Download e-book for kindle: Economic History of Europe: Twentieth Century by Shepard B. Moodie, Thomas, ; Gayle, Carol, Clough

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The very fact that the problem was not understood caused many difficulties. Up to the present the German people believe that the supply of raw materials takes care of itself. The food question is being discussed all day long; the question of raw materials is hardly mentioned. Even now it is hard for us to realize what the situation was at the beginning of the war. For the first six months no one had any idea what we were trying to do. The. [Prussian] Diet, meeting in November 1914, considered us to be a kind of commercial agency charged to see that leather and wool became cheaper.

In eastern Europe the conversion to economic planning after the war was even more complete than in the West. Under the impact of Russian domination, the eastern European countries adopted development plans modeled rigidly on the early Soviet Five Year Plans. Centralized planning and allocation of resources, a high rate of savings, collectivization of agriculture, and heavy investment in basic industry radically reshaped the economic life of eastern Europe during the early 195o's. An industrial base was created in these formerly agrarian countries, and large elements of the population shifted from agricultural to industrial occupations.

As may be regarded as an addition to "fixed assets" rather than as a change in working capital minus amortization), whereas for Variant II net fixed investment is obtained from data on changes in the value of completed fixed assets. , Chapter II, tables 3, 5, and 9· PART I The First World War After the first few months of the hostilities, it became clear to many that, contrary to expectations, the First World War would not be a short and decisive war of movement, but rather a war of attrition in which continued military operations would depend on the ability of the belligerents to mobilize their economies as well as their armies.

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