Post on 30-May-2020
Urgency of a New Regional Financial
Architecture and more policy space for
financial, macroeconomic and social
stability
Pedro Páez PérezEcuador
The relationship between financial services liberalization,
the regulatory framework and financial stability
WORKSHOP ON TRADE IN FINANCIAL SERVICES AND DEVELOPMENT
WTO, Geneva, 26 June, 2012
Financial and trade liberalization:
decades of modernization,
differentiated growth and instability
GLOBAL INCOME DISTRIBUTION IN 1970
GLOBAL INCOME DISTRIBUTION IN 2006
Could the genius get back to the bottle?US Growth of financial and nonfinancial profits relative to GDP
(1970 = 100)
http://www.monthlyreview.org/081201foster-magdoff.php
Global GDP = 63‘’ vs. “Normal Debts” = 212’’ vs.
Financial Derivatives = 1500’’
12
1980
109
Each time, more acute cycles of speculative and
not physical investment
54’’
193
48’’
417
34’’
409
65’’
217
55’’
215
45’’
25938’’
197
32’’
627
34’’
576
28’’
318
36’’
173
173 318 576 627 197 259 215 217 409 417 193 EQUITY/ IPO
Unsustainable balance sheets make up
Financial Hegemony Geopolitics
Financial Hegemony Geopolitics
During the crisis, the South´s public
external debt has risen in 20%
1.433
0
200
400
600
800
1000
1200
1400
1600
1800
1970
1972
1974
1976
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
2004
2006
2008
DEVELOPING COUNTRIES OUTSTANDING PUBLIC EXTERNAL DEBT
-in billions of US dollars-
Out of 37 millon
corporations in
Orbis 2007,
only 43060 TNC
control the
fundamental and
are interlocked by
ownership
relationships.
1318 of them
produce 60% of
the global GDP
and only 147 the
40%
The larger 50 TNC (out of 147)• 1. Barclays plc
2. Capital Group Companies Inc3. FMR Corporation4. AXA5. State Street Corporation6. JP Morgan Chase & Co7. Legal & General Group plc8. Vanguard Group Inc9. UBS AG10. Merrill Lynch & Co Inc11. Wellington Management Co LLP12. Deutsche Bank AG13. Franklin Resources Inc14. Credit Suisse Group15. Walton Enterprises LLC16. Bank of New York Mellon Corp17. Natixis18. Goldman Sachs Group Inc19. T Rowe Price Group Inc20. Legg Mason Inc21. Morgan Stanley22. Mitsubishi UFJ Financial Group Inc23. Northern Trust Corporation24. Société Générale25. Bank of America Corporation
• 26. Lloyds TSB Group plc27. Invesco plc28. Allianz SE 29. TIAA30. Old Mutual Public Limited Company31. Aviva plc32. Schroders plc33. Dodge & Cox34. Lehman Brothers Holdings Inc*35. Sun Life Financial Inc36. Standard Life plc37. CNCE38. Nomura Holdings Inc39. The Depository Trust Company40. Massachusetts Mutual Life Insurance41. ING Groep NV42. Brandes Investment Partners LP43. Unicredito Italiano SPA44. Deposit Insurance Corporation of Japan45. Vereniging Aegon46. BNP Paribas47. Affiliated Managers Group Inc48. Resona Holdings Inc49. Capital Group International Inc50. China Petrochemical Group Company
Various myths had been destroyed:
Fresh theoretical discussions
Historical matrix of dependency and
specificities of Neo- liberalism and
financiarization in Latin America
The historical matrix of dependency
• LA place in the division of labor since the conquest bythe European metropolis created a trade structure and a trend still ruling most of LA economy
• Macroeconomic and financial dependency structured a virtual “dollar bloc” during the 20th century, withvarying articulations:
– Bretton Woods (1944): ISI and “Keynesian” institutions
– Dollar floating (1968-1973): invisible or iron hand?
– External debt crisis (from 1982): orthodoxy’s blackmail
– ”Washington Consensus” (1990): structural reforms
• Erosion of money functions and policy space reduction
Significant reduction in the rate of investment
(physical, “natural” and “human” capital)
IMPORT SUBSTITUTION INDUSTRIALIZATION REGIME OF
ACCUMULATION
Fuente: CEPAL (2008)
FINANCIARIZED REGIMEN OF
ACCUMULATION
2008ª= Proyectada
LATIN AMERICA: RATE OF INVESTMENT- GDP
Investment in infrastructure
CEPAL,2011
Latin America *: investment in infrastructure 1980-2006
As a percentage of GDP
*Argentina, Brasil, Chile, Colombia, México y Perú
The road capacity is insufficient.
Shortage of competitive rail
services
FINANCIARIZED REGIME OF ACCUMULATION
• Chart 5.1
Share of compensation of employees in national income, selected country groups,
1980 - 2008
FINANCIARIZED REGIMEN OF ACCUMULATION
• Chart 5.1
Share of compensation of employees in national income, selected country groups,
1980 - 2008
FINANCIARIZED REGIMEN OF ACCUMULATION
De-industrialization, job precarization
and increasing social polarization
Fuente: CEPAL (2008)
2008b/= Proyectadas
LATIN AMERICA: POVERTY AND INDIGENCE EVOLUTION 1980-2008
Percentages Population
…with a 15% increase in the number
of indigents…
Fuente: CEPAL (2008)
2008b/= Proyectadas
LATIN AMERICA: POVERTY AND INDIGENCE EVOLUTION 1980-2008
Percentages Population
…and 34% growth in the amount of
poor people…
Fuente: CEPAL (2008)
2008b/= Proyectadas
LATIN AMERICA: POVERTY AND INDIGENCE EVOLUTION 1980-2008
Percentages Population
Some mitigation with the progressive
governments
Fuente: CEPAL (2008)
2008b/= Proyectadas
LATIN AMERICA: POVERTY AND INDIGENCE EVOLUTION 1980-2008
Percentages Population
Austerity meant a sharp and
continuous increase of poor people
FINANCIARIZED REGIME OF
ACCUMULATION
IMPORT SUBSTITUTION INDUSTRIALIZATION
REGIME OF ACCUMULATION
LATIN AMERICA: NUMBER OF PERSONS UNDER THE POVERTY LINE 1970-1995
Not only social polarization but...
FINANCIARIZED REGIME OF
ACCUMULATION
IMPORT SUBSTITUTION
INDUSTRIALIZATION REGIME OF
ACCUMULATION
LATIN AMERICA: GDP, EXTERNAL AND FISCAL BALANCES IN RATES OF GROWTH AND PERCENTAGES OF GDP 1950-2010
Not only social polarization but...
FINANCIARIZED REGIME OF
ACCUMULATION
IMPORT SUBSTITUTION
INDUSTRIALIZATION REGIME OF
ACCUMULATION
LATIN AMERICA: GDP, EXTERNAL AND FISCAL BALANCES IN RATES OF GROWTH AND PERCENTAGES OF GDP 1950-2010
…a poorer productive
performance...
FINANCIARIZED REGIME OF
ACCUMULATION
IMPORT SUBSTITUTION
INDUSTRIALIZATION REGIME OF
ACCUMULATION
LATIN AMERICA: GDP, EXTERNAL AND FISCAL BALANCES IN RATES OF GROWTH AND PERCENTAGES OF GDP 1950-2010
FINANCIARIZED REGIME OF
ACCUMULATION
IMPORT SUBSTITUTION
INDUSTRIALIZATION REGIME OF
ACCUMULATION STAGNATION AND
VOLATILITY
LATIN AMERICA: GDP, EXTERNAL AND FISCAL BALANCES IN RATES OF GROWTH AND PERCENTAGES OF GDP 1950-2010
Poorest performance even in their
own terms...
FINANCIARIZED REGIME OF
ACCUMULATION
IMPORT SUBSTITUTION INDUSTRIALIZATION
REGIME OF ACCUMULATION
LATIN AMERICA: GDP, EXTERNAL AND FISCAL BALANCES IN RATES OF GROWTH AND PERCENTAGES OF GDP 1950-2010
Poorest performance even in their
own terms...
FINANCIARIZED REGIME OF
ACCUMULATION
IMPORT SUBSTITUTION INDUSTRIALIZATION
REGIME OF ACCUMULATION
LATIN AMERICA: GDP, EXTERNAL AND FISCAL BALANCES IN RATES OF GROWTH AND PERCENTAGES OF GDP 1950-2010
Poorest performance even in their
own terms...
FINANCIARIZED REGIME OF
ACCUMULATION
IMPORT SUBSTITUTION INDUSTRIALIZATION
REGIME OF ACCUMULATION
EXTERNAL
VULNERABILITY
LATIN AMERICA: GDP, EXTERNAL AND FISCAL BALANCES IN RATES OF GROWTH AND PERCENTAGES OF GDP 1950-2010
...with higher levels of vulnerabilities
FINANCIARIZED REGIME OF
ACCUMULATION
IMPORT SUBSTITUTION INDUSTRIALIZATION
REGIME OF ACCUMULATION
LATIN AMERICA: GDP, EXTERNAL AND FISCAL BALANCES IN RATES OF GROWTH AND PERCENTAGES OF GDP 1950-2010
...with higher levels of vulnerabilities
FINANCIARIZED REGIME OF
ACCUMULATION
IMPORT SUBSTITUTION INDUSTRIALIZATION
REGIME OF ACCUMULATION
LATIN AMERICA: GDP, EXTERNAL AND FISCAL BALANCES IN RATES OF GROWTH AND PERCENTAGES OF GDP 1950-2010
...with higher levels of vulnerabilities
FINANCIARIZED REGIME OF
ACCUMULATION
IMPORT SUBSTITUTION INDUSTRIALIZATION
REGIME OF ACCUMULATION
FISCAL
VULNERABILITY
LATIN AMERICA: GDP, EXTERNAL AND FISCAL BALANCES IN RATES OF GROWTH AND PERCENTAGES OF GDP 1950-2010
Fuente: BANCO MUNDIAL (2009)
More dependent from the ineternational markets
Terms of trade 1900-2008
IMPORT SUBSTITUTION
INDUSTRIALIZATION REGIME
OF ACCUMULATION
FINANCIARIZED
REGIME OF
ACCUMULATION
…And the outflow of resources
CEPAL,2011
Net outflows of Latin America and the Caribbean: foreign direct investment
(In millions of US dollars)
Deregulation of the Economy
FINANCIARIZED REGIME OF ACCUMULATION
0
50
100
150
200
250
300
350
1970 1975 1980 1985 1990 1995 2000 2005
Index (1970=100)
Index of Latin American share of imports in GDP
Index of labour productivity in the Latin American manufaturing
Weakening of international insertion quality
IMPORT
SUBSTITUTION
INDUSTRIALIZATION
REGIME OF
ACCUMULATION
FINANCIARIZED REGIME OF ACCUMULATION
Weakening of international insertion quality
0
50
100
150
200
250
300
350
1970 1975 1980 1985 1990 1995 2000 2005
Index (1970=100)
Index of Latin American share of imports in GDP
Index of labour productivity in the Latin American manufaturing
IMPORT
SUBSTITUTION
INDUSTRIALIZATION
REGIME OF
ACCUMULATION
FINANCIARIZED REGIME OF ACCUMULATION
Weakening of international insertion quality
0
50
100
150
200
250
300
350
1970 1975 1980 1985 1990 1995 2000 2005
Index (1970=100)
Index of Latin American share of imports in GDP
Index of labour productivity in the Latin American manufaturing
IMPORT
SUBSTITUTION
INDUSTRIALIZATION
REGIME OF
ACCUMULATION
FINANCIARIZED REGIME OF ACCUMULATION
...based on a problematic international
insertion to the global economy
Fuente: CEPAL (2007)
LATIN AMERICA: FISCAL REVENUES AND EXPORT PRICES
IMPORT
SUBSTITUTION
INDUSTRIALIZATION
REGIME OF
ACCUMULATION
FINANCIARIZED
REGIME OF
ACCUMULATION
Latin America role in the cojuncture:
lending cheap and borrowing dear
Potential crisis vectors on Latin America:
Jeopardizing mechanisms in a robust
economy
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Balance of payments
crisis recurrent
“angst for dollars”
effects
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Balance of payments
crisis recurrent
“angst for dollars”
effects
Speculative attacks
and permanent
devaluatory
pressures
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Transnational
shyphon out effects
Balance of payments
crisis recurrent
“angst for dollars”
effects
Speculative attacks
and permanent
devaluatory
pressures
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Transnational
shyphon out effects
Balance of payments
crisis recurrent
“angst for dollars”
effects
Speculative attacks
and permanent
devaluatory
pressures
Pervasive short
termism and
predatory
speculation in the
financial sector
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Transnational
shyphon out effects
Balance of payments
crisis recurrent
“angst for dollars”
effects
Speculative attacks
and permanent
devaluatory
pressures
Pervasive short
termism and
predatory
speculation in the
financial sector
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Transnational
shyphon out effects
Balance of payments
crisis recurrent
“angst for dollars”
effects
Speculative attacks
and permanent
devaluatory
pressures
Negative
expectations on
loans repayment
(credit
supply/demand)
Pervasive short
termism and
predatory
speculation in the
financial sector
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Transnational
shyphon out effects
Balance of payments
crisis recurrent
“angst for dollars”
effects
Speculative attacks
and permanent
devaluatory
pressures
Negative
expectations on
loans repayment
(credit
supply/demand)
Bank erosion and
bad private
productive
investment
environment
Pervasive short
termism and
predatory
speculation in the
financial sector
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Transnational
shyphon out effects
Balance of payments
crisis recurrent
“angst for dollars”
effects
Speculative attacks
and permanent
devaluatory
pressures
Negative
expectations on
loans repayment
(credit
supply/demand)
Bank erosion and
bad private
productive
investment
environment
Pervasive short
termism and
predatory
speculation in the
financial sector
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Transnational
shyphon out effects
Balance of payments
crisis recurrent
“angst for dollars”
effects
Speculative attacks
and permanent
devaluatory
pressures
Negative
expectations on
loans repayment
(credit
supply/demand)
Bank erosion and
bad private
productive
investment
environment
Animal spirits down
Pervasive short
termism and
predatory
speculation in the
financial sector
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Transnational
shyphon out effects
Balance of payments
crisis recurrent
“angst for dollars”
effects
Speculative attacks
and permanent
devaluatory
pressures
Negative
expectations on
loans repayment
(credit
supply/demand)
Real wage reduction
and budget cuts
Bank erosion and
bad private
productive
investment
environment
Animal spirits down
Pervasive short
termism and
predatory
speculation in the
financial sector
Potential crisis vectors on Latin America
Exports contraction
(prices and
quantities)
Trade related credit
crunch
Commodity bubbles,
external and fiscal
uncertainty and
instability
Transnational
shyphon out effects
Balance of payments
crisis recurrent
“angst for dollars”
effects
Speculative attacks
and permanent
devaluatory
pressures
Negative
expectations on
loans repayment
(credit
supply/demand)
Real wage reduction
and budget cuts
Bank erosion and
bad private
productive
investment
environment
Animal spirits down
Pervasive short
termism and
predatory
speculation in the
financial sector
Financial-
economicc
crisis
The Ecuadorian Proposal for a
New Regional Financial
Architecture
The Ecuadorian Proposal for a
New Regional Financial
Architecture
New Regional Financial Architecture
A new-type-of-
development bank
New Regional Financial Architecture
A new-type-of-
development bank
New Central
Banking
(network)
New Regional Financial Architecture
A new-type-of-
development bank
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
UNASUR (CELAC ?)’s Financial
Instrument (Councils of Ministers)
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
UNASUR (CELAC ?)’s Financial
Instrument (Councils of Ministers)
Souverain systems of credit and
mobilization of divises, national and
regional currencies
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
UNASUR (CELAC ?)’s Financial
Instrument (Councils of Ministers)
Souverain systems of credit and
mobilization of divises, national and
regional currencies
New epistemologic and axiologic
parameters (internalization of
externalities in indicators, code of
ethics, CSR, etc)
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
A bank for a new type of
development
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
A bank for a new type of
development
Food Sovereignity
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
A bank for a new type of
development
Food Sovereignity
Health Care Sovereignity
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
A bank for a new type of
development
Food Sovereignity
Health Care Sovereignity
Energy Sovereignity
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
A bank for a new type of
development
Food Sovereignity
Health Care Sovereignity
Energy Sovereignity
Knoeledge Production Sovereignity
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
A bank for a new type of
development
Food Sovereignity
Health Care Sovereignity
Energy Sovereignity
Knoeledge Production Sovereignity
Natural Resources Sovereignity
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
A bank for a new type of
development
Food Sovereignity
Health Care Sovereignity
Energy Sovereignity
Knoeledge Production Sovereignity
Natural Resources Sovereignity
Infrastructure Sovereignity
New Regional Financial Architecture
A new-type-of-
development bankBanco del
Sur
Red de Banca
Central
System of payments
compensation
(Cleareance Union)
A new type of development bank
A bank for a new type of
development
Food Sovereignity
Health Care Sovereignity
Energy Sovereignity
Knoeledge Production Sovereignity
Natural Resources Sovereignity
Infrastructure Sovereignity
Popular Economy
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
Sovereign Management of Liquidity
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
Sovereign Management of Liquidity
Multilateral Swaps Matrix
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
Sovereign Management of Liquidity
Multilateral Swaps Matrix
Emergency Facility for Balance of
Payments
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
Sovereign Management of Liquidity
Multilateral Swaps Matrix
Emergency Facility for Balance of
Payments
Emergency Facility for Treasuries
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
Sovereign Management of Liquidity
Multilateral Swaps Matrix
Emergency Facility for Balance of
Payments
Emergency Facility for Treasuries
New System of regional Reserves
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
Sovereign Management of Liquidity
Multilateral Swaps Matrix
Emergency Facility for Balance of
Payments
Emergency Facility for Treasuries
New System of regional Reserves
•Special drawing rights
(global and regional ones) s
•Physical gold and natural
resources
•Divises
•National and regional
currencies
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
Regional
fiduciary
currency
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
Regional
fiduciary
currency
Micro-regional fractal
reproductionNet of networks for local and
regional circuits of settlements
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
Regional
fiduciary
currency
Micro-regional fractal
reproductionNet of networks for local and
regional circuits of settlements
Macro-regional fractal
reproductionNew type of North-South
negotiations and new options for
South –South cooperation
mechanisms (swaps and credit)
New Regional Financial Architecture
A new-type-of-
development bank Banco del
Sur, Banco
del Alba
New Central
Banking
(network)
System of payments
compensation
(Cleareance Union)
Fondo del
Sur
Regional
fiduciary
currency
Real Policy Space for all countries
assuring universal right to work
• Convergence towards a new Bretton Woods:
– Global protection of production-related financeseparated from speculative one (Glass-Steagall )
– Bloc regional monetary arrangements (regional SDR) + global SDR as lender of last resource
– Capital controls and financial re-regulation
– Universal ban on naked short selling and CDS
– Universal Tobin Tax
– Free excess international reserves fordevelopment
Thanks