Wednesday, July 16, 2014

Global Impact: Rousseff, Putin Pact Goes Well Beyond the Amerícas, a Brilliant Strategy on Putin's Part

According to The Latin American Tribune, there must have been considerable off-line coordination for Brazil, Russia, India, China and South Africa, which included the creation of a development bank and a $100 billion contingency fund, to bankroll a development bank to be divided five ways.

COMMENT: Known as the 7th BRICS summit, it is presumed that Washington knew nothing of the considerable staff work that has no doubt been invested thus far that leaves the Obama White House seemingly out in the cold.

Unfortunately, with Washington preoccupied with a number or simultaneous scandals not to mention tens of thousands of Latin children "deadlining," a White House focused exclusively on domestic problems, there simply is no time available to "multi-task."

The first president of the development bank will be India, the first regional office will be in South Africa and the headquarters will be in Shanghai.

“The bank will represent an alternative for the financing needs of the five nations (and) will compensate for the deficiencies in credit” that currently exist in the multinational financial institutions, President Rousseff said.

“Due to the weight of their economies and influence in their regions,” the BRICS nations “cannot be unconnected to the great international questions,” she said.

“We are among the economies that grew most in recent years” and each member of this forum “has incentivized the mechanisms of economic integration and regional governance,” said Rousseff, who cited the Union of South American Nations in Brazil’s case.

This report will be updated as new information on the new development bank becomes available.