October 24, 2014
'Multilateral credit organisms have become a mechanism of extortion of powerful countries'
As the President travels to Brasilia to attend the BRICS summit, where the group of emerging economies are discussing the creation of the New Development Bank, the Cabinet Chief Jorge Capitanich praised the initiative: “We need development banks to work as tools for infrastructure financing, […] not as mechanisms of extortion of developed countries”.
He celebrated the project, currently under discussion by the BRICS countries, and pointed out the importance of creating new organisms for structural development. “The role of this type of multilateral organisms for structural development has been distorted to become a mechanism of extortion of the most powerful countries,” Capitanich stated.
“It is absolutely necessary for the world to have an alternative perspective, one that is not tainted by aggravated doses of neoliberalism and the predominance of the international financial system ,” the Kirchnerite official said in his daily press briefing at Government House.
Capitanich deemed it important for the BRICS countries to be able to create new organisms for structural development and “to reject the extortion of the bigger powers in order to achieve autonomy”. He praised the opportunity to prevent the influence of “extreme neoliberalism” in the decisions of multilateral credit institutions.
Besides the NBD, In the BRICS VI Summit, the representatives of the major emerging economies are discussing the creation of the Contingent Reserve Arrangement (CRA), described as an “additional line of defence for BRICS countries in scenarios of Balance of Payments' difficulties”.
Both institutions are conceived as an alternative to Western control over global finances and to the International Monetary Fund (IMF) and the World Bank (WB), lead by the US and Europe.