Venezuela's leftist government is leading Brazil, Argentina and other regional economies in creating a new bank with the ambition of casting off unwelcome oversight by the IMF and the World Bank.
The idea was first announced by Venezuelan President Hugo Chavez in December as part of his crusade against US influence and international financial institutions that he says are merely "tools of Washington."
The finance and economic ministers of Argentina, Bolivia, Brazil, Ecuador, Paraguay, Uruguay and Venezuela met last week in Rio de Janeiro to outline the main elements of the "Banco del Sur" -- or Bank of the South.
The lender will provide "a new financial architecture" for development in the region, according to the seven backers, whose initiative comes just ahead of annual meetings of the IMF and the World Bank this weekend.
"There will not be credit subjected to economic policies. There will not be credit that produces a calamity for our people and, as a result, it will not be a tool of domination," Venezuelan Finance Minister Rodrigo Cabeza said.
Chavez speaks of liberating regional countries from the tutelage of the IMF, the World Bank and the Washington-based Inter-American Development Bank (IDB) which, he says, impose economic policies that condemn millions to poverty.
Bolstered by robust economic growth, Latin American countries are displaying a new assertiveness toward the IMF now that several of them -- notably Brazil and Argentina -- have paid off their debts early.
The new bank enjoys backing from Brazilian President Luiz Inacio Lula da Silva who, despite his leftist profile, has overseen an economic policy marked by fiscal restraint and growing reserves since coming to power in 2003.
But South America's economic giant declined to give its agreement until clarifying that the bank's role would be limited to aiding investment in the region.
"Brazil shows less interest because it has the greatest credit capacity," said Brazilian Finance Minister Guido Mantega.
However, "we continue to support the project because it will benefit our commercial partners and Brazilian businesses," he said.
The Bank of the South is supposed to finance public and private projects for development and regional integration. The official launch and the signing of a founding charter is set for Nov. 3 in Caracas, which will host the bank's headquarters.
With US$7 billion in capital, the Bank of the South will begin operating next year.
"The idea is to rely on a development agency for us, led by us," Cabeza said.
The seven founders hope to secure the membership of five other countries: Chile, Colombia, Peru, Guyana and Suriname.
Colombian President Alvaro Uribe said on Friday on the margins of a summit with Chavez that his country wanted to join the Bank of the South, as long as it was "not a rejection of the World Bank and the IMF but an expression of solidarity and brotherhood."
ROLLER-COASTER RIDE: More than five earthquakes ranging from magnitude 4.4 to 5.5 on the Richter scale shook eastern Taiwan in rapid succession yesterday afternoon Back-to-back weather fronts are forecast to hit Taiwan this week, resulting in rain across the nation in the coming days, the Central Weather Administration said yesterday, as it also warned residents in mountainous regions to be wary of landslides and rockfalls. As the first front approached, sporadic rainfall began in central and northern parts of Taiwan yesterday, the agency said, adding that rain is forecast to intensify in those regions today, while brief showers would also affect other parts of the nation. A second weather system is forecast to arrive on Thursday, bringing additional rain to the whole nation until Sunday, it
CONDITIONAL: The PRC imposes secret requirements that the funding it provides cannot be spent in states with diplomatic relations with Taiwan, Emma Reilly said China has been bribing UN officials to obtain “special benefits” and to block funding from countries that have diplomatic ties with Taiwan, a former UN employee told the British House of Commons on Tuesday. At a House of Commons Foreign Affairs Committee hearing into “international relations within the multilateral system,” former Office of the UN High Commissioner for Human Rights (OHCHR) employee Emma Reilly said in a written statement that “Beijing paid bribes to the two successive Presidents of the [UN] General Assembly” during the two-year negotiation of the Sustainable Development Goals. Another way China exercises influence within the UN Secretariat is
LANDSLIDES POSSIBLE: The agency advised the public to avoid visiting mountainous regions due to more expected aftershocks and rainfall from a series of weather fronts A series of earthquakes over the past few days were likely aftershocks of the April 3 earthquake in Hualien County, with further aftershocks to be expected for up to a year, the Central Weather Administration (CWA) said yesterday. Based on the nation’s experience after the quake on Sept. 21, 1999, more aftershocks are possible over the next six months to a year, the agency said. A total of 103 earthquakes of magnitude 4 on the local magnitude scale or higher hit Hualien County from 5:08pm on Monday to 10:27am yesterday, with 27 of them exceeding magnitude 5. They included two, of magnitude
Taiwan’s first drag queen to compete on the internationally acclaimed RuPaul’s Drag Race, Nymphia Wind (妮妃雅), was on Friday crowned the “Next Drag Superstar.” Dressed in a sparkling banana dress, Nymphia Wind swept onto the stage for the final, and stole the show. “Taiwan this is for you,” she said right after show host RuPaul announced her as the winner. “To those who feel like they don’t belong, just remember to live fearlessly and to live their truth,” she said on stage. One of the frontrunners for the past 15 episodes, the 28-year-old breezed through to the final after weeks of showcasing her unique