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Economic Power, Postwar International Finance and the Original Use of ‘Conditionality’

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Abstract:

This paper redefines economic realism under the framework of security and applies this concept at the critical juncture of 1944-45, the period at the end of World War II when Bretton Woods was created, and the beginning of the Cold War in the area of finance. Specifically I examine US postwar loans to the United Kingdom and the Soviet Union in comparative perspective as exemplifying the type of ‘conditionality’ that would characterize US financial policy and IMF policy for the next fifty years. I argue that US financial policy toward its World War II allies was rational under assumptions of economic realism , and not as is often proposed the result of benign liberalism nor malign imperialism. This realist conditionality contributed to tensions that triggered the Cold War. In addition it set the tone for sovereign lending that would define postwar finance and IMF conditionality.

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state (187), econom (149), power (108), american (99), us (96), war (95), relat (95), would (95), soviet (91), unit (89), financi (80), intern (76), loan (71), british (66), postwar (59), bretton (56), wood (56), fund (45), polici (45), system (44), polit (44),

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Bretton Woods, postwar finance, Cold War,IMF conditionality, economic power, economic realism
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MLA Citation:

Xenias, Anastasia. "Economic Power, Postwar International Finance and the Original Use of ‘Conditionality’" Paper presented at the annual meeting of the American Political Science Association, Hilton Chicago and the Palmer House Hilton, Chicago, IL, Sep 02, 2004 <Not Available>. 2009-05-26 <http://www.allacademic.com/meta/p61029_index.html>

APA Citation:

Xenias, A. , 2004-09-02 "Economic Power, Postwar International Finance and the Original Use of ‘Conditionality’" Paper presented at the annual meeting of the American Political Science Association, Hilton Chicago and the Palmer House Hilton, Chicago, IL Online <.PDF>. 2009-05-26 from http://www.allacademic.com/meta/p61029_index.html

Publication Type: Conference Paper/Unpublished Manuscript
Review Method: Peer Reviewed
Abstract: This paper redefines economic realism under the framework of security and applies this concept at the critical juncture of 1944-45, the period at the end of World War II when Bretton Woods was created, and the beginning of the Cold War in the area of finance. Specifically I examine US postwar loans to the United Kingdom and the Soviet Union in comparative perspective as exemplifying the type of ‘conditionality’ that would characterize US financial policy and IMF policy for the next fifty years. I argue that US financial policy toward its World War II allies was rational under assumptions of economic realism , and not as is often proposed the result of benign liberalism nor malign imperialism. This realist conditionality contributed to tensions that triggered the Cold War. In addition it set the tone for sovereign lending that would define postwar finance and IMF conditionality.

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Document Type: .PDF
Page count: 28
Word count: 18366
Text sample:
Economic Power Postwar International Finance and the Original Use of `Conditionality' This paper redefines economic realism under the framework of security and applies this concept at the critical juncture of 1944-45 the period at the end of World War II when Bretton Woods was created and the beginning of the Cold War in the area of finance. Specifically I examine US postwar loans to the United Kingdom and the Soviet Union in comparative perspective as exemplifying the type of
translated from Russian by Marzeena James ibid. 94 George F. Kennan Memoirs 1925-1950 Boston 1967 pg.293; US Foreign Relations Telegram from the Embassy in Moscow to Department of State February 22 1946. 27 95 John Lewis Gaddis The United States and the Origins of the Cold War 1941-47 New York: Columbia University Press 1972; John Lewis Gaddis Strategies of Containment: A Critical Appraisal of Postwar American National Security Policy New York 1982. 96 John Lewis Gaddis We Now Know:


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