Bank of the South Becomes Point of Contention

The role and mission of an eventual Bank of the South has become a point of contention between the South American nations hoping to participate in its creation. Venezuela and Argentina envision an IMF-like entity that can bail out countries with fiscal problems, while Brazil, a more recent adherent, wants it to help finance infrastructure projects around the region. The Brazilian president’s secretary on international issues, Marco Aurélio Garcia, says Brazil won’t participate in a pre-formulated effort to set up the bank. “We want to be involved in the formation process of this,” he was quoted as saying in local press. Garcia also suggested the need to “tear up” the agreement made between Argentina and Venezuela in order to start afresh and accept interested parties like Brazil, Bolivia and Ecuador. Bankers doubt that the politically-motivated organization will fly in its current form.