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New BRICS Development Bank | IMF and World Bank move over

OWoN: IMF move over, a new boy a cometh. The new world, encompassing about 80% plus of nations and markets, is now doing its own thing in Central Banking. No more Rothschild's Clones and no more US dominated Agencies which just perpetuate US Hegemony. The world is divorcing itself and finding new partners. Still the US doesn't get it. It's the F U notice as they leave. Eventually all that will be left is Fortress America as it preys on its own. Sadly Harper has sold out Canadians to this.


BRICS nations create New Development Bank


BRICS creation of the New Development Bank called a landmark achievement


Economy Watch
By East Asia Forum
11 September 2014

The creation of the BRICS New Development Bank (NDB) to finance infrastructure and sustainable development projects in emerging economies is a landmark achievement. Developing nations have lost faith in the current system with its strict conditions on development finance and its inability to insulate countries from financial shocks. International observers have however expressed mixed views about the creation of the bank and what it represents for the nascent multilateral BRICS bloc of Brazil, Russia, India, China and South Africa.

Some observers remarked that the NDB represents a timely response to the failure of the existing Bretton-Woods institutions to adequately represent the needs of emerging economies. Others, however, are skeptical of the NDB’s capacity to address these issues, noting that existing rifts between BRICS nations could undermine the initiative.

Despite these naysayers, the creation of the NDB is a positive step for the BRICS nations and developing countries in general. While it is not yet clear whether the NDB will pose a direct challenge to the global financial status quo, its creation presents a number of opportunities for the developing nations.

First, the creation of the NDB will strengthen the voice of developing economies in shaping the future direction of global development finance. The Bretton-Woods institutions, such as the World Bank and IMF, have long dominated the development agenda. These institutions have crafted development strategies and presented them as the only viable model for generating economic growth. The power of the World Bank lies not so much in its deep pockets as in the enormous research and communication capacities it deploys to set the global development agenda. The 2008 global financial crisis revealed that these institutions are ill-suited to address the political-economic realities of the twenty-first century. However, it is the unwillingness to reform these institutions that has incensed developing countries.

Developing countries feel that their place at the decision-making table is not proportionate to their growing economic influence. For example, although the BRICS comprise over one-fifth of the global economy, together they only wield about 11 per cent of the votes at the IMF. But reforms have been met with reluctance, and even resistance, by Western nations.

Western nations are concerned that giving a greater voice to developing nations would diminish their own influence or, in some cases, require developed countries to make financial commitments that cannot be upheld in a post-2008 setting. As Raj M. Desai and James Raymond Vreeland argue, ‘these developments show the political tightrope on which countries must walk when it comes to global development finance: while low- and middle-income countries have legitimate claims about their exclusion from the governance of the Bretton-Woods institutions, richer countries cannot cede too much influence over these institutions to developing nations and still justify large contributions — in particular, to the World Bank’s International Development Association every three years, and to the IMF as part of quota reforms — to their restless voters, especially during difficult economic times’. The NDB represents an attempt by developing countries to level the playing field in a system that has failed to keep pace with their economic growth.

Second, the NDB can fill the existing gap in infrastructure financing. The 2008 global financial crisis has diminished the lending capabilities of Western institutions. The World Bank’s lending has reduced to half of what it was before the global financial crisis. Private lending for infrastructure has also shrunk to one-third of its pre-crisis level. This comes at a time when many developing countries require financing for infrastructure projects in order to tackle the challenges of population growth, rapid urbanisation and environmental degradation. Infrastructure spending in developing countries will need to increase from its current level of approximately US$0.8-0.9 trillion per year to approximately US$1.8-2.3 trillion per year by 2020.

Investment in infrastructure is necessary to improve economic conditions in developing nations. Building roads or railways immediately boosts output and jobs, and helps to spur future growth — provided the money is spent wisely. Better transport helps farmers move their produce to cities and manufacturers to export their goods overseas. Countries with lower transport costs tend to be more open to foreign trade and so enjoy faster growth. Clean water and sanitation also increase labour productivity. While the NDB will have an initial subscribed capital of $50 billion, it has the potential over time to serve as an alternative source for financing important development projects. It may also act as a catalyst for private sector investment, thereby overcoming many of the deficiencies in the current system.

Lastly, while the NDB does not yet pose a direct challenge to its existing Bretton-Woods counterparts, its creation will generate competition among global financial institutions. The creation of the NDB comes at a time when developing countries no longer have faith in the current system and are seeking to promote and safeguard their economic interests. To that end, establishing regional monetary funds can be more effective than the current system when it comes to representation, coordination and crisis management.

The entry of the NDB into development finance comes at a critical juncture when the financing needs of developing nations are rapidly outgrowing the capacity and willingness of traditional funding agencies.

BRICS, banking on development is republished with permission from East Asia Forum

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18 comments :

  1. Look forward to seeing what this New BRICs bank does. Hoping to see benefit to nations and projects rather than the pillaging of sovereign assets by private interests that Bretton Wood organizations were strong proponents of. A move away from the egregious loans packages from the IMF and World Bank into something that benefits both lender and lendee and strengthens a nation's ability to prosper is a long over due.

    ReplyDelete
  2. Hey John.
    Canada is mentioned in the preamble. Do you have any information to share re Canada re the RV?GCR. Us Canadians get very little, virtually none actually, information. Is Canada heading for a shellacking because Harper is not a good guy. Any ideas about how the Canadian dollar will do.?[ it is fiat] Will we have a new gold backed currency also with new paper money?
    If you are able to supply some information your site may/will have a large influx of Canadian followers as we are starving for reliable info.
    thanks John. :-)

    ReplyDelete
    Replies
    1. Paul

      Canada enjoys the respect and massive support of the UK and EU. You are seen as close Cousins here, one of our own. Great Allies.
      Harper is a disgrace. He's sold you out Butt Kissing his Zionist buddies and for his Cabal payoff. Export him to Israel, or Deport him south.
      Of course the Canadian dollar will be hit tracked to worthless Petro dollar. Only an idiot or bought man would pin it to that toilet paper. Canada could gain huge Export markets to the EU. You dont need to align with the Cabal or Zionist zombies. Harper needs to be shouted down. Elect a real Leader. Zionist free.

      Delete
  3. Replies
    1. This is interesting as Lindsey Williams contact Ken Fromm said this 5 years ago too. Europe would be collapsed first.

      When you see Europe really start to implode, you have about 3 weeks to get your money out of US banks before the US banking system collapses and banks close and keep your money.

      So far, Ken Fromm, has been right on the money.

      They seem to be sticking to this playbook.

      Delete
  4. Paul,

    Read the site daily as all world viewers do. It gives you the key facts and real status of all of it. It will help you.

    ReplyDelete
  5. Thank you John. I am on ever article's notify list. I get it all John. Thank you for your responses. Basically we Canadians have to try to evaluate all we hear to hopefully determine how Canada will be affected. Any further info you can supply is greatly appreciated. We can feel a little abandoned up this way. :-)

    ReplyDelete
    Replies
    1. I am Canadian, do not feel abandoned - you are not. No Nation will be left behind, all will be helped when/if we can.

      Delete
  6. What is the plan now? After epic historic call of No-land *F---- eu*

    ;;;;;;;;
    Wait?

    ReplyDelete
  7. Probably after Jim Willie disclosure ---- NOBEL PRIZE to all Americans Nazi.....

    I keep preaching the same gospel----
    Free the world from fascist zionist USA by breaking it in pieces...... only way.....do not sacrifice other nations for Americans so that they can watch their sport game of NFL, NHL, NBA or whatever else...

    ReplyDelete
  8. DUSHANBE, September 12 (RIA Novosti) - Russian President Vladimir Putin said Friday that the West uses the crisis in Ukraine to destabilize the international situation, while the country itself is of no interest to anyone.
    "I have a conspiracy theory that Ukraine itself is of no interest to anyone, but simply being used as a tool to destabilize international relations," Putin said after the Shanghai Cooperation Organization (SCO) summit.

    ;;;;;;;;

    What is the plan? I hope no 1.1T to fascist USA before the end of September.

    ;;;;;;
    I am tired of this, the game is obvious to anyone, yet ....

    ReplyDelete
  9. NWO U.S. Created ISIS For Absconding Oil-Rich Kirkuk & Basra From Iraq: Oil To Feed Turkey, Israel, & Jordan ~ Analyst

    .....this is good.....

    http://politicalvelcraft.org/2014/09/11/nwo-u-s-created-isis-to-abscond-oil-rich-kirkuk-basra-from-iraq-oil-to-feed-turkey-israel-jordan-analyst/#more-101151


    http://www.zerohedge.com/news/2014-09-12/where-isis-makes-its-money

    ReplyDelete
  10. Julius Streicher Executed By Nuremberg Trials For Crimes Against Humanity By Debasing The Media for Hitler.

    ::::::::::
    Julius Streicher was a prominent Nazi prior to World War II. He was the founder and publisher of Der Stürmer newspaper, which became a central element of the Nazi propaganda machine - wikip...

    ;;;;;;
    Hang all MSM bastards....

    ;;;;;;
    Time to act big ..... we waited and shouted 'alarm' for too long.....Time to act big

    ReplyDelete
  11. American hegemony is gone! And now we have a level playing field..
    Now today we get the "shills" publishing that the US dollar will bounce to a 17 year high? When the dollar is abandoned, how? The only way is to keep lying and fudging numbers...the reality is that they will hit us with hyperinflation as a surprise. The stock market is rigged, the interest rates rigged, mortgage lending is rigged, auto loans have gone down the drain, housing market is stifled,...and on and on...

    ReplyDelete
    Replies
    1. FEDUP

      Not long ago we all had hope that US-militia will make move and clean up the house....we believed that it will take place 2 years ago--they failed. In my opinion it was the last chance to have it cleaned .....

      World would support US and help them to stand up again......

      It is too late.....

      I have no idea where it will go, still believe that fastest way for recovery is to break US to 3 states that would shake off fast and with pride to compete again and come back....as a big country as it is .... it will be much harder, rather impossible it will not work .....because truth will not come out, nobody will get punished and all will believe that everything is just fine.....you can not make recovery with such mind set.....

      Delete
    2. I remember, and I still think there is hope because the factions within the shadow government is fighting which will implode on them especially because Jim Willie states, "Germany" will begin to trade with Russia in gold standard...this is a nail in the coffin and will force things to change.

      Nobody wants to trade ill gotten gain and money that's backed by nothing. They become part of the larger conspiracy committed against the American people.

      Everything is tightening up now. Idiots are going to get caught with their pants down especially when they can no longer hold on to nothing...the trillions that they stole preventing the revaluation and change over to the TRN (treasury reserve note)...they can't keep those funds no matter how hard they try unless they get the war they need and it appears that Putin and Germany will not give it to them. I believe they are playing right into the plan; where not a shot fired and they will take themselves down.

      Nothing of the old will go forward...this is a new day!!!!

      Delete
  12. I remember it being said on this site, "Leave." Actually, we are leaving and things will be very very good...
    https://www.youtube.com/watch?feature=player_embedded&v=vZAeVmPDVt0

    Who wants to live in this evil world created by the evil doers?

    ReplyDelete

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