organizations-based-in-washington-d-c

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April 10, 2026

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April 10, 2026

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"The International Monetary Fund (IMF) provides funds to governments which have short-term liquidity problems. The World Bank invests in infrastructural projects. Both institutions are based in Washington and are controlled by the US. The head of the World Bank is always an American, and the IMF is always headed by a European, usually French. The IMF provided resources for France and Portugal to resist challenges in their colonies, and without these funds, decolonisation would have begun earlier. In the new Third World states, the World Bank and IMF favoured those states which adopted the American model. They became powerful instruments in the hands of the US and often infl uenced private bank lending as well. When the US left the gold standard in 1971, it became easier for Third World states to access loans. The rapid rise in oil prices after 1973 made more funds available as the oil-rich states sought to invest their new-found wealth, but the Third World fell into the trap of accepting cheap loans and gradually became heavily indebted. US banks were happy to lend to Third World states assuming that Washington would bail them out if these states defaulted on their debts. The newly independent states were often dependent on exporting raw materials, but prices fell as technology advanced. The US aim was to create an international environment which promoted convergence between communism and capitalism, but the opposite occurred. Hence US policy made it more diffi cult for developing states to raise living standards as so much wealth had to be used to service debt. This, inevitably, contributed to the growth of left-wing movements."

- International Monetary Fund

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"The concepts formulated at Bretton Woods and Havana, which brought into being the International Bank for Reconstruction and Development, the International Monetary Fund and the General Agreement on Tariffs and Trade, were characterized by exchange, trade and development-financing systems based on the interests of a few dominant countries. They evolved at a time when war between the industrial countries of the West and the socialist world seemed inevitable. As always, economic interests and political interest joined forces to overbear the countries of the Third World. Our development was hampered by economic obstacles; and every time a people resolved to make a bid for emancipation, all possible means of attack were used against it. The systems in question established the rules of the trade game. They closed markets to the products of the Third World through the establishment of tariff and non-tariff barriers, through their own anti-economic and unfair production and distribution structures. They set up harmful practices and norms, fixed freight rates, and thus secured a virtual monopoly of cargo. They also left the Third World countries to watch the advance of science as outsiders and exported to us technical know-how which in many cases was simply an instrument of cultural alienation and of increased dependence. For example, in the international telecommunications system a formidable danger is implicit. Today, 75 percent is in the hands of the developed countries of the West; and of this proportion more than 60 percent is controlled by the big United States corporations, with whose policy we are familiar. I wish to point out that, in less than ten years, our community institutions and our homes will be flooded by information and publicity which will be directed from abroad by means of satellites of high transmission power, and which, unless they are counteracted by timely measures, will serve only to increase our dependence and destroy our cultural values. This danger must be averted by the international community, which should demand that control be exercised by the United Nations."

- International Monetary Fund

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"When President Franklin Delano Roosevelt and other Western leaders were starting to plan for the postwar world, they had the recent past very much in their minds in other ways. They wanted to build a robust world order that would prevent the world from sliding, yet again, into another deadly conflict. The interwar years had been unstable ones, partly because the League of Nations had not been strong enough. Key powers, the United States in particular, had not joined or, like Germany and Japan, had dropped out. This time, Roosevelt was determined that the United States should be a member of the new United Nations. He was also prepared to do a good deal to keep the Soviet Union in. What had been a precariously balanced international order was put under further strain in the 1930s by the Great Depression, which encouraged countries to turn inward, throwing up tariff walls to protect their own workers and their own industries. What may have made sense for individual nations was disastrous for the world as a whole. Trade and investment dropped off sharply and national rivalries were exacerbated. To avoid that happening again, the Allies, with the Soviet Union's grudging acquiescence, created the economic institutions known collectively as the Bretton Woods system. The World Bank, the International Monetary Fund, and the International Trade Organization (this last did not materialize as the World Trade Organization until much later) were designed to provide stability to the world's economy and to encourage free trade among nations. How much difference these all made to the international order after 1943 will always be a matter of debate, but the world did not get a repeat of the 1930s."

- International Monetary Fund

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