War reparations
Encyclopedia
War reparations are payments intended to cover damage or injury during a war. Generally, the term war reparations refers to money or goods changing hands, rather than such property transfers as the annexation of land.

History

Rome
Roman Empire
The Roman Empire was the post-Republican period of the ancient Roman civilization, characterised by an autocratic form of government and large territorial holdings in Europe and around the Mediterranean....

 imposed large indemnities
Indemnity
An indemnity is a sum paid by A to B by way of compensation for a particular loss suffered by B. The indemnitor may or may not be responsible for the loss suffered by the indemnitee...

 on Carthage
Carthage
Carthage , implying it was a 'new Tyre') is a major urban centre that has existed for nearly 3,000 years on the Gulf of Tunis, developing from a Phoenician colony of the 1st millennium BC...

 after the First
First Punic War
The First Punic War was the first of three wars fought between Ancient Carthage and the Roman Republic. For 23 years, the two powers struggled for supremacy in the western Mediterranean Sea, primarily on the Mediterranean island of Sicily and its surrounding waters but also to a lesser extent in...

 and Second Punic War
Second Punic War
The Second Punic War, also referred to as The Hannibalic War and The War Against Hannibal, lasted from 218 to 201 BC and involved combatants in the western and eastern Mediterranean. This was the second major war between Carthage and the Roman Republic, with the participation of the Berbers on...

s.

The 'unequal treaties
Unequal Treaties
“Unequal treaty” is a term used in specific reference to a number of treaties imposed by Western powers, during the 19th and early 20th centuries, on Qing Dynasty China and late Tokugawa Japan...

' signed by the Qing dynasty
Qing Dynasty
The Qing Dynasty was the last dynasty of China, ruling from 1644 to 1912 with a brief, abortive restoration in 1917. It was preceded by the Ming Dynasty and followed by the Republic of China....

 in China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

, Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

, Korea
Korea
Korea ) is an East Asian geographic region that is currently divided into two separate sovereign states — North Korea and South Korea. Located on the Korean Peninsula, Korea is bordered by the People's Republic of China to the northwest, Russia to the northeast, and is separated from Japan to the...

, Siam, Persia, Ottoman Empire
Ottoman Empire
The Ottoman EmpireIt was usually referred to as the "Ottoman Empire", the "Turkish Empire", the "Ottoman Caliphate" or more commonly "Turkey" by its contemporaries...

, Afghanistan
Afghanistan
Afghanistan , officially the Islamic Republic of Afghanistan, is a landlocked country located in the centre of Asia, forming South Asia, Central Asia and the Middle East. With a population of about 29 million, it has an area of , making it the 42nd most populous and 41st largest nation in the world...

 and other countries in the nineteenth century included payments of indemnities to the victorious Western powers, mainly United Kingdom, France and Russia, and later Japan.

After the Franco-Prussian War
Franco-Prussian War
The Franco-Prussian War or Franco-German War, often referred to in France as the 1870 War was a conflict between the Second French Empire and the Kingdom of Prussia. Prussia was aided by the North German Confederation, of which it was a member, and the South German states of Baden, Württemberg and...

, according to conditions of Treaty of Frankfurt
Treaty of Frankfurt (1871)
The Treaty of Frankfurt was a peace treaty signed in Frankfurt on 10 May 1871, at the end of the Franco-Prussian War.- Summary :The treaty did the following:...

 (May 10, 1871), France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...

 was obliged to pay a war indemnity of 5 billion gold francs in 5 years. German troops remained in parts of France until the last installment of the indemnity was paid in September 1873, before the obliged date.

World War I

Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

 agreed to pay reparations to the Central Powers
Central Powers
The Central Powers were one of the two warring factions in World War I , composed of the German Empire, the Austro-Hungarian Empire, the Ottoman Empire, and the Kingdom of Bulgaria...

 when Russia exited the war in the Treaty of Brest-Litovsk
Treaty of Brest-Litovsk
The Treaty of Brest-Litovsk was a peace treaty signed on March 3, 1918, mediated by South African Andrik Fuller, at Brest-Litovsk between Russia and the Central Powers, headed by Germany, marking Russia's exit from World War I.While the treaty was practically obsolete before the end of the year,...

 (which was repudiated by the Bolshevik
Bolshevik
The Bolsheviks, originally also Bolshevists , derived from bol'shinstvo, "majority") were a faction of the Marxist Russian Social Democratic Labour Party which split apart from the Menshevik faction at the Second Party Congress in 1903....

 government eight months later).
Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

 agreed to pay reparations of 132 billion gold marks to the Triple Entente
Triple Entente
The Triple Entente was the name given to the alliance among Britain, France and Russia after the signing of the Anglo-Russian Entente in 1907....

 in the Treaty of Versailles
Treaty of Versailles
The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1919, exactly five years after the assassination of Archduke Franz Ferdinand. The other Central Powers on the German side of...

. The amount of reparations was later reduced by the Agreement on German External Debts
Agreement on German External Debts
London Agreement on German External Debts, also known as the London Debt Agreement, was a debt relief treaty between the Federal Republic of Germany on one part and on Belgium, Canada, Ceylon, Denmark, the French Republic, Greece, Iran, Ireland, Italy, Liechtenstein, Luxembourg, Norway, Pakistan,...

 in 1953. The last installment of these reparations was paid on 3 October 2010.
Bulgaria
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...

 paid reparations of 2.25 billion gold francs (90 million pounds) to the Entente, according to Treaty of Neuilly
Treaty of Neuilly
The Treaty of Neuilly-sur-Seine, dealing with Bulgaria for its role as one of the Central Powers in World War I, was signed on 27 November 1919 at Neuilly-sur-Seine, France....

.

Europe

After World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

, according to the Potsdam conference
Potsdam Conference
The Potsdam Conference was held at Cecilienhof, the home of Crown Prince Wilhelm Hohenzollern, in Potsdam, occupied Germany, from 16 July to 2 August 1945. Participants were the Soviet Union, the United Kingdom, and the United States...

 held between July 17 and August 2, 1945, Germany was to pay the Allies
Allies of World War II
The Allies of World War II were the countries that opposed the Axis powers during the Second World War . Former Axis states contributing to the Allied victory are not considered Allied states...

 US$20 billion mainly in machinery and manufacturing plants. Reparations to the Soviet Union
Soviet Union
The Soviet Union , officially the Union of Soviet Socialist Republics , was a constitutionally socialist state that existed in Eurasia between 1922 and 1991....

 stopped in 1953. In addition, in accordance with the agreed-upon policy of de-industrialisation and pastoralization of Germany
Morgenthau Plan
The Morgenthau Plan, proposed by United States Secretary of the Treasury Henry Morgenthau, Jr., advocated that the Allied occupation of Germany following World War II include measures to eliminate Germany's ability to wage war.-Overview:...

, large numbers of civilian factories were dismantled for transport to France and the UK, or simply destroyed. Dismantling in the west stopped in 1950.

In the end, war victims in many countries were compensated by the property of Germans that were expelled after World War II
Expulsion of Germans after World War II
The later stages of World War II, and the period after the end of that war, saw the forced migration of millions of German nationals and ethnic Germans from various European states and territories, mostly into the areas which would become post-war Germany and post-war Austria...

. Beginning even before the German surrender and continuing for the next two years, the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 pursued a vigorous program to harvest all technological and scientific know-how as well as all patents and many leading scientists in Germany (known as Operation Paperclip
Operation Paperclip
Operation Paperclip was the Office of Strategic Services program used to recruit the scientists of Nazi Germany for employment by the United States in the aftermath of World War II...

). Historian John Gimbel, in his book Science Technology and Reparations: Exploitation and Plunder in Postwar Germany, states that the "intellectual reparations" taken by the U.S. and the UK amounted to close to $10 billion.
German reparations were partly to be in the form of forced labor. By 1947, approximately 4,000,000 German POWs and civilians were used as forced labor (under various headings, such as "reparations labor" or "enforced labor") in the Soviet Union, France, the UK, Belgium and in Germany in U.S run "Military Labor Service Units".
Germany paid Israel
Israel
The State of Israel is a parliamentary republic located in the Middle East, along the eastern shore of the Mediterranean Sea...

 450 million DM in Holocaust reparations, and paid 3 billion DM to the World Jewish Congress
World Jewish Congress
The World Jewish Congress was founded in Geneva, Switzerland, in August 1936 as an international federation of Jewish communities and organizations...

 to compensate survivors in other countries. No reparations were paid to the Romanies who were killed during the Holocaust.

According to the Paris Peace Treaties, 1947
Paris Peace Treaties, 1947
The Paris Peace Conference resulted in the Paris Peace Treaties signed on February 10, 1947. The victorious wartime Allied powers negotiated the details of treaties with Italy, Romania, Hungary, Bulgaria, and Finland .The...

, Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...

 agreed to pay reparations of about US$125 million to Yugoslavia
Socialist Federal Republic of Yugoslavia
The Socialist Federal Republic of Yugoslavia was the Yugoslav state that existed from the abolition of the Yugoslav monarchy until it was dissolved in 1992 amid the Yugoslav Wars. It was a socialist state and a federation made up of six socialist republics: Bosnia and Herzegovina, Croatia,...

, US$105 million to Greece
Greece
Greece , officially the Hellenic Republic , and historically Hellas or the Republic of Greece in English, is a country in southeastern Europe....

, US$100 million to the Soviet Union, US$25 million to Ethiopia
Ethiopia
Ethiopia , officially known as the Federal Democratic Republic of Ethiopia, is a country located in the Horn of Africa. It is the second-most populous nation in Africa, with over 82 million inhabitants, and the tenth-largest by area, occupying 1,100,000 km2...

, and US$5 million to Albania
Albania
Albania , officially known as the Republic of Albania , is a country in Southeastern Europe, in the Balkans region. It is bordered by Montenegro to the northwest, Kosovo to the northeast, the Republic of Macedonia to the east and Greece to the south and southeast. It has a coast on the Adriatic Sea...

. Finland agreed to pay reparations of US$300 million to the Soviet Union
Finnish war reparations to the Soviet Union
War reparations of Finland to the Soviet Union were originally the worth 300 000 000 US dollars, at 1938 prices. Finland agreed to pay the reparations in the Moscow Armistice signed on 19 September 1944. Armistice had started already 5 September 1944...

; Finland
Finland
Finland , officially the Republic of Finland, is a Nordic country situated in the Fennoscandian region of Northern Europe. It is bordered by Sweden in the west, Norway in the north and Russia in the east, while Estonia lies to its south across the Gulf of Finland.Around 5.4 million people reside...

 also was the only country which fully paid its war reparations.
Hungary
Hungary
Hungary , officially the Republic of Hungary , is a landlocked country in Central Europe. It is situated in the Carpathian Basin and is bordered by Slovakia to the north, Ukraine and Romania to the east, Serbia and Croatia to the south, Slovenia to the southwest and Austria to the west. The...

 agreed to pay reparations of US$200 million to the Soviet Union, US$100 million to Czechoslovakia
Czechoslovakia
Czechoslovakia or Czecho-Slovakia was a sovereign state in Central Europe which existed from October 1918, when it declared its independence from the Austro-Hungarian Empire, until 1992...

 and Yugoslavia. Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...

 agreed to pay reparations of US$300 million to the Soviet Union. Bulgaria
Bulgaria
Bulgaria , officially the Republic of Bulgaria , is a parliamentary democracy within a unitary constitutional republic in Southeast Europe. The country borders Romania to the north, Serbia and Macedonia to the west, Greece and Turkey to the south, as well as the Black Sea to the east...

 agreed to pay reparations of $50 million to Greece and $25 million to Yugoslavia.
According to the articles of these treaties, the value of US$ was prescribed as 35 US dollars to one troy ounce
Troy ounce
The troy ounce is a unit of imperial measure. In the present day it is most commonly used to gauge the weight of precious metals. One troy ounce is nowadays defined as exactly 0.0311034768 kg = 31.1034768 g. There are approximately 32.1507466 troy oz in 1 kg...

 of pure gold
Gold
Gold is a chemical element with the symbol Au and an atomic number of 79. Gold is a dense, soft, shiny, malleable and ductile metal. Pure gold has a bright yellow color and luster traditionally considered attractive, which it maintains without oxidizing in air or water. Chemically, gold is a...

.

Japan

According to the Treaty of Peace with Japan and the bilateral agreements, Japan agreed to pay around 1 trillion and 30 billion yen. For countries that renounced any reparations from Japan, it agreed to pay indemnity and/or grants in accordance with bilateral agreements.

The government of the United States officially apologized for the Japanese American internment
Japanese American internment
Japanese-American internment was the relocation and internment by the United States government in 1942 of approximately 110,000 Japanese Americans and Japanese who lived along the Pacific coast of the United States to camps called "War Relocation Camps," in the wake of Imperial Japan's attack on...

 during World War II
World War II
World War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...

 in the 1980s and paid reparations.

Criticisms and negative effects

John Maynard Keynes
John Maynard Keynes
John Maynard Keynes, Baron Keynes of Tilton, CB FBA , was a British economist whose ideas have profoundly affected the theory and practice of modern macroeconomics, as well as the economic policies of governments...

 claimed that overall influence on the world economy of exacting reparations from Germany would have been disastrous.

Many observers hold that war reparations were an indirect, but major, cause of World War II
Causes of World War II
The main causes of World War II were nationalistic tensions, unresolved issues, and resentments resulting from the World War I and the interwar period in Europe, plus the effects of the Great Depression in the 1930s....

. After the end of World War I, the 1919 Treaty of Versailles
Treaty of Versailles
The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1919, exactly five years after the assassination of Archduke Franz Ferdinand. The other Central Powers on the German side of...

 imposed heavy war reparations upon Germany. Some claim these reparations payments exacerbated German economic problems, and the resulting hyperinflation
Hyperinflation
In economics, hyperinflation is inflation that is very high or out of control. While the real values of the specific economic items generally stay the same in terms of relatively stable foreign currencies, in hyperinflationary conditions the general price level within a specific economy increases...

 ruined the chances of the Weimar Republic
Weimar Republic
The Weimar Republic is the name given by historians to the parliamentary republic established in 1919 in Germany to replace the imperial form of government...

 with the public and allowed the rise of the Nazi Party and Adolf Hitler
Adolf Hitler
Adolf Hitler was an Austrian-born German politician and the leader of the National Socialist German Workers Party , commonly referred to as the Nazi Party). He was Chancellor of Germany from 1933 to 1945, and head of state from 1934 to 1945...

. After the Franco-Prussian War, the amount of reparations was set at a fixed value. Moreover, the post–World War I amount was subject to frequent recalculations, which encouraged Germany to obstruct payments. Eventually, all payments were cancelled after Hitler rose to power.

The experience of the post–World War I reparations led to the post–World War II solution, where winning powers were supposed to take reparations in machines and movable goods from the defeated nations, as opposed to money. Moreover, policies like the Marshall Plan
Marshall Plan
The Marshall Plan was the large-scale American program to aid Europe where the United States gave monetary support to help rebuild European economies after the end of World War II in order to combat the spread of Soviet communism. The plan was in operation for four years beginning in April 1948...

 emphasized shared economic development of the Western European states (removing much of what critics saw as the incentives giving rise to World War I) rather than punishment of the former Axis powers.

Recent war reparations

After the Gulf War
Gulf War
The Persian Gulf War , commonly referred to as simply the Gulf War, was a war waged by a U.N.-authorized coalition force from 34 nations led by the United States, against Iraq in response to Iraq's invasion and annexation of Kuwait.The war is also known under other names, such as the First Gulf...

, Iraq
Iraq
Iraq ; officially the Republic of Iraq is a country in Western Asia spanning most of the northwestern end of the Zagros mountain range, the eastern part of the Syrian Desert and the northern part of the Arabian Desert....

 accepted United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...

 Security Council resolution 687, which declared Iraq's financial liability for damage caused in its invasion of Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

. The United Nations Compensation Commission
United Nations Compensation Commission
The United Nations Compensation Commission was created in 1991 as a subsidiary organ of the United Nations Security Council. Its mandate is to process claims and pay compensation for losses and damage suffered as a direct result of Iraq's 1990-1991 invasion and occupation of Kuwait...

 ("UNCC") was established, and US$350 billion in claims were filed by governments, corporations, and individuals. Funds for these payments were to come from a 30% share of Iraq's oil revenues from the oil for food program. It was not anticipated that US$350 billion would become available for total payment of all reparations claims, so several schedules of prioritization were created over the years. The UNCC says that its prioritization of claims by natural people, ahead of claims by governments and entities or corporations (legal persons), "marked a significant step in the evolution of international claims practice."

Payments under this reparations program continue; as of July 2010, the UNCC stated that it had actually distributed US$18.4 billion to claimants.

There have been attempts to codify reparations both in the Statutes of the International Criminal Court
International Criminal Court
The International Criminal Court is a permanent tribunal to prosecute individuals for genocide, crimes against humanity, war crimes, and the crime of aggression .It came into being on 1 July 2002—the date its founding treaty, the Rome Statute of the...

 and the UN Basic Principles on the Right to a Remedy and Reparation for Victims.

See also

  • Treaty of Frankfurt (1871)
    Treaty of Frankfurt (1871)
    The Treaty of Frankfurt was a peace treaty signed in Frankfurt on 10 May 1871, at the end of the Franco-Prussian War.- Summary :The treaty did the following:...

  • Treaty of Versailles
    Treaty of Versailles
    The Treaty of Versailles was one of the peace treaties at the end of World War I. It ended the state of war between Germany and the Allied Powers. It was signed on 28 June 1919, exactly five years after the assassination of Archduke Franz Ferdinand. The other Central Powers on the German side of...

  • Yalta Conference
    Yalta Conference
    The Yalta Conference, sometimes called the Crimea Conference and codenamed the Argonaut Conference, held February 4–11, 1945, was the wartime meeting of the heads of government of the United States, the United Kingdom, and the Soviet Union, represented by President Franklin D...

  • Potsdam Conference
    Potsdam Conference
    The Potsdam Conference was held at Cecilienhof, the home of Crown Prince Wilhelm Hohenzollern, in Potsdam, occupied Germany, from 16 July to 2 August 1945. Participants were the Soviet Union, the United Kingdom, and the United States...

  • Boxer Protocol
    Boxer Protocol
    The Boxer Protocol was signed on September 7, 1901 between the Qing Empire of China and the Eight-Nation Alliance that had provided military forces plus Belgium, Spain and the Netherlands after China's defeat in the intervention to put down the Boxer Rebellion at the hands of the...

  • Treaty of San Francisco
    Treaty of San Francisco
    The Treaty of Peace with Japan , between Japan and part of the Allied Powers, was officially signed by 48 nations on September 8, 1951, at the War Memorial Opera House in San Francisco, California...


External links

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