From ‘United Stabilisation Fund’ to ‘International Monetary Organisation’: the Forgotten Chinese Plan and Its Contributions to the Creation of the International Monetary Fund

Abstract

China's function in the establishment of the International Monetary Fund (IMF) and the World Bank (WB) has been underrated for a long time. It is argued either that China contributed little to the establishment or that its main effort could be accredited to Arthur N. Young, an American financial advisor to the Chinese government. A close examination of bilingual archival documents challenges these arguments. In fact, the Chinese government formulated proposals of several versions and managed to have most of its claims accepted at the Bretton Woods conference. More importantly, Chinese claims surpassed their own concerns and had a broader meaning taking into account the general quests of war-torn and undeveloped countries. Revisiting this part of history can deliver a balance to the traditional Anglo-American-focused narrative regarding the IMF and WB and enrich the historical context to assist our understanding of China's current pursuits and conduct in the realm of multilateral economic cooperation.