The Failure Of Gatt And Wto Agreements
The world economic set up has been changing over years. The systems of trading have been experiencing radical changes due to the dynamism of the world economy. The todays' currency in the various countries did not just find itself there. The currency has evolved from a mere exchange of commodities for commodities to paper and coinage money and today we have representative fraction being used as a means of exchange. Services have also been exchanged over time and this has complicated trade among nations. The underlying challenge of barter trade has been the fact that sometimes there is lack of double coincidence of wants. More so commodities lack the standard measure of value and even some commodities cannot be divided in to smaller units.
The Bretton Wood system was thus formed by the member states in the early 1940s whose main objective to bring a more solid monetary and economic system. The United States had dominated the world economy due to the fact that the dollar would always be exchanged for gold. The led to an economic isolation of the rest of the world and therefore an agreement had to be struck since there was a depression in the economy. The Great Depression led to a serious flop in the stock prices in the late 1920s and was in existence up to the mid-1940s. The world started experiencing a drop in taxes, personal income as well as profits from commodities. These effects lasted until mid-1930s in some countries. (Robbins, 1934).
This depression was even experienced in Africa where the demand for agricultural and mineral products fell drastically. France, Canada, Portugal, Netherlands among others were adversely affected by the depression. In Britain unemployment rates rose too high that revenues for the government dropped a great deal and this led to countries need to form agreements which would curb the economic doom that was in place. (Schultz et al, 1999).(责任编辑：cinq)