Don't want to turn this into too much of a history lesson but I'm
trying to understand how industrial capitalism has evolved from its roots in
England to become the system which dominates people's lives worldwide.
The end of the Second World War was a great turning point when
another chapter was written in our story of the evolution of capitalism. I'm
entering the field of 'International money' so I'm preparing myself to be a bit
confused ...
Before the war, trade barriers and financial arrangements made the
movement of goods and finance across national boundaries difficult.
International trading nations had been suffering a crippling economic
depression but the war gave a boost to economic activity with industrial output
increasing massively with armaments manufacturers, aircraft factories and other
military suppliers running 24-hour shifts primed by government spending.
As the war came to an end there was general
concern about how the economy would continue to grow post war so the US
convened the ‘UN Monetary and Financial Conference’ which resulted in what is
known as the ‘Bretton Woods Trio’ (named after the pretty New England resort
where it was held) and which laid the foundations to our modern-day capitalism.
I could easily get bogged down in economic jargon here, but, simply
put, the conference led to the establishment of the International Monetary
Fund, the World Bank and the General Agreement on Tariffs and Trade which have
played an essential role in the spread of capitalism and industrial development
– globalisation - which promised to bring the good life to many and to
raise millions out of poverty. That seems to be it in a nutshell.
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