The BRICS countries (Brazil, Russia, India, China, South Africa, etc.) with a few being singled out as demographically and economically roseate for their potential to influence the world market in the 21st century are starting a $100 billion dollar bank to compete with the current American-European based central banking system, the International Monetary Fund (IMF) and the World Bank.
This is no small alliance. Together, just the four original BRIC countries comprise more than 2.8 billion people or 40 percent of the world’s population, and dominate more than a quarter of the world’s land area over three continents, as well as account for more than 25 percent of global GDP.
Liu Haifang, a professor at Peking University’s Center for African Studies, explains that the bank will provide developing countries with more options for financing:
“Finally they got some alternative sources to get funding for infrastructure and they do not come with these conditionalities. So it for me is very symbolic in terms of political meaning, it means the whole world order is not unipolar. It is not a west centered world. It is a multipolar world. African countries trying to get funding do not have to only follow the rules of the developed world.”
President Vladimir Putin of Russia commented at the 6th BRICS summit in Fortaleza, Brazil:
“BRICS Bank will be one of the major multilateral development finance institutions in this world.”
It is obvious some other type of banking system is desperately needed. Devotion to the all-mighty-dollar has been the cause of bailouts almost too numerable to list. Consider the multi-billion dollar ‘deals’ that have been worked out between the US government, banks and corporations in the past decade. This partial list comprising trillions provided by Pro Publica is staggering. For the sake of space, I was tempted to abbreviate the list more fully, but it makes an all-too-important point:
The first figure is the total disbursed. The second figure is the profit/loss for government.