• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

'The development of the international economy in the period 1945-91 favoured rich countries at the expense of the poor.' How far do you agree?

Extracts from this document...

Introduction

2. 'The development of the international economy in the period 1945-91 favoured rich countries at the expense of the poor. How far do you agree? The international economy started developing rapidly after the period 1945-91 as part of the United States policy to gain a foothold against the Soviet, especially in the light of the cold war situation. Rich countries would refer to the developed nations while poor countries would refer to the less developed nations. In the question, however, it can be said that a third group, the communist bloc have been left out as they had little, if any, participation in the development of the international economy. The development of the international economy would then refer to the setting up of certain organizations as part of the Bretton Woods system. These include GATT, world bank and IMF. However, for simplicity sake, we shall look at specifically GATT and its workings to determine whether it favoured rich nations over the poor ones. The General Agreements on Tariffs and Trade (GATT) was founded in 1947 as a predecessor to the aborted International Trade Organisation (ITO) ...read more.

Middle

Yet developed countries reduced trade barriers with other developed countries but not with less developed countries. This was definitely a case of the rich being favoured through GATT polices at the expense of the poor. With reduced trade barriers, the developed countries could export more; increase economic growth while the poorer states plunged deeper in debt. The way GATT worked no doubt benefited the developed and richer countries. However to say that it was at the expense of the poor would be a bit too bias. In an open world economy, when one party gains, another loses. Often, the less benefits of a freer world trade received by the poorer countries were due not to the principles of GATT but the circumstances they were in, as they were undergoing the decolonisation process and were unable to ride on the success of other capitalist nations. GATT was seen as a rich man's club consisting of mostly developed countries, influential and powerful to protect their own interest. However, GATT did not really favour the rich at the expense of the poor. In fact, the less developed countries' points of view were taken into consideration in many instances epically seen through the negotiation rounds that GATT initiated. ...read more.

Conclusion

Naturally, GATT's actions were focused on helping the Western countries, which happened to the more developed and thus wealthier countries compared to the 2nd and 3rd world countries, recover economically so that they could withstand the communist threat posed by the Soviet Union. Despite GATT's commitment to free world trade, the interests of the USA, characterised by its policy of Containment especially after World War Two were the dominant factor behind the GATT's policies. This was evident in the way the USA sponsored free trade and gave aid through the Marshall Plan in 1947. In conclusion, GATT favoured the rich at the expense of the poor can only be agreed to a small extent. Indeed, the rich benefited from while GATT was in place than the poor but to say it was at the expense of the poor would be too extreme. With GATT inherently bias towards the US, it was the inability of the less developed countries to integrate into the world economic order that caused them to suffer. But, it is difficult to say that the poor lost out at the expense of the rich with developing countries experiencing 5 to 6% of economic growth at least in the first 25 years after World War Two. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level International History, 1945-1991 section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level International History, 1945-1991 essays

  1. Free essay

    The development of the international economy in the period 1945-2000 favoured rich countries at ...

    4 star(s)

    20 years of GATT indifference to special problems of the LDCs can be represented by the results of the Dillon and Tokyo rounds of 1960-63 and 1973-79 respectively. By the Dillon round, a mere 160 out of 4400 tariff concessions were export items of LDCs.

  2. This graduation paper is about U.S. - Soviet relations in Cold War period. Our ...

    Senator Edwin Johnson stated the equation crassly, but clearly. "God Almighty in his infinite wisdom," the Senator said, "[has] dropped the atomic bomb in our lap ... [now] with vision and guts and plenty of atomic bombs, . . .

  1. Superpower Relations 1945-90

    * In 1975 Soviet and US astronauts carried out a joint Soyuz-Apollo space flight. SALT I was the first time that the Superpowers had reached an agreement on arms limitation, but * the talks only dealt with strategic weapons, long-range nuclear weapons.

  2. The Prelude to the 1975 War and the Cairo Agreement.

    On September 29, 1983, the United States Congress, by a solid majority, adopted a resolution declaring the 1973 War Powers Resolution to apply to the situation in Lebanon and sanctioned the United States military presence for an eighteen-month period. The Multinational Force Bombings and their Withdrawal On Sunday morning 23

  1. The Not So Free.

    "The next topic on the agenda was the calling of help from the allies. Although the time it would take the UN to decide whether or not to act would take forever and they probably not come into the war, as the system is fundamentally flawed as if one of

  2. American Society today is a rich, powerful and highly populated

    The Dillingham Commission 1907 proves that up until the 1890's most of the immigrants arriving at Ellis island were classed as "old immigrants" ie coming from north western Europe. They were English speaking and Protestant and had a more upper class way of life, they had good jobs and had the similar culture to the Americans.

  1. Many peoples have contributed to the development of the United States of America, a ...

    rationalistic and scientific outlook, born in the science of Sir Isaac NEWTON and the philosophy of John LOCKE, made religious observance more logical and of this world. Deism and so-called natural religion scoffed at Christianity and the Bible as a collection of ancient superstitions.

  2. In the context of the period 1905-2005, how far do you agree that Khrushchev ...

    further intensified the already fragile situation.[12] If long-term matters were equally addressed, possibly the collapse of the tsarist regime could have been prevented. The tenure of Khrushchev saw the greatest attempt at reforming the economic system, into one which would pose the most benefit: such are the policies of democratisation and decentralisation.[13] Such policies were compelled by mid-1957.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work