Decolonisation and Independence
The end of World War II brought about a significant shift in global structures, leading to the decolonisation of many territories in Asia and Africa during the late 1940s to 1960s. Former colonies became independent nations; however, these nations faced numerous challenges that stemmed from long periods of colonial rule.
Key Challenges
- Poverty and Resource Allocation: Newly independent countries grappled with widespread poverty and minimal resources, limiting their capacities for economic development.
- Economic Structures: The economy remained entangled in systems that favored former colonial rulers, affecting local commerce and industry.
Despite these challenges, international institutions such as the IMF and World Bank were ill-equipped to address the needs of these growing nations, focusing primarily on the established industrial economies. Implementation of economic reforms required significant support, which went largely unaddressed, leading to further disparities in global wealth distribution.