Second World War caused horrible destruction the world:

1. All the nations involved incurred huge expenses.
2. America had spent 350 million dollars and other nations had more than one thousand billion dollars.
3. Property worth the same amount was destroyed.
4. England lost its property worth 2000 crore and Germany unimaginable.
5. These nations had given prime importance to the production of arms and ammunition, that too at the cost of other basic necessities.
6. As a result, there arose a dire scarcity of things for basic needs.
7. Production reduced, inflation increased and people struggled for livelihood. Several industries were also destroyed.
8. People were ruined economically.
9. This led to economic depression in the world.
10. The world economy and politics changed greatly.

Communism in China:

1. Many nations of the world were impressed by the way Russia had made a fast progress with its communist measures with the Bolshevik Revolution.
2. China, was also impressed Japan had become weak after the Second World War.
3. Under these circumstances, its control over China had receded.
4. Taking advantage of this, Mao-Tse-Tung established communist rule in 1949.

The Beginning of Cold War – long term effects:

1. After the World War II, the world again got divided into two groups.
2. One group was led by superpower America and another by Russia.
3. During the war, both these nations were friends.
4. After the war differences of opinion between them went on increasing.
5. Thus, the democratic America and the communist Russia became mutually opposite groups.
6. Other small nations of the world joined these groups according to their convenience.
7. These situations created the atmosphere of Cold War.