Full Description:
The Bretton Woods SystemBretton Woods System Full Description:The Bretton Woods System was designed to prevent the competitive currency devaluations and trade protectionism that contributed to previous global conflicts. It tied global currencies to the US Dollar, which was in turn pegged to gold. While the UN managed politics, Bretton Woods institutions managed the global economy, promoting free trade and capital movement. Critical Perspective:Crucially, this system institutionalized American economic hegemony. By locating these institutions in Washington and giving the US veto power over their decisions, the system ensured that global development would follow a capitalist, Western-centric model. Critics argue it forces developing nations into a subordinate position, focusing on resource extraction and debt repayment rather than autonomous industrialization. was designed to prevent the competitive currency devaluations and trade protectionismProtectionism Full Description:Protectionism involves the erection of trade barriers ostensibly to “protect” domestic industries from foreign competition. As the global economy contracted, nations panicked and raised tariffs to historically high levels in a desperate attempt to save local jobs. Critical Perspective:This created a “beggar-thy-neighbor” cycle of retaliation. When one dominant economy raised tariffs, others followed suit, causing international trade to grind to a halt. Instead of saving industries, it choked off markets for exports, deepening the crisis. It illustrates how the lack of international cooperation and the pursuit of narrow national interests can exacerbate a systemic global failure. that contributed to previous global conflicts. It tied global currencies to the US Dollar, which was in turn pegged to gold. While the UN managed politics, Bretton Woods institutions managed the global economy, promoting free trade and capital movement.

Critical Perspective:
Crucially, this system institutionalized American economic hegemony. By locating these institutions in Washington and giving the US veto powerVeto Power Full Description:Veto Power is the ultimate mechanism of control within the UN. It ensures that no action—whether it be sanctions, peacekeeping, or condemnation—can be taken against the interests of the major powers. The mechanism was the price of admission for the great powers, ensuring they would never be forced to act against their national interests by a global majority. Critical Perspective:This power is frequently cited as the primary cause of the UN’s paralysis in the face of genocide and war. It allows a single superpower to provide diplomatic cover for client states committing atrocities, rendering the international community powerless to act. It essentially prioritizes the geopolitical stability of the great powers over the protection of human life. over their decisions, the system ensured that global development would follow a capitalist, Western-centric model. Critics argue it forces developing nations into a subordinate position, focusing on resource extraction and debt repayment rather than autonomous industrialization.