Its Shanghai-based New Development Bank (NDB) represents the beginning of a significant challenge to predatory Western financial institutions – the IMF, World Bank and other loan shark lenders of last resort.
The IMF was established to stabilize exchange rates linked to the dollar and bridge temporary payment imbalances. The World Bank’s mandate was to provide credit to war-torn developing countries.
Both bodies proved hugely exploitive – using debt entrapment to transfer public wealth to Western bankers and other major creditors.
Debtor nations are forced take new loans to service old ones – assuring rising peonage and structural adjustment force-fed austerity harshness, including:
- privatization of state enterprises sold at fire sale prices;
- mass layoffs;
- deep social spending cuts;
- wage freezes or cuts;
- unrestricted free market access for Western corporations;