By Farman Nawaz (unpublished Article)
The establishment of BRICS development Bank is a ray of hope for the countries that want to get rid of the dictations of IMF and World Bank, which often lead to unpopular decisions by the government of borrowing countries.
The hold of USA on IMF and World Bank has also added to the gravity of the situation as the borrowing nation will have to convince not only the IMF but to have good relations with the USA and her cohorts too. Therefore the loans of IMF have worked as claws and jaws of the USA to have a strong grip on the world politics.
Loans of IMF and World Bank turn into controlling tools and the borrowing countries’ economies as well as politics become puppets and their ropes are in the hands of IMF and World Bank. The loans of IMF and World Bank lead the nations towards instability but surprisingly the blames of instability is put on the borrowing countries. Privatization is one of the common tools of IMF that it recommends to the borrowing nations to get rid of economic burden but one would have never heard of policy of employment propagated by IMF and World Bank. Brain drain from the developing countries is the result of IMF and World Bank policies. Young energetic minds are attracted by the wealthy nations in this way. Doesn’t it astonish that success stories of IMF and World Bank are only found on its own webpages. I could not find a single success story of these institutions on any neutral website or the official webpages of the borrowing nations.
Now in the near future the world will look towards BRICS Development Bank and will wait for the first loan that it disburses. Its first loan will depict the policy of BRICS Bank. And if the perception of development and global economy of BRICS Bank is different (and unquestionably it must be) from that of IMF and World Bank then its policy must show the difference clearly so that the borrowing countries can easily opt between BRICS Development Bank and IMF.
The IMF is heavily funded by democratic countries but neither its own policies are democratic in nature nor does it care for democratic rights of the borrowing counties. It would be better if BRICS Bank target those areas of economy which IMF does not take care of.
For example IMF does not bother to solve the problem of unemployment of the borrowing country. Ultimately it results in an increase in poverty level. IMF stresses on the elimination of subsidies but does not care for price hike. IMF promotes privatization but does not bother to solve the issue of salaries, downsizing, social security payments, and labour laws. Health and education are always the indirect targets of implementation of IMF policies. IMF promotes the export of food production which affects the local food production. Simply IMF cares for the repayment of its loans and does not care to give boost to the real economic growth of the borrowing nation.
These are some of the real problems that affect the people of poor and developing countries. And because of these issues the loans of IMF are not welcomed by the people. The policies of IMF are directly creating rifts between the government and the people. The political chaos and instability in the borrowing countries are often the results of IMF policies. Now when BRICS Development Bank will start disbursing loans it will have to face this scenario. BRICS Development Bank will have to frame policies for the solution of these problems if it really wants to work as the alternative of other financial institutions. Is BRICS Development Bank ready for bringing change?