ETV the Bretton Woods Institutions have achieved their aims

What are the Bretton woods institutes

• IMF

• WB

• WTO

goals of Bretton woods

• promote financial stability

• economic growth

• global economic cooperation post 1944

IMF main goal

stabilise world currencies

WB main goal

provide investment for developing states

WTO main goal

forum for trade deals and international trade deals

main paragraph points

1. provide financial stability vs exacerbate crises

2. promote economic growth and development vs dept dependency & ENV and SOC harm

3. promote international cooperation vs developing countries having limited say - Major powers hold majority of power

Point for BWI promoting financial stability

Bretton Woods Institutions stabilise economies and prevent currency collapses.  

evidence for BWI promoting financial stability

• Turkey 2023: IMF lent $6 billion to stabilize currency and inflation. 

• 2008 Financial Crisis: IMF lent $110 billion to 29 countries. 

• (2024) IMF warned UK against further tax cuts  

analysis for BWI promoting financial stability

• IMF is a lender of last resort and BWI provides a global safety net, reduces systemic risk, prevents contagion. 

• BWI monitors the economic health and stability of its members and warns against policies which may be damaging to the economy. 

Liberal belief on the BWI promoting stability

• institutions facilitate cooperation, reduce uncertainty, and create predictable rules for states 

point for BWI promoting instability

Conditionality can exacerbate crises, hurt populations. 

evidence for BWI promoting instability

• Greece defaulted on loans during 2008 crisis – ECB and IMF (Troika) intervened with $110bn resource rescue package (2010) - Greece had to implement austerity and privatise assets – led to 27% unemployment and social unrest  

• Argentina received largest loan in IMFs history of over $65b – required to put forward plan to increase taxes, cut public spending and create an independent watchdog for budget responsibility.  

• WB encourages the export of ‘cash crops’ and raw materials by developing countries leading to ‘neocolonial dependency as prices are set by TNCs 

analysis for BWI promoting instability

• IMF loans are conditional – the state must undergo economic reforms to overcome the problems that lead to the request for help (originally SAPs, now PRSs).  

• Free trade reforms impact the poorest most by cutting public services and welfare – further pushing populations into poverty. 

realist analysis for BWI promoting instability

• Realist - IMF reflects major power interests (US/EU) rather than neutral global governance. 

• Susan Strange – economic globalisation is being carried out in the interests of MNC and powerful neo-colonial powers   

• IMF serves interests of western TNCs by encouraging free-trade reforms which may not be appropriate for developing world (Ha Joon Chang/ Stiglitz – neo-Keynesian economists)  

point for BWI promoting economic growth and development

Bretton Woods institutions promote economic growth and development, through reduction of poverty  

 

evidence for BWI promoting economic growth and development

• India: Rural electrification projects – millions gained electricity; $1 billion+ investment 2022–2024 

• Health programs in Sub-Saharan Africa – vaccination campaigns, water/sanitation projects 

• Girls attending primary school rose from 76.1% (2000) to 95% (2017)  

• MDGs 2000 and SDGs 2015 – most coordinated effort of IGOs and states to work toward common development targets  

• WB provided State Bank of India loan of over $700m to develop solar energy projects .  

• 2005-19: WTO Aid for Trade programme provided $340bn to developing world so it can fully participate in global trade 

 

analysis for BWI promoting economic growth and development

Shows long-term improvement in living standards, poverty reduction, and access to services 

liberal analysis for BWI promoting economic growth and development

• Liberal – development fosters interdependence, global peace, and cooperation. 

• Cook - “our foreign policy must have an ethical dimension” 

• Amartya Sen (“Development of Freedom”) - development should no longer be seen primarily in economic terms, but also consider Human Development Indices  

point for BWI hindering economic growth and development

Projects can create debt dependency, environmental/social harm. 

examples for BWI hindering economic growth and development

• Mega-dams in Africa funded by World Bank - community displacement, ecological disruption 

• From 2004-2013, SAPs led to 3.4m people being involuntarily resettled 

 

analysis for BWI hindering economic growth and development

Development outcomes are uneven; recipient countries may feel policies imposed externally 

realist analysis for BWI hindering economic growth and development

• WB lending often aligns with donor priorities rather than recipient needs (US has largest voting power) 

• Lord Palmerston - “our interests are eternal and perpetual”  

Ha Joon Change (“Kicking Away the Ladder”) argues developing countries cannot protect themselves from becoming peripheral states trapped in neo-colonial dependency (World-Systems Theory – Wallerstein)  

point for BWI encouraging international cooperation

Bretton Woods Institutions facilitate policy coordination and global monitoring, promoting free trade.  

examples for BWI encouraging international cooperation

• IMF publishes statements on the global economy and the economic health of its member states and an annual World Economic Outlook Report. 

• Average tariff on manufactured products in 1947 40% vs 3% in 2000 

• Value of global trade increased from $296bn (1950) to $31.1tn (2023)  

• WTO settled Boeing-Airbus trade row after 17 years  

 

 

analysis for BWI encouraging international cooperation

• Provides shared rules and norms, prevents policy conflicts, encourages transparency. 

• WTO set default trading position between countries if no other agreement is in place.  

liberal analysis for BWI encouraging international cooperation - JD Bowen quote

• Liberal – institutions enable collective problem-solving, reduce transaction costs, and promote cooperation 

• JD Bowen “the international system creates opportunities for cooperation” 

point BWIs undermine international cooperation

Influence is skewed toward major powers; developing countries have limited say 

evidence for in BWI Influence is skewed toward major powers; developing countries have limited say 

• IMF voting: US holds 16.5% quota, effectively veto power 

• WB voting favour West – USA 17.25% of vote share – no other state has more than 5%  

• WB president traditionally American citizen – 2019 Trump nominated close ally, David Malpass 

• (2001) USA brought successful case to WTO that Eu stop granting preferential access to small banana traders in developing world – main beneficiary was US banana producer Chiquita (huge plantations in South America)  

  

analysis for in BWI Influence is skewed toward major powers; developing countries have limited say 

Policies often favour rich states; cooperation is not fully egalitarian 

realist analysis on the BWI Influence being skewed toward major powers; developing countries have limited say 

Realist - major powers shape rules to maintain global dominance 

Morgenthau - “power is the immediate aim”