BRICS’ New Bank and the IMF: Emerging Rivalries

[unhappycamper]

http://watchingamerica.com/News/243711/brics-new-bank-and-the-imf-emerging-rivalries/

BRICS’ New Bank and the IMF: Emerging Rivalries
NPA, France
By Yvan Lemaitre
Translated By Michael Krimian
31 July 2014
Edited by Helaine Schweitzer

On July 22, the International Monetary Fund was celebrating its 70th anniversary along with that of the World Bank. Both institutions were a product of the Bretton Woods Conference agreements in order to ensure U.S. leadership in the post-World War II world.

Just a few days earlier, on July 16, the sixth annual summit of BRICS — Brazil, Russia, India, China and South Africa — took place in Fortaleza, Brazil, where the group signed an agreement creating the New Development Bank and a common exchange reserve.

“(It's) an important contribution to reconfigure the system of international economic governance,” commended Brazilian President Dilma Rousseff, a response to the American refusal to accept any IMF reform that would give more latitude to BRICS, in defiance of economic realities, another step in the challenge of the emerging capitalist powers toward American leadership.

Financial and Political Deployment

The Development Bank will be based in Shanghai, and its mission with be to finance major infrastructural projects in the countries in question, and eventually, in other emerging economies. Its initial capitalization will be $50 billion by the five participating countries in order to work toward $100 billion.