United nations monetary and financial conference which took place in Brettenwoods, New hampshire in US attended by delegates from 44 nations created the institution of Brettenwoods to lay down a new financial order
Few of the major reasons that were thought of to be addressed by these insitutions are
Post Gold Standard - gold standard for international monetary affairs has been done away with after the world war 1. Now there is a vaccum which is hampering the cooperation between nations. A new world order is required to fill this gap
Great Depression - This phenomenon of 1920's and 30's had laid great stress on the financial stability of the nations. The institutions were created to foster integration among world economies and reduce the shocks from depressions
Post war reconstruction - World war 2 created enormous losses for Europe, the new insitutions are set to mitigate these losses through transfer of financial resources for reconstruction of European nations
Two institutions took birth i.e. IMF and IBRD (World Bank) with different mandates of monetary stability and reconstruction
India participated in the conference as a British colony which was unique among all the other nations present over there. Here it needs to be understood that Indian foreign policy was mainly guided by the British and because of the lack of any financial order at that point of time and India's willingness to it's own economic development had made Indian delegates to support the new financial order.
Few of the major reasons that were thought of to be addressed by these insitutions are
Post Gold Standard - gold standard for international monetary affairs has been done away with after the world war 1. Now there is a vaccum which is hampering the cooperation between nations. A new world order is required to fill this gap
Great Depression - This phenomenon of 1920's and 30's had laid great stress on the financial stability of the nations. The institutions were created to foster integration among world economies and reduce the shocks from depressions
Post war reconstruction - World war 2 created enormous losses for Europe, the new insitutions are set to mitigate these losses through transfer of financial resources for reconstruction of European nations
Two institutions took birth i.e. IMF and IBRD (World Bank) with different mandates of monetary stability and reconstruction
India participated in the conference as a British colony which was unique among all the other nations present over there. Here it needs to be understood that Indian foreign policy was mainly guided by the British and because of the lack of any financial order at that point of time and India's willingness to it's own economic development had made Indian delegates to support the new financial order.
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