Bretton Woods Conference celebrates its 80th Anniversary

Posted 04 Jul 2024

2 min read

The Bretton Woods Conference, officially known as the United Nations Monetary and Financial Conference was organised in 1944 at Bretton Woods, New Hampshire (USA).

About Bretton Woods Conference

Purpose: To agree upon a series of new rules for the post-World War II international monetary system.
- Delegates from 44 nations participated in it.
Key Outcomes:
- Creation of the Bretton Woods Institutions: International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), now referred as World Bank (WB).
- Fixed exchange rate regime: Each member country was to set a fixed value the par value -of its currency in terms of gold or US dollar.
  - However, after the crisis of dollar exchange crises of 1971 (when USA suspended the dollar's convertibility into gold) and 1973, floating exchange rates was promoted.
- Promotion of Free Trade: To ensues international prosperity and international peace.

Comparison of Bretton Woods Institutions

Sphere

IMF

World Bank

Mandate

Promotes global macroeconomic and financial stability.
Also provides short- and medium-term loans to help countries that are experiencing balance of payments problems.

Promotes long-term economic development and poverty reduction by providing technical and financial support to help countries implement reforms or projects, such as building schools, etc.

Membership and Headquarter

190 Countries
Both organisation have their headquarter in Washington, D.C (USA)

189 Countries (India is member of both the organisations)
- However, India is not member WB’s International Centre for Settlement of Investment Disputes.
Countries must first join the IMF to be eligible to join the World Bank Group.