Balance of power

Robert Chote

Published on 1 September 2004

In July 1944, delegationsfrom 44 countries gathered in theNew Hampshire resort of BrettonWoods to lay the institutionalfoundations for the post-war eco-nomic order.

In July 1944, delegations from 44 countries gathered in the New Hampshire resort of BrettonWoods to lay the institutional foundations for the post-war economic order.

The UK's John Maynard Keynes despaired of "committees and commissions numbering anything up to 200 people, in rooms with bad acoustics, shouting through microphones, with each wanting to get something on the record that would look well inthe press at home".But somehow it delivered.

And thus, next month, delegations from 184 countries willgather in Washington for the 60th annual meetings of the International Monetary Fund (IMF) and World Bank. Celebrations will, however, be muted. The past decade has not been a happy one for the Fund. A succession of financial crises in emerging market countries has undermined its reputation for promoting global economic stability. And with US interest rates heading up again, there may be more turbulence ahead.