The Stystem Developed in the The Bretton Woods Conference
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The Bretton Woods Conference in New Hampshire in 1944 was a unique event in which representatives of two nations influenced the planning of the world monetary system (Scammell, 1982). The Article of Agreement was a negotiation between Britain and The United States, which was accepted and signed by 44 other nations (Ikenberry, 1933). The conference saw the establishment of the two most significant financial institutions, The International Bank for Reconstruction and Development [World Bank] and The International Monetary Fund (Stwenron, 1944). The conference set the standard of gold to $35.00 and selected the American dollar as the backbone of international exchange. The goal of the conference was to create a system through these financial institutes for economic co-operation and development leading to stable and robust global economy (International Monetary Fund, 2013).
Role of World Bank:
The Articles of Agreement of the Bretton Woods Conference clearly stated that the role of the World Bank was the reconstruction and development of the member countries including the restoration of economies damaged and deranged by the World War 2. Jean-Francois Rischard-former vice president, World Bank explained the working of the World Bank in the 1950’s, the World Bank borrowed money to lend them to the reconstruction of countries like Japan and Europe. The World Bank financed Toyota in Japan and the French railways and so forth. Post the reconstruction of war ravaged