Describe in Brief the World Economic Condition in the Post First World War Period.

Before the First World War, Britain was the world’s leading economy but after the war Britain was over burdened with external debts.

In the meantime, industries in India and Japan developed a lot. Due to these conditions it became difficult for Britain to get its dominance over India back and compete with Japan internationally. ‘ The First World War led to an economic boom which means large increase in demand, production and employment but the production decreased and the unemployment increased when the war ended. In the year 1921, there was huge job losses, almost l/5th of the British workers were out of job.

Eastern Europe was the major supplier of wheat in the world which was disrupted when Europe was busy with the First World War. During this war period the production of wheat rose in Canada, US and Australia. Again after the war Eastern

Europe revived the wheat production. Due to this there was tremendous supply of wheat in the world market which resulted in falling prices, decline of the rural income and the farmers fell in debt.

Leave a Reply

Your email address will not be published. Required fields are marked *