Incidence of the First and Second World War in Ecuador’s economy
Summary
In this essay there will be a brief review of the effects that generated the first and Second World War in Ecuador’s economy, through a historical analysis of the facts that are linked to conflict and foreign trade that helped the growth of theCountry economy. The First World War was since 1914 the year in which the cocoa crisis is given because its low price, this event was carried out because the markets that consumed this product decided to limit imports;By the war, the disruptibility of the circulating bills in gold is declared, a measure that favored bank entities due to the influence that banks had with the government at that time since several credits had been granted to face the guerrillas north of the north of the north of thecountry. The Second War from 1939 to 1945 brought as a positive result for the country’s economy the potentialization of commercial balance through the increase in exports of products such as natural rubber, raft, rice because the demand for these products increasecover the needs of the nations that were in combat.
Introduction
The consequences that both World War II to the Ecuadorian economy carried were positive and negative;Within the negative, inflation grew, cocoa exports were affected by pests and a growing level of unemployment.
The economy of Ecuador was affected by many international events in the twentieth century among the most prominent are the great depression which occurs in the late 1929 due to the fall of the New York Stock Exchange. According to experts, the consequences that were generated due to the fall in exports prices were generated a paralysis in the economic activities of Ecuador since these prices descended to half of those that were in 1927 and improved in 1933.
In the mid -twentieth century, after facing a period of negative effects, such as World War I and the aforementioned great depression, World War II arises with the confrontation of two military alliances: allies (France, Great Britain and USSR) and powers of the powers of theAxis (Germany, Italy and Japan). For Ecuador there were more positive than negative aspects because it could be produced and exported products such as raft, natural rubber, chinchona and rice at a high price due to the confrontation situation that the combatant countries passed.
Developing
Eric Hobsbawm point of view
Hobsbawn in his book History of the 20th century recounts prominent facts in relation to wars, there are three primary parts about this fact. The first is about the time of catastrophes where World War I, Russian Revolution, Great Depression, Fascism and World War II is analyzed. The First World War involved the great powers and an apart from the European States less Spain, the Netherlands, Scandinavian countries and Switzerland, in 1914 it also began what was called the era of the killings which was made up of the triple alliance (France, Great Britain, Russia) and the central powers (Germany and Australia-Hungary).
The First World War deals with the overthrow of the Western Civilization of the nineteenth century, but without this fact during the time of catastrophes and wars there would not have been the October Revolution or the Union of Soviet Socialist Republics (USSR), thanks to the sinking of theBourgeoisie gave the increase in class struggle
In the second part named the golden age focuses on the period that begins the Cold War until reaching the Apogeo of American peace here the author talks about the Third World examining the impact of changes at a social and cultural level, also evaluating socialism. In the third part called the hobsbawn detachment, it tries to give meaning to the times following 60 and the induction of the world towards the economic, social and ecological crisis. The technological contribution in the war was very important, the Germans used a toxic gas which was effective;The British were pioneers in the use of armored vehicles. The only technological weapon that was important were the submarines.
The causes of World War II were the Japanese Invasion of Manchuria, the Italian invasion of Ethiopia, the German and Italian intervention in the Spanish Civil War, the German invasion of Australia and the German demands to Poland linked to diverse treaties in the middle of thedecade 30. For her the Second World War was given by the breakdown of peace.
Economic effect of World War II in Ecuador
The economic effect that occurred before the First War in Ecuador was during the presidency of Leónidas Plaza, mainly affecting cocoa exports to Europe because they decayed and were also affected by pests such as the monilia and witch’s broom damaging the fruit and thePlantations resulting in inefficient production, in addition an inflation and devaluation of the currency, due to the drop in exports of gave a lot of unemployment, in addition the rethinking of the monetary scheme was given.
The monetary law was born by the war, since it was not allowed to change the tickets in the banks for the gold that was considered support, this measure was taken favoring in a certain way the banking entities such as the commercial and agricultural bank of Guayaquil because they hadA link with the State because they had been granted credit so that they can face the guerrillas located to the north of the country this decision in its beginning would last only 30 days, but hard until 1925. Another outstanding fact is export restrictions. Given to the conflict the price of sugar rose considerably in the international market, but at the local level I caused that there was a shortage of that product.
At the beginning of the Second War, Ecuador broke diplomatic relations with Japan, Germany and Italy. In the government of Carlos Arroyo del Río it allows the United States to establish naval and military bases in the Galapagos Islands and in the Santa Elena Peninsula for the protection of the Panama Canal on the Pacific coast. After the approval, the government of José Velasco Ibarra declares war to Germany, Japan and Italy, so the goods of citizens, Japanese, German and Italian are expropriated and then be sold to Ecuadorian citizens.
Ecuador was the main source of supply of raft wood which was used to build aircraft, life rafts and individual lifeguards. Due to the war, a high demand for this product originated by increasing the production of the same. Because of this the people who were unemployed were extracting the rubber since their demand was very high than in other years. Good use in war were found to combat the cinchone tree bark that produced quinine this was used by soldiers as a repellent of malaria, their vegetable oils, fibers and tagua nuts.
Great depression affected Ecuador because there was a decrease in oil prices. In addition, there was a fall in the contributions of Ecuadorians who had emigrated abroad. The inflation rate increasing that of the United States;Unemployment left thousands of Ecuadorians without their jobs since the increase salary and companies did not have enough income to cover those expenses, another fact was that exports of flowers and cocoa were affected.
Conference records
The Atlantic letter is a statement in which main issues such as:
- Neither of the two nations sought any territorial annexation
- They wanted there to be no territorial change, except if it was done with the assent of the affected peoples
- They respected the right of all peoples to choose their own form of government and advocated that the rights of sovereignty were returned to the people who had been taken away
- They tried to promote equal access of all states to trade and raw materials
- They trust to promote world collaboration to improve working conditions, economic development and social conditions
- After the defeat of the ‘Nazi tyranny’, they would seek to approve a peace under which the nations could live safely within their borders;That peace would guarantee the freedom of navigation in the seas, and waiting for the achievement of collective security based on renunciation of force, the potential aggressors would have to be disarmed.
This Atlantic letter remembered the idealism of the fourteen points of Wilson. It was subsequently incorporated into the United Nations Declaration approved on January 1, 1942.
Tehran Conference was a meeting between the three greats (Soviet Union, the United States and the United Kingdom), the main decisions they made were:
Agreement on the partition and dismemberment of Germany after the defeat of the Hitler regime. Displacement of Poland to the east. The debate on the concrete organization of the future United Nations Organization began.
conclusion
World War I strongly impact the country mainly in what is related to the economy, contributing to an environment with social discontent. From the point of view in international relations, the conflict meant the displacement of European, political hegemony to the United States.
World War II brought with it a high demand for raft and rubber because it favored in the economic field since it strengthened exports, the unemployment rate decreased and production was favorable due to the great demand that existed at that time.
References
- Campaign, f. S. (2015). The legal relationship of Ecuador before World War I: from neutrality to the breakdown of relations. Iuris Dictio, 17 (16).
- Endara, p. N. (2017). World War I in Ecuador. Quito.
- Hobsbawm, e. (1998). XX Century History (First Ed.). Buenos Aires: Criticism.
- Monzón, c. D. (s.F.). Conferences, treaties and pacts of World War II. Tehran Conference.
- Oleas, j. (2019). Economic crisis in a small and closed economy: Ecuador, 1900-1999. Latin America in economic history, 26 (2). DOI: DOI: 10.18232/Alhe.951
- Universe, d. AND. (2015). Ecuador, Latin America and World War II.
Leave feedback