Thursday, February 5, 2015

Do the BRICS want out of Western Led Global Institutions (UN and IMF)? Part II

This is a message I see quite often around the internet while doing research for articles to use here on the blog. There are some who feel that the BRICS nations (led by Russia and China) are quietly moving forward on a plan to get out of the western led global institutions (like the IMF and the UN).  

Some also see the massive gold buying taking place in Russia, China, and India and believe all that is leading to the creation of a new gold backed currency coming from the East. Most of those who believe this mention a gold backed Yuan. Does this theory fit with what we see at this time? Yesterday, we focused on the evidence we see related to the IMF and the SDR. Today we look at some evidence related to the UN.

The only answer I can offer is that the information that I see as I do research does not support this theory at this time. I certainly would have no way to know if some kind of secret plan is underway to do any or all of these things you see talked about above. All I can go on is the information that is available to the public. That is what I will stick to here. If, as things unfold, verifiable evidence emerges that something like the above is happening, it will surely be covered here. Unless you have access to private meetings or other non public venues where something like this could be discussed in private, it is impossible to verify. Those who talk about this kind of thing tend to use "anonymous sources". Those are impossible to verify of course.

With all the above in mind, here is another new article in the BRICSPost that does not support the idea that the BRICS are anxious to abandon the western led global institutions. 

Here are some quotes from this new article:

"China on Sunday assumed the rotating presidency of the UN Security Council for February."
"Liu Jieyi, China’s permanent representative to the UN, took over the rotating presidency from Cristian Barros Mellet, permanent representative of Chile to the UN."
. . . . 
"BRICS members, India and Brazil have both bid for permanent membership of the UNSC.
“The Security Council has been having difficulties in promoting peaceful solutions to those conflicts. A genuine reform of the Security Council is necessary to overcome the current paralysis. This process has been dragging on for too long,” she said.
“I am certain we all understand the serious risks of paralysis and inaction at the Security Council,” she added.
Meanwhile, US President Barack Obama in a state visit to India last week, repeated an offer of American backing for Indian membership of the United Nations security council in a warmly received speech in Delhi.
“I believe if we are going to be true global partners, our two nations must do more around the world together. So, to ensure national security and peace, multilateral institutions created in the 20th century have to updated for the 21st. That’s why I support a reformed United Nation Security Council that includes India as a permanent member,” Obama said, while addressing a gathering at the Siri Fort auditorium in the Indian capital."
My added comments: I don't see anything in this article that suggests the BRICS are planning on leaving the UN anytime soon. China is presiding over the Security Council this month. India and Brazil are both trying to become "permanent" members of the Security Council. I don't see how that translates into "they are getting ready to leave." The word permanent suggests a long term commitment. Everything they say indicates they will continue to push for reform, but will stay engaged at the UN, World Bank, and the IMF.
We have covered the ongoing saga of the stalled 2010 IMF reforms here as well. Despite disappointment and frustration that the reforms are not passed, at no time have any of the BRICS nations indicated they are ready to leave the IMF. In fact, China repeatedly talks about getting the Yuan into the SDR basket of currencies later this year as a huge priority for them. The head of the central bank in China has stated many times he wants to see the world go to using the SDR at the IMF as the world's global reserve currency (not the Yuan). He wants the Yuan in the basket for sure. But he is a strong backer of both the IMF and the SDR. Again, how does all this translate into China and BRICS working on a secret plan to leave?
It is very true that the BRICS nations have expressed much frustration that their influence and voting power at these institutions has not been increased. They are clearly ramping up pressure on the IMF to get something done this year about the stalled 2010 reforms. That shows up very clearly in the articles I read doing research. But what you don't see is any official from any of the BRICS nations talking about leaving. If there is a secret plan along those lines, it really is a secret. If evidence we can verify from credible sources surfaces to support that there is such a secret plan, we will certainly cover it here. There is no agenda here. Just a sincere effort to provide the most accurate information we can find to help the average person keep up with this complex topic.
Additional Evidence the BRICS support the UN

In July 2014 we ran this article which noted that the most recent BRICS summit declaration document was very supportive of the UN. You can review the summit declaration document here. A couple of example bullet points from the BRICS summit declaration document:

"24. We underline that 2015 marks the 70th anniversary of the founding of the United Nations (UN) and the end of the Second World War. In this connection, we support the UN to initiate and organize commemorative events to mark and pay tribute to these two historical moments in human history, and reaffirm our commitment to safeguarding a just and fair international order based on the UN Charter, maintaining world peace and security, as well as promoting human progress and development."

"25. We reiterate our strong commitment to the UN as the fundamental multilateral organization entrusted with helping the international community maintain international peace and security, protect and foster human rights and promote sustainable development. The UN enjoys universal membership and is at the very center of global governance and multilateralism. We recall the 2005 World Summit Outcome Document. We reaffirm the need for a comprehensive reform of the UN, including its Security Council, with a view to making it more representative, effective and efficient, so that it can adequately respond to global challenges. China and Russia reiterate the importance they attach to Brazil, India and South Africa's status and role in international affairs and support their aspiration to play a greater role in the UN."

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