INTST101 Lecture Notes - Lecture 2: Commercial Bank, Washington Consensus, Glocalization
26 Jun 2018
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The term globalization for some conveys images of hegemony- economic and political dominance by rich
nations over smaller nations.
Globalization is a phenomenon intimately linked to trade among nations and various financial markets.
As a power that draws power away from the nation-state.
Neither individual nation-states nor multinational corporations function independently in our
time-space compressed world.
Economic world we know it continues to operate within the parameters shaped by the Bretton Woods
System (World Bank, international monetary fund, general agreement on tariffs and trade) and the
World Trade Organization (the former general agreement on tariffs and trade)
End of WWII, Fanciers were discussing the need to create some type of global financial entity, one that
could assist countries with “temporary balance of payment problems”
In 1944, meeting with representatives from 45 nations was held at Bretton Woods and they were
charged with finding ways to assist global trade by helping stabilize the global economy.
At this meeting, the establishment of the World Bank, and the International Monetary Fund
(IMF)
U.S representative was Harry Dexter; United Kingdom representative was Lord John Maynard
Keynes who argued for a global currency called “bancor”.
The idea was rejected and the U.S dollar became the world currency for the monetary system.
It was intended that the two organizations would identify and implement procedures for a
system of convertible currencies tied to a gold standard- set at $35 per ounce.
Many believed the origins of War had been the trade blocs of the 1930s.
Try to create a global lending institution and a means to break down these barriers.
The global lending system became the World Bank and the IMF
The solution to trade barriers emerged in the form of the General Agreement on Tariffs and
Trade (GATT); this agreement became the World Trade Organization (WTO)
This triumvirate of economic globalization began in response to the needs of individual nation
states to have access to the power, cash, and influence that came from collaboration with other
nations.
The World Bank and the International Monetary Fund
WB focus to help the developing world.
find more resources at oneclass.com
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Document Summary
The term globalization for some conveys images of hegemony- economic and political dominance by rich nations over smaller nations. Globalization is a phenomenon intimately linked to trade among nations and various financial markets. As a power that draws power away from the nation-state. Neither individual nation-states nor multinational corporations function independently in our time-space compressed world. Economic world we know it continues to operate within the parameters shaped by the bretton woods. System (world bank, international monetary fund, general agreement on tariffs and trade) and the. World trade organization (the former general agreement on tariffs and trade) End of wwii, fanciers were discussing the need to create some type of global financial entity, one that could assist countries with temporary balance of payment problems . In 1944, meeting with representatives from 45 nations was held at bretton woods and they were charged with finding ways to assist global trade by helping stabilize the global economy.
