New BRICS Development Bank AnnouncedStephen Lendman In June 2009, Brazil, Russia, India and China again met in Yekaterinburg. Early steps were taken to end dollar supremacy. Eventual plans may replace it with a global currency or basket of major ones. In 2010, South Africa joined the BRIC alliance. It was formally invited to do so. The group was renamed BRICS. Annual summits are held. On March 26 and 27, Durban, South Africa hosted the groups fifth one. More on that below. Their mechanism aims to achieve peace, security, development and cooperation. It also seeks to contribute significantly to the development of humanity and establish a more equitable and fair world. Americas economic supremacy is declining. BRICS countries are some of the worlds fastest growing. They comprise a significant economic and political block. They account for over 20% of world GDP. Theyre on three continents. They cover more than one-fourth of the worlds land mass. Their population exceeds 2.8 billion. Its 40% of the world total. By 2020 or earlier, China may become the worlds largest economy. By mid-century or sooner, Indias predicted to be number three, Brazil number five and Russia number six. BRICS have more global trade than America. Chinas the worlds largest exporter. Indias an information technology powerhouse. Brazils a dominant agricultural exporter. Its highly competitive. It has vast amounts of fertile land. Its known as the worlds biggest farm. Russia is oil and gas rich. South Africa holds resources worth an estimated $2.5 trillion. Its rich in gold, platinum, uranium, chrome and manganese ore, zirconium, vanadium, and titanium. Two key institutions emerged from Durbans summit. A BRICS Joint Business Council (JBC) and Development Bank were announced. JBC formerly functioned as a forum. It encourages free trade and investment. Two meetings will be held annually. Rotating chairmen will head them. Each BRICS country chose five top business executives to represent them. Theyll coordinate relations between member states and private sector players. Separately, China and Brazil agreed to a bilateral currency swap line. It permits them to trade up to $30 billion annually in their own currencies. Doing so moves almost half their trade out of US dollars. It suggests other BRICS partners will make similar moves. They endorsed plans to create a joint foreign exchange reserves pool. Initially itll include $100 billion. Its called a self-managed contingent reserve arrangement (CRA). Its a safety net precaution. Its to strengthen financial stability. Its an additional line of defense. They agreed to establish a new Development Bank. The idea was proposed last year in New Delhi. Its done, said South African Finance Minister Pravin Gordhan. BRICS leaders will announce the details, he added. South African President Jacob Zuma said: We have agreed to establish the new development bank. The initial capital contribution to the bank should be substantial and sufficient for the bank to be effective in financing infrastructure. Ahead of the summit, officials said each country may contribute $10 billion for starters. Its aim is to fund infrastructure and other development projects. Itll operate separately from Western international lending agencies. Itll challenge their global dominance. Itll test how they do business. They prioritize neoliberal harshness. It includes privatizing state enterprises, selling them at a fraction of their worth, mass layoffs, deregulation, deep social spending cuts, wage freezes or cuts, unrestricted market access for Western corporations, business-friendly tax cuts, trade unionism marginalized or crushed, and harsh recrimination against non-believers. It strip mines nations for profit. It shifts wealth from public to private hands. It destroys middle class societies. It turns workers into serfs. It substitutes debt peonage for freedom. A race to the bottom follows. An elite few benefit at the expense of most others. It sacrifices economic growth for private gain. Its the worst of all possible worlds. Nations are transformed into dystopian backwaters. BRICS have other ideas in mind. They seek a multipolar world. Much work remains to be done. Agreement on details must be finalized. Itll take time to begin operations. Itll be a second alternative to Western debt bondage. In December 2006, Hugo Chavez proposed a Bank of the South (Banco del Sur). A November 2007 summit launched it. In September 2009, it was established. Its members include Venezuela, Brazil, Argentina, Ecuador, Bolivia, Uruguay and Paraguay. Plans are to increase initial capitalization. Member countries pledge to contribute. Full operations are expected to begin later this year. At issue is representing the needs of the South. Itll contribute to its development. Itll do so free from debt bondage. BRICS Development Bank intends no one country to dominate. Voting rights will reflect equality. Economic growth matters most. Indias Minister of Commerce, Industry and Textiles, Anand Sharma, said: Our countries are making their own statement that we are proactively engaged in balancing the global economy. We are creating new axis of global development. The global economic order created several decades ago is now undergoing change and we believe for the better to make it more representative. BRICS trade today exceeds $360 billion. By 2015, it should reach $500 billion. Continued long-term growth is expected. Mutual cooperation helps sustain it. Each member country benefits. It remains to be seen how plans unfold. Hopefully global changes for the better will follow. Theyre long overdue. Dominant emerging economies will play leading roles. Theyre laying the groundwork to do so. Stephen Lendman lives in Chicago and can be reached at lendmanstephen@sbcglobal.net.His new book is titled How Wall Street Fleeces America: Privatized Banking, Government Collusion and Class War.Also visit his blog site at sjlendman.blogspot.com and listen to cutting-edge discussions with distinguished guests on the Progressive Radio News Hour on the Progressive Radio Network Thursdays at 10AM US Central time and Saturdays and Sundays at noon. All programs are archived for easy listening.http://www.progressiveradionetwork.com/the-progressive-news-hour/ 