1. Lecture 10: From Unity to Discord
April 19, 2010

2. International Bank for Reconstruction and Development (IBRD)
World Bank (loans for reconstruction and development)
Lend to Europe at low rates
Private lenders unwilling to loan to destroyed Europe
Refashioned to alleviate poverty in 1960s and 1970s

3. International Monetary Fund (IMF)
(monetary stabilization)
Members contribute money to fund
States can borrow to restore balance of payments equilibrium
But did not prevent trade imbalances
Currency regime—modified gold standard
Too much rigidity or flexibility seen as bad
Peg currencies to dollar, allowed to fluctuate within 1%
Dollar replaces pound as international currency

4. International Trade Organization (ITO)
ITO GATT WTO
Forum for reducing trade barriers
Most-favored nation status: non-discrimination
WTO instituted dispute settlement procedures

6. WTO Today

7. Marshall Plan $12 billion in grants, not loans
Conditional on government planning
Not enough private lending to Europe
US needed trading partners
National security

9. Why the Cold War?
Definition: ideological and geopolitical struggle between US and USSR; avoided direct conflict; encompassed whole world
Traditionalists
Communism inherently expansionist
History of Russian paranoia/expansionism
US not threatening
Soviet occupation of Eastern Europe
Stalin’s treatment of people under Soviet control
Revisionists
US efforts at economic domination
US ideology
Legitimate Soviet fears
Bretton Woods, Marshall Plan anti-Soviet and provocative

10. Truman Doctrine

11. Divided Germany

13. Explanations: Geopolitics
Great powers naturally clash
Incompatible conceptions of security
Nationalism

14. Misperceptions
Security dilemma: steps pursued by states to bolster their security have the effect--often unintended and unforeseen--of making other states less secure
Contributing factors
-Minimal contact
-Different political cultures
-Psychological processes
-Context