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Brettons Woods twins

Updated on March 28, 2011

  The Bretton Woods system was primarily designed as means to rebuild the international economics system during the bitter end of WWII. This is a simple enough solution to insure economic security i.e. if a country is in dire need of funds the World Bank or IMF will lend you money to help you develop your country, especially after the second world war. Until 1968 the Bretton Woods Twins focused on rebuilding war-torn Europe, as Europe was the battle ground and also helping with the development of post-colonial countries such as India, South Africa etc.

   This system is designed to lend money to developing countries as they see this act as beneficial in terms of the developing country will help boost the international economic system thus making goods cheaper, an increased global capital (in case of wars...again) etc. However not everything is as peachy as it seem. When the World Bank or IMF lend you money, they lend it with interest; taking into consideration that you are a developing country or post-colonial country i.e. you don’t have that much money to begin with, so how are you going to pay off the debt? Well borrow more to pay off the first debt...... this system most would agree is putting countries into further poverty, making them aid-dependent as Pramoedaya Ananta Toer (In Pilger 2002) stated “Indonesia has been reduced to a country of beggars. Now we are dictated to by the IMF and the World Bank.”


Dictatorship are dictatorship no matter what it may be called to begin with it monetary aid, development aid it’s all the same. The countries that provide aid, often want something in return for their good deeds, which begs the question why help, if you are only doing it to get something in return? Shouldn’t you help out of the kindness of your heart? After all, charity seeks no recognition.Because they give you the money to help your country develop, they expect you to fall in line and they will start acting like the government dictating policies to you for example in Ireland November 2010, the Telegraph published a statement stating “A full EU-IMF bail-out would mean Ireland losing key areas of political and economic sovereignty.” And yes the Irish bailout went on, the question still remains, how much has Ireland lost its sovereignty?

 Even though the concept of World Bank and the IMF as helpful to countries that need them, it has helped the world economy stand up and not mention war-torn Europe get on its feet. But like all weapons, the fault lays with its user.


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    • conradofontanilla profile image

      conradofontanilla 5 years ago from Philippines

      Voted useful and interesting. The gold standard was set on a foundation of force not justice.