Luxembourg; Monetary Integration; International Monetary Fund; World Bank (International Bank for Reconstruction and Development); Pierre Werner; European Integration; Diplomacy; Small states
Abstract :
[en] Luxembourg, one of the world’s smallest yet most politically stable and economically innovative countries, emerged after WWII as a pioneer of international multilateralism and European integration, seeking in new cooperation mechanisms guarantees of peace, prosperity, and a status of equality on the international stage. Early regional integration through the BLEU and Benelux shaped its distinctive monetary identity and positioned it at the forefront of European monetary innovation, exemplified by the 1970 Werner Report, which prefigured EMU. The country’s consensus-building ability and stable leadership resulted in a unique form of soft power and small-state diplomacy, enabling it to achieve its objectives and position itself on an equal footing with the major powers. As a full and independent founding member of the IMF and IBRD, it helped forge post-war global financial governance while safeguarding its long-term vital interests. Over eight decades, Luxembourg has consistently strengthened its influence, particularly on European matters. This chapter explores Luxembourg’s specific characteristics and the unexpected path it charted in the formative years of European integration and the Bretton Woods institutions, while examining the diplomatic negotiations that secured its sole IBRD loan in 1947, paving the way for the renewal of its steel industry and its post-war recovery. [en] Book description: The International Monetary Fund and World Bank were founded at the 1944 Bretton Woods conference on the premise that international cooperation and multilateralism would be to the benefit and enrichment of all. Yet, the establishment and evolution of the global financial architecture into its current form was not inevitable: this edited volume examines the “roads not taken”—critical junctures in the histories of the International Monetary Fund and the World Bank—where the choices made, and the decisions taken, would have far-reaching consequences. Geoeconomic fragmentation, nationalism, and extreme protectionism pose threats to the open trade and payments system and are jeopardizing the hard-won gains in global incomes and living standards driven by post war trade and globalization. Against the urgent need to rekindle the Bretton Woods spirit of cooperation and multilateralism, while also reckoning with the shortcomings of the postwar international order as they were revealed over time, the authors of this volume turn to history for inspiration, lessons, and insights from both the roads taken and those left for another day. The book also demonstrates that future reform can be inspired by previous intellectual and theoretical efforts. The book will be of great interest to readers interested in the past, present and future of international monetary systems, economic governance and international finance and banking more broadly.
Research center :
Luxembourg Centre for Contemporary and Digital History (C2DH) > Contemporary European History (EHI)
Disciplines :
History Arts & humanities: Multidisciplinary, general & others Finance International economics Political science, public administration & international relations General economics & history of economic thought
Author, co-author :
DANESCU, Elena ; University of Luxembourg > Luxembourg Centre for Contemporary and Digital History (C2DH) > Contemporary European History
External co-authors :
yes
Language :
English
Title :
Luxembourg’s Role in Forging Post-war Financial Governance: Knowledge, Leadership, Diplomacy
Alternative titles :
[fr] Le rôle du Luxembourg dans la gouvernance financière d'après-guerre : savoir-faire, leadership, diplomatie
Original title :
[en] Luxembourg’s Role in Forging Post-war Financial Governance: Knowledge, Leadership, Diplomacy
Publication date :
17 November 2025
Main work title :
Bretton Woods at 80: Exposing the Crossroads of the International Economic and Monetary Architecture
Editor :
Gosh, Atish Rex; International Monetary Fund > Deputy Director in the Strategic, Policy, and Review Department ; Princeton University > Assistant Professor of Economics and International Affairs
Masini, Fabio; Roma Tre University > Professor at the Department of Political Science > Theories and History of International Political Economy, Jean Monnet Chair European Economic Governance ; History of Economic Thought and Policy Journal
Publisher :
Routledge Publisher (Taylor and Francis Group), London, United Kingdom
ISBN/EAN :
9781032902029
Collection name :
Routledge Frontiers of Political Economy
Collection ISSN :
1359-7914
Pages :
My chapter has 28 pages. The whole book has 328 pages, 3 B/W Illustrations
Peer reviewed :
Peer reviewed
Focus Area :
Finance Sustainable Development
Development Goals :
10. Reduced inequalities 8. Decent work and economic growth 9. Industry, innovation and infrastructure 1. No poverty 5. Gender equality
Routledge Frontiers of Political Economy Series: In recent years, there has been widespread criticism of mainstream economics. This has taken many forms, from methodological critiques of its excessive formalism, to concern about its failure to connect with many of the most pressing social issues. This series provides a forum for research which is developing alternative forms of economic analysis. Reclaiming the traditional 'political economy' title, it refrains from emphasising any single school of thought, but instead attempts to foster greater diversity within economics.
Commentary :
Routledge is the world's leading academic publisher in the Humanities and Social Sciences, which current publishing program encompasses groundbreaking textbooks and premier, peer-reviewed research in the Social Sciences, Humanities, Built Environment, Education and Behavioral Sciences.
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