The economic crisis in the capitalist world in the 1930s and the outbreak of World War II further intensified the basic contradictions of capitalism. The crisis of the monetary and credit systems and the balance of payments crisis in Western countries deepened. It is hoped that there will be a stronger global international

Financial organizations provide long-term and short-term loans in order to restore the economy and develop production.

At the same time, after the Second World War, the "trade war" caused by the Western capitalist powers competing for the world market increasingly hindered the economic recovery of various countries, and countries' calls for trade liberalization became louder and louder.

The United States, relying on its strong strength expanded during the war, has an extremely strong desire for external expansion and is trying to establish a stable, multilateral international trade and financial order led by the United States.

On the other hand, newly independent countries in Asia, Africa and Latin America are in urgent need of large amounts of funds to develop their national economies and balance their international payments. However, they are wary of "economic assistance" from capitalist countries and hope to obtain it through loans from international economic organizations.

Required funds.

In addition, the emergence of international economic organizations also relies on the foundation provided by the internal development of the world economy. Due to the continuous development of production and capital internationalization, countries need to jointly intervene in economic activities, which in turn creates demands for economic integration and trade freedom.

The tendency of globalization and financial integration has led to the emergence of international economic organizations.

Under the combined influence of the above factors, in July 1944, 44 countries including the United States, Britain, France and the Soviet Union participated in the Bretton Woods Conference held in New Hampshire, USA, and established an agreement aimed at stabilizing international finance and improving the international trade environment.

the International Monetary Fund and the International Bank for Reconstruction and Development (the World Bank).

After that, the United States proposed the "Program to Expand World Trade and Employment" and proposed the establishment of an international trade organization to supplement the Bretton Woods Conference. This proposal was generally endorsed by many countries, and finally formed the General Agreement on Tariffs and Trade in 1947.

In this way, the World Bank, the International Monetary Fund and the General Agreement on Tariffs and Trade (developed into the World Trade Organization after 1995) developed into the three pillars of the post-war world economic system and the three major international coordination organizations for the world market.

(1) World Bank.

The full name of the World Bank is the International Bank for Reconstruction and Development (IBRD), referred to as the World Bank.

It is a product of the Bretton Woods system.

The World Bank was established in December 1945 and officially began operations on June 25, 1946. In 1947, it became one of the specialized agencies of the United Nations.

The World Bank and the International Monetary Fund are both specialized agencies of the United Nations. They are closely connected and cooperate with each other in the international financial field, and play a certain role in stabilizing the currencies of member states and promoting stable economic growth in various countries.

The purpose of the World Bank is to facilitate investment in member countries for production purposes, assist member countries in their recovery and development, and encourage less developed countries to carry out production and resource development; through participation in private loans and private investment, or to private

The department carries out the above activities by providing guarantees and other means to promote private foreign investment; by encouraging international investment to develop the productive resources of member countries, it promotes the long-term and balanced development of international trade and maintains the balance of international payments; when providing loan guarantees, the World Bank actively

Seek cooperation from other international financial institutions and international banks.

Since the 1990s, the World Bank has begun to participate in various member countries' international payment and financial crisis relief efforts in a planned manner, and has played a useful role.

Shortly after its birth, the World Bank has provided preferential loans and investments to developing countries by organizing funds from various sources internationally, and assisted those projects and industries that are of special significance to the economic development of recipient countries to support the economies of developing countries.

growth and improvement in residents' living standards, thus ensuring further economic development in developed countries.

This role of the World Bank is prominently displayed in the following three aspects: First, on the debt issue, the World Bank has better played its "mediating" role between the North and the South.

Help debtor countries implement economic adjustment plans characterized by austerity by providing adjustment loans and technical assistance; provide new loans to debtor countries with the core of promoting economic growth; urge developed countries to reduce the debt burden of developing countries through various means

; undertake to provide funding for debt repayment of principal and interest; and establish debt reduction funds for low-income debtor countries, etc.

Secondly, after the disintegration of the Soviet Union, the World Bank admitted 15 Soviet Union countries as members of the World Bank and provided them with US dollar support to help them achieve smooth economic transition and ensure world economic and political stability.

Finally, after the Asian financial crisis broke out in 1997, the World Bank and the International Monetary Fund worked together to provide economic assistance to the countries where the crisis broke out. They played an irreplaceable role in stabilizing the Asia-Pacific financial market, quelling the Asian financial crisis, and alleviating the financial crisis in various countries.

effect.

The World Bank performs its functions of maintaining and stabilizing the current international monetary system and international economic order from a strategic perspective.

However, there are certain flaws in policy guidance for loans, which are the main business activities of the World Bank.

For example, as far as structural adjustment loans are concerned, with the changes in the world economic landscape in the 1990s, the focus of structural adjustment loans shifted to supporting and helping developing countries in their reforms aimed at market economies.