Banking on the BRICS

The five-member BRICS countries account for roughly 18 per cent of the world's GDP [AFP]

The proposal of a development bank between the five BRICS nations – Brazil, Russia, India, China, and South Africa was the main topic of discussion at last week's 4^th Annual Brics Summit in New Delhi.  The South-South development bank would pool resources for things such as lending and infrastructure improvements as well as facilitate trade. The leaders also discussed the possibility of extending credit to member countries in local currency, side stepping the dollar as the main unit of trade between the BRICS. Talk of setting up a BRICS bank has generated a flood of news stories trying to predict the future implications. 

Here are a few examples of recent news headlines:

• BRICS summit to explore creation of bank
  Al Jazeera | http://aje.me/HdlUWX
• BRICS Can Lead Whole Global South in Quest for Financial Justice CRIENGLISH.com | http://bit.ly/HFBCtO
• Why a Brics-built bank to rival the IMF is doomed to fail 
  The Telegraph | http://tgr.ph/HblZK
• Emerging Markets Look to Drop BRICS on U.S. Dollar  
  International Business Times | http://bit.ly/HRmW8L
• The west must wake up to the growing power of the Brics The Guardian | http://bit.ly/HiAUQy                         
• World Bank Open to Partnering Brics Bank
  Wall Street Journal | http://on.wsj.com/HL2dYKv                               

You can see how these news sources are covering the same story in different ways. The order of the articles I read above also shows the progression of coverage:

1. Exploration of development bank. 
2. BRICS will free the Global South from financial dependency. 
3. The BRICS bank attempt to rival the World Bank and the IMF will fail.  
4. Uh oh, the U.S. dollar will be affected.
5. Hey, you - the West, watch out for the strengthening of the BRICS.
6. Solution to #5: Global North can "partner" with the BRICS bank. 

Why does this all matter? MONEY, POWER, CONTROL and last, but not least: the numbers. According to the Al Jazeera article:  The five members now account for roughly 18 per cent of the world's GDP, 15 per cent of global trade and hold 40 per cent of global currency reserves. They account for the 40 per cent of the world population.

Many argue the BRIC concept, conceived in 2001 by Jim O'Neill of Goldman Sachs is just that - a concept. Many articles touch on the fact that these countries do not have much in common besides being locating in the Global South and their desire to rid ties to Western institutions.  However, with the BRICS's combined global economic power and 40 percent of the world population, this "concept" is getting a little more disconcerting to the West. The news went from, "The BRIC bank is DOOMED to failure" to "The World Bank wants to partner with BRIC bank" within a week. Talking about changing tides.  Who is going to call the shots now?

Before global power relations really change, the BRICS need to get on the same page to ensure more international bargaining power. Another point of contention in the media is - Who is going to gain what from this development bank? Aren't some of the BRICS countries at a greater advantage to reap the benefits? China? An opinion column in The Bangkok Post highlights the emerging asymmetrical relations within the bloc:

"Lending and trading in renminbi is likely to boost China's international standing and clout. But its undervalued currency and hidden export subsidies have been systematically undermining manufacturing in other Brics nations, especially India and Brazil."  This excerpt points out the false notion that South-South transfer is always equitable. Undermining manufacturing in member countries?  

We will have to wait and see how the BRICS development bank progresses. Regardless, the rest of the world should realize global power is shifting. (The World Bank does and that's why it suddenly wanted to "partner" aka maintain some control.) In previous posts Jeannie has covered Iranian influences in Latin America and this latest BRICS Summit highlighted the continued relations: BRICS refuses to side with US in showdown with Iran – 

The Economic TImes http://bit.ly/HcQ287.  

The long and short of it is - the Global South is uniting. What does this mean for development and education? Where will the models of education/development come from if the Global North isn't calling all the shots?  

The "Golden Opportunity" for the South - Foxconn

Employees work on the assembly line at the Foxconn plant in Shenzhen, China.
Photograph: Bloomberg via Getty Images

China's wage hikes could benefit Americas
The Miami Herald

By Andres Oppenheimer

March 3, 2012
Citation: http://bit.ly/wagehikes

Good news for Latin America: wages in China, Vietnam and other Asian countries are rising faster than expected, leading growing numbers of multinational firms to move their manufacturing plants to Mexico and other countries closer to the U.S. market.

Read more...

According to economists, Chinese salaries are destined to increase for decades to come with the growing appreciation of Chinese currency, higher educations standards, and a declining workforce.  Most multinational companies will keep plants in China to serve the domestic market as well as neighboring countries in Asia, but will move their export-oriented plants to other parts of the world. The author contends: “Either way, Asia’s rising wages present a fabulous opportunity for Latin America.” He argues in order to lure foreign manufacturing plants and to export increasingly sophisticated goods and services to China, Mexico and Central America will have to reduce their violence rates, and all Latin American countries will have to dramatically improve their education systems, which currently lag far behind those of their Asian competitors. He concludes that Latin American countries that take advantage of this golden opportunity will do great in coming decade and they will have Asia’s rising wages to thank.

In order to persuade China to move plants to Latin America, these countries will have to make adjustments to their educational initiatives to develop a workforce capable of providing these “sophisticated” goods and services. I would argue it is too soon to know what these educational adjustments will look like, but not everyone thinks China’s economic involvement in Latin America is a positive according to an article by Univision: “China in Latin America: Should we be worried?” The article points out China’s investment in Latin America has increased 400% during the past decade which creates a new reliance on Chinese commodity demand and China’s state-run companies, and now additional goods and services. This “golden opportunity” sounds more like a dependency model and its affect on education will run deep. Will Mandarin be the second language of the next generation in Brazil? Will vocational studies focus more on technology? Will China take over in the exploitation of Latin American? The Univision article argues this isn’t a “win-win” situation because Chinese companies do not have to follow the same rules as those from the U.S., Europe, or even Latin America leading to general corruption and increases the likelihood of bribery, smuggling, and poor environmental practices. I conclude Latin American should access this opportunity wisely before overhauling educational practices to cater specifically to the Chinese economic demands.  

The Progress of Education in Latin America

Photograph: Manu Dias/AGECOM Bahia

Moving Latin American Education Forward

Latin Business Chronicle

February 15, 2012

By Gabriel Sanchez Zinny
Citation: http://tinyurl.com/7jahvuo

In the last few decades, Latin America has fared poorly in various international educationtesting assessments. The most well-known, the Program for International Student Assessment, administered by the OECD most recently in 2009, only included nine countries in the region, but the results were not encouraging, as these nine participants finished somewhere between 44th and 63rd place, out of 65 countries tested. Chile placed at the top of the region, with Uruguay close behind, but both countries still ranked well below average. However, there are encouraging signs of education reform in Latin America, and they provide a foundation for improving education throughout the region—a daunting but feasible and necessary task.

Article clipped; see link above for full version

Despite the low grades that Latin America has received on international education testing assessments, there has been a surge in funding for education throughout the region. In the past several years, Latin America nations have, individually, spent about $200 billion per year on education and as a region has received more than $5 billion from multi-lateral organizations. Their approach to education has also recently changed. Once focused on school attendance and retainment of students, ministries of education are now concentrating on investing in the quality of schools. Primarily they are beginning to follow the models of their fellow global nations like Singapore, Finland, and South Korea. Studies in these countries have shown that teachers are the essential school based factor that influences achievement rates of students.

As a result of the large amount of funds required to propel these ventures, Latin America have seen a new set of investors join the education scene. Business companies and other organization have stepped up in order to address these educational woes, providing support when public sectors do not have the resources or capital. Organizations like Argentina's EducAr 2050, Mexicanos Primeo, and Brazil's Todos Pela Educacao, are promoting the value of stronger curricula and effective teachers by integrating improved management skills and introducing technology into the classroom. It is the hope of these regional programs and initiatives to not only provide better support to the education system, but to also improve the learning conditions and quality of education for future generations.

When I initially read this article I was skeptical of Latin America's tactics to solve their problems with the quality of education in their respective countries. Immediately their intentions were good, to invest large sums of money in their education system. However their quick reactions only fulfilled their short term goals. When Latin American countries' focus shifted from short term to long term, they refined their approach and found global models that produced the results that they desired. Even then I was wary of their choice to have outside education systems be the model of achievement for their own. The last time I read an article about Latin America modeling other more "developed" nations' education systems, it ended in protesting on the streets in Chile (see my post Hidden Strife within Chile's Education System). However I was pleasantly surprised that, unlike the case of Chile, less government involvement and more private initiative seem to not only support the financial aspects of education reform, but also the personal side of education.

For me this article touched upon many of the same issues and concerns seen in Jaime's post The Case for Local Business Support for Education in Nicaragua. These companies took an interest in promoting education reform not just because it would improve the achievement of students, but that improving the quality of education now could lead to many other long lasting results. The benefits that society could reap from these investments could transcend present time and support the success of future generations. While this article focused more on national organizations rather than local ones, I feel that the concepts are very much similar. This sense of nationalism and pride propelled these organizations to take a calculated risk and invest in the future of their country's education system in hopes that the results generated would indeed produce an overall benefit to society and not just improve one set of achievement statistics.

Breaking Gender Stereotypes in Latin America

Mathematics and Women: Breaking a Vicious Cycle

By Claudia Uribe and Hugo Nopo

Inter-American Development Bank

March 8, 2012

Citation: http://tinyurl.com/7yakjop

All over the world, girls seems to struggle with mathematics and science more than boys, and Latin America is no exception. Studies show that from a young age girls perform below boys on math and science tests, and this gap widens with age. More efforts are needed to understand the causes behind differential performance, how it might relate to observed patterns of gender segregation later in life (particularly in the labor market), and how it can be addressed through education.

(Article clipped, see link for full version)

This article indicates the issues that girls face in math and science learning, and points to how education can help lessen this gap between boys and girls. The article highlights that in some countries like China, girls and boys' performance in math and science is equal; however, recent brain imaging indicates that differences in brain structure and function could allow for different learning patterns in boys and girls. Due to these differences, a variety of education strategies need to be taken into account to provide extra support for girls in math and science education. However, the article also focuses on the gender-based stereotype that girls face ("engineering is for men," "girls hate math"), and how this impacts girls' views of themselves as well as teacher's view of female capabilities. Gender-based preferences in labor also continue into adulthood, where women choose jobs that are either "women's work" or segregate themselves into certain niches (like being nurses instead of doctors). In a 2009 PISA evaluation in Latin America, boys did better than girls in math and science on average, and this gap only increases with age. In order for this challenge to be overcome, stereotypes need to be disbanded, more female math and science teachers are needed, and parenting styles need to be altered.

To preface this post, I'll provide a bit of background on a important concepts: Functionalism, Neo-Marxism, and Feminist Perspectives, which have been creeping into my daily life ever since I became a graduate student here at UPenn. Functionalism basically states that society is a complex system, and everyone does their own part in order for it to function (think a Ford Factory assembly line). Neo-Marxism essentially critiques Functionalism, and addresses how social class unfairly impacts everything. Feminist perspectives, as I understand them (check out the book School and Society by Feinberg and Soltis; I know it's a boring academic read, but trust me, you'll definitely learn something!), address gender-based stereotypes about math and science in the classroom, and assumptions based on gender that occur in the home. First, I want to comment on the section of the article that focuses on the differences of the male and female brain structure and function. I am not disputing science; however, I think that despite the good intention behind including this information in the article (ie: evidence which promotes innovative education strategies for girls), that the information about girls' math and science education in parts of Asia and Europe contradict it. For example, in Singapore, Sweden, and China, girls are on par or perform better than boys in math and science. Instead of focusing on differences that are evident in brain imaging, perhaps we should be focusing on what exactly is occurring in these classrooms and cultures that is positively affecting girls' math and science education.

Next, I want to comment on this issue around gender-based stereotypes for girls in math and science. This article points out that girls perceive math and science as fields dominated by men, and that teachers have a certain perception about girls in math and science. Since fewer girls take part in math and science, sexist assumptions what women are incapable of entering these fields are perpetuated, and this can even affect girl's self-esteem, causing them to underestimate their own abilities for fear of challenging these assumptions which they have internalized. I'm naturally bad at math, and as a child, I definitely played right into this stereotype. But even one of my best friends, who is an engineer, had to contend with these issues for most of her academic life. Given these examples, my question is how can one really alter culturally based stereotypes? After all, machismo is quite prevalent in Latin American culture. In fact, an interesting study was done evaluating how many Latin American men and women agreed with the statement "a woman's place is in the home," (see: http://www.zonalatina.com/Zldata77.htm). The Inter-American Development Bank article suggests that stereotypes can be challenged by using critical examination of gender roles. Based on my research of the SAT program in Nicaragua, I would say that this point does carry some weight. For example, the SAT curriculum, does indeed help men and women confront issues surrounding gender in Latin America. Women in the program have actually sat down with their husbands and asserted themselves, and because of how it is written, the husbands actually understand!

However, as the article indicates, another major problem is that most math and science teachers are men. Therefore, girls don't have many female teacher role models who are strong and proud of their math and science achievements. Given machismo and other cultural aspects that fuel stereotypes, how can girls truly be encouraged to become math and science teachers in Latin America? Finally, the article indicates that part of the problem with gender-based stereotypes lies at home, where traditional attitudes are displayed about women's roles in the household. The article advocates giving children equal roles in the household, but this seems easier said than done.

There is no doubt that this is a serious problem that many girls in Latin America face. I just wonder what can really be done about it.

UNIALBA Higher Education System: Socialism or Functionalism?

Logo ALBA: Argentina Indymedia

LATINAMERICA: Higher education integration for bloc

University World News

August 14, 2011

Citation: http://tinyurl.com/82w8knd

Member states of Latin America's left-leaning political bloc known as Alba are organising to create an integrated higher education system. The eight participating nations aim to pool resources with a view to strengthening their universities. But the initiative, which has a strong socialist and anti-US agenda, has come in for widespread criticism.

The Bolivarian Alliance for the Peoples of Our America, or Alba - which includes among others the governments of Venezuela, Ecuador, Nicaragua, Bolivia and Cuba - was founded by Venezuelan President Hugo Chávez in December 2004.

The alliance's higher education integration initiative was announced in Nicaragua in June and emphasises strengthening universities and sharing advances made with each of the member countries.

But while pooling resources in higher education is a positive step, according to Kevin Casas Zamora (pictured), a former Costa Rican vice-president and political analyst with the Brookings Institution, it is dangerous when linked to a political agenda.

Article clipped; see link above for full version

Members of the Bolivarian Alliance for the Peoples of Our America, as known as ALBA, are proposing a collaborative higher education system. It is their hope that by pooling all of their resources together that these eight nations will be able to form a network of universities that will support the demand for more venues of higher education in their respective countries. However, this proposal has gained a significant amount of criticism because of the political agenda that is often associated with such projects accomplished through this alliance. In this case, how can education and free thought be fostered in an environment laden with stringent socialist and anti-U.S. ideologies. Not only does the underlying "education" seem to be problematic, but also the coordination of a cohesive curriculum and grading structure. While ministry officials from the two main countries, Cuba and Venezuela, assure that the a unified, integrated system is possible, critics remain skeptical of the accomplishment of such a large venture.

With this type of politically driven university system it is important to consider the role that education will play outside of the institution of learning. Now from a functionalist perspective one could see how this system would easily be able to satisfy the needs within both local and national contexts. However, the implications of this UNIALBA system could have more complex and global implications. It is hard to ignore that these ALBA nations would use this system to propagate the standard set of norms supported by a socialist society. This system has been presented by ALBA ministry officials as a way to not only open up more opportunities for their citizens to learn and grow, but also as a way to preserve what they believe to be their values and beliefs. Within UNIALBA, their way of life could be culturally and socially reproduced. (see

http://tinyurl.com/c87jnx5)

While this may be a very rational response preserve the common identity of these nations, their socialist and anti-U.S. views might support a narrow minded world view. Not only could this type of curriculum be designed to eliminate all opposing ideas, but it could also present a space to openly challenge relations with other non-socialist countries within and outside of Latin America. These are the types of questions that need to be raised in order to solicit the true nature of this education system. What consequences will this type of education system have on these Latin American citizens? Will their underlying political agenda pose a threat to other Latin American countries? One might even go further to see if the support for these ideologies on such an immense scale does pose a threat to U.S. national security?