Public-Sector Banks: From Black Sheep to Global Leaders
Posted on Mar 8, 2012
By Ellen Brown, Truthout
But that is not what the data of these researchers showed:
What accounts for their surprising findings? The authors provide a novel explanation:
The BRICs as a Global Power
Focusing on the financing of real businesses and economic growth seems to be the secret of the BRICs, which are leading the world in economic development today. But the BRIC phenomenon is more than just a growth trend identified by an economist. It is now an international organization, an alliance of countries representing the common interests and goals of its members. The first BRIC meeting, held in 2008, was called a triumph for then-Russian President Vladimir Putin’s policy of promoting multilateral arrangements that would challenge the United States’ concept of a unipolar world.
The BRIC countries had their first official summit and became a formal organization in Yekaterinburg, Russia, in 2009. They met in Brazil in 2010 and in China in 2011, and they will meet in India in 2012. In 2010, at China’s invitation, South Africa joined the group, making it “BRICS” and adding a strategic presence on the African continent.
The BRICS seek more voice in the International Monetary Fund (IMF), the World Bank and the United Nations. They are even discussing their own multicultural bank to fund projects within their own nations, in direct competition with the IMF. They oppose the dollar as global reserve currency. After the Yekaterinburg summit, they called for a new global reserve currency, one that was diversified, stable and predictable—and they have the clout to get it. According to Liam Halligan, writing in The UK Telegraph: “The BRICs account for ... around three-quarters of total currency reserves. They have few serious fiscal issues and all are net external creditors.”
Western financial interests have long fought to maintain the dollar as global reserve currency, but they are losing that battle despite economic and military coercion. Russia, China and India are now nuclear powers. The BRICS will have to be negotiated with, and the first step to forming a working relationship is to understand how their economies work. We need to lift the curtain on how the other half of the world does it. Rather than declaring war on their more successful practices, we may decide to assimilate some of them into our own.
As Gandhi said, “First they ignore you, then they laugh at you, then they fight you, then you win.”
Written for the Public Banking in America Conference to be held April 27-28 in Philadelphia.
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