Bank of the South


Bank of the South

The Bank of the South (Dutch: "Bank van het Zuiden", Portuguese: "Banco do Sul", Spanish: "Banco del Sur") is a monetary fund and lending organization first proposed by Venezuelan 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.

Plans and Involvement

The ultimate goal of the Bank of the South is to include every nation within the region of South America. It has been established because of disapproval of the protocol of the World Bank and other international lending institutions. 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 e.g. deregulation.

The Bank is intended as an alternative to borrowing from the IMF and the World Bank. Hugo Chávez has promised to withdraw from the IMF and encourages other member states to do so as well, Raphael Correa of Ecuador declaring the World Bank representative to his country a "person non grata". 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.

A meeting of southern international economists in Caracas recently saw repeated declarations of the importance of Banco del Sur, especially in light of the recent global financial crisis.

Current status

Venezuela, as the originator of the idea, will be involved upon the organization's inception. Other participating countries are Argentina, Brazil, Bolivia, Colombia, Ecuador, Paraguay and Uruguay. In April 2007, Brazil promised to donate a large amount of funding as well.

Seven South American nations met in Rio de Janeiro on October 8, 2007, to plan the beginning of the Bank. It was announced that the Bank will be headquartered in Caracas, Venezuela and would begin operations on November 3 2007; this was later postponed to 5 December 2007, [ [http://www.juventudrebelde.cu/internacionales/2007-11-03/el-banco-del-sur-sera-realidad-en-diciembre/ El Banco del Sur será realidad en diciembre - Internacionales - Juventud Rebelde - Diario de la Juventud Cubana ] ] and then to 9 December 2007, [ [http://www.mercopress.com/vernoticia.do?id=12056&formato=HTML Mercopress ] ] when it was finally launched. [ [http://ap.google.com/article/ALeqM5g81SJxsarRbnlaER9l95Oc818FogD8TE26180] Dead link|date=March 2008] 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. ["Bank of the South sets launch date on November 3, 2007 in Venezuela." "International Herald Tribune". October 8, 2007. ] In a surprise move, Colombia formally requested membership in the bank on 13 October 2007. [ [http://www.venezuela-aktuell.de/index.php?option=com_content&task=view&id=367&Itemid=6 Venezuela aktuell - Viele Überraschungen bei Dreiergipfel ] ]

Fractional-reserve banking

One of the main objectives is to divert the profits generated by fractional-reserve banking back to original countries instead of the present external exploitation done by "outside" banks.

ee also

*Union of South American Nations
*Bolivarian Alternative for the Americas
*Mercosur
*Telesur
*Bolivarianism
*Bolivarian Revolution
*Fractional-reserve banking

References

ources

[http://www.economist.com/world/la/displaystory.cfm?story_id=9149736 Article in the Economist]

[http://www.venezuelanalysis.com/news.php?newsno=2273]

[http://www.tehrantimes.com/index_View.asp?code=158969]


Wikimedia Foundation. 2010.

Look at other dictionaries:

  • (the) South Bank Show — The South Bank Show [The South Bank Show] a popular British television programme about the ↑arts. It has been presented by Melvyn Bragg and broadcast on Sunday evenings by ↑ITV since 1978. The programmes sometimes include reports and comments on… …   Useful english dictionary

  • (the) South Bank — the South Bank [the South Bank] an area of the south bank of the River ↑Thames around Waterloo Bridge which is London’s main cultural centre. Most of the centre was built in the 1950s and 1960s. It includes the ↑Hayward Gallery, the ↑National… …   Useful english dictionary

  • Bank of the United States — Bank chartered in 1791 by the U.S. Congress. It was conceived by Alexander Hamilton to pay off the country s debts from the American Revolution and to provide a stable currency. Its establishment, opposed by Thomas Jefferson, was marked by… …   Universalium

  • South Georgia and the South Sandwich Islands — South Georgia and the South Sandwich Islands …   Wikipedia

  • Bank of New South Wales — Ehemaliges Bankgebäude der Bank of New South Wales in Charters Towers, Queensland Die Bank of New South Wales wurde 1817 in Sydney in der britischen Strafkolonie New South Wales gegründet und war damit die erste Bank Australiens. Mit der Öffnung… …   Deutsch Wikipedia

  • The South Sea Company — For the Noel Coward play, see: South Sea Bubble (play). The South Sea Bubble of 1720, was an economic bubble that occurred through speculation in the stock of The South Sea Company. The company had been granted a monopoly to trade with South… …   Wikipedia

  • The South Bank Show — Infobox Television show name = The South Bank Show size = caption = country = United Kingdom format = Arts picture format = runtime = 60 minutes creator = presenter = Melvyn Bragg channel = ITV first aired = 14 January 1978 last aired = Present… …   Wikipedia

  • Bank of the Republic of Burundi — Logo The Bank of the Republic of Burundi (French: Banque de la République du Burundi, BRB) is the central bank of Burundi. The bank was established in 1966 and its offices are in Bujumbura. History The central bank evolved step by step: Royal… …   Wikipedia

  • Bank of New South Wales v Commonwealth — Infobox Court Case name=Bank of NSW v Commowealth court=High Court of Australia date decided=11 August 1948 full name=Bank of New South Wales v The Commonwealth citations= judges= Latham CJ, McTiernan, Starke, Dixon, Rich and Williams JJ prior… …   Wikipedia

  • Bank of the West — BancWest redirects here. For the Australian bank, see BankWest. Bank of the West Type Subsidiary Industry Banking Founded 1874 …   Wikipedia


Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.