I’ve never played HBG’s Global game, so I have no idea how that game functions from 1936-40. As far as doing it with A&A, though…a few thoughts come to mind:
The Income Issue:
On this forum, we often refer to it as “income” or “money,” but it’s critical to your aims to bear in mind the correct term. IPCs represent industrial production geared toward the war effort. As such, nations not at war should only receive a fraction of their allotted IPCs. To illustrate my point: In the late 1930s, the US was still climbing out of the Great Depression and wasn’t focused on rearming for the coming conflict. In fact, as late as June 1939, the US Army was smaller than that of Portugal. The UK was also slow to rearm, as many Brits felt that doing so would merely serve to provoke Hitler.
Down the Rabbit Hole
The IPC issue could be addressed in a 1936 scenario by awarding powers not at war a percentage of their total IPCs each turn. This percentage would increase with each act of Axis aggression, whether an attack (such as Japan against China or Italy against Ethiopia), an “annexation” of a neutral territory (Germany into Austria) or rearming in violation of international treaties.
If you really want to get into this time period, I think you have to work in an element of diplomacy, as well. The Anschluss and Sudeten Crisis each presented an international crisis, pushing Germany to the brink of war with the UK and France. In both instances, German generals feared the outbreak of hostilities with their former foes, as the German army wasn’t yet ready for large-scale conflict.
For gaming purposes, as the Axis powers expand, the likelihood of world war should increase. Every act of Axis aggression should involve an element of risk, to keep them from running amok in the turns covering 1936-39.
A final thought (and I’m sure this is covered in HBG’s Global 1936 game): In any scenario covering this time period, the French should be a major player. Their military budget was higher than most Allied nations after WWI and they began a major rearmament program in 1936.
All in all, a 1936 A&A scenario could be a fun project. Good luck!