Social Science (087) — AI-generated practice question

Internal Contradictions:
The Bretton Woods system fixed national currencies to the US dollar, which was itself pegged to gold at $35 per ounce. From the 1960s, rising costs of US overseas involvements weakened American finances and competitive strength. The dollar could no longer maintain its value against gold, destroying confidence in it as the world's principal currency. This led to the collapse of fixed exchange rates and the shift to floating exchange rates.

Consequences for the Developing World:
Developing countries, already burdened by colonial legacies and poverty, lost access to affordable institutional loans. They were forced to borrow from Western commercial banks at higher costs, triggering periodic debt crises. This resulted in lower incomes and increased poverty, especially in Africa and Latin America. Former colonial powers and MNCs continued exploiting developing countries' natural resources cheaply, prompting the G-77 to demand a New International Economic Order (NIEO).

Source: Chapter 3, Sections 4.1, 4.3, 4.4

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• Examiners expect two clear parts: causes of collapse + consequences for developing world.
• Key facts to include: dollar-gold peg failure, US financial weakness, shift to floating rates, debt crises, G-77/NIEO demand.
• Avoid vague statements — name specific regions (Africa, Latin America) and institutions (IMF, World Bank) as the passage does.
• Do not over-write; 5 marks = ~100–125 words, so tight paragraphs work better than long lists.