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BRICS The New World Economy (NWE) vs Salami & Chocolate Making Old World


Ronnie Higuchi Rusli

The Bretton Wood creatures of salami and chocolate making old world order already eclipsed by the new world economic of BRICS. The Heads of state from Brazil, Russia, India, China, and South Africa (the so-called BRICS countries) have agreed to establish a New Development Bank (NDB) at their summit meeting. They will have a president (an Indian for the first six years), a Board of Governors Chair (a Russian), a Board of Directors Chair (a Brazilian), and a headquarters (in Shanghai).

What is the purpose of this BRICS bank? Why have these countries created it now? And, what implications does it have for the global development-finance landscape? The answer is that there is a significant implication to the old world dominant of US$ reserve currency. The BRICS will have their own reserve currency or basket currencies which will be more stable than the US$ or Euro. Considering BRICS combined GDP they’re larger than the G7 and yet they have low in total debt to GDP ratio compared to these old world order of The US and EU countries

Their intention is relatively straightforward: The NDB has been given US$50 billion in just initial capital. As with similar initiatives in other regions, the BRICS bank appears to work on an equal-share voting basis, with each of the five signatories contributing US$10 billion. The capital base is to be used to finance infrastructure and ‘sustainable development’ projects in the BRICS countries initially, but other low and middle-income countries will be able buy in and apply for funding. BRICS countries have also created a US$100 billion Contingency Reserve Arrangement (CRA), this would meant to provide additional liquidity protection to member countries during balance of payments problems. The CRA unlike the pool of contributed capital to the BRICS bank, which is equally shared is being funded 41 percent by China, 18 percent from Brazil, India, and Russia, and 5 percent from South Africa.”

China’s motivation to participate in BRICS banking is most interesting and revealing. Since it is absolutely essential for China to be a member of BRICS and China’s dual role in G20 / BRICS and its implications, may have a good an insight on their reasoning. The future of BRICS not much depends on the future performance of both the G7/8 and G20 as far as expanding market are concern, even if the G20 able develops into a real coordination mechanism.

Chinese interest in BRICS and SCO countries have more significant in value than in the old world order in G20. The future prospects of BRICS were more promising than those of the G20 economically, since BRICS will not necessarily have to solve global problems. China have clarified its intention when President Xi Jinping said “all inclusive and all win” in FTAAP (most of G20 member countries) which is deliverable to BRICS and will be directed at cooperation among its members or at third countries.

While the idea of BRIC as a group was originally picked up by Russia (the invitation to the first summit, as a move toward “extension” of the strategic triangle including SCO member countrues (India, Pakistan and Iran will be full SCO member in 2015) as Russia, China and India already inclusive in BRICS, its members are now all active in certain fields. For China, it is also an important effort to emerge from its isolation (Copenhagen climate summit). Another factor shaping the future of BRICS might be the development of US-China relations: While all interview partners agreed that BRICS does not aim at creating a new, anti-Western world order, and it can be portrayed as a response to the US-led world order.”

Relying on sentiments that BRICS goal is not bent on developing a counterbalance to Western banking hegemony is poppycock. Geopolitical dimensions in international affairs have Russia as the latest bogyman. Any economic analysis that ignores power brokers desperate attempt to shift the causes of a failing world economy onto the backs of enemy nations is flawed.

Also, the notion that major economic transnational corporatists operate with altruism for third world countries is a sheer lunacy. All these trade organizations are attempts to position vying interests to for a subservient role to a subordinate structure under a global debt creation banking system.

Attempts to scare the populist into believing that Global Warming inaction raises specter of war over climate change are absurd. “At the G20 summit, other nations overrode host Australia's attempts to keep climate change off the agenda and agreed to call for strong action with the aim of adopting a binding protocol at the Paris conference.” Such initiatives are pure political “PC” orthodoxy and actually diminish prosperity.

The great schism in trade among nations is that some countries are not willing to lie down with diseased parasites especially the dominance of dolarization economy. This should be construed to favor the emergence of the BRICS union as a shining future not dictated by the US$. However, what it does purport of BRICS is to be the road to the New World Economic (NWE) modeling for globalism no entrenched by financial elites which has produced opposition and some disparity.

Conflict is the normal human condition, and especially when money is used as a medium of world control and domination is main of the goal. The G 20 is useless. Breaking the banking monopoly that fosters endless terror and war is the universal objective for the inhabitants of this planet. Another unsavory photo op for old world leaders just produces more nausea.

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