| Latin America Banks on Independence |
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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. 25th Jan 2008 - Mark Engler, In These Times 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.” Officially, the international financial institutions are keeping their tone upbeat. On Dec. 11, IMF Director General Dominique Strauss-Kahn told Agence France-Presse that the new bank is “not a problem; it’s maybe an opportunity.” Similarly, Augusto de la Torre, World Bank chief economist for Latin America, said, “As far as the World Bank is concerned, this new initiative is not perceived as a competitor.” But in March 2007, as Latin American leaders were first discussing the creation of a new body, one anonymous insider at the neoliberal IDB told the Financial Times that the Bank of the South represented the largest threat to his institution in decades. “With the money of Venezuela and political will of Argentina and Brazil, this is a bank that could have lots of money and a different political approach,” he explained. “No one will say this publicly, but we don’t like it.” © 2008 In These Times Other recent articles on Latin America: Peru: Workers resist ‘free trade’ agreement - 24th August 07 - David T. Rowlands, Green Left The Ghost of Pinochet Haunts the Campaign Against Chavez - 21st August 07 - John Pilger Rethinking the Development of Latin America and the Caribbean for the 21st Century - 17th August 07 - James Petras ~ STWR Contributing Writer The New Politics of Political Aid in Venezuela - 25th July 07 - Tom Barry, Americas Program - Center for International Policy (CIP) Cuba's Cure - 4th June 07 - Sarah van Gelder, Yes! magazine What’s Behind the Withdrawals from the World Bank, IMF? - 27th May 07 - Alejandro Reuss, NACLA News Latin America Rising - 25th May 07 - Nadia Martinez, Yes magazine Washington’s New Imperial Strategy In Venezuela - 16th May 07 - Chris Carlson, Venezualanalysis.com
Latest articles on Latin America Featured video: La Toma (The Take), by Naomi Klein and Avi Lewis
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