY 1933-36
1. The economic and political effects of the Great Depression
Turning point in interwar history: weaken economic, political and social industry and dealt a devastating
blow to the LoN and international cooperation.
Economic effect
1929-1932: following Wall Street Crash: world trade declined by 70% = mass unemployment. Global
banking industry was in crisis, loans were recalled as stocks lost value and industry shrank. Eventually,
banks all over the world began to collapse.
Trade barriers
To keep money and investment within their borders, most nations erected trade barriers by taxing
imports, further hindering world trade and an economic recovery. Countries as Germany and Japan,
which depended heavily on import/export, suffered badly. Nations also turned to their colonies to
protect their own industries and only exported products within their empire (France and Britain). Vast
counties such as USA and Russia contained many of the needed resources and could turn inward during
economic crises. → smaller countries aimed to expand empire as this would help the economy recover.
Political effect = Great Depression brought political crises to several countries
The USA
Republican party fell from political power; Roosevelt won the elections and the Democrats took control
of politics. Introduction of: higher taxes, more trade barriers, more governmental spending, deficit
spending. The USA also kept itself isolated form European affairs and conflicts.
Britain
Britain’s government was headed by the Labour Party until 1931, which eventually was short on money
and entered into a coalition with other parties forming the National Government (mainly dominated by
the Conservative Party) The NG achieved economic stability by 1934 (imperial preference).
International impact of British economic policies
British trade barriers caused countries outside the empire to economically gravitated towards Germany,
which helped Germany’s economy recover and also made those countries more depended on Germany.
Effect on military programmes
All political parties had to compromise in some ways to make sure that the NG remained in power. The
Labour Party, however, wouldn’t compromise on the issue of military spending → British military stayed
week during the 1930s preventing aggressive responses to Italian/German challenges and worked toward
international disarmament.
France
The French Government established a very strict quota on imports of all kinds; government wages were
reduced and spending was slashed; France also didn’t suffer that badly from mass unemployment as many
French worked in agriculture and conscription was used to keep young men. Stable economy but
extremely unstable government: coalition government; collapse; coalition government; collapse …
Germany
Germany was one such country at the time led by a chancellor: kept currency at a high exchange;
reduction of prices; keep government’s budget balanced. → FAILURE: mass unemployment, reparation
payments from the Treaty of Versailles were suspended indefinitely because economic conditions were
that poor.
National Socialism versus communism
As the coalition government failed to bring stability, the Socialism and Communism became more
popular. In Germany by 1932 the Nazis were the most popular. Adolf Hitler, their leader, lost at
, running for president against Paul von Hindenburg in 1932, but became better known amongst the German
people.
Hitler’s beliefs:
• Germany should take its place on the world stage and thus end the humiliation of Versailles
• Achieve independency of Germany’s economy from other countries
• Lebensraum: in lands conquered by Germany in WWI but taken away in Versailles (Poland…)
• Hatred of minorities
• German as a master race meant to rule over other nationalities
→ Nazi ideology appealed more to people than strict communism ideology as communists opposed the
concept of nationalism and saw working-class people around the world as equal. Also: Industrialists and
large landowners naturally opposed communism and supported the Nazis economically.
Hitler comes to power
Economic crisis → Nazi Party’s per cent of representatives in the Reichstag grew drastically from 1928-
32 (2.6-37.3) even though Hitler was still not elected as president. 1933: President von Hindenburg
appointed Hitler as chancellor. In an election in March 1933: the Nazi Party won 44% of the seats
(Hitler as chancellor had outlawed the Communists and had made the Nazis attack other candidates);
Enabling Act was passed:
→ Hitler had the power to rule without the Reichstag (popular amongst the citizen as they believed Hitler
would solve their economic problems)
International diplomacy in the early 1930s
= complex system of alliances, treaties, pacts and commitments to the LoN
League of Nations
By 1934 the LoN included all European states but was severely weakened by the Manchurian Crisis
(→ collective security was flawed and main powers were weak) Its strongest powers, France and Britain,
were in debt and economically weakened and therefore not able to enforce collective security with
their armies.
France
• Aimed to isolate Germany diplomatically and created an alliance of states which would come
to aid if Germany would attack the French again.
• Together with Britain, France worked to include Italy in international diplomacy so that
Germany would’ve no state to turn to.
• Insisted on the disarmament of Germany (whilst still keeping its on army → tension with
states)
Governmental instability in France: Growing power of fascists (desiring a large military to destroy the
communist Soviets) but also socialist and communist parties (opposing the fascist and the build-up of
the military)
1935: France couldn’t react to Germany’s rearmament programme and Italy attacking Abyssinia
partly due to its divided government and economic stress.
Britain
• Germany’s economic rehabilitation (= develop stronger economic relations with Germany)
• More concerned with the Soviet Union and its communism than with Germany (feared the
spread of communist governments
→ Britain wanted Germany to return to normalcy and thus refused to participate in France’s
encirclement and isolation of Germany.
Germany
• End the humiliation imposed on them at the Treaty of Versailles
• Not accepting its borders in the East Germany was interested in getting back Poland (many
Germany living there), the city of Danzig
→ Germany still couldn’t afford a huge military and couldn’t protect itself from hostile France and
Poland
Soviet Union
