Bretton Woods Institutions Bretton Woods Institutions Based upon their actions judge the extent to which the Bretton woods institutions are pro-poor. At the end of the Second World War, along with the development of international organizations, such as United Nations to maintain peace in the world, there were many organizations formed to reestablish trade and commerce, which had disturbed by the war…
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Many people regard these post-colonial institutions to help the developing countries. According to Anghie (2002), these institutions define the ‘unique’ relationship, which exists between international organizations and the Third World. These institutions have been developed, in order for technological advancement of different countries from the developing world, and to refine, reinforce, reproduce and manage the statehood of countries from the Third World (Tan, pp. 31, 2011). Although, established with the aim of reconstructing Europe, the World Bank has taken part in many development projects that have occurred in the Third World. World Bank has also provided different loans to these countries, in order for them to establish themselves properly (Chebucto, n.p, n.d). Although these organizations have been created under the UN charter; in practice, they are largely autonomous (Willis, pp. 36, 2005). These institutions, developed some 60 years ago were developed to put an end to the depression, caused by economic problems, as well as the war, and were a beacon of light for many, especially for the development countries. For this purpose, the paper seeks to examine the ways that the institutions have helped the poor countries (Daly, Farley, pp. 318, 2004). However, since there is large criticism surrounding these Bretton Woods Institutions, it is also imperative to discuss the extent that these organizations have been pro-poor over the years. Nonetheless, it is important to discuss the roles of these two sister organizations, before judging their actions. Although, they had been developed for different purposes, their roles have changed dramatically over the ensuing years. The World Bank seeks to provide development assistance. On the other hand, the International Monetary Fund (IMF) promotes monetary cooperation on an international level through surveying the countries, and lends to those countries, which have a negative position in Balance of Payments (BOP). However, their roles often overlap with each other, since they both seek to provide financial assistance, through one way or the other. For example, considering the actions of World Bank and IMF after the economic crisis in Latin America, one would notice that both these organizations help each other in their respective goals (Weiss, Daws, pp. 1, 2006). One can recognize that they have been active in working for the development for the poor through the ways that they have rapidly changed their roles. Aside from maintaining a fixed exchange rate system, which helped poor countries develop economically, the IMF also gave loans to countries, which had balance of payments problems. Most of these problems are experienced by countries, belonging to the Third World, and the repercussions of negative balance of payments are quite magnificent. Hence, in order to correct this situation, short-term loans were provided, during the 1950s. The World Bank sought to develop different countries, by encouraging private investment to flow into the Third World, so that more development could occur in these countries (Weiss, Dawas, pp.5, 2006). Throughout the years, they kept adding more problems to their agenda, so that these problems could be solved. In 1988, the Multilateral Investment
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The overview consists of the establishment reports of the IMF. It follows with the merits and the demerits of the International Monetary Fund (IMF) along with the major roles being played by it. The study also includes the major criticisms of the International Monetary Fund (IMF) (The World Economy, “The International Monetary Fund”).
It was attended by representatives from the 44 Allied nations knowing that a new economic order was necessary to prevent future wars. The view at that time was major world wars were caused by trade frictions; the legacy of Bretton Woods is a liberalised economic and trade system can enhance understanding between nations before disputes escalate to casus belli (justifications for war).
Similarly, there should be stricter laws that prosecute individuals and institutions that breach ethical regulations of finances in support of economic prosperity (Ray 159). Therefore, in terms of soliciting for funds, governments should rely on branches of Bretton Wood’s institutions that conduct a follow up of the use of such funds.
The agreement's primary goal is the reconstruction and rebuilding of the international economy which was hugely devastated by the war. The Bretton Woods Agreement is a fully negotiated monetary order intended to govern currency relations among sovereign states.
The main purpose of establishing this system was to rebuild those economies which had collapsed after the war utilizing the creation of the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) (Bird, 1994).
Recalling the scenario of 60 years ago, when the world’s most powerful leaders agreed on the formation of international institutions that will support in helping humanity, in order to preserve development and peace. The aims like ‘liberation from fear’ and
The study also includes the major criticisms of the International Monetary Fund (IMF), an inter-governmental organization. IMF offers the technical and financial assistance to its members in different areas of economic policy–basically in the field of exchange rates, fiscal, monetary and financial sector policies.
biggest institutions set up as a result of the Bretton Woods agreements came with better prospects but were, equally, faced with numerous challenges. Despite the challenges, the institution’s agenda remain to date because of the tight financial regulations set out; it is