We explain what the GDP per capita of the great powers was from the eve of the Second World War until the end of the Cold War.
What was the GDP per capita of the powers between 1938 and 1991?
GDP per capita, also called GDP per capita, is the result of dividing the GDP (Gross Domestic Product) of a country (which measures the monetary value of its total production of goods and services in a given period) by its amount of population. GDP per capita provides an estimate of the average income per person and is often used to calculate the level of wealth of a country..
The GDP per capita figures of the great powers from the moment before the outbreak of the Second World War (1939-1945) and throughout the Cold War (during the second half of the 20th century) allow compare the economic development and living conditions of different countries, especially between the main contenders of the Cold War: on the one hand, the United States and the countries of Western Europe, and on the other, the Soviet Union (USSR).
Given that The main economic power was the United Statesone way to illustrate this comparison is to calculate the percentage of each country's GDP per capita relative to that of the United States for each year. The years indicated in the table correspond to five moments:
- 1938: the year immediately preceding the outbreak of World War II between the Axis powers (Germany, Italy, and Japan) and the Allies (led by the United Kingdom, France, the Soviet Union, and the United States).
- 1950: when the Cold War was exacerbated with the start of the Korean War (1950-1953) and the industrial recovery and economic growth of Western Europe accelerated as a result of the application of the Marshall Plan (1948-1952), from which excluding the Soviet Union and the Eastern Bloc countries.
- 1973: the moment immediately before the oil crisis, an international recession caused by the decision of the Arab countries of OPEC (Organization of Petroleum Exporting Countries) to increase the price of oil and prohibit its sale to countries that had supported Israel in the Yom Kippur War.
- 1987: the time in which the economic reform known as perestroika in the Soviet Union and the fall of the communist bloc was approaching.
- 1991: the year of the dissolution of the Soviet Union and the end of the Cold War.
See also: Defense expenditures of the superpowers (1948-1970)
GDP per capita of the great powers 1938-1991
The data is indicated in dollars at 2011 prices:
| Country | 1938 | 1950 | 1973 | 1987 | 1991 |
|---|---|---|---|---|---|
| USA | 10,526 | 15,240 | 26,602 | 34,730 | 36,464 |
| United Kingdom | 9,988 | 11,061 | 19,168 | 24,536 | 25,792 |
| Germany | 7,960 | 6,186 | 19,074 | 25,027 | 26,770 |
| France | 7,119 | 8,266 | 20,441 | 25,756 | 28,294 |
| Italy | 4,981 | 5,582 | 16,950 | 23,824 | 26,570 |
| Japan | 4,257 | 3,062 | 18,226 | 25,904 | 30,837 |
| USSR | 3,427 | 4,529 | 9,658 | 11,035 | 10,388 |
Convergence with the United States
The data indicate the percentage of GDP per capita compared to that of the United States:
| Country | 1938 | 1950 | 1973 | 1987 | 1991 |
|---|---|---|---|---|---|
| United Kingdom | 95% | 73% | 72% | 71% | 71% |
| Germany | 76% | 41% | 72% | 72% | 73% |
| France | 68% | 54% | 77% | 77% | 78% |
| Italy | 47% | 37% | 64% | 64% | 73% |
| Japan | 40% | 20% | 69% | 69% | 85% |
| USSR | 33% | 30% | 36% | 36% | 28% |
The economic growth of Western European countries and the United States between 1950 and 1973 reached annual GDP per capita growth rates of considerable magnitude, estimated at 2.42 (United Kingdom), 2.45 (United States), 4 .04 (France), 4.95 (Italy) and 5.02 (Germany).
The Soviet Union also had a high rate (3.35), although its large population kept its GDP per capita well below that of the other powers. The case of Japan was the most significant, with an annual GDP per capita growth rate of 8.06.
After the 1973 crisis, growth in most powers slowed but at the end of the eighties it tended to recover. In those same years, a period of stagnation occurred in the Soviet Union. Starting in 1985, Mikhail Gorbachev implemented economic restructuring to address the difficulties of the Soviet economy, which in 1987 reached a GDP per capita equivalent to 32% of the GDP per capita of the United States.
In that context, The American power began to position itself as the winner in the Cold War. Finally, the Soviet Union disintegrated in December 1991, marking the end of the Cold War.
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References
- Aldcroft, D. H. (2003). History of the European economy 1914-2000. Criticism.
- Bolt, J. & van Zanden, J.L. (2020). Maddison style estimates of the evolution of the world economy. A new 2020 update. Maddison Project Database. https://www.rug.nl/
- Kennedy, P. M. (1987). The Rise and Fall of the Great Powers. Random House.
- Maddison, A. (2007). Contours of the World Economy 1-2030 AD.Oxford University Press.
- Powaski, R. E. (2000). The Cold War: United States and the Soviet Union, 1917-1991. Criticism.
