The
International
System
and its
Discontents
18
The Bretton Woods Conference in 1944 recalibrated
the international system and gave rise to the World
Bank and the International Monetary Fund (IMF),
both of which were instrumental in providing the
necessary financial support with which nations rebuilt
their infrastructure following the Second World War.
Over the course of time, both of these institutions
have grown to be pillars of globalisation, with noble
goals. Time and again however, they have fallen short
of their own objectives, and created the circumstances
in which the considerable hardships have been foisted
upon national populations.
The World Bank routinely provides loans to
developing countries for capital programs. The IMF
provides loans to countries in fiscal difficulty in order
to ensure global economic stability and maintain
the smooth functioning of the balance of payments
system. A central goal cited by both institutions is the
reduction of world poverty. Both institutions espouse
the Western virtues of the free market economy,
foreign direct investment and international trade with
national growth in Gross Domestic Product (GDP)
representing a key indicator of economic success.
The implementation of policies such as deregulation,
privatisation, ever-smaller government and the
liberalisation of markets are of central concern to
both.