Article: Not out of the Woods

BUREAUCRACIES are by their nature unlovable. The 50th birthday of the World Bank and the International Monetary Fund is proving as much an occasion for critical scrutiny as for a celebration of their longevity.

The IMF and the World Bank were spawned in 1944 by the Bretton Woods monetary conference, at which the representatives of 44 countries met in a New Hampshire hotel and laid out a blueprint for the post-war international economic order. But the economic environment has changed out of all recognition since then, forcing the Bretton Woods institutions to evolve in ways that their founders could not have anticipated.

The IMF was created to police a system of fixed but adjustable exchange ...

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