THE so called BRICS nations (Brazil, Russia, India, China and South Africa) have jointly established a New Development Bank to counter the Western hold on global finances.
The move is an effort to counter the Western stranglehold on the global financial system set up immediately after World War II. This financial system has played the tune that almost every economy has had to dance too. Until now, perhaps.
A $100 billion bank and currency reserve pool has been created to kick start the new enterprise.
The bank will be located in Shanghai, China, and India will preside over its operations for the first five years. Every member nation of BRICS will serve a term.
According to the media, the bank aims to fund infrastructure development programs in developing nations. This is certainly good news for Papua New Guinea and other developing nations who suffer every time they have to take a loan from the International Monetary Fund and adhere to its strict structural adjustment programs.
These often lead to the marginalisation and exploitation of the most poor as trade agreements and policies designed to extract natural resources are developed to benefit the majority shareholders of the Western financial system.
Of course there are many challenges ahead and there will be teething problems. But that a start has been made to change what has been an oppressive order designed to enrich the already rich at the expense of the poor is something worth noting and supporting.
Will PNG be able to analyse the opportunities and threats from such a major development that could be the precursor to the changing world order, or will we fail to seize possible opportunities presented by the New Development Bank?
Will we be able to look at the possibility of becoming a member in the future given our projected economic development and the significant revenues that will pour into our coffers?
Is there a possibility for PNG somewhere down the track?