The Full Wiki

More info on Bank of the South

Bank of the South: Map

Advertisements
  
  

Wikipedia article:

Map showing all locations mentioned on Wikipedia article:



The Bank of the South (Spanish: Banco del Sur, Portuguese: Banco do Sul); or BancoSur is a monetary fund and lending organization first proposed by Venezuelanmarker President Hugo Chávez. The intention of the bank is to lend money to nations in the Americas for the construction of social programs and infrastructure. It is expected to be headquartered in Caracasmarker, Venezuela, and will be run by a Board of Directors made up of the economy ministers of member states.

Plans and Involvement

The ultimate goal of the Bank of the South is to include every state within the region of South America. It has been established because of disapproval of the protocol of the World Bank and IMFmarker, in particular the enforcement of unrelated free market reforms on countries seeking emergency loans. It also represents an attempt to achieve regional independence and endogenous development. The program would lend money to any nation involved in the construction of approved programs, and without conditions traditionally attached to such loans, such as deregulation.

The Bank is intended as an alternative to borrowing from the IMFmarker and the World Bank. Hugo Chávez has promised to withdraw from the IMF and encourages other member states to do so as well, Indeed Latin America's dependence on the IMF fell dramatically between 2005 and 2008, with outstanding loans falling from 80% of the IMF's $81bn loan portfolio, to 1% of the IMF's $17bn of outstanding loans. Brazil and Argentina are also refusing to borrow from the IMF again. In 2005, Latin America made up 80% of the IMF's lending portfolio. With Latin American countries refusing to continue dealing with it, that percentage dropped to 1% by 2007.

It is proposed that all member countries contribute fairly equal shares to the Bank's initial capital of fourteen billion reais (seven billion dollars) so that no member state will control a dominant share. Argentina joined with Venezuela to officially propose such an initiative, but Brazil also became a major player.

History

The concept was first raised during the first presidential campaign of Venezuelan President Hugo Chavez, in 1998.The concept was originally launched in 2006 in cooperation between Venezuela and Argentina, led by their respective Presidents Hugo Chavez and Nestor Kirchner. In April 2007, Brazil agreed to join.

In May 2007, a meeting in Quitomarker led to the official creation of the bank, and was said to indisputably signify another step towards Latin American integration.

Seven South American nations met in Rio de Janeiromarker on October 8, 2007, to plan the beginning of the Bank. It was announced that the Bank will be headquartered in Caracasmarker, Venezuelamarker, and would begin operations on November 3 2007; this was later postponed to 5 December 2007, and then to 9 December 2007. Representatives from Argentina, Bolivia, Brazil, Ecuador, Paraguay, Uruguay and Venezuela were present at the meeting. All 12 South American countries will be eligible to borrow from the Bank. In a surprise move, Colombiamarker formally requested membership in the bank on 13 October 2007. As of April 25, 2008, the bank was still awaiting its member nations to have their local legislatures approve their individual capital investments. Member voting rights were yet to be determined at that time.

In March 2009 a number of Latin American nations agreed to contribute $7 billion towards the bank's start-up capital. Venezuela, Argentina, and Brazil are to contribute $2 billion each, and Ecuador, Bolivia, Paraguay, and Uruguay agreed to contribute varying amounts to provide the remaining $1 billion.

Seven South American nations on Saturday September 26, 2009 signed an agreement to create definitely a Bank of the South with startup capital of $20 billion. Leaders including Brazilian President Luiz Inácio Lula da Silva and Argentina's Cristina Fernández de Kirchner formally signed on to the pact and announced that the starting capital would be $20 billion.It was unclear how much each country would contribute, but under the previous $7 billion figure announced in May, Argentina, Venezuela and Brazil were to have each pledged $2 billion, while Uruguay, Ecuador, Paraguay and Bolivia were to have chipped in smaller amounts.

See also



References

  1. Klein, N. (2007) The Shock Doctrine. Penguin books.
  2. ZNet, 18 May 2007, BancoSur should be a bank to finance a socialist economy
  3. V. McElhinny, Global Exchange, Bank of the South
  4. Tehran Times, 11 December 2007, South America launches rival to the IMF, World Bank
  5. Venezuelanalysis, 16 April 2007, Brazil To Join Bank of the South
  6. El Banco del Sur será realidad en diciembre - Internacionales - Juventud Rebelde - Diario de la Juventud Cubana
  7. Merco Press, 4 December 2007, South America ready to launch two major regional projects
  8. International Herald Tribune. October 8, 2007. "Bank of the South sets launch date on November 3, 2007 in Venezuela."
  9. Venezuela aktuell - Viele Überraschungen bei Dreiergipfel, 13 October 2007
  10. Council on Hemispheric Affairs -- Still on the Drawing Board: The Banco del Sur a Half Year Later
  11. MercoPress, 9 May 2009, Bank of the South takes off with 7 billion USD initial capital



Embed code:
Advertisements






Got something to say? Make a comment.
Your name
Your email address
Message