Brettonwoods Institution
1. What are the Bretton Woods Institutions?
= There are two Bretton Woods institutions that were established by the planners at Bretton Woods in 1945. These are International Monetary Fund (IMF) and the World Bank. The IMF works to promote global economic growth and stability to different countries by providing policies and financing nations that are in need. The World Bank, on the other hand, lends money to devastated countries because of war and needful countries for rehabilitation and development programs.
2. What circumstances led to its formation?
= There are 2 reasons that I can see that led to the formation of the Bretton Woods institutions based on my research. During the Great Depression, many countries, rich or poor, were affected economically. It was a devastating worldwide economic depression after World War II. And a lot of countries were afraid for this to happen again so this is one of the two reasons why they formed the Bretton Woods Institutions. They formed these institutions to promote global economic growth and stability so that the happening in 1930 won’t happen again. Another reason behind the formation of these institutions is the reconstruction of the different countries that were devastated after the World War II. Countries that were devastated after the war needed aid from the US to rebuild their nation. US used this moment to make Britain choose. But since Europe was devastated they had no choice but to accept the aid and let US prosper in the global economy. This moment was very sad for Britain because not only war the affected them terribly but also the turning point where financial power was turned from UK to US.
3. How did this change the relation between/ among countries and nation states?
= The United States of America became more influential than before. This can be seen when France applied for a loan in World Bank. World Bank secured that France will be able to pay the loan. But before they approved the loan, the United
= There are two Bretton Woods institutions that were established by the planners at Bretton Woods in 1945. These are International Monetary Fund (IMF) and the World Bank. The IMF works to promote global economic growth and stability to different countries by providing policies and financing nations that are in need. The World Bank, on the other hand, lends money to devastated countries because of war and needful countries for rehabilitation and development programs.
2. What circumstances led to its formation?
= There are 2 reasons that I can see that led to the formation of the Bretton Woods institutions based on my research. During the Great Depression, many countries, rich or poor, were affected economically. It was a devastating worldwide economic depression after World War II. And a lot of countries were afraid for this to happen again so this is one of the two reasons why they formed the Bretton Woods Institutions. They formed these institutions to promote global economic growth and stability so that the happening in 1930 won’t happen again. Another reason behind the formation of these institutions is the reconstruction of the different countries that were devastated after the World War II. Countries that were devastated after the war needed aid from the US to rebuild their nation. US used this moment to make Britain choose. But since Europe was devastated they had no choice but to accept the aid and let US prosper in the global economy. This moment was very sad for Britain because not only war the affected them terribly but also the turning point where financial power was turned from UK to US.
3. How did this change the relation between/ among countries and nation states?
= The United States of America became more influential than before. This can be seen when France applied for a loan in World Bank. World Bank secured that France will be able to pay the loan. But before they approved the loan, the United