The Economics of Neutrality: Switzerland and the United States in World War II

• Main Author: Schandler, Matthew
• Other Authors: David Lindenfeld
• Format: Others
• Language: en
• Published: LSU 2005
• Subjects: History
• Online Access: http://etd.lsu.edu/docs/available/etd-11162005-210229/

The following study addresses the contentious issue of Swiss economic policy during the Second World War. In particular, it concentrates on the deterioration of Swiss-American relations that resulted from Switzerlands economic ties to Nazi Germany. It is argued that Switzerlands survival as a neutral and democratic country depended less on the defense preparations of the Swiss Army and more on the difficult trade negotiations with both the Axis and Allies. Varied sources that include American and Swiss governmental reports, diplomatic documents, and contemporary accounts of the war, support the argument that although moral considerations played a secondary role to economic necessities, Switzerlands trade with Nazi Germany did not prolong the Second World War nor were such ties immoral in nature. Instead, the inability or unwillingness of Allied countries like the United States and Great Britain to provide Switzerland with much-needed raw materials and food imports led the neutral country to forge closer ties with the Axis. The emphasis of the study is to assess accurately Switzerlands wartime economic conduct and is not meant to provide an apologetic rationalization of its relationship with Nazi Germany. After first considering the historical origins of Switzerlands neutrality and its economic and political institutions, the study proceeds to examine the immediate effects of its foreign trade policy and the longer-term consequences of the damaged relations with the United States in the Cold War. The study closes by addressing the problems stemming from the poly-ethnic and multi-cultural composition of the Swiss Confederation that can provide excellent insight into the current dilemmas experienced by European countries as they strive for political and economic integration.