Post-WWI World Order: League of Nations and 1920s Prosperity

League of Nations and Post-War Settlements

The League of Nations, established on January 1, 1920, was an international institution whose primary task was to prevent future conflicts and bring global stability. It was based in Geneva, Switzerland.

• Assembly: Included all member nations.
• Council: Presided over the Assembly; initially comprised only the Allied powers.

Notably, the U.S. Senate rejected American participation, and Germany and Russia were initially barred from joining.

The Paris Peace Treaties

The peace negotiations were heavily influenced by the leaders present:

• USA (President Woodrow Wilson): Advocated for the Fourteen Points, aiming for a new world based on democracy and national self-determination.
• France (Georges Clemenceau): Sought to destroy Germany, reclaim Alsace and Lorraine, and establish a buffer state in the Rhineland.
• UK (Lloyd George): Aimed for a balance of power.
• Italy (Vittorio Emanuele Orlando): Sought territorial gains along the Dalmatian coast.
• Japan (Makino Nobouaki): Sought territorial acquisitions.

Key Peace Treaties

The resulting Treaties of Peace included:

• Versailles: Germany
• Saint-Germain: Austria
• Trianon: Hungary
• Sèvres: Turkey
• Neuilly: Bulgaria

Consequences of the Treaties

• Dissolution of the Austro-Hungarian, Ottoman, and German Empires.
• Creation of nine new states: Finland, Poland, Estonia, Latvia, Lithuania, Czechoslovakia, Yugoslavia, Austria, and Hungary.
• Germany became the Weimar Republic (1918–1933), facing significant humiliation: ceded territories to Belgium, Poland, France, and Denmark; 15-year occupation of the Rhineland.
• France failed to secure a lasting security system, leading to an aggressive stance.
• Italy and Japan expressed dissatisfaction with the outcomes.
• The birth of the first socialist country: the Soviet Union.
• Turkey secured its independence and integrity under President Atatürk after defeating the Greeks (1919–1922).

The Roaring Twenties: Economic Growth and Paradox

The Roaring Twenties (1918–1929) was a decade marked by significant economic growth, particularly in the United States, where the American Way of Life and its values (initiative, success) became a global model.

Drivers of Economic Expansion

• Technical innovations.
• Fordism (mass production).
• Rise in workers' wages.
• Aggressive advertising campaigns.
• Widespread use of hire purchase and bank loans.

The Paradox of Prosperity

Despite the apparent boom, significant underlying issues existed:

• Farmers: Many farmers were nearly ruined. They had taken on debt to purchase land and machinery to boost production.
• Overproduction: This led to massive stocks, causing prices to fall rapidly, devastating the agricultural sector.
• Industrial Stagnation: Overproduction and stock buildup also appeared in industry, yet the government failed to implement corrective measures.