What is the BRICS ? SOLUTIONS FOR AFRICA

This is re-posted from the EXECUTIVE INTELLIGENCE REVIEW Jan 16 2015, for more information visit www.larouchepac.com

What Is the BRICS?

by David Cherry
An alliance of nations centered on Brazil, Russia,
India, China, and South Africa (BRICS) is building a
parallel economic order dedicated to the productive
economy, as opposed to speculation that diverts investments
away from production. The BRICS
emerged as a system at its summit in Fortaleza,
Brazil, in July 2014, where it announced the formation
of the New Development Bank, and the Contingent
Reserve Arrangement (to protect their economies
against financial warfare). The summit was
followed by another, between the BRICS and the
Ibero-American heads of state.
The world needs more food, housing, energy, science,
and technology. The BRICS understands that
leading-edge scientific projects (science-drivers) are
crucial: They lower production costs throughout the
economy by increasing the productive powers of
labor. That requires educating and training youth to
meet the growth challenges of the future. The BRICS
governments oppose the issuing of money to bail out
banks that squandered their funds in casino-like
speculation. These governments are turning away
from World Bank and International Monetary Fund
dictation of how to run their economies. The five
BRICS countries today have 45% of the world’s
population. Despite having only 20% of world trade,
they have 40% of global economic growth.
To succeed, the sovereign governments of the new
system will have to create and issue credits earmarked
for investment for the common good. That was an
American idea—until the United States, with a few
periods of notable exception, effectively rejoined the
British Empire under Presidents Teddy Roosevelt and
Woodrow Wilson 100 years ago. The idea—to issue
government credits to guide the economy—had been
put into practice by the first Bank of the United States
and its successor. Its economic basis had been developed
most fully from Alexander Hamilton’s legacy in
the writings of Henry C. Carey, economic advisor to
Abraham Lincoln. Today, it has been revived by American
economist and statesman Lyndon LaRouche.
—David Cherry