The paper "Why Was an International Organization Not Established" is a great example of macro & microeconomics coursework. The Bretton Woods Conference was an assembly of 730 delegates from 44 nations. It was held in Bretton Woods, New Hampshire from 1st July to 22nd July 1944. It was held during the World War II era with the aim of making financial arrangements and creating rules for the international monetary system for the post-war world. During the conference, two financial bodies were established. This was the IMF (International Monetary Fund) and the IRDB (International Bank for Reconstruction and Development), which is part of the World Bank Group.
In Bretton Woods, there were also existed plans for establishing an ITO. The International Trade Organization was intended to join the International Monetary Fund (IMF) and the IRDB (International Bank for Reconstruction and Development) as a third pillar of the international economic order. ITO Establishment Process The (ITO) International Trade Organization was a brainchild of Cordell Hull (the then US secretary of state) and a few other people working in the US Department of State. This idea advocated international co-operation and free trade as an instrument to reach the establishment of an ITO (United States Government, 1946).
This can be epitomized in Hull’ s saying: “ Economic peace offers the greatest assurance of permanent world peace. Artificial trade barriers invariably create bitter trade rivalry, vicious trade practices, and economic wars, which in modern times have been the prelude to actual wars” (Hull, 1948). Hull’ s leadership was manifested during particularly the wartime when the idea of economic peace was vague and was turned through a set of seminars and discussions within the state department to a detailed proposal (Aaronson, 1996).
It would then be elevated to the forefront of the foreign policy agenda in the US and then intense advocacy of the proposal would take place within the US government and the Congress (United States Government, 1946). Expectations were that an ITO would be established during the Bretton Woods conference. However, the Bretton Woods conference failed to meet these expectations since no ITO was established.
Aaronson, A. S., (1996). Trade and the American Dream: Social History of Post war Trade Policies. Lexington: University Press of Kentucky.
Bagwell, K., & Staiger, R. (2003) ‘Multinational Trade Negotiations, Bilateral opportunism and the rules of GATT/WHO’, Florida: CRC Press.
Bidwell, P.W., & Diebold, W. (1949) ‘The United States and the International Trade Organization: International Conciliation’, vol.27, pp.187-239
Dam, K. (1970). ‘The GATT: Law & International Economic Organization’. Chicago: University of Chicago Press.
Drache, D. (2000). ‘The short but significant life of the International Trade Organization (ITO): Lessons for our time’. Retrieved from:
Diebold,W. (1952). ‘The end of the ITO, Princeton Department of Economics Working Paper’, Princeton: New Jersey.
Hull, C. (1948). ‘Memoirs of Cordell Hull’, New York: Macmillan Publishers. vol.1.
Jackson, J. (1969). ‘World trade and the law of GATT’, New York: Bobbs-Merrill Company.
United States Government. (1946) ‘Basic principles in the establishment of International Trade Organization’. Washington: US Department of State.
United States Government. (1946) ‘Suggested Charter for an International Trade Organization of the United Nations’. Washington: US Department of State.
World Trade Organization. (2012). ‘Understanding the WTO: GATT years’.