BANK
OF THE SOUTH:
THE
ECONOMIC FUTURE OF
The Bank of
the South was founded by six South American heads of state on December 9,
2007. Representatives of
Critics of the Bank of the
South have questioned the need for a regional bank that would give greater
economic autonomy to South America.
Even before the Bank opened, some analysts claimed that the institution
would not be viable. However, issues of
transparency and proper management have been prioritized by the Bank of the
South from its very inception.
DEVELOPMENT WITH A DIFFERENCE
The Bank of the South will
begin operations in 2008 with $7 billion in startup capital. Contributions by each of the six members
corresponds directly to the size of their economies. The Bank will serve development purposes by funding projects in
areas such as infrastructure, industry, housing, transportation, and human
capacity-building. Bank initiatives aim
to solve the persistent problems of poverty and inequality in the region with
the world's biggest gap between the rich and the poor.
COMMON FUTURES:
South American heads of
state describe the Bank of the South as an institution that will serve to
further economic cooperation in the region.
Upon signing the founding act, Brazilian President Lula da Silva
highlighted this fact by saying, "Today we have taken the first step
toward the integration of
For his part,