The Early Post-war Years
The period after World War II was characterized by unprecedented growth in trade and economic prosperity for the Western industrial nations and Japan. Under the Bretton Woods system, trade expanded annually by more than 8% between 1950 and 1970, with incomes increasing nearly 5% on average while unemployment rates remained low. This era facilitated a significant global dissemination of technology and enterprise, with developing countries eager to catch up with the industrialized nations.
As new independent nations emerged in Asia and Africa post-colonization, they faced the dual challenge of alleviating poverty and engaging with international economies that were largely favoring the interests of former colonial powers. With institutions like the IMF and World Bank originally designed for the needs of industrial nations and poorly equipped to address systemic poverty, these nations organized into groups like the G-77 to demand a new international economic order. This presented a paradox where developing countries found themselves influenced by the same powers that once colonized them, seeking autonomy yet entangled in a global framework that limited their potential. Overall, the post-war years were marked by both growth for some and struggle for others, setting the stage for the complexities of globalization.