BRICS Bank President Urges For Global South-Focused Financial System
Dilma Rousseff, the president of the New Development Bank (NDB), known as the BRICS bank, emphasized the need for a financial system that caters to the Global South. Speaking at the 14th Lujiazui Forum in Shanghai, Rousseff underlined the importance of the new structure for promoting sustainable growth.
Direct Liquidity and Local Currencies Key in New Financial Architecture
Dilma Rousseff, president of the New Development Bank (NDB), also called the BRICS bank, advocated for the creation of alternative financial structures tailored to the unique needs of underdeveloped countries outside traditional centers of power. In an opening keynote speech at the 14th Lujiazui Forum held in Shanghai, titled “Global Financial Opening-up and Cooperation: New Drivers of Economic Recovery,” Rousseff talked about the importance of establishing alternative financial structures for the Global South.
Rousseff stated:
"It is urgent we create a new architecture to channel the available liquidity to make financing feasible on the scale and under the conditions required by the countries of the Global South."
The concept of the Global South, coined by American Writer Carl Oglesby in 1939, refers to underdeveloped countries outside of the traditional centers of power, including parts of Latam, Africa, Asia, and Oceania.
The Brazilian leader further emphasized the importance of developing new financing tools, preferably denominated in local currencies. According to Rousseff, such measures are "essential" to stimulate long-term investments and foster economic stability.
Her commitment to funding projects in local currencies aligns with her previous statements at the BRICS bank's annual meeting. During the keynote of the eighth annual meeting of the BRICS bank, Rousseff declared:
"We will seek to fund a greater share of our projects in local currencies, with the dual objective of strengthening the member countries’ domestic markets and protecting our borrowers from the risks of currency fluctuations."
Significance of Multilateralism
Rousseff also underlined the significance of multilateralism and praised initiatives like China's "Belt and Road" project, which promote a balance in the new multipolar world order, outlining that the BRICS bank looks forward to building a more equitable and sustainable world.
The BRICS bank, in line with this vision, has recently expanded its membership to include Bangladesh, Egypt, and the UAE, countries outside the traditional BRICS bloc. Additionally, Argentina, amidst its engagement with the IMF, has sought to join the bank and access its financial support.
Notably, Honduras has become the latest country to formally apply for membership in the bank, signaling its intent during President Xiomara Castro's recent visit to Shanghai. The BRICS bank's widening reach reflects its commitment to fostering inclusive development and supporting countries seeking economic empowerment.
We invite you to share your thoughts on the BRICS bank's endeavor to construct alternative financial structures that serve the Global South. Please join the conversation in the comments section below and be part of this crucial dialogue shaping the future of global finance.
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