Saturday, October 13, 2007

Nobel winning economist backs Bank of South

Joseph E. Stiglitz- 2001 Nobel Prize winner in economics- supported the idea of creating a new development bank for the Americas. The idea behind the Banco del Sur (Bank of South) was propelled by the Venezuelan government and Stiglitz gave defended it after meeting with Hugo Chavez:

"One of the advantages of having a Bank of the South is that it would reflect the perspectives of those in the south," he told a media conference. It would boost Latin America's development and provide a useful alternative to the World Bank and the International Monetary Fund.

"It is a good thing to have competition in most markets, including the market for development lending," Prof Stiglitz said.

In addition, Stiglitz praised Venezuela’s economic growth though he warned Chavez that measures need to be taken to “support” growth.

The Banco del Sur will be initially established by seven South American countries and is scheduled to be inaugurated on November 3rd.

Speaking of the Nobel Prize, the campaign to grant the Nobel Peace Prize to Bolivian president Evo Morales ended on Friday when that honor was bestowed on Al Gore and the U.N. panel on climate change.

Image- International Herald Tribune

Sources- Prensa Latina, International Herald Tribune, Bloomberg, Guardian UK, Columbia University, AHN

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