The initiative aimed at the creation of a South American multilateral financial institution or the South Bank as part of an effort to building a new regional financial architecture has run into trouble as consensus on the role of the new institution was never reached among South Bank member countries. The focal points of conflict are related to the composition of capital and the decision-making system of the new institution, which at the same time will be crucial to decide on the Bank’s finance goals – maybe the main reason for disagreement among partners.
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(Gabriel Strautman is an economist at PACS Institute and member of Rede Brazil on Multilateral Financial Institutions and Rede Jubileu Sul. The author thanks María José Romero – of the Third World Institute in Uruguay – for her comments.)