Cold War 1945-1991

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 Basic difference between communism
and capitalism
• Communism: In communism, all resources and
means of production are owned and controlled by
the state or the community as a whole.
• Private ownership is abolished, and everything is
intended to be shared equally among the people.
• Capitalism is characterized by private ownership
of resources, where individuals or businesses have
the right to own and control property, capital, and
means of production.
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 Economic Decision-Making
• Under communism, economic decisions such as
what to produce, how much to produce, and how
to distribute goods and services are typically
determined by the central planning authority or the
government.
• The goal is to meet the needs of the entire society.
• Capitalism, economic decisions are
predominantly driven by market forces of supply
and demand.
• Prices, production levels, and resource allocation
are determined by individuals and businesses in a
competitive market system.
 Distribution of Wealth
• Communism aims for the equitable distribution
of wealth and resources.
• The principle of "from each according to his
ability, to each according to his needs" is
emphasized, meaning that individuals contribute
to society based on their capabilities and receive
what they require.
• Capitalism allows for uneven distribution of
wealth, as it operates on the principle of private
property and free market competition.
• The accumulation of wealth is seen as a natural
outcome of individual effort and success.
 Role of Government
• Communism advocates for a strong central
government that controls and directs the economy,
implements policies, and ensures equal distribution of
resources.
• The government plays a significant role in planning and
decision-making.
• Capitalism, the role of government is typically more
limited.
• It primarily focuses on maintaining law and order,
protecting property rights, and creating a framework for
fair competition
• While leaving most economic activities to private
individuals and businesses.
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 Individual Liberty and Political System

• Communism places a higher emphasis on

collective welfare and subordinates individual
liberty to the interests of the community.
• The political system is often authoritarian, with
limited political freedoms, as power is
concentrated in the hands of the ruling party or
the state.
• Capitalism values individual freedom, private
enterprise, and personal choice.
• It is often associated with democratic systems that
protect individual rights, freedom of speech, and
political participation.
 Background
• World War II: The Allied powers, including the United
States, Soviet Union, and other nations, formed an
alliance to defeat the Axis powers led by Nazi Germany,
Fascist Italy, and Imperial Japan.
• Although they were allies during the war, ideological
differences and mutual suspicions emerged between the
United States and the Soviet Union.
• Ideological Differences: The United States championed
liberal democracy, individual freedoms, and a market-
based capitalist economy.
• The Soviet Union, under the leadership of Joseph Stalin,
promoted communism, which advocated for collective
ownership of resources, central planning of the
economy, and the ultimate goal of a classless society.
 Major Events in Europe
• The Division of Germany: After World War II, Germany
was divided into four occupation zones, each controlled by
the United States, Soviet Union, Britain, and France.
• The zones controlled by the Western Allies eventually
merged into the Federal Republic of Germany (West
Germany)
• While the Soviet-controlled zone became the German
Democratic Republic (East Germany).
• The Marshall Plan (1948-1952): The United States
initiated an economic recovery program called the Marshall
Plan, which aimed to provide financial assistance to war-
torn European countries, including those in the Soviet
sphere of influence.
• The Soviet Union rejected the plan for its Eastern European
satellite states ( Politically and economically dependent on
power states)
 Major events in Europe
• The Berlin Blockade and Airlift (1948-1949): In
response to the introduction of a new German currency
in West Germany, the Soviet Union imposed a blockade
on land access to West Berlin.
• The Western Allies organized the Berlin Airlift,
supplying the city with food, fuel, and other essential
goods through air transport for over a year until the
blockade was lifted.
• The Formation of NATO (1949): The North Atlantic
Treaty Organization (NATO) was established as a
collective defense alliance between the United States,
Canada, and several European countries.
• NATO aimed to counter the Soviet threat and provide
security guarantees for its member states.
 USSR as a Nuclear State
• The Soviet Union became a nuclear state on
August 29, 1949 successfully tested its first
atomic bomb.
• The world's first nuclear weapons explosion was
on July 16, 1945, in New Mexico, when the
United States tested its first nuclear bomb.
• Not three weeks later, the world changed.
• On August 6, 1945, the United States dropped an
atomic bomb on the Japanese city of Hiroshima.
 Major events in Europe
• The Warsaw Pact (1955): In response to the
creation of NATO, the Soviet Union formed the
Warsaw Pact, a collective defense treaty among
Eastern European communist states, including
East Germany, Poland, Hungary, and others.
• Comecon Plan: The Soviet Union introduced its
economic program for Eastern Europe known as
the Molotov Plan, also called the "Comecon
Plan" or "Council for Mutual Economic
Assistance.“
• The Molotov Plan was proposed by Soviet
Foreign Minister Molotov in 1949 as a
countermeasure to the Marshall Plan.
 Major Events in Asia
• Chinese Revolution (1949): The Chinese Communist
Party, led by Mao Zedong, successfully overthrew the
nationalist government of Chiang Kai-shek,
establishing the People's Republic of China.
• The new communist government aligned itself with the
Soviet Union.
• Korean War (1950-1953): Following the division of
Korea after World War II, North Korea, supported by
the Soviet Union and China, invaded South Korea.
• The United States led a UN coalition to support South
Korea.
• The war ended in a truce agreement, with the border
between North and South Korea remaining largely
unchanged.
• Vietnam War (1955-1975): It started as a struggle
between communist North Vietnam, supported by the
Soviet Union and China,
• South Vietnam, supported by the United States.
• The war eventually escalated, with the U.S. committing
large numbers of troops, but it ended in defeat for the
U.S. and the reunification of Vietnam under communist
rule.
• Sino-Soviet Split: The relationship between the Soviet
Union and China deteriorated in the 1960s, leading to a
split in the communist bloc.
• China accused the Soviet Union of deviating from
Marxist-Leninist.
• The split between the two communist powers had
significant implications for the Cold War dynamics in
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Baluchistan
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 Cuban Revolution (1953-1959) and
Cuban Missile crises (1962)
• Fidel Castro led a successful communist
revolution in Cuba, overthrowing the U.S.-
backed dictator Fulgencio Batista.
• The revolution transformed Cuba into a
socialist state and brought it into the Soviet
sphere of influence.
• The United States attempted to overthrow
Castro in the Bay of Pigs invasion (1961) but
failed.
 Construction of the Berlin Wall (1961)
• As tensions between East and West Germany
intensified, the German Democratic Republic
(GDR) erected the Berlin Wall in 1961 to
prevent East Germans from fleeing to West
Germany.
• The wall physically divided Berlin for almost
three decades and became a symbol of the
Cold War division.
• It was finally broken and both the German
parts reunified in November 1989.
 Non-Aligned Movement (1961)
• Many newly independent nations sought to
remain neutral and not align themselves with
either the United States or the Soviet Union
during the Cold War.
• The Non-Aligned Movement, consisting of
countries from Asia, Africa, and Latin
America, aimed to maintain independence and
pursue their national interests.
• India, Egypt, Ghana, Indonesia
 Arms Control and Treaties
• Throughout the Cold War, various arms control
agreements were negotiated between the United
States and the Soviet Union to manage the nuclear
arms race and reduce the risk of direct
confrontation.
• Examples include the Partial Test Ban Treaty
(1963), Strategic Arms Limitation Talks (SALT)
agreements, and the Intermediate-Range Nuclear
Forces Treaty (1987). START1(Strategic Arms
Reduction Treaty) (1991). START 2(1993) and
New START (2010)
 Soviet-Afghan War (1979-1989)

• The Soviet Union intervened in Afghanistan to

support the communist government facing a
rebellion by mujahideen groups.
• The war turned into a protracted conflict,
(prolonged and sustained struggle) with the
United States and other Western countries
providing support to the Afghan resistance.
• The Soviet Union eventually withdrew its forces,
marking a significant defeat for the Soviets.
 Political Reforms and Soviet
Disintegration
• Under the leadership of Mikhail Gorbachev,
political reforms such as glasnost (openness)
• And perestroika (restructuring) was
implemented.
• These reforms aimed to increase transparency,
encourage public participation, and revitalize
the Soviet economy.
• However, they also unleashed political and
social tensions that had long been suppressed.
 Thank You

Near GPO, Opposite T&T Colony, Circular road Quetta,

Baluchistan
Tel:081-2829324 Cell: 0312-9953336
website: www.anfal.com.pk