The divided Europe into two opposing camps: in the West and in the East. This split was driven by fundamental differences in political systems, economic models, and ideologies that shaped the post-World War II world.
The symbolized this divide, restricting movement and ideas between East and West. Western nations promoted free markets and democracy, while countries embraced and communism, setting the stage for decades of tension and conflict.
Political Systems
Capitalism and Democracy
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Capitalism promotes private ownership of means of production and economic freedom
Individuals and businesses make economic decisions based on market forces
Democracy emphasizes , free elections, and representative government
Citizens participate in political decision-making through voting and civic engagement
Capitalist democracies (United States, United Kingdom) combine economic and political freedoms
Communism and Totalitarianism
Communism advocates for collective ownership of means of production and wealth redistribution
State controls economic planning and resource allocation in communist systems
Totalitarianism concentrates power in a single party or leader, suppressing individual rights
Government exerts strict control over citizens' lives, including media and education
Communist regimes (, China) often employed totalitarian methods to maintain power
Economic Models
Free Market Economy
Prices determined by supply and demand without government intervention
Private businesses compete for consumers and resources
Profit motive drives innovation and efficiency
Limited government role in regulating economic activities
Examples include the United States and Hong Kong
Planned Economy
Government controls production, distribution, and pricing of goods and services
Central planning authority makes economic decisions for the entire nation
Resources allocated based on predetermined goals rather than market forces
State-owned enterprises dominate industrial and agricultural sectors
Soviet Union and Cuba implemented centrally planned economic systems
East-West Divide
Iron Curtain and Ideological Separation
Iron Curtain symbolized physical and ideological barrier between Eastern and Western Europe
coined the term in his 1946 "Sinews of Peace" speech
Divided Europe into communist East and capitalist West
Restricted flow of people, information, and goods between the two blocs
(constructed in 1961) became a tangible symbol of the East-West divide
Containment Policy
United States adopted containment strategy to prevent spread of communism
's Long Telegram (1946) influenced development of
Aimed to limit Soviet influence and prevent expansion of communist ideology
Implemented through economic aid, military alliances, and diplomatic pressure
Shaped US foreign policy throughout the Cold War (Korean War, Vietnam War)
Western Initiatives
Marshall Plan and Economic Recovery
provided economic aid to Western European countries after World War II
Aimed to rebuild war-torn economies and prevent spread of communism
Distributed over $13 billion in aid between 1948 and 1951
Promoted and cooperation among recipient countries
Contributed to rapid economic recovery and political stability in Western Europe
Truman Doctrine and Military Support
pledged US support to nations threatened by Soviet expansionism
Announced by President Harry Truman in 1947
Provided military and economic assistance to Greece and Turkey
Marked a shift in US foreign policy towards active containment of communism
Set precedent for future US interventions in global conflicts (Vietnam, Afghanistan)
NATO and Collective Security
North Atlantic Treaty Organization () formed in 1949 as military alliance
Provided against potential Soviet aggression
Included United States, Canada, and Western European nations
Article 5 established principle of collective defense (attack on one is attack on all)
Expanded over time to include former countries after Cold War
Eastern Bloc
Warsaw Pact and Soviet Influence
Warsaw Pact established in 1955 as Soviet-led military alliance
Included Soviet Union and Eastern European satellite states
Served as counterbalance to NATO in the Cold War power struggle
Allowed Soviet Union to maintain military presence in Eastern Europe
Used to suppress anti-Soviet uprisings (Hungary 1956, Czechoslovakia 1968)
Dissolved in 1991 following collapse of communist regimes in Eastern Europe