+++ 23. Juli 2014 +++ BRICS Call for New Financial Architecture to Foster Development The summit of the BRICS group July 15-16 in Brazil, preceded and followed by intense diplomacy which brought together different constellations of Russian, Indian Chinese, and South African leaders with Latin American heads of state and government, has shifted the political landscape significantly. Most importantly, in the Fortaleza Declaration issued by the the heads of State of the BRICS (Brazil, Russia, India, China, South Africa), they made the historic announcement that they had agreed to form the New Development Bank (NDB), which will be headquartered in Shanghai, China. The first (rotating) Presidency will be held by India, the first chair of the Board of Governors will be a Russian, the first chair of the Board of Directors will be from Brazil, while South Africa will host the Africa Regional Center. The NDB will be initially capitalized to $50 billion, with 10 billion from each of the five countries. The Fortaleza Declaration also announces the establishment of the BRICS Contingent Reserve Arrangement (CRA), with an initial size of $100 billion, to help countries forestall short-term liquidity pressures. Importantly, it calls for an international financial architecture that is more conducive to overcoming development challenges. The Declaration contains a strong condemnation of unilateral military interventions and economic sanctions, which are against international law. All five countries have supported Argentina in its fight with the vulture funds, which was again laid out by President Cristina Fernández in her speech to the July 16 meeting of the BRICS and the Union of South American Nations (Unasur). All in all, the strengthening of ties among these five countries, together with numerous economic and trade agreements with Central and South American countries, have Wall Street and the City of London in a panic. But they are up against a huge resistance. After all, the BRICS group represents over 43% of the worlds population, 27% of the total land area, and over 20% of world GDP. Commenting on the promising potential in terms of growth, Vladimir Putin pointed out, in his speech: In the past ten years, the GDP of countries with developed economics grew by 60%, while that of the BRICS states increased increased fourfold. We have to bear in mind, of course, that the 60% growth was in comparison to a large volume, a large starting point, while our fourfold growth was in regard to a smaller base; however, such are the rates. These are all young states, and the future belongs to the young. Chinese President Xi Jinping and his Indian counterpart Modi were just as optimistic. In India, Modi pointed out, 65% of the population is under the age of 35, and that is our great strength. He stressed the uniqueness of the BRICS, which brings together a group of nations on the parameter of future potential; rather than existing prosperity or shared identities. The very idea of BRICS is thus forward-looking.... [W]e have an opportunity, to define the future -- of not just our countries, but the world at large. Lyndon LaRouche pointed out in discussions that the BRICS, together with countries such as Argentina, are applying the original American System of economics, which the United States has now fully rejected, to espouse the monetarist, free-trade looting policy of the British Empire. But it is eminently possible for the United States to go back to that policy, LaRouche stressed, and join the development perspective.
Posted on: Sun, 27 Jul 2014 11:41:50 +0000
Trending Topics
Recently Viewed Topics
© 2015