Why Is The Imf Important To The Second World War?

After the Second World War the world was in so much economic turmoil thus strategic measures to deal with crisis had to be formulated (Gallegher, 17). The reason was that contrary to the First World War, the destruction and the war was not only channeled towards soldiers but also to civilians. Most countries were struggling to sustain their populations and the need to develop unitary economy managements was needed. The Bretton Woods Conference was one of the major conferences that came up the initial strategic plans of universal economic management programs. A strategy that created institutions to help harmonize economic development goals and achievement was agreed to at the conference. The three major institutions that were created at the conference were the International Monetary Fund (IMF), World Bank and the General Agreements of Tariffs and Trade. The three institutions constructed had different roles to play in ensuring the stability of the world economy.
The IMF role was to provide short term- loans to countries. The bank would operate on funds that each member country would contribute and it is from here whereby countries facing monetary deficient would borrow from. IMF was also tasked with the mandate of ensuring that …show more content…
This was primarily a cost- cutting strategy. Some of the reasons of producing in one market were either because there was availability of raw materials of availability of cheap labor. The multi- national companies also used to set- up base in a country with the initial interest of producing goods for the same market. A good example of the strategy was the car factories set- up in Columbia and Brazil with the aim of producing vehicles for the same markets. These would ensure that transportation costs would be cut and also creating employment in the