In July 1944, with the devastation of World War II ongoing, representatives from 44 nations gathered in Bretton Woods, New Hampshire. Their goal was ambitious: to lay the foundations for a global economic recovery, reopen trade, and create tools to respond to future economic crises.
This gathering led to the creation of the Bretton Woods system, establishing critical institutions such as the World Bank and the International Monetary Fund. The World Bank aimed to lend resources for rebuilding and growth, while the IMF was set to manage economic emergencies before they escalated. This framework not only helped to facilitate recovery from the devastation of World War II but also ushered in an era of economic prosperity.
However, 80 years on, the very institutions that catalyzed such growth and offered hope to many are now struggling to fulfill their goals. This represents a breakdown in the compact between wealthier nations, committed to supporting these global institutions to foster a prosperous and stable world, and the lower-income countries, which rely on this support for inclusive growth and development.
About the author
Eric Pelofsky@EPelofsky
Eric Pelofsky is vice president of global economic recovery at The Rockefeller Foundation and a former special assistant to former U.S. President Barack Obama.
