Explain what is referred to as the G-77 countries. In what ways can G-77 be seen as a reaction to the activities of the Bretton Woods twins?
Model Answer & Options
Source: TextbookThe G-77, or Group of 77, is a coalition of developing nations at the United Nations, formed to promote its members' collective economic interests and create an enhanced joint negotiating capacity.
The G-77 can be seen as a direct reaction to the activities of the "Bretton Woods twins"—the International Monetary Fund (IMF) and the World Bank. These institutions were designed and controlled by the major industrial powers and were perceived to serve their interests. Developing countries, many of which were newly independent colonies, did not benefit significantly from the fast growth experienced by Western economies in the 1950s and 60s. They felt that the Bretton Woods system did little to address their core problems of poverty and lack of industrial development.
Therefore, they organized as the G-77 to demand a New International Economic Order (NIEO). The NIEO was a call for a system that would give them real control over their natural resources, fairer prices for raw materials, and better access to markets in developed countries, thus challenging the economic dominance of the former colonial powers and the institutions they controlled.
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