Effects Of Bretton Woods Institutions
We pride ourselves for having a globalised economy. Yet, we choose to turn a blind eye to the spill over effects caused by globalisation. Bretton Woods’s institutions comprises of International Monetary Fund (IMF), World Bank (WB) and later, World Trade Organisation (WTO).
Despite the rapid change in technology and infrastructure around us, for certain countries nothing much has changed, or minimally changed since 1944. There are countries, still plagued with poverty and poor performing economies, riddled with debt. The only unscathed nations are the ones who have benefitted from Bretton Woods Institutions by implementing the policies or are seen to be heeding the advice of the Big 3 -- Bretton Woods’s institutions.
The Bretton Woods institutions …show more content…
The Bretton Woods institutions were established on the basis of managing monetary and exchange rate systems. It initially had a fixed exchange-rate system whereby member countries tied their currency to the US Dollar (USD), whilst USD was deemed dependable by being linked to Gold. Eventually, this method only lasted till the early 1970s. The amount of funds contributed by the nations was correlated to their economic might and the number of decision making votes it possessed in these institutions (Stephey, 2008).
It must be noted that each of these institutions roles changed over time to meet the needs of the globalising economy. Bretton Woods Institutes aim to achieve international economic coordination via operative international financial institutions (IFI). IFIs core efforts lie in promoting economic growth, alleviating poverty and improving global financial stability (Bretton Woods Committee, …show more content…
-It also received support in 1999 for the extractive gold mining in the Peru Yanacocha.
WB is a walking contradiction by failing to tackle the environmental challenges raised by the member states. The Bank has continued financing ecologically destructive and socially disruptive industries, and has not showed any attempts to improve their environmental and social issues occurring in Peru, Mongolia, Colombia, South Africa and West Africa.
Most of the oppressive governments in Africa have benefitted from WB’s loans. Moreover, these governments have violated human rights standards and have these funds enabled them to exploit weaker countries in pursuit of achieving of territorial and economic expansion. For instance, in 1947, Netherlands was provided with $195 million of reconstruction loan from WB regardless of the fact that it had been waging a war against anti-colonialist countries in its overseas colonies, present day, Indonesia. This caused an economic blockade which led to massive hunger and health problems (Danaher, 1994). Rather than impose sanctions onto Netherlands, WB knowingly chose to ignore the plight of
Despite the rapid change in technology and infrastructure around us, for certain countries nothing much has changed, or minimally changed since 1944. There are countries, still plagued with poverty and poor performing economies, riddled with debt. The only unscathed nations are the ones who have benefitted from Bretton Woods Institutions by implementing the policies or are seen to be heeding the advice of the Big 3 -- Bretton Woods’s institutions.
The Bretton Woods institutions …show more content…
The Bretton Woods institutions were established on the basis of managing monetary and exchange rate systems. It initially had a fixed exchange-rate system whereby member countries tied their currency to the US Dollar (USD), whilst USD was deemed dependable by being linked to Gold. Eventually, this method only lasted till the early 1970s. The amount of funds contributed by the nations was correlated to their economic might and the number of decision making votes it possessed in these institutions (Stephey, 2008).
It must be noted that each of these institutions roles changed over time to meet the needs of the globalising economy. Bretton Woods Institutes aim to achieve international economic coordination via operative international financial institutions (IFI). IFIs core efforts lie in promoting economic growth, alleviating poverty and improving global financial stability (Bretton Woods Committee, …show more content…
-It also received support in 1999 for the extractive gold mining in the Peru Yanacocha.
WB is a walking contradiction by failing to tackle the environmental challenges raised by the member states. The Bank has continued financing ecologically destructive and socially disruptive industries, and has not showed any attempts to improve their environmental and social issues occurring in Peru, Mongolia, Colombia, South Africa and West Africa.
Most of the oppressive governments in Africa have benefitted from WB’s loans. Moreover, these governments have violated human rights standards and have these funds enabled them to exploit weaker countries in pursuit of achieving of territorial and economic expansion. For instance, in 1947, Netherlands was provided with $195 million of reconstruction loan from WB regardless of the fact that it had been waging a war against anti-colonialist countries in its overseas colonies, present day, Indonesia. This caused an economic blockade which led to massive hunger and health problems (Danaher, 1994). Rather than impose sanctions onto Netherlands, WB knowingly chose to ignore the plight of