Global Economic and Political Transformations: From Industry to Cold War

Defining Globalization and Historical Shifts

Globalization, as defined by Benko, is the global acceleration of the circulation of trade flows, technology, cultures, and information.

The Industrial Revolution: Cyclical Transformation

The Industrial Revolution was a profound transformation that cyclically affected the evolution of societies, causing significant changes in social, occupational, cultural, and production structures.

Three Key Revolutionary Changes

1. Progress in Mining Activities: Development of new energy sources, such as coal.
2. Increased Production Capacity: Expansion of production capabilities and the emergence of new manufacturing activities, particularly the fabrication of fabrics.
3. Shift in Labor: Industrial jobs did not require prior specialized knowledge, leading to mass migration from the countryside to the city.

The Post-War World: 1950s to 1990s

Emergence of the Third World (1950–1960)

During the 1950s and 1960s, the so-called Third World emerged. These were newly independent nations in Asia, Africa, and Latin America that, while forming part of the industrial world, remained technologically and economically dependent.

Economic Shifts: Import Substitution Industrialization (ISI)

Causes for the Economic Course Change

The shift in the modern economic course was driven by several factors, including economic depreciation since 1930 and the disruptions to global trade and supply chains caused by World War II (WWII). These factors fostered a nascent system of import substitution through national production.

The ISI Model Explained

The modern industrial model consisted of promoting domestic industry through the protection of manufactured goods. This was achieved by restricting the import of goods that were produced nationally, thereby compelling the population to consume domestic production. This process is known as Import Substitution Industrialization (ISI).

Pioneer Latin American Countries

The countries that pioneered this model in Latin America were:

• Brazil
• Argentina
• Mexico
• Chile

These nations possessed a population with sufficient purchasing power to consume the products manufactured by the nascent domestic industry.

Geopolitical Realignment After World War II

Countries that had been subjected to Nazism ceased to be occupied territories and began to align themselves with the Western, capitalist world. These states generally adopted democracy as their political regime.

The Cold War Era (1945–1991)

The Cold War was a confrontation that took place from 1945 (the end of WWII) until the dissolution of the USSR and the fall of communism between 1989 and 1991. It pitted the Western-capitalist bloc, led by the United States, against the Eastern-communist bloc, led by the Soviet Union.

Areas of Confrontation

This confrontation manifested across multiple domains:

• Political
• Ideological
• Economic
• Technological
• Military
• Informative (Propaganda/Intelligence)

The conflict was termed "cold" because neither of the two blocks ever engaged in direct military action against the other.