Decolonisation and Independence

We sometimes have gone through tough times.

Times when we ran out of money...

...Or maybe we had a sudden need of money or we lost our money somewhere.

In such situations we borrow money or someone like our parents or friends just help us out.

Such situations also happened to some countries.

After the war of two big powers the Allies and the Axis, many countries were in a bad shape.

The war of groups of countries against each other resulted in great losses.

Lives and economies suffered greatly and went through difficult times.

And then came the lifesaving Bretton Woods institutions.

The Bretton Woods institutions were the International Monetary Fund and the World Bank. The Bretton Woods institutions were the International Monetary Fund and the World Bank.

They were set up for the reconstruction and development of fallen economies.

Specially countries like Japan and Britain became developed countries under them.

World trade grew annually at over 8% between 1950 and 1970 and incomes at nearly 5%.

This growth was a quite stable and steady one.

The average unemployment rate became 5% in the industrial countries.

There was world wide spread of technology and enterprises (Companies).

Developing countries entered the race of development against the developed countries.

Therefore this period saw a lot of investment, import of technology and machinery of modern era.

Many Multinational Corporations (MNC) also came up during these times.

These were basically companies who had branches in other countries also.

The First MNCs were established in 1920s. MNCs spread rapidly in the 1950-60s.

High tariffs had made many companies to go to different countries and start MNCs.

Tariff are taxes on a country’s imports from the rest of the world.

Then came decolonisation or the independence of colonies.

Many countries were colonies before the World War II (WWII).

This meant that many countries were under the rule of other countries.

The colonised countries had started to become free. But they had a lot of problems.

Most of these countries were victims of poverty and lacked resources .

They were disadvantaged due to long period of colonisation

The IMF and World Bank were two institutions during those times that helped industrial growth.

They were designed to meet the financial needs of industrial countries.

Unfortunately they were not built to cope up with poverty and lack of development in the former colonies

As Europe and Japan rapidly rebuilt their economies, they grew less dependent on the IMF and the World Bank.

So IMF and World Bank now shifted their attention towards developing countries.

Surprisingly most of the colonies were under Western powers..

..and now were again under institutions set up by Western powers.

Even after decolonisation, the important resources were under the control of colonial rulers.

Large companies of powerful countries often managed to get rights in former colonies.

In this manner they managed to exploit important resources in the former colonies.

On the other hand, most developing countries didn’t benefit from the growth of western economies.

So the developing countries organised themselves in a group G-77 or Group of 77.

They did so to demand New International Economic Order (NIEO).

NIEO was a system to give them power over themselves.

It gave them control over their own natural resources and gave them more development assistance.

It also gave them fairer price for raw materials, better access for their produced goods in markets of developed countries.

At last, it is surprising that developments were achieved with the help of institutions of Western powers that had caused colonisation in the first place.

The End.