The countries had control over their own monetary systems. The Bretton Woods system was very effective in these situations. However, currently, the environment has changed. The economies have united and markets have become more liberalized. As a result, the stability of the economy depends on the global economy. This explains why the financial crisis of 2008 had a major effect on different countries across the world. In the meantime, many of the countries are interconnected. Therefore, one crisis affects different economies. As a result, it is the high time that the country transforms rather than reform the institutions that were originally part of the Bretton Woods system. This is in order to put up mechanisms that will fit with the new global challenges. Moreover, the new strategies will be future oriented, an aspect that will create an opportunity for different countries to set up policies that will protect their vulnerable institutions. This will play a significant role in reducing the negative impacts that result from increasing levels of globalization.
“For many people in the developing world, the international finance institutions of the Bretton Woods system are yet another form of neocolonial exploitation.” Many of the funds being given to these countries are not in form of grants but, loans. These countries are already struggling with internal issues. Most of these loans are being used to support the operations of the governments such as paying salaries. This has increased the burden to the current generation and the future generation that will live in these countries. As a result, the helping hand is becoming a curse to even the unborn. Little change is being seen when using the current systems. As a result, it is the high time that the institutions transform in order to serve the changing needs of the people in the world.
Since the launch of millennium development goals a decade ago,