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The United States' economic troubles continue to spread, prompting many economists and world leaders to demand that action be taken on a global level. Some have even proposed revamping the entire global financial system. World leaders are planning to hold a global summit on the economic crisis, but some economists say that what is needed is a second "Bretton Woods" conference in order to devise a new doctrine of international finance.
On Monday British Prime Minister Gordon Brown called for international financial reform saying: "Around us we must build a new Bretton Woods. A new financial architecture for the years ahead. Sometimes it does take a crisis for people to agree that what is obvious and should have been done years ago can no longer be postponed. But we must now create the right new financial architecture for the global age." His comments were echoed by other global leaders, including Pascal Lamy the head of the World Trade Organization.
In 1944, near the end of World War II, representatives from all 44 allied nations gathered in Bretton Woods in New Hampshire to set up a system of rules, institutions, and procedures to regulate the global monetary system. They even considered the idea of creating a global currency. The agreement at Bretton Woods laid the foundation for the International Monetary Fund, the World Bank, and other international institutions. It also established policies that have enabled the US dollar to become the world's reserve currency.
The Bretton Woods conference set the standards that have directed the global economy for the past 60 years. However some economists say that a new set of rules are needed - especially in light of the current economic crisis. We live in the era of globalization, and the way we do business is changing.
The Gulf Cooperation Council, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE, made headlines recently when it announced plans for a new common currency and central bank. The groundwork for the new system will be laid at the GCC summit in November. The council hopes to have the new monetary union in place by the year 2010.
The rise in power of such institutions represents a key strategic trend that began in the latter half of the 20th century. Economies are growing, government is expanding, and borders are disappearing. In the past 60 years we have witnessed the establishment of the United Nations, the European Union, the Mediterranean Union, the African Union, and the new Union of South America as well as the International Criminal Court, the International Monetary Fund, etc. This trend has picked up steam in more recent years, as political sovereignty and economic control has shifted bit by bit from individual nation-states to supranational globalist organizations.
The current economic crisis could pave the way for even more globalist reforms. Visit our website or click on the links below to learn more about this subject.
Related Links
• Foreign Economists Urge Global Plan - Washington Times
• Highlights from Brown's Speech on International Reform - Reuters
• WTO Chief Backs Call for New Bretton Woods - Guardian
• GCC to Endorse Monetary Union at November Summit - Gulf News
• Behold A Black Horse: Economic Upheaval and World Wide Famine - Listen Free!
• Global Government - Strategic Trends
