Answer:
World War 1 had significant impacts on the economic role of governments worldwide. Prior to the war, governments largely followed laissez-faire economic policies, with minimal government intervention in the economy. However, the war effort required massive amounts of resources, manpower, and financing, which led to an expansion of government intervention in the economy.
Governments began to take control of economic production and distribution, and the war spurred the growth of government agencies to manage this process. This included the establishment of new agencies for war production, price controls, and rationing. Governments also became more involved in the regulation of industries, and the war accelerated the growth of the welfare state, with the introduction of social programs to support war veterans and their families.
The war also had significant impacts on international trade, with countries implementing protectionist measures to support domestic industries and reduce reliance on foreign trade. The Treaty of Versailles, which ended the war, imposed heavy reparations on Germany and led to the restructuring of the global financial system, with the establishment of the gold standard and the International Monetary Fund.
Overall, the effects of World War 1 led to significant changes in the economic role of governments, with a greater emphasis on government intervention and regulation of the economy. The war set the stage for the growth of the welfare state and the establishment of new government agencies to manage economic production and distribution. It also had long-lasting impacts on international trade and the global financial system.