World Bank? You’d better look at the BRICS bank!

Ok, I know that most of you are interested in the changes about to occur in the World Bank but, am sorry to say, this generates very little interest in some of the largest countries of the so called “developing” world.

First, because we all know that the US will nominee the guy to the WB, just as Europe have always done with the IMF. Although some Southern governments, just like Brazil´s, pretend to believe in “reforms” in the Bretton Woods institutions, deep inside they know that winners are already chosen.

Both institutions have been planned to be US and Europe´s imperialistic tools and will always be.

And secondly, since the beginning of the most recent capitalistic crisis in 2007 other countries are performing much better and have plenty of US$, specially the BRICS countries (Brazil, Russia, India, China and South Africa).

This and other phenomenons in global geopolitics motivated them to discuss – and they probably will take firm steps towards it on their 4th meeting, to be held in India on March 29th – the creation of their own development bank to fund large energy and logistic infrastructure in their territories.

Mirrored in Brazil´s 100% state owned National Bank for Economic and Social Development (the giant BNDES, with an annual budget of US$ 90 billion in 2010, much larger than the WB´s), the BRICS development bank would fund BRICS companies and enterprises in local currencies. The goal is to escape the dollar and the euro hegemonies and, if Chinese plans go well, making the yuan a global currency.

They know that the BNDES model has helped Brazil to radically expand industrialization in the last 60 years, in spite of dramatic social and environmental consequences of this economic growth pattern, and intend to follow the same steps.

It seems their plan is to be create a new pole of global power, in spite of so diverse interests among BRICS members. Creating a financial institution seems then to be a point of convergence in a wide horizon of strategic goals, ranging from combating terrorism, influence climate negotiations and developing common health policies.

Some civil society organizations, in which More Democracy Institute is included, have already opened their eyes to the absolute lack of transparency regarding the BRICS bank and will follow this process, in some measure replicating the dynamics of a group of Brazilian organizations that since 2004 are following the dramatic impacts of BNDES funded megaprojects.

At last, it is time we consider seriously the changes in global geopolitics and look further the Cold War era institutions.

Carlos Tautz co-ordinates More Democracy Institute, a Brazil based civil society organization

4 thoughts on “World Bank? You’d better look at the BRICS bank!

  1. Fundamentally, apart from those BRICS nations, all should wisely consider other large geographycal lands countries such as Argentina, Chile, Indonesia, Japan, Korea along with their large population number that will also produce large production which will continuously affect significantly on the global economic outlook.

    Generally, large production of goods and capitals are based on vast country’s geographycal lands and number population (labors) who engage in key production sectors to contribute to the economic forward.

  2. Pingback: Jeffrey Sachs’ Grab for the World Bank » Counterpunch: Tells the Facts, Names the Names

  3. The WB is indeed part of the Questionable Quad together with the IMF, Bank of International Settlements and the WTO as shown in my forthcoming book The Tierra Solution: Resolving the Climate Crisis through Monetary Transformation.
    With the proper social and environmental safeguard a BRICS Development Bank would be a good development, because it would be a strong counterweight to the WB and make other geopolitical changes to occur.
    However, BRICS would take a wrong direction if it were to push for making a national currency like the yuan a global reserve and transaction currency like the dollar is now. The UN Stiglitz Commission of 2009 would have strongly opposed such move—it sided for an enhanced SDR both in terms of reserve and transaction currency.
    My position is that we start working towards an international monetary system that is based upon a carbon standard of a specific tonnage of CO2e per person with its associated fixed exchange rates, a balance of payments system that would settle both financial and ecological (carbon) credits and debts, and finally a Global Central Bank which would administer this monetary architecture, regulate financial flows and, last by not least, would be the sole creator of money, credit and liquidity because the privately-owned banking systems would be based upon on 100% reserve requirements, thus removing fractionalized banking. Curious how that can be done? A BRICS Development Bank would put minds and forces into action and many other facets are discussed in the above book which will be on the market at the end of April. In the meantime google monetary transformation or fcvnyc to find more information.

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