THE 80’S AND 90’S: A NEW WORLD ORDER

The End of the Cold War & Economic Change in Canada

Politics: The End of the Cold WarDétente

In the 1970’s the Cold War seemed to “cool down” & the USA and USSR showed willingness to cooperate with each other

They signed a series of nuclear weapons treaties

The USA pulled out of Vietnam 1973

The USA even restored diplomatic relations with Communist China during a period called “Ping Pong Diplomacy” (no joke)

Politics: The End of the Cold WarThe Cold War “Heats Up” AgainRonald Reagan was elected in

1981 and immediately began to re-start the arms race

The key to defeating the Soviet Union, he thought, was to bankrupt them

Strategic Defence Initiative (SDI, aka. “Star Wars”): A missile defence program that would essentially weaponize space

Politics: The End of the Cold WarThe Soviets in Afghanistan: 1979-

1989The Soviets occupied Afghanistan in the 1980’s in order to “help” the Soviet-friendly government thereThis was a Soviet attempt to extend

their “Sphere of Influence”They fought against guerilla forces

called the mujahedeen (which the USA supplied with weapons and $$$). Osama Bin Laden was an important leader within the mujahedeen.

The Afghanistan campaign ended up becoming a type of Vietnam War for the USSR; they couldn’t win over the local population, and the war became incredibly unpopular at home

Politics: The End of the Cold WarMikhail Gorbachev

By the mid-1980’s, Mikhail Gorbachev comes to power and begins to institute reform in the USSR

GLASNOST: “Openness”. Soviet citizens could now criticize the government and express alternate political views. Essentially, they allow freedom of the press and freedom of speech

PERESTROIKA: “Restructuring”. This was Gorbachev’s economic reform, which allowed for some private property and more small private businesses

Politics: The End of the Cold WarThe Fall of the Satellite

StatesBy the late 1980’s, independence movements in Eastern Europe had gained momentum

Lech Walesa, an electrician, led Poland to independence and became their new President

Vaclav Havel led Czechoslovakia to independence

And in 1989 the Berlin Wall fell. West and East Germans were now united after almost fifty years of being separate. This was the symbolic end to the Cold War

Politics: The End of the Cold WarThe Collapse of the USSR

While some hardliners still existed in the Soviet government, the Party essentially collapsed in on itself from the economic and political pressures.

On Christmas day 1991, the Soviet Union effectively broke up, separating Russia with the other republics

Ultimately, Communism could not provide the basic necessities that people needed and people wanted the goods that capitalism provided.

The Economy: Steps Toward Globalization1980’s Canada: The Mulroney

EraLike Reagan, Brian Mulroney was a neo-conservative and believed in low corporate taxes and market deregulation

1985 – Mulroney scraps FIRA. It is renamed and its scope drastically reduced

1989 – Free Trade Agreement with the USA (FTA)

1992 – expands the FTA to Mexico to create the North American Free Trade Agreement (NAFTA). Canada is still a part of this trade agreement today.

For Against No Tariffs = Canada attracts

more US investment and our economy grows

No Tariffs = branch plants would move back to USA = many jobs would be lost

Free trade = access to the huge American market, meaning more demand

Canadian companies can’t compete with giant US companies that would flood the market with cheaper priced goods

FTA would attract large American companies to Canada to take advantage of our natural resources, employing many skilled workers

Free trade threatened Canadian economic independence. America would have increasing economic and political control over Canada

Concept: Free TradeWhich argument do you find the most believable and

compelling?

The Economy: Steps Toward Globalization1990’s Canada: Looking Beyond the

USAJean Chretien (Liberal) elected in 1993

Sends “Team Canada” trade missions to Asia and Latin America to sign trade deals and sell Canadian business. Promotes “Pacific Rim” partnerships

While our economic fortune is closely tied to the economy of the USA, Canada has diversified its trade relationships, particularly with Asian countries.

The Economy: Steps Toward GlobalizationConcept: Globalization