There is now an agreement in principle by the BRICS Countries to form their own “Development Bank”.
Brazil, Russia, India, China, South Africa. A pretty large chunk of the world population and a really big chunk of the land area. Most of Asia and the major piece of South America.
There are still details to work out. Who kicks in how much money (Russia being a bit lighter on cash this week than last…) and where to headquarters the Bank.
I think this is a ‘big deal’, both for them, and for “The Developed Countries” of the west.
In some ways, it is a statement of “We don’t need you any more”. A direct slap across the face of World Bank hegemony.
In a longer term, it can act as the seed of a break-away from the Europe-American axis of power and authority. Once you have a “BRICS Development Bank”, why not a “BRICS International Monetary Fund” and a “BRICS Trade Organization”. There is nothing what so ever to prevent these folks from essentially side stepping the present Western Dominated structures and control points.
Group of Emerging Nations Plans to Form Development Bank
By LYDIA POLGREEN
Published: March 26, 2013
JOHANNESBURG — A group of five emerging world economic powers met in Africa for the first time Tuesday, gathering in South Africa for a summit meeting at which they plan to announce the creation of a new development bank, a direct challenge to the dominance of the World Bank and the International Monetary Fund.
The leaders of Brazil, Russia, India, China and South Africa, all members of the so-called BRICS Group of developing nations, have agreed to create the bank to focus on infrastructure and development in emerging markets. The countries are also planning to discuss pooling their foreign reserves as a bulwark against currency crises, part of a growing effort by emerging economic powers to build institutions and forums that are alternatives to Western-dominated ones.
Someone needs to tell the EU and DC that “Elvis has left the building”…
Pretty much all of Latin America will end up interested in a more “3rd World Friendly” approach. Africa will happily embrace Chinese money. Russia has tended to much closer ties into the Muslim World.
Sure looks to me like a ‘game changer’. If China can do direct investment into Africa and South America, why loan money to the USA for T-Bills and Treasuries? Russia is building a natural gas pipeline to China. So when it’s cold in Europe, Russia will be asking itself: “How long will the Euro exist? If paid in Euros, will they evaporate in a bank ‘restructuring’?” China and direct trade goods exchange or EU and pretty pieces of paper? Decisions decisions…
The folks trying to set up a “One World Government” have just been told there’s a new Trade Block on the block… Somehow I get this feeling that Putin and China are not very interested in being told what to do by the EU or Obama any more.
The article goes on to list all the strains between these folks and poo-poo what they are likely to do or agree upon.
My sense of it is that these folks are tired of The West telling them what to do and while they may have their differences, will find more common ground together than with the EU and USA.
Putin is not one to like taking a second class role in a club that belongs to someone else, when he can be a first row seat in his own club. Brazil and other South American countries have a long standing resentment of the USA. China is looking to push to center stage on the global stage, and not interested in maintaining “western hegemony”. That just leaves India. Well, when we “told them” not to make a nuke, they looked at what was in their best interests and made a 1/2 dozen. All tested in one “go”, so as to have it ‘over and done’ before sanctions could even be talked up. India is a complex and variable place, but looks out for India.
I can see these folks doing “coopetition”. Cooperating against the west, competing for position inside that framework.
As the EU is busy shooting off toes and fingers, and the USA does endless navel gazing while charging dinner and a room on the Chinese Credit Card; these folks are thinking clearly and building new structures. They can see that we’ve gone off the rails.
One good hope. As Russia and China and India are clearly not on the AGW bandwagon (Russia just saying it will be colder for 40 years, while China and India are prepping to burn coal like crazy) it has the potential to derail 100% any “Global” action on carbon dioxide and to put a very nice economic wall between those who squander their economies on stupid uneconomic energy systems and those who follow good economic practice of lowest cost first. The resultant growth in the economies using coal and nuclear, and the collapse of those depending on wind and solar, will end the farce. The only bad thing is that most of us will be on the wrong side of the win / loss column when that happens. But at least it will be an ending of the dreams of Carbon Tax Empire.
They can get the tax, but only with the loss of the Empire and collapse into ruin. One hopes they see that prior to the event.
So while I dread the inevitable result, I find myself rooting for the BRICS and their Development Bank. There’s a nice coal fired light at the end of that tunnel.
One Small Loose End: So learn Russian, Chinese (which one? There’s about 9 main ones..), Portuguese? (India uses English to tie together their several hundred native language speakers, so no need to learn Hindi or Sanskrit or Dravidian or …) Somehow, I suspect a lot of their work will be conducted in English. Strange idea, that. I’m leaning toward Portuguese. I can “sort of read it” already as the printed form is close to Spanish, but they pronounce things oddly ;-) I hauled my Russian text (one class 40 years ago) out of the pile and can sort of puzzle out a few words; but it reminded me why I didn’t continue ;-) Besides, Brazil is much warmer than Russia and even China.
I think the next 10 years are going to be very interesting.