Resources Research

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Posts Tagged ‘Brasil

Retiring the American dollar

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Off into history's sunset, like the cowboy. This image (modified) is called 'Dollar Green' by the artist mancaalberto (http://mancaalberto.deviantart.com/)

Off into history’s sunset, like the cowboy. This image (modified) is called ‘Dollar Green’ by the artist mancaalberto (http://mancaalberto.deviantart.com/)

Seventy years ago, to the very month, a man named Henry Morganthau celebrated the creation of a “dynamic world community in which the peoples of every nation will be able to realise their potentialities in peace”. It was the founding of what came to be called the Bretton Woods institutions (named after the venue for the meeting, in the USA) and these were the International Bank for Reconstruction and Development – better known as the World Bank – and the International Monetary Fund.

None of the lofty aims that seemed so apposite in the shattering aftermath of the Second World War have been achieved, although what has been written are libraries of counter-factual history that claim such achievements (and more besides) commissioned by both these institutions and their web of supporting establishments, financial, academic, political and otherwise. Instead, for the last two generations of victims of ‘structural adjustment’, and of ‘reform and austerity’ all that has become worthwhile in the poorer societies of the world has been achieved despite the Bretton Woods institutions, not because of them.

Now, seventy years after Morganthau (the then Treasury Secretary of the USA) and British economist John Maynard Keynes unveiled with a grey flourish a multi-lateral framework for international economic order, the Bretton Woods institutions are faced with a challenge, and the view from East and South Asia, from Latin America and from southern Africa is that this is a challenge that has been overdue for too long.

Let's get the de-dollarisation of the world started.

Let’s get the de-dollarisation of the world started.

It has come in the form of the agreement between the leaders of five countries to form a development bank. Russia’s President Vladimir Putin, China’s President Xi Jinping, India’s Prime Minister Narendra Modi, Brazilian President Dilma Rousseff and South Africa’s President Jacob Zuma made formal their intention during the sixth summit of their countries – together called ‘BRICS’, after the first letters of their countries’ names – held this month in Brazil.

What has been set in motion is the BRICS Development Bank and the BRICS Contingency Reserves Arrangement. Both the new institution and the new mechanism will counter the influence of Western-based lending institutions and the American dollar, which is the principal reserve currency used internationally and which is the currency that the IMF and the World Bank conduct their ruthless business in (and which formulate their policies around, policies that are too often designed to impoverish the working class and to cripple labour).

At one time or another, and not always at inter-governmental fora, the BRICS have objected to the American dollar continuing to be the world’s principal reserve currency, a position which amplifies the impact of policy decisions by the US Federal Reserve – the American central bank – on all countries that trade using dollars, and which seek capital denominated in dollars. These impacts are, not surprisingly, ignored by the Federal Reserve which looks after the interests of the American government of the day and US business (particularly Wall Street).

In the last two years particularly, non-dollar bilateral agreements have become more common as countries have looked for ways to free themselves from the crushing Bretton Woods yoke. Only this June, Russia’s finance minister said the central banks of Russia and China would discuss currency swaps for export payments in their respective national currencies, a direction that followed Putin’s visit to China the previous month to finalise the gigantic US$400 billion deal between Gazprom and China National Petroleum Corporation (CNPC). It is still early, and the BRICS will favour caution over hyperbole, but when their bank opens for business, the sun will begin to set on the US dollar.

The Andean Cosmovision of the Kallawaya, and chemodiversity

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The Kallawaya are an itinerant community of healers and herbalists living in the Bolvian Andes. The Andean Cosmovision of the Kallawaya was inscribed in 2008 on the Representative List of the Intangible Cultural Heritage of Humanity. Photo: UNESCO/J Tubiana

The Kallawaya are an itinerant community of healers and herbalists living in the Bolvian Andes. The Andean Cosmovision of the Kallawaya was inscribed in 2008 on the Representative List of the Intangible Cultural Heritage of Humanity. Photo: UNESCO/J Tubiana

In a short and insightful commentary in the latest issue of the Unesco Courier, Vanderlan da Silva Bolzani has discussed ‘chemodiversity’ as being “one component of biodiversity”. It’s a truth we often miss or overlook. The latest issue of the Unesco Courier, 2001 January-March, celebrates 2011 as the International Year of Chemistry.

Since the Earth Summit (Rio de Janeiro, Brazil, 1992), da Silva Bolzani has written, the exploitation of natural resources and the socio-economic benefits of bioprospecting have become increasingly poignant issues. One of the principal goals of the Convention on biological diversity, which was adopted at the Summit, is “the conservation of biological diversity, the sustainable use of its components, and the fair and equitable sharing of the benefits arising from the utilization of genetic resources.” But bioprospecting, which consists of making an inventory of the components of biodiversity with a view to ensuring their conservation and sustainable use, has, on the contrary, not ceased to be misused to further the interests of industry, which often patents the substances as they are found.

The tenth Conference of Parties to the Convention, held in Nagoya (Japan) in October this year, will change the picture, though, as it reached a legally binding agreement on the fair and equitable use of genetic resources. As from 2012, this Protocol will regulate commercial and scientific relations between countries which possess not only most of the organic substances, but also the knowledge – often non-scientific – surrounding these resources, and those countries wishing to use them for industrial purposes. A new page has turned in the history of the exploitation of the extraordinary chemodiversity of so-called ‘megadiverse’ countries.

Chemodiversity is one component of biodiversity. Secondary metabolites – alkaloids, lignans, terpenes, phenylpropanoids, tanins, latex, resins and the thousands of other substances identified so far – which have a whole host of functions in the life of plants, are also playing a crucial role in the development of new drugs. And, although we are living in the era of combinatory chemistry, with high-speed screening and molecular engineering, we still continue to turn to nature for the raw materials behind many medically and economically successful new treatments. Nature has provided over half of the chemical substances that have been approved by regulatory bodies across the world over the past 40 years.

[Vanderlan da Silva Bolzani is Professor of Chemistry at the Institute of Chemistry-UNESP, (Araraquara, Sao Paulo, Brazil) and Past President of the Brazilian Chemical Society (2008 – 2010)]