In What ways can G-77 be seen as a reaction to the activities of the bretton woods twins?
Answers
G-77 as a reaction to the activities of the Bretton woods twins :-
1. The IMF and the World bank was set up to finance post war reconstruction.
2. As a result of the Bretton woods system, there was growth of trades and incomes in the western industrial nations.
3. The U.S. has an effective right of V.E.T.O over major IMF and World bank decisions.
4. The IMF and the World bank were not equipped to cope with the challenge of poverty and lack of development in the former colonies.
5. Most of the countries didn't get any benefit from the western economy.
6. Therefore they referred themselves as a group of 77 countries by which they meant a system they could control their natural resources.
Answer:
After the Second World War, many parts of the world were still under European colonial rule and It took over two decades for the colonies in Asia and Africa to become free independent nations. When they became free, they faced many other problems such as poverty, lack of resources, etc. Economies and societies were handicapped for being under colonial rule for long periods.
As colonies, many of the less developed regions of the world had been part of Western empires. The policy of the Bretton Woods twins tilted more in favour of the developed nations of the Western world. Now, ironically, as newly independent countries facing urgent pressures to lift their populations out of poverty, they came under the guidance of international agencies dominated by the former colonial powers.
Therefore these colonies organised themselves as a group – the Group of 77 (or G-77) – to demand a new international economic order (NIEO). By the NIEO they meant a system that would give them real control over their natural resources, more development assistance, fairer prices for raw materials, and better access for their manufactured goods in developed countries’ markets.