INTRODUCTION:

The first industrial revolution merged into second industrial revolution around 1860. It was the time when technological and economical progress was in take-off position and it was gaining its momentum. Steam power ships were developing and railway engines and system was getting into the market. In 19th century, internal combustion engine and electrical power generation were also invented and progress was on its track. This was the beginning of new era of per capita economic growth in capitalist economic. Mid 20th century was also notable in human history. Many significant changes occur in this time period and they were somewhat connected to economical and technological changes in the surroundings. Although technological development was also on its way, but economical development changed the course of everyones life. It changed the life of common citizen to extra-ordinarily.

INDUSTRIALIZATION:
BRITAIN AND FRANCE:
Napoleon fell down and in the following five decades, an integrated global economy started to grow and getting settled as well. Tax obstructions were abolished and new idea of free trade was given out which resulted in formation of two new words, globalization and, international co-operation and harmony. New orders were started to place in the new international booming market and new direction of trade was started in-spite of all the conflicts within them. Military warfare also started to change and imbalance was created in the world due to uneven industrial revolution and eventually uneven power sharing. This was due to un-even technological changes in the Western Europe and America. Most of the wars were short as compared to the past and the emphasis was quick victory rather than spending much time as well as precious revenues on them. In 1800, 35% of world surface was under European control which increased to 67% in 1878 and by 1914, it was more than 84%. Steam engines and machine-made tools gave Europe decisive economic and military advantages which were cleverly utilized. The UK became the unchallenged global superpower and became a threat by the end of Second World War. Between 1760 and 1830, the Great Britain was responsible for about two third of Europes industrial growth of output. Its share of world manufacturing production jumped a huge percentage in the next 30 years from 1.1% to 19.9%. Around 1860, when British might was at its peak, the UK produced 53% of the worlds iron, 50% of its coal and lignite and consumed about half the worlds raw cotton output. British shipping was also dominating the world. This industrial revolution in 19th century increased the productivity level. This increase in productivity was sustainable as well. National wealth expanded, purchasing power also increased although population was also increasing rapidly. New sources were discovered and old resources were now efficiently utilizing. Textile sector was also on its boom. More and more technological machineries and equipments were required. Import-Export businesses started as well. This increased

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per capita income and more human resource was required to meet up the deadlines. Populated countries in Asia, at the most found out their way that resulted in globalization. Countries with cheap labor markets like India, China and Bangladesh started providing their human resource to provide the same quality in fewer expenses, as the same product produced in any other country of the world. This greatly increased the competition between industries and they started to find out ways for their providing cheapest product in the world maintaining the quality. The ideology of that time was asking for peace, minimal government expenditures and reduction of state controls over the economy and the individual. So, the modernization which occurred in British industry that is described earlier and communications in between them was not paralleled by improvements in the army. The economic dominance of the British was not evident in their military power. Between 1815 and 1880, the Britain existed in a vacuum while British civil economy was progressing vigorously. The British economy started to act like a vast well and were utilizing huge amount of sources, raw materials and food, and resulting in long range and became a hub of many including textile, iron made products and other manufacturers. They were also playing their role in international trade and finance. She also contributed to the industrial development of other nations as well, including their past and present colonies of that. The way adopted by path was little bit different. French decided not to invest heavily in large scale industrial market. Their main focus was on the quality, rather than mass production. The relative military as well as economic power of the French continued to decline. Their army and navy lacked behind in expertise from Russians and British respectively but their aims were high and very diplomat. Russian power also decreased in the first quarter of 1800. Their national product was on increase but this was due to increase in population. Problems with Russian state were extreme climates, long distances, warm water access, lack of capital and human resource as well. These difficulties were clear hurdles in the take off in the industrial boom in comparison with rest of the world.

UNITED STATES:
United States was also on their way to development in an impressive way. They planned but due to industrial growth and availability of land resulted in shortage of human resource to them as well. This increased the wage level as well because this shortage was mainly on labor market. To tackle the issue, capital intensive and labor evasive machinery were in high demands. By 1861, United States was an industrial hub and economic example for many decades. They spent on defense as well until the start of Civil War to handle anyone but Civil War also helped and she became the only superpower of the world, leaving all behind. Only those nations succeeded in this period of time that developed their defense and concentrated on their forces and went through the military revolution in mid 19th century. Acquisition of new weapons, mobilizing and large and highly skilled armies were in the main area of concentration in addition to other economical and technological advancements. This concentration on military gave rise to improved communication for civil areas through wireless technology and railways and telegraphs were also developed. Blunders were also made by the armies in the field but those were more than they contributed to train manpower, supply, association and financial grounds.

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THE COMING OF BIPOLAR WORLD (1919-42):

During the period, cluster nations like Poland, Austria, Finland, Yugoslavia, Czechoslovakia, Hungary and Baltic states emerged. The First World War made drastic loss to life and property. After years of hard work, world manufacturing output started to decline. Public debts were rising because of inflation; financial instability was decreasing and rivals were heading up. In the first 5 years, the centre of global finance moved across the Atlantic to U.S. But as U.S. was new in it, it was also burdened up with huge capacity in some industries. During 1930s, differential growth rate mark up was increased. Armed forces were getting reliant on the production of the nation. Modern technology and mass production were linking with future of military forces.

JAPAN:
By 1938, Japan became much stronger than Italy and it also took over France in military production and manufacturing industries. Theyve been into the wars with China in 1937 and in the Pacific 1941, so a doubt of takeover Britains output was a major threat. They were quite capable in military, but unpredictable decision by the authorities, lack of coordination between the land and water forces were playing their negative role in its success. Navy was made busy with U.S and Britain forces while land army was focusing on Soviet States and Asian region. Army was influencing Japanese politics. Russians were also found alarming force. They realized that economic stability could only be achieved if they won from U.S.

GERMANY:
Germany wasnt well established. They need to reparations, transfer border regions to France and Poland, inflation factor and upper and lower class tension were making its position poor. Adolf Hitler undertook various programs of constructing roads, industrial growth, and electrification but much more was invested in military expansion in 1936 which proved to be the major pull in the economy. Germany was importing raw material from other countries and was depending on them but its import revenue became shorter than exports. Its military capabilities were not that much in 1938-39.

FRANCE:
French army was second largest in the world after Soviet Union. It was very influential in diplomatic circles. French economy was able to recover from World War I but started to go down again after 1933. They also tried to avoid depression so foreign trade also collapsed. It resisted a lot, but at last devalued in October 1936. Gold started to move out of France and their credit worthiness was badly affected. This slowly weakened their economy. Even in 1937, France aircraft manufacturing was 1000 units and in comparison, German unit were around 5000 units which could clearly states the military development in both the countries. The French society saw a sharp depression of morale in the 1930s as class and ideological splits intensified.

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BRITAIN:
Britains manufacturing output depressed in the 1920s because their currency was overvalued. The worldwide depression after 1929 worsened the situation. Their global share of commerce declined from 14.15% in 1913 to 10.75% in 1929 and 9.8% in 1937. Their economy began to recover by 1934 and started new industries of automobiles, electrical goods, petrochemicals and aviations. Governments main focus was on keeping the low taxation system, and maintaining balanced budget keeping in control all state spending.

SOVIET UNION
Soviet Unions population decreased to 132 million in 1921 from 171 million in just 8 years. Their manufacturing output also declined to 13% of its 1913 output in 1920. Socialist command economy was to set up, but this greatly declined in their agricultural production. Under the communism, private consumption decrease sharply so they were able to spend 25% of their GNP on different sectors and to develop educational sector, science and their armed services as well.

UNITED STATES:
The US became the worlds leading financial and creditor nation, to add to Its strengths in agriculture and industry. It had the largest stocks of gold and maintained a high standard of living for the residents. In 1929, over 4.5 million motor vehicles were produced as compared to 211,000 in France, 182,000 in Britain and 117,000 in Germany. The US was also badly hit by the Great Depression. Its GNP shrunk down from $98.4 billion to half of that in just three years; millions lost their job and left US on the sideline for a long time. The severity of the economic slump prompted American policy under Hoover and Roosevelt to be more introspective. But by 1937-38, Roosevelt was taking note of the grand designs of Germany and Japan. Secret Anglo-American naval talks began in 1938. Japans actions and Hitlers gratuitous declaration of war upon the US brought the most powerful nation in the world into the war. World War I and the Great Depression led the factors to Second World War. These two events changed and re-positioned power and influence in the world. Europes capital and industry shifted after the World War which was the center previously. The damage of the war was still not recovered from Europe and massive fighting and high rate of death rate damaged it a lot. Before World War I, Britain, Germany and France were the industrial and financial hubs of the world but after it, they lost their paramount position and the US filled the gap. United States gained from the war and became the winner. All were have to borrow finances to carry out the war fares. Before the war, America was $4 billion in debt to European countries; after the war it was owed $10 billion by countries in Europe. United States was now enjoying that position of global supplies of finance and industries that was difficult to come over, and that she will never leave. Medium of trade also changed as Americans step in to the world market. United States was already self-sufficient in food, industry and mineral so there were no imports in return, which was increasing their revenues while in contrast to that;

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Britain was previously trading in goods. Germany was also under heavy debt of America to make the payments of war compensation. During 1920s, there was over 1 billion dollar investment by Americans in Germany. After WW-I, North American farmers and manufacturers had boom times. A shattered Europe bought most of its foodstuffs and manufactured goods from the United States and Canada. Many North American farmers and industrialists borrowed heavily in order to finance better and bigger machinery to meet the increasing demand in the market and competition was made. Europe quickly tried rebuilt her factories and farms and in 1929 there was 15.9 million tons of unsold wheat in America, Canada and Argentina.

CONCLUDING REMARKS
Heavy spending on military equipments armaments can benefit help growing specific industries within the national economy. But it needs lots of revenues to carry out expenses as they diverge the resources from other groups of the society and in-short weaken the economic well being of the country. The challenge which superpowers face is balancing the short term security that could easily be afforded by large defense force against the longer term security. Today, the great powers must meet their security needs but also satisfy socio economic needs along with growth to prevent relative decline. Due to differences in geography, politics and culture, one states solution will never be exactly the same as that of another so without creating a balance between the competing demands of defense, consumption and investment should be primary focus of the government of superpower to remain like it.

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