The fall in agricultural price led to a reduction of farmers’ income and agricultural export.As international prices crashed, prices in India also plunged. It led to great rural unrest in India.In these depression years, India became an exporter of precious metals, notably gold. The Bretton Woods system fostered an environment conducive to international trade and investment. Establishing a stable monetary framework, encouraged countries to engage in trade without fear of sudden currency depreciation. This stability was crucial for rebuilding war-torn economies and facilitating global economic growth.
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Moreover, many developing countries did not even exist as independent states when these policies were framed. The New International Economic Order (NIEO) represents proposals advocated by developing countries to end economic colonialism through a new interdependent economy. The G–77 is the most important forum for developing countries to tackle global economic issues by adapting common strategies through cooperation and collaboration. The NIEO subsequently followed on the pursuance of the members.
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In conclusion, the end of the Bretton Woods system and the beginning of globalization were two major turning points in history that led to the creation of the globalized world we live in today. The collapse of the Bretton Woods system led to the adoption of floating exchange rates, which in turn led to increased trade and investment between countries. The end of the Bretton Woods system also had a significant impact on the developing world. Prior to the collapse of the Bretton Woods system, developing countries could turn to international institutions for financial assistance. The end of the Bretton Woods system led to a period of financial instability and uncertainty.
A)The International Monetary Fund (IMF) monitors exchange rates and lends reserve currencies to nations with trade deficits. The Bretton Woods System is an international financial system created to ensure exchange-rate stability, prevent competitive devaluations and encourage economic growth. They (developing nations) organised themselves into a group, G–77 (named after the original number of participating countries), to pursue a developmental agenda that would treat everyone on equal footing.
The Bretton Woods system worked well for many years, but it began to break down in what is meant by the bretton woods agreement class 10 the 1960s. The main aim of the post-war international economic system was to preserve economic stability and full employment in the industrial world. The United Nations Monetary and Financial Conference held in July 1944 at Bretton Woods in New Hampshire in the USA agreed upon its framework. Through a focus on any two countries, explain how nations developed over the nineteenth century. Mohammad Wazid is a certified professional tutor for class 11 students.
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(d) (i) An integrated global economy had taken place by the early twentieth century. Hence, the impact of the Great Depression could be seen on India too. The end of the Bretton Woods system was a major turning point in the history of the global economy.
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- This stability was crucial for rebuilding war-torn economies and facilitating global economic growth.
- These ncert book chapter wise questions and answers are very helpful for CBSE exam.
- In the first half of 1928, the US overseas loans amounted to over $1 billion.
- Some participating countries felt that the IMF and IBRD were becoming merely instruments of a strategy of the dominant country, the US, and a few other nations.
- The US dollar as the dominant currency was helping development and currency exchange balances in several participating countries.
- It established the International Monetary Fund and the World Bank to preserve global economic stability and full employment in the industrial world.
The post-war world experienced stability and rapid growth, but the US's finances and competitive strength were weakened by overseas involvement costs in the 1960s. The US dollar's value in relation to gold collapsed, leading to the introduction of floating exchange rates. The international financial system changed, forcing developing countries to borrow from Western commercial banks and private lending institutions, resulting in periodic debt crises, lower incomes, and increased poverty. MNCs began shifting production operations to low-wage Asian countries, such as China, due to their low wages and low-cost structure. This relocation stimulated world trade and capital flows, leading to rapid economic transformation in countries like India, China, and Brazil. The world's economic geography has been transformed in the last two decades, with countries like India, China, and Brazil experiencing rapid economic transformation.
In Latin America and elsewhere it intensified the fall in agricultural and raw material prices. (iii) As international prices crashed, prices in India, also plugged. (ii) In the nineteenth century, colonial India had become an exporter of agricultural goods and importer of manufactures. Food has an important role in long-distance cultural exchange. Traders and travellers introduced new crops to the lands they travelled. Other common foods such as potatoes, soya, groundnuts, etc. were only introduced in Europe and Asia after Christopher Columbus discovered the Americas.
- All the 44 signatory nations of the agreement contributed fees towards the initial funding of the two institutions.
- In conclusion, the end of the Bretton Woods system and the beginning of globalization were two major turning points in history that led to the creation of the globalized world we live in today.
- The end of the Bretton Woods system led to a period of financial instability and uncertainty.
In order to preserve economic stability and full employment in the industrial world, the post-war international economic system was established. To execute the same, the United Nations Monetary and Financial Conference was held in July 1944 at Bretton Woods in New Hampshire, USA. The Bretton Woods Conference established the International Monetary Fund (IMF) to deal with external surpluses and shortages of its member-nations. The International Bank for Reconstruction and Development (popularly known as the World Bank) was set up to financial post-war reconstruction and they started the financial operations in 1947. Under the agreement, currencies were pegged to the price of gold, and the U.S. dollar was seen as a reserve currency linked to the price of gold.
(b) Rinderpest was devastating cattle disease which was carried by infected cattle from British Asia to Eastern Africa in 1890s. The coming of rinderpest to Africa caused a loss of livelihood and the local economy for countless Africans. Using this situation to their advantage, colonizing nations conquered and subdued Africa by monopolizing scarce cattle resources to force Africans into the labour market to work for a wage. These institutions did nothing for the economic growth of former colonies and developing countries. They were still facing grim poverty and wanted to come out of it by strengthening their economic condition. (ii) In the mid-1920s, many countries financed their investments through loans from the US.
(iii) The US attempt to protect its economy in the depression by doubling import duties also proved a severe blow to world trade. With the fall in prices and the prospect of depression, the US banks also slashed domestic lending and called back loans. Faced with falling incomes, many households in the US could not repay what they had borrowed. They used up their savings, mortgaged lands and sold whatever jewellery and precious metals they had to meet their expenses. Indian gold exports promoted global economic recovery but the Indian peasants were bound to lead a miserable life.
Without the system, the global economy became more volatile and prone to crises. The 1970s saw a rise in inflation and unemployment, and the world economy experienced a number of recessions. The Bretton Woods system of monetary management was founded in 1944. It was intended to foster economic stability and full employment in the industrialized world. The system forced countries to peg their currencies to the US dollar, which was then convertible to gold for a predetermined price of $35 per ounce.
By helping Britain balance its deficits, India played a crucial role in the late nineteenth century world economy. The Making of Global World Class 10 Questions and Answers Provided helps you to answer complex Questions too easily. You can use them while preparing for board exams and all of them are given by subject experts. Reading NCERT Solutions for Class 10 Social Science History Chapter 4 The Making of Global World familiarizes you with the kind of questions appearing in the board exams. Students are advised to read these solutions on a regular basis to score well.
