WORLD WAR I: CAUSES AND CONSEQUENCES

(SUPPLEMENTARY NOTES)
1. Introduction
 First “total war” involving civilians and full use of national resources.

 Fought in Europe, Asia, Africa, and the Pacific.

 Caused huge loss of life and property.

 Led to the collapse of old dynasties, the decline of Europe, and the rise of the USA.

2. Causes of the War

(a) Economic Rivalries
 European countries engaged in tariff wars and competition for overseas markets.

 Germany emerged as a strong economic power and challenged Britain.

 Naval race increased tensions.

(b) Colonial Disputes

 European powers competed for colonies in Africa and Asia.

 Germany demanded a “place in the sun”.

 Conflicts over colonies made relations hostile.

(c) Conflicting Alliance Systems

 Dual Alliance (1879): Germany + Austria-Hungary.

 Triple Alliance (1882): Germany + Austria-Hungary + Italy.

 Triple Entente: France + Russia + Britain.

 Europe divided into two rival groups.

(d) Rising Nationalism

 Subject nationalities demanded self-determination. (Note: The specific Balkan
conflicts leading up to the war are covered in your PPT).

(e) Outbreak of War

 Austria declared war on Serbia (28 July 1914).

 Germany declared war on Russia and France.

 Britain declared war after the German invasion of Belgium.
  Two groups formed:

o Central Powers: Germany, Austria-Hungary, Turkey, Bulgaria

o Allies: Britain, France, Russia, later USA, etc.

3. Sequence of Events

(a) European Phase (1914–1917)

 German attack on France through Belgium.

 Heavy casualties and deadlock on the Western Front. * Turkey joined Central Powers.
 Bulgaria joined Central Powers; Italy joined Allies.

 Unrestricted submarine warfare by Germany.

(b) Global Phase

 USA entered the war in April 1917.

 Russian Revolution (1917); Russia signed the Treaty of Brest-Litovsk (1918) and
withdrew.

 President Wilson announced Fourteen Points.

(c) End of the War (1918)

 Bulgaria, Turkey, Austria-Hungary surrendered.

 Kaiser William II abdicated.

 Germany surrendered in November 1918.

 Around 18 million deaths; 30 states involved.

(d) India’s Contribution

 1.5 million Indian soldiers fought in Europe, Africa, Middle East.

 50,000+ died.

 India supplied troops, animals, materials, and loans.

 Contribution strengthened the Indian freedom movement.

4. Consequences of the War

(a) Paris Peace Conference (1919)

 32 countries participated.
  Dominated by USA, Britain, and France.

 Germany blamed for the war.

(b) Treaty of Versailles (1919)

 Germany lost territories and colonies.

 War guilt clause imposed.

 Heavy war reparations ($33 billion).

 Army reduced; no air force.

 League of Nations established.

 ILO (International Labour Organization) established.

 Treaty later led to the Second World War.

(c) Minor Treaties

 St. Germain (Austria)

 Neuilly (Bulgaria)

 Trianon (Hungary)

 Sevres (Turkey)

(d) Dissolution of Ottoman Empire

 Ottoman Empire broken up.

 Arab lands divided among Britain and France.

 Balfour Declaration (1917).

 Turkish nationalism under Mustafa Kemal Ataturk.

 Abolition of Khalifa (1924).

5. Impact of the War

(a) Impact on Europe
 Economic decline; became a debtor to the USA.

 Fall of monarchies.

 Rise of USSR after the Russian Revolution.

 Women got voting rights.

 Growth of labour rights.
  Decline of European prestige in colonies.

(b) Impact on the World

 USA emerged as a superpower.

 USSR emerged as a major power.

 Strengthening of freedom movements in Asia and Africa.

 Colonial exploitation continued despite promises of self-determination.

THE INTER-WAR PERIOD AND THE SECOND WORLD WAR

1. Introduction
 The period between World War I and World War II is called the Inter-War Period.

 The First World War did not end rivalries in Europe.

 Dictators like Mussolini and military leaders in Japan rose to power.

 Imperialism and rivalry continued.

 The world was divided after the Russian Revolution between supporters and
opponents of socialism.

2. The League of Nations

 Created in 1919 to maintain peace and promote international cooperation.
 Members had to reduce arms and take collective action against aggressors.

 Failed because:
o USA did not join.

o Germany and USSR were not members initially.

o It could not stop aggression in the 1930s.

3. Changed Map of Europe

 Germany lost territories to France, Belgium, Denmark, and Poland; it also lost African
colonies and rights in China.
  Austria was reduced to a small state.

 New countries formed: Poland, Hungary, Czechoslovakia, Yugoslavia.

 Baltic States (Estonia, Latvia, Lithuania) became independent.

 Turkey reduced in size; Mustafa Kemal Ataturk established a republic (1923).

 Britain got Iraq and Palestine as mandates; France got Syria.

4. Rise of Totalitarian Regimes (Excluding General Rise of Hitler)

(a) Fascism in Italy

 Led by Benito Mussolini.
 Opposed democracy and socialism, using violence through Blackshirts.

 1922: March on Rome; Mussolini became Prime Minister.

 Banned opposition parties, ruled as a dictator, and promoted extreme nationalism and
expansion.

b) Nazism in Germany
1. Led by Adolf Hitler.

2. Formed Nazi Party; had private army called Brownshirts.

3. Wrote Mein Kampf in jail.

4. Used anti-Jewish propaganda.

5. 1933: Became Chancellor.

6. Destroyed democracy; banned other parties.

7. Promoted Aryan racial superiority.

8. Began militarization.

(c) Military Fascism in Japan

 Japan defeated China and Russia earlier.

 Took Manchuria in 1931.

 Military became powerful in politics.

 Followed expansionist policy.

 Joined Germany and Italy later.

5. Great Depression (1929)

  Causes: Overproduction and unequal distribution of wealth.

 Effects: Stock market crash in the USA, 9000 banks closed, 50 million unemployed
worldwide. Germany was badly affected, which aided the Nazi rise.
 Response: * USA: Roosevelt’s New Deal.

o Britain and France: Labour-friendly governments.

o USSR: Not affected much due to its socialist system.

6. Developments in USSR
 War Communism (1918–21): Strict control, food seizure.

 New Economic Policy (1921): Limited private trade allowed.

 1924: USSR officially formed.

 1929: Stalin introduced Five Year Plans (Collectivization of agriculture, rapid

industrialization), turning the USSR into a major industrial power.

7. Aggression and Appeasement

 Timeline of Aggressive Actions:
o 1931: Japan invaded Manchuria.

o 1935: Italy invaded Ethiopia.

o Germany re-militarized the Rhineland.

o 1938: Anschluss (Austria joined Germany).

o 1938: Munich Pact allowed Germany to take the Sudetenland.

o 1939: Germany occupied Czechoslovakia.

 Appeasement: Western powers followed a policy of appeasement (making

concessions to the aggressor).
 Spanish Civil War (1936–39): Considered a rehearsal for WWII. Germany and Italy
supported Franco, USSR supported Republicans, while Britain and France followed
non-intervention.

 The Final Spark: USSR signed a Non-Aggression Pact with Germany (1939). On
Sept 1, 1939, Germany invaded Poland, prompting Britain and France to declare war.

8. The World at War: Sequence of Events

 Early Phase: Poland defeated quickly. Soviet Union occupied Baltic States. A period
known as the “Phony War” ensued.
 German Victories (Blitzkrieg): * Norway, Denmark, Belgium, and Holland
captured.
 o France defeated (1940); Vichy France formed.

o Battle of Britain: The RAF defeated the Luftwaffe (Operation Sea-Lion

failed).
 Expansion: * Tripartite Pact signed (Germany, Italy, Japan).

o Germany invaded USSR (Operation Barbarossa, 1941), but the harsh Russian
winter stopped them.

 USA Enters War: Japan attacked Pearl Harbor (Dec 7, 1941), causing the USA to
declare war and making the conflict truly global.

 Turning Points:
o Battle of Stalingrad (1943): Germany defeated.

o El Alamein: General Rommel defeated.

o Italy surrendered; Mussolini executed.

o D-Day (June 6, 1944): Allies landed in Normandy.

o Germany surrendered (May 7, 1945), followed by Japan surrendering later that

year.

9. General Consequences
(Note: UN formation and Cold War details omitted as they are in your PPT)

 Over 50 countries were involved.

 Huge loss of life and property destruction across multiple continents.

ECONOMIC LIBERALISATION IN INDIA

1. INTRO
 1991 was a turning point in India’s economic history.

 Economic liberalisation began in July 1991 after a severe economic crisis.

 The crisis was caused by:
 o Unsustainable government spending during the 1980s.

o Large fiscal deficits.

o Balance of payments crisis.

o Rise in crude oil prices after Iraq invaded Kuwait (1990).

o Very low foreign exchange reserves (barely enough for two weeks of imports).

 India was close to defaulting on international payments.

 Gold had to be pledged to raise foreign exchange.

 IMF assistance was taken.

Nature of Reforms
Reforms had two main components:

(1) Macroeconomic Stabilisation

 Reduce fiscal deficit.

 Control inflation.

 Manage balance of payments crisis.

 Rupee devalued.

 Gold pledged to restore confidence.

(2) Structural Reforms

 Reduce role of the state.

 Increase role of market forces.

 Liberalise trade, foreign investment and technology.

 Dismantle licence–permit system.

 Open economy to global competition.

Key Features
 Focus shifted from equity to growth and efficiency.

 Public sector role reduced.

 Private sector encouraged.

 Economy made more open to trade and investment.

Limitation in Design
  Reforms were driven by government’s economic crisis, not by people’s development
priorities.

 Poverty, employment and agriculture were not central to reform design.

 Social sectors like education and health were neglected.

 Fiscal deficit reduction became an obsession, without focusing on quality of spending.

 Industrial and trade liberalisation lacked strategic planning.

2. OUTCOMES AND PROBLEMS

 Economic growth accelerated after the mid-1990s.

 India performed better than many developing countries.

 Institutional foundations from earlier decades helped reforms succeed.

However:

 1991 was not the main turning point in growth (structural breaks occurred in 1951–52
and 1980–81).

 Growth alone did not ensure development.

 Inequality widened.

 Poverty remained large.

 Employment generation was weak.

Structural Concerns
Four major emerging crises:

1. Agriculture crisis.

2. Infrastructure crisis.

3. Industrial slowdown.

4. Education crisis.

Reforms focused on short- and medium-term management, ignoring long-term development

goals.

3. JOBLESS GROWTH, PERSISTENT POVERTY, RISING INEQUALITY

(A) Jobless Growth

 Economic growth did not create enough jobs.
  Employment elasticity declined sharply:

o 1972–83 → 0.60

o 1983–94 → 0.41

o 1993–2005 → 0.17

o 2004–2012 → 0.04

 Agriculture employment elasticity became negative (-0.42).

 Manufacturing employment elasticity fell sharply.

➡ Growth became less employment-intensive.

(B) Persistent Poverty

 Poverty reduced but remains high.

 In 2011–12:

o Around 25–30% below basic poverty line.

o Around 75% below a broader poverty line including health, education, shelter.
 Over 40% of population vulnerable to shocks like:

o Inflation

o Illness

o Crop failure
 India accounted for around one-third of global poor.

(C) Rising Inequality

 Growth benefits concentrated at the top.

 Gini coefficient of consumption rose from 29.6 (1990) to 36.8 (2010).

 Income inequality even higher (around 50).

 Share of top 1% in national income:

o 5% (1980) → 12% (2000).

 Share of top 0.1% rose from 1% to 5%.

➡ Rising inequality reduced the poverty-reducing impact of growth.

4. BEGINNINGS OF DE-INDUSTRIALISATION?
 Manufacturing share in GDP:

o 17.3% (1979–80).

o Around 16%–17% till mid-1990s.

o Fell to 12.9% by 2013–14.

 India’s share in global manufacturing exports declined between 1990 and 2010.

 Asian countries like China, Indonesia, Malaysia and Thailand increased their
manufacturing shares.

➡ Indicates possible beginning of de-industrialisation.

Why Manufacturing is Important

 Creates large-scale employment.
 Utilises abundant labour.

 Drives productivity growth.

 Creates linkages across sectors.

Required Measures
 Reform monetary policy.

 Correct exchange rate policy.

 Calibrate trade policy.

 Revive industrial finance.

 Strategic coordination (industrial policy).

Without coordinated policy, slogans like “Make in India” cannot succeed.

COLONIAL ENCOUNTER AND CHANGES IN RURAL
ECONOMY AND SOCIETY

1. Breakdown of Traditional Village Economy

 One major impact of British rule was the destruction of the traditional, self-sufficient
village economy.

 Earlier, villages were autonomous and economically stable.

 Development of roads and railways broke village isolation.

 After 1818, British established a highly centralized administration.

Administrative Changes
 Village administration was taken over by British authorities.

 Functions earlier performed by village panchayats were weakened.

 Village officials became responsible to taluqa and district headquarters.

 Village autonomy declined.

 Villages came into contact with outside world.

 Many villagers migrated to factories, mines, plantations and railway construction.

2. Changes in Agrarian Structure

 British ruled rural areas through local zamindars.

 Zamindars were landlords with political power.

 Under British rule, zamindars were granted property rights and more authority.

British introduced three land revenue systems:

1. Zamindari System (Permanent Settlement)

 2. Ryotwari System

3. Mahalwari System
These systems created private property in land and gave ownership to different groups:

 Zamindari → Zamindars

 Ryotwari → Peasants (Ryots)

 Mahalwari → Village community

Effects
 Landlords focused only on extracting revenue.
 No attention to agricultural development.

 Agriculture deteriorated.

 Peasants faced oppression for non-payment.

 Many peasants fled their lands.

 Agrarian revolts occurred.

 Frequent famines worsened the situation.

These grievances led to agrarian disturbances in the first century of British rule.

3. Disruption of Socio-Economic Structure

 British disrupted traditional rural society.

 Village self-sufficiency broke down.

 Centralised revenue administration commercialised agriculture.

 Focus shifted to export-oriented production.

Rise of Moneylenders
 Exploitative British policies encouraged moneylenders.
 Moneylenders became powerful by end of 19th century.

 Rural indebtedness increased.

 Peasants resented moneylenders and targeted them in revolts.

4. Emergence of New Social Classes

British rule created new agrarian relations.
New dominant classes:

 Landlords

 Intermediaries

 Moneylenders

Most oppressed groups:

 Agricultural labourers

 Sharecroppers

These lower classes suffered poverty and exploitation.

The new agrarian structure was a mix of feudal and colonial elements.

5. Comparison with Pre-Colonial Period

Before British rule:

 Villages had proper agriculture.

 Small-scale village industries existed.

 Local trade ensured stability.

 Villages were economically self-sufficient.

After British rule:

 Agriculture stagnated.

 Rural poverty increased.

 Famines became frequent.

 Rural society decayed gradually.

British impact was long-lasting and most severe on rural society.

6. Land Revenue Systems

(A) Zamindari System (Permanent Settlement)

1. Introduced by Lord Cornwallis.

2. Applied in Bengal, Bihar, Orissa etc.

3. Zamindars made landowners.

4. Land transferable.
 5. Tenants lost traditional rights.

6. “Sunset Law” fixed deadline for revenue payment.

7. Failure to pay led to loss of land.

8. System proved disastrous for peasants.

(B) Ryotwari System

 Introduced in Malabar, Coimbatore, Madras, Madurai.

 Introduced by Alexander Read and Thomas Munro.

Features:

 Revenue collected directly from peasants (Ryots).

 No middlemen.

 Revenue rate:

o 50% for dry land

o 60% for irrigated land

 Peasants personally responsible for payment.

Problems:

 Harsh measures for delayed payment.

 Difficult to collect systematically.

Advantage:

 Eliminated oppressive zamindars.

 Ryots not evicted if revenue paid on time.

(C) Mahalwari System

 Introduced in 1833 under William Bentinck.

 Applied in Central Provinces, North-West Frontier, Agra, Punjab, Gangetic Valley.

Features:

 Land divided into Mahals (one or more villages).

 Village committee responsible for tax collection.

 Ownership rights vested with peasants.
  Combined features of Zamindari and Ryotwari.

Effect:

 Eliminated middlemen.

 Improved irrigation facilities.

 But main benefit went to government.

COLONIAL IMPACT ON INDIA

1. ECONOMIC IMPACT

(A) Commercialisation of Agriculture

1. British introduced commercial crops like coffee, indigo, cotton, jute and opium.
2. Farmers were forced to grow indigo and sell at prices fixed by the British.

3. Indigo exported to England for textile dyeing.

4. Transfer of land ownership increased landless labourers.

5. Rise of merchants, traders and middlemen who exploited peasants.

6. Shift to commercial crops reduced food grain production.

7. Led to frequent famines.

(B) Deindustrialisation
 Charter Act of 1813 allowed one-way free trade for British goods.

 Cheap machine-made British goods flooded Indian markets.

 Heavy duties (up to 80%) imposed on Indian textiles in Britain.

 After 1820, Indian exports almost barred from European markets.

 Indian handicrafts and textile industry declined drastically.

(C) Education Policy

 English language introduced to create low-paid clerks for administration.

 Aim: reduce administrative costs and create loyal Indians.

 Increase market for British goods.
Important Measures:
 Charter Act 1813: Rs 1 lakh for Western education.

 Wood’s Dispatch (1854): Government responsible for education.

 Universities established in Calcutta, Madras and Bombay (1857).

Positive Effects:
 Spread of liberal and democratic ideas.

 Reformers like Swami Vivekananda and Ishwar Chandra Vidyasagar used Western
ideas for social reform.

 English became common language of educated Indians.

 Increased political awareness.

(D) Famine and Poverty

 Famines became frequent due to poverty and food shortage.

 Caused by commercial agriculture and neglect of food crops.

(E) Impoverishment of Peasantry

 Land revenue systems burdened cultivators.

 Permanent Settlement maximised rent extraction.

 Tenants faced insecurity due to land transferability.

 Zamindars demanded illegal dues.

 Peasants borrowed from moneylenders at high interest.

 Forced to sell produce at low prices.

 Result: extreme poverty and indebtedness.

(F) Judicial System

 New hierarchy of civil and criminal courts introduced.

 Laws codified.

 Attempt to separate judiciary from executive.

 Rule of law established in theory.
Limitations:

 Justice expensive and inaccessible.

 Discrimination between Europeans and Indians.

(G) Rise of Moneylending Class

 High revenue demands forced peasants to borrow.

 Moneylenders charged high interest.

 Used false accounting.

 Failure to repay led to land loss.

(H) Ruralisation
 Decline of industries forced artisans to shift to villages.

 Increased pressure on agriculture.

 Rural economy became overburdened.

(I) Textile Industry and Trade

 India earlier exported textiles to Asia and Africa.

 After British rule, machine-made British textiles flooded India.

 India shifted from exporter of clothes to exporter of raw materials.

 Handloom industry collapsed.

 Massive unemployment among weavers.

(J) Transport and Communication

 Railways built to connect inland areas to ports.

 Facilitated movement of British goods.

 Benefited British investors (5% guaranteed profit).

 Rail engines and coaches imported from Britain.

 Also helped national awakening.

2. SOCIAL AND CULTURAL IMPACT
 Social evils like sati, child marriage, infanticide, caste discrimination existed.

 British introduced ideas of liberty, equality and freedom.

Legal Reforms:
1. Sati abolished (1829).

2. Widow Remarriage Act (1856).

3. Slavery declared illegal.

4. Law legalising inter-caste and inter-communal marriage (1872).

5. English education spread Western ideas.

6. Vernacular languages neglected.

7. Charter Act 1813 sanctioned funds for Western sciences.

3. POSITIVE ASPECTS
1. New job opportunities, especially for lower castes.

2. Rise of modern middle class.

3. Infrastructure development: hospitals, schools, railways.

4. Introduction of steamships, telegraphs and trains.

5. End of some social evils like sati.

6. Protection from external enemies like Persia and Afghanistan.

However, infrastructure mainly served British interests.

4. NEGATIVE ASPECTS
 Destruction of Indian industries.
 India forced to import British goods.

 British emphasis on cash crops led to famines.

 24 famines between 1850–1899.

 Bengal Famine of 1770 was severe.

Divide and Rule Policy

 British divided kingdoms and communities.
  Encouraged religious divisions.

 Long-term effect seen in India–Pakistan hostility.

Economic Drain
 Wealth siphoned off to Britain.

 Indian industries destroyed.

 Economic dependence created.