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.
