Some Aspects of the New International Economic Order and the Developing Countries

The Bretton Woods order was conceived during a world war that followed a world depression. It was also conceived when the majority of the developing countries were colonies who could therefore not participate in the formulation of that order. The architects of the Bretton Woods order wanted to ensure that the post-war period was freed from worldwide depressions and was geared towards economic expansion. There is little doubt that the last thirty years have been years of prosperity unparalleled in history. Between 1948–75 growth of world output was 5 per cent per annum, contributed by increases in population and productivity at 2 per cent and 3 per cent respectively. World trade in the same period grew at 7 per cent per annum. In order to appreciate the unprecedented nature of this growth, it is useful to contrast it with the growth record in the period preceding post-war expansion, 1913–48. During this period world output grew at 2 per cent per annum, contributed equally by increases in population and productivity while world trade increased at 1/2 per cent per annum.