2. The USA as Global Architect

This chapter examines in detail: the post–Second World War security configuration; the original agreements on trade and investment; the pegging of the dollar to gold; and the facilitation of international lending through the World Bank and IMF. It further details how this system evolved to take into account the needs of America’s allies as a result of several economic crises just after the Second World War. The security imperative arising from the Cold War meant that favourable trade arrangements were made plus large-scale loans and aid were made available to ensure that Europe and East Asia became effective bulwarks against communism. The chapter then covers the problems that arose within this system alongside the causes of the economic crisis of the seventies.