Tag Archives: Capitalism
On the 4th February 1945 the Yalta Conference began. Attended by the “Big Three” Allied leaders, the conference saw United States President Franklin D. Roosevelt, British Prime Minister Winston Churchill and Soviet Premier Joseph Stalin meet to discuss the government of post-war Europe.
The three leaders had previously met at the Tehran Conference in 1943 where they set out a unified military strategy, but at Yalta the focus was exclusively on the end of the war and its aftermath. It was clear that the war in Europe was in its final stages, so they agreed to demand Germany’s unconditional surrender after which the country – and Berlin – would be split into four zones of occupation. Germany was to undergo a process of demilitarization and denazification, and Nazi war criminals were to be hunted down and brought to justice.
Furthermore, the three allies considered the fate of Eastern European countries that had been under Nazi occupation. Poland was the focus of much of the discussion, but the agreement reached was intended to apply to every country. The Protocol of Proceedings stated that the allies would assist the liberated countries to form “interim governmental authorities broadly representative of all democratic elements in the population…and the earliest possible establishment through free elections of governments responsive to the will of the people.”
The terms of the agreement, when they were made public, were met with harsh criticism in Britain and the United States. Some of these criticisms came to be justified when, at the end of the war, the Soviet Union installed communist governments throughout Eastern Europe.
On the 5th March 1946, Winston Churchill described the post-war division of Europe as an “iron curtain” in his “Sinews of Peace” address at Westminster College in Fulton, Missouri. Often interpreted as a key event in the origin of the Cold War, Churchill’s speech played a significant role in changing Western perceptions of their former Soviet ally.
Churchill, as the British Prime Minister, had led Britain to victory in the Second World War but in the General Election of July 1945 suffered a landslide defeat to Clement Attlee’s Labour Party. Despite now being in opposition, he continued to be highly respected abroad and visited the United States in 1946. During this trip he was invited by Westminster College in the 7,000-person town of Fulton to deliver a speech to an audience of 40,000 people.
Churchill was introduced at Fulton by President Harry Truman, and opened his speech by complimenting the United States as standing “at the pinnacle of world power.” As the speech progressed, he became increasingly critical of the Soviet Union’s policies in Eastern Europe. Churchill was not the first to use the term “iron curtain” as a metaphor for a strong divide since versions of its had been in use for many centuries, and nor was the “Sinews of Peace” speech the first time that he himself had used the term. However, his use of the term in a speech with such a large audience thrust it into wider circulation and associated it directly with the post-war situation.
Stalin accused Churchill of warmongering, and defended the USSR’s relationship with eastern Europe as a necessary barrier to future attacks.
On the 31st January 1990, fast food chain McDonald’s opened its first restaurant in the Soviet Union on Moscow’s Pushkin Square. Rather than the expected 1,000 customers on the first day, some news outlets estimated that 30,000 people passed through the doors. Even Boris Yeltsin visited the store on the opening day.
By 1990 the Iron Curtain was in tatters. The Berlin Wall – the very symbol of the East-West divide – had fallen in November the previous year, and the communist governments of other eastern European countries had fallen. McDonald’s had already opened restaurants in Belgrade, the capital of the former Yugoslavia, and the Hungarian capital Budapest in 1988. However, the expansion into the Soviet Union was evidence of the enormous changes taking place within the USSR itself. Glasnost and perestroika had already brought about enormous changes, and the Soviet government even owned a 51% stake in the new McDonald’s venture.
Interestingly, however, McDonald’s in the USSR was developed by the Canadian branch of the company, independent of the chain’s American headquarters. To keep the supply chain separate, completely separate farms and factories were developed to provide the ingredients: by the end of 1989 a reported 50 million Canadian dollars had been invested in the infrastructure.
At the time, the average monthly wage for a Russian worker was 150 roubles. When McDonald’s opened, a standard hamburger cost 1.50 roubles – the price of ten loaves of bread. Despite this, thousands of people walked through the doors of what remained the largest McDonald’s restaurant in the world until a new restaurant on the London 2012 Olympic Park opened 22 years later.