BRETTON WOODS FINANCIAL INSITUTIONS IN THE ERA OF GLOBALISATION Melantik Rompegading, Fadilla Jamila
Sawerigading University, Hasanuddin University
Abstract
Bretton Woods had established fundamental financial institutions, such as International Monetary Fund (IMF) and World Bank. They played major roles in world finance and economy. Yet globalization has challenged and undermined the effectiveness of these Bretton Woods Institutions. This paper will analyse challenges and critics faced by these institutions, the efforts that have been taken to solve this issue and analysis whether the current reforms are sufficient or not. To answer these questions, the authors used normative legal research by using literature research through relevant books, journals, legislations, official documents, case law and other relevant documents.
According to the research, it was found that numbers of critics have been addressed to these institutions. Those critics include the IMF quota system that tends to prevent evolution to the institutions, both IMF and World Bank are dominated by industrialized countries especially US, lack of involvement and representation of the developing countries, problems on the loan conditionality and the challenge of the rise of other regional financial institutions. Despites the challenges and the critics, both World Bank and IMF still contributes to the maintenance of world economic. These institutions have been trying to reform and improve their systems. However, in order to remain relevant in 21st century, Bretton Woods institutions still need to do fundamental reforms.
Keywords: Bretton Woods, International Economic Law, Globalisations
Topic: Law on Business, Business Competition, and Prohibition of Monopoly
