Chapter 29: The Cold War and Postwar Economic Recovery: 1945-1970

• Cold War   * Period between the end of World War II and the collapse of the Soviet Union (or USSR)   * U.S. and Soviet Union relations were tense   * Rooted in ideological opposition between communism and capitalist democracies dominated by U.S. and Soviet Union   * U.S. was in support of democracy and free-trade   * Soviet Union was a communist, totalitarian country   * An “Iron Curtain” divided Europe between a free and democratic state and a totalitarian regime
• U.S. made military alliances around the world to contain communism
• North Atlantic Treaty Organization (NATO) was created in 1949   * Mutual defence pact   * U.S., Canada, Belgium, Iceland, Netherlands, Portugal, Italy, Britain, Norway, Denmark, and France
• Southeast Asia Treaty Organization (SEATO) was created in 1954
• Warsaw Pact was formed in 1955
• Nuclear arms race began during World War II   * Russia, Britain, and Germany were exploring nuclear fission   * U.S. was the first to develop and implement the atomic bomb
• Nuclear Test Ban Treaty of 1963 banned such tests in the atmosphere
• A third of the world’s population was under colonial rule in 1945
• Decolonization was a direct result of World War II
• India gained independence from Britain in 1947, under the leadership of Indian nationalist, Mohandas Gandhi
• Decolonization in Africa occurred in the late 1950s and 1960s
• Europe and Asia was severely damaged by World War II   * Cities, factories, and farmlands were part of the damage   * Majority of Europe was faced with lack of goods and inflation
• U.S. aided with reconstruction and recovery of war-torn nations in both Europe and Japan
• Marshall Plan: U.S. economic aid program for European countries, meant to establish U.S. economic influence in European markets
• Soviet Union formed the Council for Mutual Economic Assistance (CMEA) in 1949, in response to the Marshall Plan

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