The Crisis of 1973 and the Fall of Communism
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The Crisis of 1973 and Its Consequences
In 1973, an economic crisis began that affected many countries.
Who?
The OPEC (Organization of Petroleum Exporting Countries), an organization to which several Arab countries belonged.
Why?
An attempt to pressure Western countries to convince Israel to abandon the Palestinian territories that had been occupied since the Yom Kippur War (1973).
What?
An embargo on the sale of oil. The price of oil tripled in Western countries and affected all sectors of production. The lack of crude oil led to an economic collapse.
Main Consequences:
- The uncontrolled rise of prices (inflation) caused by the increase in the price of oil.
- Reduction of demand.
- Many businesses had to close and unemployment grew.
Measures to Solve the Crisis
Some... Continue reading "The Crisis of 1973 and the Fall of Communism" »