The Postwar Political Economy: Institutions and Growth * The first post-war period (1945-1975) witnessed strong economic growth and gradual increase in globalization under the Bretton Woods institutions. What do we mean by “the Bretton Woods institutions” (Background Brief: Bretton Woods Institutions)? What role did the US play in setting up these institutions and what were its motives?
The Bretton Woods Institutions take their name from a multilateral conference held in July 1944 at the Bretton Woods resort in New Hampshire. The narrow definition of Bretton Woods Institutions refer to the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), while they were only part of a much
As he suggests, economic development is a dynamic process as countries strive to climb up the industrial ladder. The comparative advantage is thus transferred to late-comers, which can emulate predecessors with similar endowment structure and exploit the relatively abundant endowments. Now, China and some other countries are to upgrade their industrial structure, which leaves other developing countries an opportunity to fill in, especially labor intensive industries.
He advised the developing country to follow comparative advantage in its industrial development and to tap into the potential of advantages of backwardness in industrial upgrading. Besides, the dynamic growth in China and other large emerging markets provide an unprecedented opportunity for the industrialization and dynamic growth in Africa and other low income countries.

* What is a “growth miracle”? What is a “middle income trap”? What is a “poverty trap”?
Growth Miracle occurs when a country has a tremendous high GDP growth rate in a certain period.
Middle Income Trap is an economic development situation, where a country which attains a certain income (due to given comparative advantages) will get stuck at that level. As wages rise, manufacturers often find themselves unable to compete in export markets with lower-cost producers elsewhere. Yet, they still find themselves behind the advanced economies in higher-value products.
Poverty Trap means the poverty in a country is