admin
Isdore Guvamombe
On June 1 2023, the BRICS bloc of Brazil, Russia, India, China and South Africa which is building a new economic architecture to challenge the dominance of the United States dollar, approved the membership of Zimbabwe, alongside Argentina and Saudi Arabia.
One of the most important institutions created by the BRICS is the New Development Bank (NDB). This is a Global South-oriented alternative to the World Bank, which is located in and essentially controlled by the United States.
The US dollar has been used to attack and manipulate the Zimbabwean currency, pushing inflation as party of a broader regime change agenda, to collapse Zanu PF’s rule, as punishment for the land reform programme.
Unlike the World Bank, the New Development Bank is a truly multilateral institution, not one dominated by a lone power.
Current NDB members include the five BRICS nations as well as Bangladesh, the United Arab Emirates, and Egypt. Uruguay is already in the process of joining.
The World Bank has been politicised and central to US abuse, especially as a conduit of implementing illegal and punitive sanctions to countries hated by Washington.
In actual face, the NDB can provide a sane alternative against the US madness, that manipulates World Bank financial dealings.
Zimbabwe, for instance, has been unfairly treated since the US imposed sanctions on it, albeit outside UN statutes.
In fact, it has been too long for the new alternative to US hegemony to be found. This will go a long way in liberating many countries that have been unfairly treated by the US, using the World Bank as a smokescreen, behind which to hide its evil machinations.
In March 2023, the NDB inaugurated its new chief, Dilma Rousseff, the former president of Brazil, from the South American nation’s leftist Workers’ Party.
On June 1, they added Zimbabwe, Argentina and Saudi Arabia and this opens a new chapter in world economics and all progressive thinking countries should join the BRICS and in the worst case scenario support the formation of the new bank.
Zimbabwe and other members will, according to Rousseff, benefit from NDB’s goals of financing “infrastructure investments” and “helping our members combat poverty, create jobs, and promote environmentally sustainable development”.
Rousseff said: “NDB leadership okayed these countries’ membership request, and the decision will officially be announced in August, at the summit of BRICS heads of state, which will tentatively be held in South Africa”.
By diversifying its use of currencies, the NDB not only seeks to weaken the US dollar and help developing countries with a good alternative.
The US dollar is the global reserve currency, so Washington’s domestic monetary policy has an impact on the world economy (a phenomenon known as the Triffin Dilemma).
Since March 2022, the US central bank, the Federal Reserve, has aggressively raised interest rates. This has put downward pressure on the currencies of many Global South nations, making it more expensive to import foreign products and pay off dollar-denominate while also fuelling capital flight.
“We need to create a diversified global currency system”, Rousseff said at the NDB annual meeting.
“In the future, it is unlikely that one single currency can dominate the world’s currency system. We will see more local currencies used to settle trade”, the NDB president
Rousseff highlighted the bank’s commitment to eradicating poverty and hunger and supporting member countries’ contributions to clime change as per the Paris Agreement.
Of great importance is the fact that the NDB has already issued bonds denominated in China’s currency, the renminbi.
Chinese Vice Premier Ding Xuexiang said at the annual meeting of the BRICS bank that the “NDB is designed to better serve the emerging economies by financing more infrastructure construction and sustainable projects”.
The US dollar has been abused to attack and manipulate the Zimbabwean currency, pushing inflation as part of a broader regime change agenda to collapse Zanu PF’s rule and prop up the puppet opposition, as punishment for the land reform programme.
One of the best things about BRICS is that one of its kingpins, Russia is committed to supplying food to African nations struggling with food security.
Russia has the capacity and even under the special military operation in Ukraine, Russia has been the one pro-active about allowing grain deliveries to proceed through the sea.
While Ukraine has been politicising the whole thing Russia has been doing the right things, even under war.
African countries stand to benefit more from Russia through BRICS and through the United Nations, that what the US and its allies do.
Russia has the grain and the capacity too to deliver to emerging markets, especially in Africa.. Russia has over the years helped many smaller countries with food security and through the UN Russia has done far too well even in times of the war in Ukraine to allow grain delivery to the world.
This is why it is critical for President Mnangagwa to attend the Russia/Africa Summit and the BRICS Summit because to unlock value for Zimbabwe which has been under serious attack from the US and its allies.
Russia and Brazil will play a bigger role under BRICS to feed the world.
Besides the US system is very corrupt and President Joe Biden himself has been fingered out by a Republican committee to have abused his power to enrich family business and Ukraine is central to part of the deals.
To cover up the corruption, the Biden administration has sought to denigrate and impose illegal sanctions on many progressive thinking countries.
The 2014 founding agreement stated that the NDB’s “initial subscribed capital shall be equally distributed amongst the founding members”, and the “voting power of each member shall equal its subscribed shares in the capital stock of the Bank”.
No country has veto power in the NDB.
The NDB founding agreement likewise stated:
The President of the Bank shall be elected from one of the founding members on a rotational basis, and there shall be at least one Vice President from each of the other founding member.
The World Bank is completely different. This institution is essentially controlled by the United States, and physically headquartered in Washington, DC.
The bank clearly states on its website that the United States “remains the largest shareholder of the World Bank Group today”.
As the only World Bank Group shareholder that retains veto power over certain changes in the Bank’s structure, the United States plays a unique role in influencing and shaping global development priorities.
The bank’s website likewise admits,
Traditionally, the World Bank President has always been a US citizen nominated by the United States.
The United States has 15.81 perfect voting power in the World Bank Group’s lending arm, the International Bank for Reconstruction and Development (IBRD). No other country even remotely comes close.
This power has been abused by the US to deal with countries it does not like and Zimbabwe is one of those countries that have suffered at the hands of the US. The NEW Development Bank therefore, becomes handy to countries that have been oppressed.
BRICS should be applauded for starting a process to dismantle the US’ hegemony on the world economy. Obviously, the US will try by all means to scuttle these plans but so far so good, BRICS has done far too well and is now giving the US sleepless nights.
The same process should start on dismantling the ICC, which has been abused by the US to deal with perceived enemies. BRICS should be encouraged to join more countries and leave the US with as little numbers of countries as possible.
BRICS New Development Bank is indeed a new reality.
Online Reporter