The Unholy Trinity Case Study
“The Unholy Trinity” – The international monetary fund, the world trade organization and the World Bank are called the unholy trinity of the world economy. Firstly, why and how these organizations emerged?
The International Monetary Fund
Starting from 1928 till late 1930’s there was a severe downturn of the economies of the world mainly in North America, Europe and other industrialized areas of the world. This is called as ‘The Great Depression’ in the world history. As a result of this, the countries started limiting the global trade in order to increase their economies. The economies improved but the value of the currency fell. This opened the window for a new oversight.
At the end of World War 2, in 1944, the representatives of 45 governments met at Bretton woods conference in Washington to discuss the postwar economic co-operation among the countries and the result was the birth of The International Monetary Fund. It was founded in a view to help the economies. Any country who is a member could draw from IMF for its economic activities and could repay the debt in time. It came into existence on 27 December, 1945 with 29 countries …show more content…
Why are the IMF, WTO and world bank called ‘The Unholy Trinity’. Apart from a positive side, there is also a negative impact of these organizations for which they are called the “The Unholy Trinity’. That is because as the loans are given to the countries, more loans are wanted and it has turned into an addiction. This becomes a burden on country’s economy when they need to repay. This may once again burst out at any time in future as one more great depression that occurred in 1929. Overall, it is difficult to decide whether the economies gained or lost. It depends on whether the gap between rich countries and poor countries is shrinking or not. Let us hope that ‘The unholy Trinity’ will not pull the world economies into a vicious
The International Monetary Fund
Starting from 1928 till late 1930’s there was a severe downturn of the economies of the world mainly in North America, Europe and other industrialized areas of the world. This is called as ‘The Great Depression’ in the world history. As a result of this, the countries started limiting the global trade in order to increase their economies. The economies improved but the value of the currency fell. This opened the window for a new oversight.
At the end of World War 2, in 1944, the representatives of 45 governments met at Bretton woods conference in Washington to discuss the postwar economic co-operation among the countries and the result was the birth of The International Monetary Fund. It was founded in a view to help the economies. Any country who is a member could draw from IMF for its economic activities and could repay the debt in time. It came into existence on 27 December, 1945 with 29 countries …show more content…
Why are the IMF, WTO and world bank called ‘The Unholy Trinity’. Apart from a positive side, there is also a negative impact of these organizations for which they are called the “The Unholy Trinity’. That is because as the loans are given to the countries, more loans are wanted and it has turned into an addiction. This becomes a burden on country’s economy when they need to repay. This may once again burst out at any time in future as one more great depression that occurred in 1929. Overall, it is difficult to decide whether the economies gained or lost. It depends on whether the gap between rich countries and poor countries is shrinking or not. Let us hope that ‘The unholy Trinity’ will not pull the world economies into a vicious