What is the history and formation of the World Trade Organization, International Monetary Fund and World Bank?
Joseph Stiglitz: Before World War II there had been a great depression that had an enormous devastating effect on the world’s economies. There were three organizations set up in the aftermath of World War II to deal with what were viewed to be the economic problems that were likely to face the world in years following. The International Monetary Fund, the IMF, was established to provide for global stability, economic stability — to provide funds to countries that were facing an economic downturn. The World Bank’s original purpose was to help reconstruct Europe after World War II. After the Marshall Plan and the reconstruction of Europe, development became its primary function, although it still plays a role in reconstruction of war-torn areas. The WTO was established in 1995 following what was called GATT, the General Agreement on Trade and Tariffs. That was intended to try to create a more integrated world economy, allowing for the flow of goods and services across different countrie
