The Impact of World War I on Canadian Economic Development
Introduction
World War I has had traumatic effects on the countries that participated in it in terms of
many aspects such as the tremendous amount of debt and war costs that they had to
encounter at the end of the war. Such effects were usually long-term in nature and were
most strongly reflected in the form of changing political, economic and social structures,
and public opinion across those participant nations or even other parts of the world for
decades even after the official end of World War I.1
At the end of the War, changes in political structures were evident in many countries,
especially those in Western Europe, as they began to adopt more liberal forms of
government. In addition, the optimistic outlook and prosperity of those countries of the
few decades preceding World War I were replaced by a more pessimistic outlook on life
and the economy as a result of the harsh consequences of the war.2
As a young country, Canada made huge contribution to the British forces and its Allies
in many ways. In other words, the Dominion played a significant role in World War I in
terms of its size and its relatively newly developed industrial economy.3 The years
between Confederation and the turn of the twentieth century marked a crucial period for
completing the framework of the new Dominion. “It is true that external stimuli so
important in the decade preceding the First World War were largely lacking and that
technological advance was slow to the end of the nineteenth century, but in view of the
range of problems encountered the period from 1867 to 1900 must be regarded as one of
solid and substantial achievement in nation-building.”4
The country began to experience significant boom in the late 1890s which were likely to
be triggered by high rate of growth and expansions in many of its prime sectors of the
economy such as the railway and wheat industries. These industries have generated huge
amount of capital inflows
World War I has had traumatic effects on the countries that participated in it in terms of
many aspects such as the tremendous amount of debt and war costs that they had to
encounter at the end of the war. Such effects were usually long-term in nature and were
most strongly reflected in the form of changing political, economic and social structures,
and public opinion across those participant nations or even other parts of the world for
decades even after the official end of World War I.1
At the end of the War, changes in political structures were evident in many countries,
especially those in Western Europe, as they began to adopt more liberal forms of
government. In addition, the optimistic outlook and prosperity of those countries of the
few decades preceding World War I were replaced by a more pessimistic outlook on life
and the economy as a result of the harsh consequences of the war.2
As a young country, Canada made huge contribution to the British forces and its Allies
in many ways. In other words, the Dominion played a significant role in World War I in
terms of its size and its relatively newly developed industrial economy.3 The years
between Confederation and the turn of the twentieth century marked a crucial period for
completing the framework of the new Dominion. “It is true that external stimuli so
important in the decade preceding the First World War were largely lacking and that
technological advance was slow to the end of the nineteenth century, but in view of the
range of problems encountered the period from 1867 to 1900 must be regarded as one of
solid and substantial achievement in nation-building.”4
The country began to experience significant boom in the late 1890s which were likely to
be triggered by high rate of growth and expansions in many of its prime sectors of the
economy such as the railway and wheat industries. These industries have generated huge
amount of capital inflows