International Studies Compendium Project

Extract

Comment on this article   The international economic institutions (otherwise known as the international financial institutions or IFIs) comprising the International Monetary Fund (IMF) and the World Bank created in 1944 at the end of World War II were certainly not created to foster global justice. Instead, they were created by the most powerful state at the time, the US, in order to continue a type of political and economic free-market capitalist framework in sharp contrast with that of the Soviet Union. In addition, the US and to some degree the UK wanted to provide states with mechanisms to help them should they experience economic difficulties. The IMF (or Fund) was to provide states with loans to help with their balance of payments problems so that countries would not devalue their currencies and/or restrict imports of goods. Both of these policies, termed “beggar-thy-neighbor” policies, were used during the 1930s and were believed to have exacerbated the Great Depression. The World Bank (or Bank) was primarily created to help the countries of Europe rebuild after the war by providing loans for reconstruction and infrastructure projects. The purpose of this essay is to provide a review of the ways in which scholars have examined the evolution of the IFIs. Specifically, the review will focus on both the theoretical frameworks used to interpret the IFIs and the events and policies ... log in or subscribe to read full text