INTERNATIONAL POLICY ANALYSIS International Financial Crises in Comparison Lessons for Managing the Current Crisis WERNER KAMPPETER May 2011 „ „ The solid framework of the Bretton Woods system and American support via the Marshall Plan and the World Bank made possible the reconstruction and modernisa­tion of Europe and Japan after 1945. „ „ With the eclipse of the system and the liberalisation of the capital markets began the modern age of debt and financial and real estate crises. As a reserve currency coun­try the USA retained its dominant position and was able to run up debts in its own currency with impunity. In addition, from the 1980s onwards the»financial capital faction« was able to assert itself against the»real capital faction«, both politically and ideologically. „ „ It is especially countries on the periphery that suffer from the crisis-proneness of the new world economic order and the ideologically and power-politically laden roles of the IMF and the World Bank. Economic and societal modernisation in order to catch up with the advanced industrialised countries has become more difficult. This also applies, although under somewhat different circumstances, to the European periphery. „ „ Countries such as China, which chose not to fall in with the so-called Washington Consensus, have proved to be less crisis-prone and more dynamic economically. Countries such as Argentina or Korea succeeded with their heterodox crisis manage­ment and, as a result, are now praised by the IMF. „ „ A look back at the causes of and courses taken by previous crises provides clues for management of the current crisis at the global and European levels. A renewed rap­prochement with a regime oriented towards the real economy seems indispensable.