The BRICS nations (Brazil, Russia, India, China, and South Africa) are meeting in South Africa to discuss the mutual interests of emerging market economies. These countries are quite deliberately trying to structure a viable alternative to the Bretton Woods Institutions. The BRICS are convinced that the domination of the US, Europe and Japan in the existing institutions compromises their growth possibilities Today they discussed the creation of a development bank to compete with the World Bank.
China and Vietnam had a military confrontation in the South China Sea a few days ago. The dispute revolves around territorial claims that have defied resolution. China’s claims are not consistent with the UN Law of the Seas Convention, but China refuses to have its claims mediated. Both sides are trying to downplay the military significance of the confrontation, but the situation remains quite tense.
Banks in Cyprus are scheduled to open on Thursday and security will be very tight as officials fear that frightened depositors will overwhelm the baking system. There is also a rising chorus of anger as rumors continue to swirl that rich depositors (Russians who used Cyprus as a tax shelter) were able to take much of their money out of the Cypriot banks due to the connivance of the Bank of Cyprus. The hint of massive corruption in the banking system could trigger violent protests on the island.
World Politics News 
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