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					For a New World Economic Order | Foreign Affairs                                                                  http://www.foreignaffairs.com/articles/24593/thierry-de...




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        For a New World Economic
        Order
        By Thierry de Montbrial
        October 1975
          Article Summary and Author Biography


           The world economic order born after World War II, to a large extent fashioned by the United States, was
           based on two fundamental principles-in monetary terms, the principle of fixed parities and the dollar
           standard (although the dollar was convertible into gold at the request of the central banks); in commercial
           terms, the principle of non-discrimination and free trade. Practically speaking, the United States was
           assuming the role played by Britain during its period of greatness. This lasted until August 15, 1971, when
           President Nixon suspended the convertibility of the dollar. Over the years, we witnessed the fantastic
           growth and development of the defeated nations, Germany and Japan, and the emergence of the European
           Community-developments encouraged by the United States. The stupendous economic expansion of the
           capitalist West is, without a doubt, the most remarkable feature of this postwar period. The even greater
           expansion of trade (particularly intra-European) appears in this respect to be both a cause and an effect.



        The world economic order born after World War II, to a large extent fashioned by the United States, was based
        on two fundamental principles-in monetary terms, the principle of fixed parities and the dollar standard
        (although the dollar was convertible into gold at the request of the central banks); in commercial terms, the
        principle of non-discrimination and free trade. Practically speaking, the United States was assuming the role
        played by Britain during its period of greatness. This lasted until August 15, 1971, when President Nixon
        suspended the convertibility of the dollar. Over the years, we witnessed the fantastic growth and development of
        the defeated nations, Germany and Japan, and the emergence of the European Community-developments
        encouraged by the United States. The stupendous economic expansion of the capitalist West is, without a doubt,
        the most remarkable feature of this postwar period. The even greater expansion of trade (particularly intra-
        European) appears in this respect to be both a cause and an effect.


        Several discordant notes nevertheless were struck. As Europe gained momentum, the United States took offense
        (e.g., the dispute over the common agricultural policy, attacks against the policy of association with third
        countries). Meanwhile, some European nations began denouncing the manifestations of American hegemony
        (the enormous expansion of U.S. investments abroad, growing balance-of-payments deficits) and voices were
        raised accusing the United States of disregarding the rules of free trade when these did not serve its best interests
        (e.g., the insistence on the "American selling price" exception in the Kennedy Round)...



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1z2                                                                                                                                                                                     06.01.2013 11:29
For a New World Economic Order | Foreign Affairs                                                           http://www.foreignaffairs.com/articles/24593/thierry-de...


        RESPONSE, JUL/AUG 2012                    ESSAY, SPECIAL 1982                         ESSAY, MAY/JUN 2006

        How Busted Is                             A Very Painful                              The Globally
        Brazil?                                   World Adjustment                            Integrated
        Shannon K. O'Neil ; Richard Lapper ;      Samuel Brittan                              Enterprise
        Larry Rohter ; Ronaldo Lemos ; and        The financial position is almost            Samuel J. Palmisano
        Ruchir Sharma                             irretrievable: the country has lost its     A new corporate entity based on
        Brazil's rise never depended on the       way. In the worst of the war I could        collaborative innovation, integrated
        sale of commodities, and thanks to        always see how to do it. Today's            production, and outsourcing to
        recent reforms, the country will          problems are elusive and intangible,        specialists is emerging in response to
        continue to prosper, write Shannon        and it would be a bold man who could        globalization and new technology.
        O'Neil, Richard Lapper, and Larry         look forward to certain success.            Such "globally integrated enterprises"
        Rohter. Ronaldo Lemos, meanwhile,         --Winston Churchill, on returning as        will end up reshaping geopolitics,
        claims that those reforms have not        Prime Minister in 1951. Read                trade, and education. Read
        gone far enough. Ruchir Sharma
        responds that Brazil is indeed headed
        for trouble. Read




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Description: Foreign Affairs flagship article promoting New World Order, 1974