Bretton Woods System and Its Purpose in the Global Economy
  • Category: Business , Economics , Social Issues
  • Topic: Corporations , Industry

This work explores two key concepts in the field of globalization: civil society and global civil society. Civil society refers to the associations of individuals and organizations that exist between the central government and market structures. These associations may be formal, such as NGOs or trade unions, or informal, such as community groups or religious organizations. Civil society serves as a voice for citizens and can work to influence public policy, build social capital, and provide social services.

Global civil society takes these associations to the international level, allowing for the coordination of efforts across borders. It emphasizes the importance of transnational networks and global citizenship. Key features of global civil society include a concern for environmental issues, social justice, and human rights. These organizations work towards creating a more equitable, just and sustainable world.

Civil society and global civil society are both essential components of governance and international relations. They allow for the inclusion of diverse voices in decision-making processes and promote accountability and transparency. While both concepts face challenges and criticisms, they remain important mechanisms for creating positive change and advancing human rights and social justice globally.

Section 3: Explaining the Bretton Woods System and its purpose in the global economy

The Bretton Woods System came into existence in response to the Great Depression, which was primarily caused by the lack of cooperation among nation-states. The system's overarching goal was to promote cooperation between nations and facilitate the global circulation of capital. It established several economic structures that still function today, such as the General Agreement on Tariffs and Trade (GATT), the World Trade Organisation (WTO), the International Monetary Fund (IMF), and the World Bank.

GATT and WTO were primarily concerned with cross-border trade of goods and services. GATT focused on the liberalisation of trade by lowering tariff barriers, which WTO later replaced with a focus on reducing non-tariff barriers. WTO serves as a central hub for negotiating trading agreements between countries.

The IMF and World Bank were established to create a stable monetary system and provide financial assistance to countries, particularly those in underdeveloped states requiring loans. Bretton Woods' structures played a crucial role in building economic ties among nations, particularly in encouraging comfortable imports and exports of goods and services. Moreover, less developed countries have benefited greatly by gaining access to funding they wouldn't otherwise have had access to through conditionalities.

While the Bretton Woods System may not exist today, its original goals were fulfilled by creating lasting economic structures that have played a significant role in improving the global economy as a whole.

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