Throughout history, the international monetary system has undergone profound changes and constant evolution. From the 16th to the mid-18th centuries, mercantilism was the predominant system in which power and increased wealth were primarily made up of gold, silver, and raw materials from the colonies. It was a time when “wealth was power, and power was wealth.” Mercantilism followed the beginning of the period of industrialization or the British Industrial Revolution. This period was characterized by Britain being the hegemonic country, the first to industrialize. By the early 19th century, Britain had already surpassed gains elsewhere in production and efficiency. The Bretton Woods Conference in 1944 and the creation of the World Bank (WB), the International Monetary Fund (IMF) and the World Trade Organization (WTO) had changed the global economic system. The creation of these organizations was the first effort by several countries to build a system of economic stability not only for their national economies but also for international markets. Nevertheless, they have achieved some success in their goals, and the spread of globalization has been one of the most notable results, conditions in the economic, political and social sphere have changed significantly over the years, and the work of These organizations have become very controversial. and many people criticize them for the way the current monetary system works. The process of globalization, combined with the impact of liberal economic ideas, has defined the way the international monetary system looks today. From its beginnings, the emergence of globalization has been supported by the liberal ideals of those like John Locke, Adam Smith and ...... middle of paper ...... developing countries who, in their illusion of joining the international market in order to grow and develop, resulted in a devastating outcome that left many countries worse off than they were before. Rising unemployment rates, poverty levels and increased social conflict are some of the results left by globalization in many developing countries. Works Cited • Cohn, Theodore H. Global Political Economy: Theory and Practice. New York: Pearson Longman, 2008. Print.• Professor Krystel Ramdathsingh, September 12-16, 2011 Course materials and PowerPoint presentations• http://www.imf.org/external/np/exr/key/global.htm• http ://plato.stanford.edu/entries/globalization• Professor Krystel Ramdathsingh; Managing the global economy; Power Point presentation corresponding to the second week; INR 3,703; Internet. Accessed in October 6, 2011