The author's insightful history explores the golden age of globalization during the early years of the 20th century, its swift collapse in the crises of 1914-45, the divisions of the Cold War world, and the turn again toward global integration at the end of the century. "Magisterial history...one of the most comprehensive histories of modern capitalism yet written." -Michael Hirsh, New York Times Book Review Foreword by Paul Kennedy xiii Preface xv Prologue: Into the Twentieth Century 1 FROM MERCANTILISM TO FREE TRADE 2 FROM SILVER TO GOLD 6 THREATS TO THE GLOBAL ORDER 7 I. LAST BESBEST EARS of THE GOLDEN AGE, 1896-1914 1. Global Capitalism Triumphant 13 THE GOLD STANDARD REAFFIRMED 16 SPECIALIZATION AND GROWTH 21 GLOBALISM AND ITS DISCONTENTS 25 2. Defenders of the Global Economy 28 INTELLECTUAL SUPPORT FOR THE GOLDEN AGE 30 NATHAN MAYER ROTHSCHILD, 1840-1915 33 THE FREE TRADERS 39 SUPPORTERS OF THE GOLDEN PILLARS 43 GLOBAL NETWORKS FOR A GLOBAL ECONOMY 45 THE INTERNATIONAL MIGRATION OF CAPITAL AND PEOPLE 50 GLOBALIZATION 54 3. Success Stories of the Golden Age 56 BRITAIN OVERTAKEN 59 NEW TECHNOLOGIES AND THE NEW INDUSTRIALISM 61 PROTECTING THE INFANT INDUSTRIES 64 THE AREAS OF RECENT SETTLEMENT 68 GROWTH IN THE TROPICS 72 HECKSCHER AND OHLIN INTERPRET THE GOLDEN AGE 77 4. Failures of Development 80 KING LEOPOLD AND THE CONGO 81 COLONIALISM AND UNDERDEVELOPMENT 87 MISRULE AND UNDERDEVELOPMENT 93 STAGNATION IN ASIA 95 STAGNATION ON THE PLANTATION 98 OBSTACLES TO DEVELOPMENT 103 5. Problems of the Global Economy 105 FREE TRADE OR FAIR TRADE? 105 WINNERS AND LOSERS FROM TRADE 109 SILVER THREATS AMONG THE GOLD 111 LABOR AND THE CLASSICAL ORDER 117 THE GILDED AGE TARNISHED? 121 II. THINGS FAR APART. 1914-1939 6. "All That Is Solid Melts into Air 127 ECONOMIC CONSEQUENCES OF THE GREAT WAR 129 EUROPE REBUILDS 134 THE TWENTIES ROAR 140 AMERICA IN ISOLATION 142 A WORLD RESTORED? 148 INTO THE VOID 154 7. The World of Tomorrow 155 THE NEW INDUSTRIES 157 THE NEW CORPORATIONS 160 THE NEW MULTINATIONAL ENTERPRISES 166 DOWN ON THE FARM 167 NEW SOCIETIES 168 ADVANCES AND RETREATS 172 8. The Established Order Collapses 173 THE END OF THE BOOM 174 GOLD AND THE CRISIS 181 FROM THE DARKNESS 188 OUT WITH THE OLD 193 9. The Turn to Autarky 195 SEMI-INDUSTRIAL SELF-SUFFICIENCY 196 SCHACHT AND THE NAZIS REBUILD GERMANY 198 AUTARKIC ECONOMIC POLICIES 206 EUROPE SWINGS TO THE RIGHT 209 SOCIALISM IN ONE COUNTRY 215 DEVELOPMENT TURNS INWARD 220 THE AUTARKIC ALTERNATIVE 228 10. Building a Social Democracy 229 SWEDISH AND AMERICAN ROADS TO SOCIAL DEMOCRACY 230 KEYNES AND SOCIAL DEMOCRACY 237 LABOR, CAPITAL, AND SOCIAL DEMOCRACY 241 SOCIAL DEMOCRACY AND INTERNATIONAL COOPERATION 247 FROM THE ASHES 249 III. TOGETHER AGAIN, 1939-1973 11. Reconstruction East and West 253 THE UNITED STATES LEADS THE WAY 254 THE IMMEDIATE TASK 261 DEAN ACHESON, PRESENT AT THE CREATION 264 THE UNITED STATES AND EUROPEAN RECONSTRUCTION 268 THE SOVIET UNION BUILDS A BLOC 271 TWO SYNTHESES 276 12. The Bretton Woods System in Action 278 POSTWAR GROWTH ACCELERATES 279 JEAN MONNET AND A UNITED STATES OF EUROPE 283 BRETTON WOODS IN TRADE 287 THE BRETTON WOODS MONETARY ORDER 290 INTERNATIONAL INVESTMENT UNDER BRETTON WOODS 292 BRETTON WOODS AND THE WELFARE STATE 297 THE SUCCESS OF BRETTON WOODS 300 13. Decolonization and Development 301 IMPORT-SUBSTITUTING INDUSTRIALIZATION 302 THE RUSH TO INDEPENDENCE 306 ISI IN THEORY AND PRACTICE 309 NEHRU LEADS INDIA TO INDUSTRIALIZATION 312 THE THIRD WORLD EMBRACES ISI 317 THE MODERN SPREAD OF INDUSTRY 320 14. Socialism in Many Countries 321 THE SOCIALIST WORLD EXPANDS 322 THE SOCIALIST WORLD DIVIDES 323 THE CHINESE ROAD 329 SOCIALISM IN THE THIRD WORLD 334 A SOCIALIST FUTURE? 337 15. The End of Bretton Woods 339 THE COMPROMISES UNRAVEL 342 CHALLENGES TO TRADE AND INVESTMENT 346 CRISES OF IMPORT SUBSTITUTION 351 SOCIALISM STAGNATES 356 END OF AN ERA 359 IV. GLOBALIZATION. 1973-2000 16. Crisis and Change 363 OIL AND OTHER SHOCKS 364 THE VOLCKER COUNTER-SHOCK 372 GLOBALISM 378 REGIONALISM AND GLOBALISM 383 GLOBAL FINANCE AND NATIONAL FINANCIAL CRISES 385 17. Globalizers Victorious 392 NEW TECHNOLOGIES, NEW IDEAS 394 GLOBALIZING INTERESTS 400 GEORGE SOROS MAKES MARKETS 405 TRADE UNBLOCKED 409 18. Countries Catch Up 413 GLOBAL PRODUCTION AND NATIONAL SPECIALIZATION 416 EXPORT-LED GROWTH ON THE EDGE OF EUROPE AND ASIA 419 EAST ASIAN AND LATIN AMERICAN FOLLOWERS 423 THE MARXIST SOCIOLOGIST TAKES POWER 426 EASTERN EUROPE JOINS THE WEST 430 A NEW INTERNATIONAL DIVISION OF LABOR 433 19. Countries Fall Behind 435 REFORM AND TRANSITION DISAPPOINTED 437 DEVELOPMENTAL DISASTERS 442 THE ZAMBIAN ROAD 444 AFRICAN CATASTROPHE 449 PLAGUE, DESTITUTION, AND DESPERATION 453 20. Global Capitalism Troubled 457 FINANCIAL FRAGILITY AND THE UNHOLY TRINITY 459 "THE THREE SCARIEST WORDS" 464 GLOBAL MARKETS: UNGOVERNED OR UNWANTED? 470 Conclusion 473 A Note on Data and Sources 477 Acknowledgments 478 Notes 479 References 497 Index 517