Global Economic Growth: 1945-2008

Factors of World Economic Growth: 1945-2007

The second half of the twentieth century (1950-2000) witnessed unprecedented economic and population growth, improving living standards globally. World population more than doubled, rising from 2.5 billion in 1950 to 6 billion in 2000. Production increased over sevenfold, leading to a near tripling of per capita income, despite the population surge. This was achieved with reduced working hours due to significant productivity improvements. Individuals enjoyed more goods, leisure time, better health, and education. However, inequality, poverty, and hunger persisted.

The Golden Age (1950-1973)

This period, also known as the War Boom or Trente Glorieuses, was characterized by stable, regular, and intensive growth, driven by technical and organizational changes. International trade expanded, increasing the openness of national economies. Growth patterns varied across developed capitalist countries (DCC), socialist countries (SC), and less developed countries (LDC), with the economic gap widening between DCC and the others.

The Laborious Thirty (1973-2000)

(Note: Growth continued, but it was slower and uneven.)
The 1973 oil crisis marked a shift, leading to a period of slower growth, inflation, unemployment, and divergence. The USSR collapsed, new economic powers emerged (e.g., Asian Dragons), and the Cold War ended. Growth became fragile and unstable, with greater economic fluctuations. Macroeconomic imbalances replaced the stability of the Golden Age.

Structural Changes

• Agriculture declined, services rose, and industry's relative position decreased, leading to economic outsourcing.
• Services accounted for about 70% of world GDP by 2002.
• Deindustrialization occurred in some regions, but not universally.

Policy Shifts (1983-1990)

Governments shifted from Keynesian to liberal policies, focusing on controlling public deficits and promoting efficiency. Inflation fell, but unemployment remained high, especially in Europe. Growth remained weak but slightly less uneven.

The 1990s and Beyond

The third oil crisis in the early 1990s caused a recession. Developed countries embraced outsourcing and ICT, leading to the concept of a post-industrial or knowledge society. Design and marketing gained importance over manufacturing.

The 2008 Financial Crisis

The international order was disrupted by the 2008 financial crisis, triggered by the US housing bubble collapse in 2006 and the subprime mortgage crisis in 2007. This led to a global liquidity crisis, food crisis, stock market crashes, and a worldwide economic downturn.