The Inter-war Economy Concept & Notes PDF for Free

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Topic & sub-topics covered: The Inter-war Economy, Wartime Transformations, Post-war Recovery, Rise of Mass Production and Consumption, The Great Depression, India and the Great Depression: The Making of a Global World (All single detail notes that are exam-oriented).

We have discussed in-depth and exam-oriented pointers that can be asked in the board exam of class 10th about “The Inter-war Economy, Wartime Transformations, Post-war Recovery, Rise of Mass Production and Consumption, The Great Depression, India and the Great Depression” which is taken from the NCERT History book for class 10th chapter no. 3 “The Making of a Global World“.

Download NCERT History Chapter 3 Class 10th Notes PDF for Free The Making of a Global World

If you are in class 10th and looking for free NCERT History chapter 3 notes of chapter The Making of a Global World class 10 that cover concepts, then From here you can download the free class 10th History chapter 3 notes “The Making of a Global World”. You should download this free PDF for future test or exam preparations.

NCERT History Chapter 3 The Making of Global World Class 10 Notes

The Inter-war Economy

1. Focus on the First World War:

The First World War occurred from 1914 to 1918 and was primarily fought in Europe.
Its impact, however, extended globally, shaping the course of the first half of the twentieth century.

2. Global Ramifications of the War:

Despite being centred in Europe, the consequences of the war reverberated worldwide.
The global fallout resulted in extensive economic and political instability.

3. Crisis in the Early Twentieth Century:

The aftermath of the First World War led to a crisis that persisted for more than three decades.
This crisis profoundly influenced the trajectory of world events during the first half of the twentieth century.

4. Widespread Economic Instability:

Post-World War I, there was a widespread economic upheaval on a global scale.
Nations faced economic challenges, contributing to the overall instability.

5. Political Instability:

The aftermath of the war also triggered significant political instability worldwide.
Changes in political landscapes and power dynamics were notable consequences.

6. Lead-up to Another Catastrophic War:

The instability and unresolved issues from the First World War set the stage for another catastrophic conflict.
The developments of this period laid the groundwork for the outbreak of the Second World War.

Understanding the impact of the First World War on a global scale, including economic and political repercussions, is crucial for comprehending the subsequent historical developments.

Wartime Transformations

1. Formation of Power Blocs:

The First World War involved two major power blocs: Allies (Britain, France, Russia, and later the US) and Central Powers (Germany, Austria-Hungary, Ottoman Turkey).
Initially, many believed the war would be short-lived, but it extended for over four years.

2. Nature of the First World War:

It was the first modern industrial war, featuring the world’s leading industrial nations.
Modern industrial capabilities were harnessed, leading to unprecedented destruction.

3. Technological Advancements in Warfare:

The war introduced modern technologies on a massive scale, including machine guns, tanks, aircraft, and chemical weapons.
These technological advancements were products of large-scale industrial production.

4. Enormous Human Cost:

The scale of death and destruction was unprecedented, with 9 million dead and 20 million injured.
Most casualties were men of working age, impacting the able-bodied workforce in Europe.

5. Impact on Workforce and Household Incomes:

Deaths and injuries during the war reduced the able-bodied workforce in Europe.
With fewer workers, household incomes declined after the war.

6. Societal Changes during the War:

Industries were restructured to focus on war-related production during the conflict.
Societal roles underwent a transformation, with women taking on jobs traditionally held by men.

7. Economic Change and Borrowing:

Economic links between major powers were severed during the war.
To finance the war effort, Britain borrowed substantial sums from US banks and the public.

8. US Transformation into International Creditor:

The war transformed the US from an international debtor to an international creditor.
By the war’s end, the US and its citizens owned more overseas assets than foreign entities owned in the US.

Understanding the geopolitical dynamics, technological advancements, and the socio-economic impact of the First World War is crucial for a comprehensive grasp of this historical period.

Post-war Recovery

1. Post-War Economic Recovery Challenges:

Britain, once the world’s leading economy, faced difficulties in recovering post-war.
Industries in India and Japan had developed during the war, impacting Britain’s dominance.

2. British Economic Challenges:

Britain struggled to regain its pre-war dominance in the Indian market and faced international competition, especially from Japan.
Huge external debts burdened Britain due to extensive borrowing from the US during the war.

3. Post-War Economic Boom and Bust:

The war led to an economic boom characterized by increased demand, production, and employment.
After the war, production contracted, and unemployment rose, leading to economic downturns.

4. Government Measures to Curb Expenditure:

In response to economic challenges, the government reduced war expenditures to align with peacetime revenues.
This reduction in government spending contributed to job losses and economic instability.

5. Widespread Unemployment:

Job losses were significant, with one in every five British workers unemployed in 1921.
Anxiety and uncertainty about employment became a persistent feature of the post-war period.

6. Agricultural Economies in Crisis:

Agricultural economies, including wheat producers, faced crises post-war.
Eastern Europe, a major wheat supplier, disrupted during the war, saw a revival post-war, leading to a glut in wheat output.

7. Impact on Grain Prices and Rural Incomes:

Wheat production expansion in Canada, America, and Australia during the war contributed to a surplus.
This surplus led to a fall in grain prices, declining rural incomes, and increased farmer indebtedness.

Understanding the challenges faced by Britain, the economic repercussions of the post-war period, and the impact on agricultural economies is essential for exam preparation.

Rise of Mass Production and Consumption

1. US Economic Recovery:

Post-World War I, the US experienced a quicker economic recovery due to war-related boosts to its economy.
After a brief post-war economic trouble period, the US economy resumed strong growth in the early 1920s.

2. Mass Production in the 1920s:

Mass production became a characteristic feature of the US economy in the 1920s.
Henry Ford’s assembly line at his car plant in Detroit exemplified the efficiency of mass production.

3. Henry Ford and the Assembly Line:

Henry Ford pioneered mass production, adapting the assembly line method to car manufacturing.
The assembly line increased output by mechanizing and speeding up tasks, exemplified by the three-minute interval for T-Model Ford cars.

4. Impact on Workers:

Initially, workers struggled with the stress of assembly line work, leading to high turnover.
Ford responded by doubling daily wages in 1914 but prohibited trade unions in his plants.

5. Fordist Industrial Practices:

Fordist practices, emphasizing mass production and cost-cutting, spread in the US and were adopted in Europe in the 1920s.
Lowered costs and prices made durable consumer goods like cars more affordable for workers.

6. Consumer Boom and Hire Purchase:

Mass production led to a spurt in consumer goods’ purchase through ‘hire purchase’ systems.
Increased wages allowed workers to buy items like refrigerators, washing machines, radios, and gramophone players.

7. Boom in Housing and Home Ownership:

The housing and consumer boom created a cycle of higher employment, rising consumption, and more investment in the US.
Large investments in housing and household goods fueled prosperity.

8. US as a Global Economic Force:

In 1923, the US became the largest overseas lender, resuming capital exports and boosting world trade.
US imports and capital exports contributed to European recovery and global income growth.

9. Prosperity Not Sustained:

The boom in the 1920s, driven by increased consumption and investment, proved temporary.
By 1929, the world faced a severe economic depression.

Understanding the factors contributing to the US economic recovery, the role of mass production, and the subsequent boom and its consequences is crucial for exam preparation.

The Great Depression

1. The Great Depression (1929-mid 1930s):

Catastrophic declines in production, employment, incomes, and trade were witnessed globally.
Varied impact and timing, with agricultural regions and communities being the worst affected.

2. Factors Leading to the Depression:

Agricultural overproduction worsened by falling prices, particularly affecting farming communities.
Farmers, facing declining incomes, expanded production, exacerbating the glut and further lowering prices.

3. Impact of US Loans Withdrawal:

In the mid-1920s, many countries heavily relied on loans from the US for investments.
US withdrawal of loans led to a crisis, causing major banks’ failures, currency collapses, and intensified slumps in agricultural and raw material prices worldwide.

4. US Protectionist Measures:

The US, hit by the depression, doubled import duties to protect its economy.
This move severely impacted world trade, adding to the challenges faced by other nations.

5. US Economic Collapse:

The US, one of the most industrialized nations, was severely affected by the depression.
Falling prices, prospect of depression, and reduced domestic lending led to a collapse in the banking system.

6. Impact on US Society:

Consumerist prosperity of the 1920s disappeared as unemployment soared.
Many households, unable to repay loans, lost homes, cars, and consumer durables.

7. Bank Failures and Business Collapses:

US banks, unable to recover investments, went bankrupt, leading to the closure of thousands of banks.
Between 1929 and 1932, about 110,000 companies collapsed.

8. Enduring Effects Beyond Economic Recovery:

Modest economic recovery by 1935, but the Great Depression had lasting effects on society, politics, international relations, and people’s mindsets.

Understanding the factors leading to the Great Depression, its global impact, and the challenges faced by various nations is crucial for exam preparation.

India and the Great Depression

1. Global Impact on India:

The Great Depression showcased the interconnectedness of the global economy in the early twentieth century.
Crises in one part of the world had rapid and widespread effects on lives, economies, and societies globally.

2. Impact on Indian Trade:

India’s exports and imports nearly halved between 1928 and 1934.
The plunge in international prices directly affected India, leading to a significant economic downturn.

3. Price Crash in India:

International price crashes were mirrored in India, with a 50% fall in wheat prices between 1928 and 1934.
The interconnectedness of economies meant that global economic trends directly influenced local price levels.

4. Agricultural Sector Struggles:

Peasants and farmers faced severe challenges due to falling agricultural prices.
Despite sharp declines in prices, the colonial government maintained high revenue demands, amplifying the plight of peasants.

5. Impact on Peasants:

Peasants engaged in producing for the world market were disproportionately affected.
The colonial government’s refusal to reduce revenue demands added to the hardships faced by peasants.

6. Jute Producers in Bengal:

Jute producers in Bengal, heavily dependent on exports, faced a dire situation.
The collapse of gunny bag exports led to a more than 60% crash in the price of raw jute, pushing peasants into deeper debt.

The Bengal jute growers’ lament:

“grow more jute, brothers, with the hope of greater cash.
Costs and debts of jute will make your hopes get dashed.
When you have spent all your money and got the crop off the ground,
… traders, sitting at home, will pay only Rs 5 a maund.”

7. Peasants’ Indebtedness:

The Great Depression led to a substantial increase in peasants’ indebtedness across India.
Peasants depleted savings, mortgaged lands, and sold jewellery to meet their expenses during the economic downturn.

8. Export of Precious Metals:

India, facing economic challenges, became a notable exporter of precious metals, particularly gold.
John Maynard Keynes believed that Indian gold exports contributed to global economic recovery, benefiting Britain.

9. Impact on Indian Peasantry:

The economic hardships aggravated by the depression led to widespread unrest in rural India.
The Civil Disobedience Movement, initiated by Mahatma Gandhi in 1931, gained momentum amid rural discontent.

10. Urban India’s Experience:

Urban areas experienced a relatively less grim scenario during the depression.
Individuals with fixed incomes, like town-dwelling landowners and middle-class salaried employees, found themselves in a better financial position due to falling prices.

11. Impact on Industrial Investment:

Falling prices and nationalist pressure prompted the government to extend tariff protection to industries.
This resulted in the growth of industrial investment during the Depression, contributing to economic recovery in urban areas.

Next & Previous Topics of NCERT/CBSE History Class 10 Chapter 3: The Making of a Global World

Topics No.	Topics Name
1	The Pre-modern World
2	The Nineteenth Century (1815-1914)
3	The Inter-war Economy
4	Rebuilding a World Economy: The Post-war Era