The study of international relations now goes well beyond state-to-state politics and even regional politics. Technological forces are working their effects on the world as a whole, bringing state and non-state actors into contact with one another. Globalization, Institutions and Governance provides students with a sophisticated and engaging exploration of the often differing impacts of these technological forces and the wider implications of globalization for theories of global governance and the role of international institutions.
Chapter 5: International Institutions and the Global Economy
International Institutions and the Global Economy
At the end of World War II the world's developed countries designed a number of international institutions whose purpose would be to govern currency relations, international monetary relations, and trade relations among states. Known as the Bretton Woods system, these institutions were designed by policy-makers who were eager to devise a multilateral system that could prevent future breakdowns of the international financial system such as the one that devastated economies all over the world during the 1930s. As states adopted ‘beggar thy neighbour’ economic policies during the 1930s, world trade declined, foreign investment dried up, and economies shrank. Policy-makers in the world's wealthy countries agreed that a multilateral system of governance was needed to ...