From 1929 to 1934 AD, there was a period of economic recession in the whole world.
Its effects were as follows :
- Militarism spread due to economic crisis.
- The democratic government was unable to deal with unemployment, inflation, instability and insecurity, so people became disillusioned from democratic system.
- The failure of the democratic government led to the promotion of authoritarianism.
- As a result of the crisis the control of the state became stricter on economic activities.
- Dissatisfied masses were attracted to communism due to state control over economy.
- Countries with a sense of insecurity started developing military power.
- The economic downturn caused deep damages to the purposes of the League of Nations. The focus of nations has shifted from global security to national security.