A Bank of Their Own: Latin America Casting off Washington's Shackles

from AlterNet:



A Bank of Their Own: Latin America Casting off Washington's Shackles

By Mark Weisbrot, AlterNet. Posted October 31, 2007.


The western media call it "Chavez Bank" -- but what are they really afraid of?



"Developing nations must create their own mechanisms of finance instead of suffering under those of the IMF and the World Bank, which are institutions of rich nations . . . it is time to wake up."

That was Lula da Silva, the president of Brazil -- not Washington's nemesis, Hugo Chavez -- speaking in the Republic of Congo just two weeks ago. Although our foreign policy establishment remains in cozy denial about it, the recognition that Washington's economic policies and institutions have failed miserably in Latin America is broadly shared among leaders in the region. Commentators here -- Foreign Affairs, Foreign Policy, the editorial boards and op-ed contributors in major newspapers -- have taken pains to distinguish "good" leftist presidents (Lula of Brazil and Michele Bachelet of Chile) from the "bad" ones -- Chavez of Venezuela, Rafael Correa of Ecuador, Evo Morales of Bolivia and, depending on the pundit, sometimes Nestor Kirchner of Argentina.

But the reality is that Chavez (most flamboyantly) and his Andean colleagues are just saying out loud what everyone else believes. So official Washington, and most of the media, has been somewhat surprised by the rapid consolidation of a new "Bank of the South" proposed by Chavez just last year as an alternative to the Washington-dominated International Monetary Fund (IMF), World Bank and Inter-American Development Bank.

The media have been reluctant to take the new bank seriously, and some continue to call the institution, pejoratively, "Chavez's bank." But it has been joined by Brazil, Argentina, Bolivia, Ecuador, Uruguay and Paraguay. And just two weeks ago, Colombia, one of the Bush administration's few remaining allies in the region and the third-largest recipient of U.S. aid (after Israel and Egypt), announced that it wanted in. Et tu, Uribe?

The bank, which will be officially launched on Dec. 5, will make development loans to its member countries, with a focus on regional economic integration. This is important because these countries want to increase their trade, energy and commercial relationships for both economic and political reasons, just as the European Union has done over the last 50 years. The Inter-American Development Bank, which focuses entirely on Latin America, devotes only about 2 percent of its lending to regional integration.

Unlike the Washington-based international financial institutions, the new bank will not impose economic policy conditions on its borrowers. Such conditions are widely believed to have been a major cause of Latin America's unprecedented economic failure over the last 26 years, the worst long-term growth performance in more than a century. ......(more)

The complete piece is at: http://www.alternet.org/workplace/66529 /

The IMF managed to take the very economic incentives that helped the west develop from the developing world.

I believe that Chavez is on the right track.

The World Bank, the IMF, and USA controlled policies
and institutions are pure evil!