In rate. Tracing the birth of a recognized supra-national

In this present time of globalization, the economic
positions of different countries are changing in a speedy rate. Tracing the
birth of a recognized supra-national institution known as Bretton Woods which
later became the backbone of International monetary stability and International
trade. As globalization grew so did the movement of legal tender, which became
less controlled and called for the need of establishing a system for stabilizing
capital movement. John Maynard a British economist moved motions highlighting
the need of a rule-based system for the purpose of stabilizing and regulating businesses,
which he adopted at the Bretton Woods system of fixed exchange rates. Starting
with the economic upheaval after World War I, in 1944 the Bretton Woods came
into existence at the conference of Bretton Woods, New Hampshire (Moggridge, 1980).

This essay will go on to delineate on the development
of Bretton Woods Institutions and identifying the roles, which is been, purpose
to play in the Global economy. Furthermore, this essay will touch the effects
of Bretton Woods Institution on Global economy with case studies from their
involvement with projects, which have been carried out in Africa and then the
future of Bretton Woods Institution.  

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Development
of Bretton Woods Institution

Right after the First World War, countries looked
back to returning to a stable economic environment. Debates and discusses of
returning to the stable economic system with the gold standard began, and then
in 1926 all leading economies have re-stabled their system again together with
all the nations circulating the recognized legal tender which was to be backed
by the Gold reserve and foreign currencies which they had to an extent. There
were so many challenges encountered and mistakes that were observed during the
implementation of the Gold Standard. This had a big effect on Great Britain,
which was one of the leading economies (Keynes, 1971).
It was noticed that many currencies that was circulated was over or under
valued which led to dwindling of economy and financial relations between
countries and then fostered the Great Depression in 1929, this resulted to mass
unemployment, bankruptcy of enterprises and defacing of credit institutions. By
1930 many conference held with the purpose to fix the world monetary problem
spurred by the Great Depression was a big failure. Right after World War II,
the need to stabilizing the world economy was evaluated again but now avoiding
the mistakes, which occurred the first time. The pressing need was to develop a
monetary system and supervisory institution to regulate all international
monetary activities (Kenen, 1994).