1. Contemporary Global Economics

2. Before the end of WWII, people knew they had to find a way to avoid a similar global conflict. So, representatives from Britain, the United States, Canada and other countries worked together to build an organization that would:

3. Support people who wanted to choose their own government
Help countries co-operate on trade issues
Protect small countries against invasion by larger countries
Ensure that no single country controlled the world’s oceans

4. The organization?...
THE UNITED NATIONS

5. After the war...
People worked to rebuild their lives. Cities were in ruins. Refugees and survivors of the Nazi death camps were searching for safe homes.
The war had cost over $2 trillion dollars!!!
That’s $

6. So...
Along comes the United Nations Monetary and Financial Conference at Bretton Woods. In July of 1944, representatives from 44 countries met in a small New Hampshire town (called Bretton Woods). Their purpose was to find a way to prevent the economic turmoil caused by the second world war which could lead to another one!

7. Enter John Maynard Keynes
I tried to warn people that the peace treaty signed after WWI was doomed to fail but no one ever listens to me! Unrestricted capitalism is NOT the answer.
The government needs to protect it’s citizens.
For example, when businesses lay off workers , like they did in the Great Depression, governments should set up programs to hire the unemployed.

8. But wait...it’s Friedrich Hayek
Keynes doesn’t know what he’s talking about! We cannot trust the government! The only role the government has in the economy is to make sure it doesn’t get in the way of competition.

10. The World Bank
The World Bank, also known as the international Bank for Reconstruction and Development, and the International Monetary Fund (IMF) were created at the Bretton WoodsConference. World Bank IMF
These two organizations would be supported by the United Nations and would help expand international trade.

11. World Bank
The head of the World Bank is appointed by the U.S. Government.
The original goals of the organization were to:
Lend money to help war-torn countries rebuild
Speed up economic progress and industrialization in countries
Help countries develop their natural resources
Negotiate long-term loans to increase productivity in countries

12. The current goals are:
To increase growth and reduce poverty in developing countries
To fund specific infrastructure projects.
To govern international trade and finance

13. International Monetary Fund
The head of the IMF is nominated by the European Union and has a board of 24 Executive directors.
The original goals were to:
Set dependable international exchange rates for world currencies
2. Establish international economic stability and promote foreign trade.
It’s current goals are:
To provide emergency short-term loans to countries
Demand reforms in a country to promote good governance and get rid of corruption.

14. Supporters of the World Bank and IMF say that these organizations have helped stabilize the global economy and brought prosperity to many countries.
Critics say that the World Bank and IMF have become too influential and that their help, especially in developing countries, comes at too high a cost.

15. Lastly... The General Agreement on Tariffs and Trade or GATT
-At Bretton Woods, some countries
agreed to work together to establish trade rules.
This led to:
The General Agreement on Tariffs and Trade or
GATT
-GATT members agreed to gradually eliminate
tariffs and other trade barriers between
themselves.