After World War 2 and great depression, it was clear the world needed a new financial system and as

such, 44 countries sent delegates to Bretton Woods, New Hampshire to work on just that. This system is
based on the domestic politics of USA and UK. It failed and collapse after US suspension of dollars to
gold. The reason behind its formation is if country is facing economic crises then how it recover without
devalue its currency? Thus IMF and Work Bank (to help less develop countries), IBRD (international bank
for reconstruction and development) is made. The Bretton Woods system lasted from 1944 to 1971.
USA get more advantage from it due to dollars which cause the collapse of gold standard. USA
made its currency convertible that is 1 ounch of Gold = 35$.

USA get the most of its advantage because of dollars which further increase its hegemony in the world.
As the Bretton Woods Conference convened, the relative advantages of the U.S. economy were undeniable.
The U.S. held a majority of investment capital, manufacturing production and exports. Reinforcing the initial
advantage—and assuring the U.S. unmistakable leadership in the capitalist world—the U.S. held 80% of gold
reserves.

IMF assign country quota and subscription. Quota define countries position in world’s economy and
according to quotas; country is obliged to pay subscription fee.