The United States contributed greatly to the development of the international economy in the period 1945-2000. Discuss.

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The United States contributed greatly to the development of the international economy in the period 1945-2000. Discuss.

The US was the only economy that grew during WWII as it sold military arms to other countries who were involved in the war. As a result the US gained economic superiority over other countries; this allowed the US to have immense influence on the world economy. Therefore it is to a large extent that the US contributed greatly to the development of the international economy from the period 1945-2000. This essays aims to examine the US’s immense contributions to the global economy vis-à-vis financial aid, influencing international economic policies that the world gained from and in boosting world trade; and then going on to discuss how the US, though making marginal contributions did not always contribute greatly to the development of the international economy.

The US helped many countries to recover from its economic ruin, particularly the western European countries through the Marshall Plan as well as restructuring the European economic relations thereby increasing world trade, contributing greatly to the development of the international economy. From 1948-52, about $13,150 million was made available under the Marshall Plan to Europe where the major recipients were UK ($3176m), France ($2076m), Italy ($1474m) and Western Germany ($1389m). This increase of funds allowed these countries to purchase the much needed products as well as provide the countries with the necessary funds to finance employment and developmental projects. The United States willingness to sustain a deficit so as to provide the liquidity required to underpin the Bretton Woods IMF scheme was also crucial in providing necessary liquidity needed for the increase in international trade. Besides, the US also insisted that the Europeans to collaborate and integrate their economies more closely. This led to agreements to reduce trade barriers such as the United Nations Economic Commission for Europe and Economic Cooperation and Development (OECD). US made significant contributions in reviving the European economies that allowed Europe to be a strong economic power. Thus the US’s great contributions can be seen to have led to the development of the international economy.

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With its financial leadership, US took the leading role in multilateral trade negotiations in GATT and IMF due tot its large economy and huge share of international trade, becoming the main motivating force in a series of multilateral negotiations. Within GATT, USA was responsible for initiatives such as the 8 major trade negotiations from the Geneva Round in 1947 to the Uruguay Round in 1986. It also played a key role in mobilising others and seeking compromise between countries. US's acceptance of limited benefits, taking on unfavourable trade terms at its own expense, throughout 1940s-1950s, leading to the ...

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