World of Economy and BRICS
Posted on February 8th, 2015

Victor Samarakone

 After long time of silently talking about the World Economy, now I am thinking to let the Genie out of the bottle.  World economy is in danger in collapsing. I can say this with surety because I was following this for the last 25 years.  World is in critical stage and figuring out how to come up with better system.  I saw how World Bank and IMF has been trying to destroy developing countries in the name of helping those economies.  Today, world is more matured than 10 years ago. Financially powerful countries know that they cannot manipulate the people and the economies into borrowing more money from World Bank, IMF and other financial institutions by way of loans.

 World entered 1970’s from gold dominated economy to free exchange money transactions.  From that time I had numerous discussions about currency effects on the countries and destruction of their economies if they do not plan their economies based on global competition.  I traveled to more than thirty countries and talked with many government officials and people who explained to me how their living standards were effected.

 Amazingly, China overtook the world economy and started helping many countries to develop infrastructure from their own program.  Most countries had such poor infrastructure that they did not know how to bring back and reorganize such infrastructure in a productive and constructive way.  Previously their infrastructure had been destroyed because of such parasitical condition dictated by IMF and World Bank to provide loans.

 In 1995, I was talking about a global realignment based on regions like Asia, Russia with neighbors (CIS countries), South America, Africa, Europe, North America and Middle East.  At that time I indicated that the world will regionalize in 10 to 15 years.  Today you can see BRICS (Russia, China, India, Africa, and Brazil) 5 regionally major countries, started a unification to create a different type of economy.  At the same time I was talking with my students and my colleagues about GDP calculation carried out by IMF. These calculations that were made, based on dollar is financially and economically wrong. It is the time for BRICS bank to start re-calculating the GDP based on their real economies.

 These 5 regions mentioned above consist of roughly 150 countries. Today the world is waking up to solve their own problems.  Today the world needs peaceful solutions, based on regions, without the bottle necks.  Freedom of the society is based on freedom of people to live without exploitation by others.  Some people say that democracy is the answer. I say that freedom to live with market oriented entrepreneurial society will bring prosperity with own kind of freedom of movement.  Today most of the politics is not freedom of the choice, it is more like freedom for scams created and carried out to loot the population.  I worked in Africa where I saw poor people did not depend on government they worked, were happy with what they earned and lived in simplicity.  For the last 35 years my favorite statement is that ‘culture is for entertainment and not for practice’.

 BRICS bank can bring change of monetary system of the countries. At the same time the five countries involved need to create the Basket of Currencies to stabilize the BRICS currencies.  Then other countries can peg into BRICS currencies to stabilize their own economies.  Otherwise I can see grave consequences for other countries depending on BRICS Bank.  Recently I saw rapid fluctuation of Japanese currency with Gold. This was not due to Oil.  When we look through the data we will see that something is wrong with this currency fluctuation.  It is almost like somebody or some organizations is trying to manipulate the currency to pull down the Asian economies.  

 Another thing is that the world needs new war crime tribunal. I noticed ICC failed utterly in their job.  Presently the best country to have this tribunal is Argentina.  Argentina went through abuses from it one time military government.

 Victor Samarakone, is a Adjunct Professor at Fairly Dickinson University, New Jersey, traveled more than 30 countries and use to work in UN and other countries broad knowledge in world politics and development.  The opinions expressed are his own.


2 Responses to “World of Economy and BRICS”

  1. AnuD Says:

    Anyway, they internationalized the dollar, so every foreign currency transaction or business transaction that uses their dollar gives some income to them. It is the same thing with oil transactions. Gadhaffi became an undesirable and unwanted because he talked about African Gold as currency to be used for oil transactions. Saddam Hussein instead aligning with them sold oil without using their currency. So, he had to go. Now, it is the same thing with Russia, Iran and China. They want to use their currency and avoid the authority of one currency which uses that to control the world.

    Gold was important even in the history. Even they tried to exclude Gold that did not happen. What was the eventual result. Gold prices went up and every body began accumulating more gold. (except the last Sri lankan govt which sold some of the gold they had).

    So, it is the eternal truth that one civilization can not exist for ever and as the only powerful country. It should go down and one should replace it. That had been the history.

    Now, they have spread the dollar every where in the world. So, one day when it goes down everybody goes down with that. Only the those who avoided that will survive it.

    Does not it look like that is how the world ends too. Bad or evil people die by killing one another while good people those who get ready for it will survive.

  2. sena Says:

    World bank IMF is not going to set back or destroy (ever) developing countries. Some have progressed. The difference is in those countries the educated and the well meaning planners use these institutes to develop advanced knowledge based economies. . And in some other countries like Sri lanka the same factions use the aid and loan money to import luxuries and have a western style life. while looking down and marginalizing their own people. they are the real racists.

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