What were the main aims of the Bretton Woods agreements? Did the economic institutions established — IMF, World Bank and GATT promote international economic integration after World War Two?
Running head : BRETTON WOODS INSTITUTIONS
Analysis of the Bretton woods institutions (World Bank
The world war two had far reaching consequences on the social economical , technological and political aspects of the main combatants The worst hit nations included the European nations and Japan Technological and economical systems of these nations either collapsed or were left in very poor states . There was an inordinate loss of life on a very large scale , additionally , the wanton destruction of property including industries [banner_entry_middle]
, public and private property was previously unimaginable . As the war subsided , different parties were thinking of establishing a system that would facilitate the reconstruction of the affected economies in Europe and Japan
Indeed , even as the war continued , delegates representing several countries converged in Bretton woods New Hampshire (USA ) in 1944 and established the Bretton Woods Agreement . These agreements were aimed at assisting in the reconstruction of the major economic systems ravaged by the war . The delegates signed the Bretton woods agreements in July 1945 and established the IMF , the World Bank and the general agreement on tariffs and trade (GATT
This examines the role of Bretton woods institutions in the reconstruction of the European and Asian economies following the end of World war two . The especially focuses on the objectives , the role the achievement and the shortcomings of the World Bank in the post World war two period between 1945 and 1955
Aims and objectives of the World Bank
The World Bank was formalized on December 27th 1945 when 28 of the member states ratified the Bretton woods agreement [Milward , A .S (1984 )] . The main arm of the World Bank that was most active in the post world war two was the International Bank for reconstruction and development (IBRD . The core aims of the institution are set out on its inceptions were
To finance reconstruction projects in the countries ravaged by war . This was done through the provision of loans to these economies at very low rates of interest [Nicholas , C . and Toniolo , G (1996 )] . The loans were meant to facilitate reconstruction through investment activities that had high potential of generating income . Some of the areas to which loan money was channeled were the agriculture research and development , areas of human development such as education , health and recreation (Sports Infrastructural development was also targeted to benefit from the loans since the war had brought most systems to their knees . Roads , railways Airports , Seaports , Communication networks as well as Electrification networks were rebuilt through World Bank loans . In 1947 the World Bank extended 250 ,000 ,000 loan to France for reconstruction and this remains the biggest amount of loan extended to a single state [World Bank Webite-www .imf .org /archives]
To finance the rebuilding of industries in to promote technological development among the European states and Japan . The post world war two period also provided numerous activities for industrial growth and development of innovation culture that had been fueled… [banner_entry_footer]
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