This month marks the 70th anniversary of Victory in Europe Day—when Nazi Germany surrendered to the allied powers and World War II ended in Europe. This occasion is an important opportunity to reflect on how the postwar reconstruction plan shapes our current model of economic engagement with the developing world and to consider expanding the role of the private sector in these efforts.
The postwar consensus came together at Bretton Woods. To rehabilitate a ravaged Europe, representatives of the allied powers agreed on a few basic lessons from the war: (1) advanced nations, especially the United States, need to engage with the world; (2) economic instability breeds conflict; and (3) military and economic preparedness of individual nations alone can’t provide stability. These beliefs have informed U.S. post-war policies and led to the creation of the International Monetary Fund (IMF) and World Bank.
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