Latin America Banks on Independence

Dear Helen Clark,

Perhaps it would be a good idea to borrow from the New bank of the South. We are on the southern Hemisphere after all and than we could get out of debt and build a better life for all the Kiwi’s, and no more compulsary visits to the fascist cabal that runs the world into the ground. What dayasay?

The new Bank of the South shatters neoliberal economics

By Mark Engler

22/01/08  — – In the closing weeks of 2007, a region in revolt against the economics of corporate globalization issued its most unified declaration of independence to date.

On Dec. 9, standing before the flags of their countries, the presidents of Argentina, Bolivia, Brazil, Ecuador, Paraguay and Venezuela, along with a representative from Uruguay, gathered in Buenos Aires and signed the founding charter of the Banco del Sur, or the Bank of the South.

The Bank of the South will allow participating governments to use a percentage of their collective currency reserves to strengthen Latin America’s economy and promote cooperative development. It plans to begin lending as early as 2008 with around $7 billion in capital.

By itself, the bank represents a serious challenge to U.S.-dominated institutions, such as the International Monetary Fund (IMF), the World Bank and the Inter-American Development Bank (IDB). As part of a larger trend, it signals a major break from the policies of “free trade” neoliberalism that dominated in the region throughout the ’80s and ’90s.

The Bank of the South’s creators are keenly aware of the significance of this break. In the words of Venezuelan President Hugo Chávez, the bank is “aimed at freeing us from the chains of dependence and underdevelopment.” Ecuadorian President Rafael Correa concurred, arguing that with the bank, “South American nations will be able to put an end to their political and financial dependence that they have had with the neoliberal model.”

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