Short Essay Example | Topics and Well Written Essays - 2000 words - 1

Short - Essay Example Their original rationale does not fit any more and their activities too have been altered as the world economy has grown (Krueger, 1998). Nevertheless, Bretton Woods institution did play a leading role in the restructuring of international relations in the post -war period. Exchange rates in the pre-war period were used to secure competitive advantage in the mercantilist world (Crockett, 1999). Current account payments were subject to severe restrictions. The International Capital Mobility evolved because the Great Depression discredited gold standard orthodoxy and the financial markets became unpopular. The attachment to gold was identified as the causes of economic calamity. Financial products and markets became closely regulated. Maintaining high employment was considered more important than preserving the value of currency (Obstfeld, 1998). The current account payments were to be progressively liberalized. These changed attitudes led to the establishment of the Bretton Woods Institutions. The basic idea with which this institution was promoted was to promote cooperation and humanitarian goals. The two architects had different goals and objectives right from the beginning. While White intended to favor incentives designed to create price stability within the worlds economies, Keynes wanted a system that encouraged economic growth (O’Hara). Hence, even before the plan was launched, there were compromises made from both sides although the final plan was largely American in nature. It was obligatory for each of the member country to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value in terms of gold. IMF would bridge temporary imbalances of payments. The planners at Bretton Woods favored a liberal system relying primarily on the market with the minimum barriers to the flow of private trade and capital. It was believed that the fundamental cause of the two world wars lay in economic

The Geopolitical and Strategic Importance of the Persian Gulf In Essay - 1

The Geopolitical and Strategic Importance of the Persian Gulf In Relation To Contemporary International Affairs in the Region - Essay Example However, the growth of this reason has resulted in both positive and negative effects. Negative impacts can clearly depict the several conflicts affecting the region that is frequently ignited by outside power (Nyrop, 2008). The August 2, 1990, Iraq invasion of Kuwait, is an example of such wars. The US intervened arguing that it was liberating Kuwait from Saddam Hussein. The U.S. sought convinced about 35 nations to support the move to liberate Kuwait through military action. The Persian Gulf War led to an increased rivalry between countries in the region. The conflicts are often ignited by the fight for a resource such as water and resources such as oil. The frequent conflict has become of great concern in the international affairs (Ungerman, 2000; Darvishi & Javilvand, 2010). The Persian Gulf is of great geopolitical and strategic importance due to its role in supplying most of the world’s resources. Natural resources such as water and energy are increasingly becoming scarce. Therefore regions such as the Persian Gulf, which supplies most of the energy to the world due to its great oil and gas resources are expected to continue being of great importance to the international affairs. Therefore, the Persian region is expected to continue being politically important due to its great role as an energy supplier. Moreover, the fight for energy is responsible for most of the past conflicts over energy (Darvishi & Javilvand, 2010; Ungerman, 2000) Therefore, the region is expected to continue being significant in the international affairs since tension is expected to continue growing since the energy requirement across the globe is increasing and countries such as China are expected to require about 5 million barrels per day b 2015. Since the oil will be derived from the region, Asian countries are likely to be characterized by increased interstate conflicts and weapon proliferation.