Reform of the global financial structure has become a rallying cry for the New Development Bank (NDB), more commonly known as the BRICS bank.
A system tailored for the global south
Drawing upon her international experience, Rousseff addressed a captive audience at the 14th Lujiazui Forum in Shanghai. She outlined her vision for the future: a financial structure better equipped to meet the challenges faced by nations outside the traditional spheres of power.
The Global South, a term popularized by American writer Carl Oglesby to represent less developed nations in regions like Latin America, Africa, Asia, and Oceania, has long been underserved by the current financial paradigm.
For Rousseff and the BRICS bank, the solution lies in reimagining the financial architecture to channel liquidity effectively and feasibly to these countries.
The ambition is to promote sustainable growth in these areas, in line with their specific conditions and scales. The proposed tools of this reformation include focusing on local currencies to stimulate long-term investments.
The road to equitable and sustainable growth
In furthering this goal, Rousseff reiterated her previously expressed stance on financing projects using local currencies.
The dual benefits of this approach lie in strengthening the domestic markets of member nations while also offering protection against the volatility of foreign currency fluctuations.
Amidst global shifts in power dynamics, Rousseff underscored the strategic significance of multilateralism. She cited the example of China’s “Belt and Road” initiative, which aims to establish a more balanced multipolar world order, resonating with BRICS’ own ethos.
As part of this global vision, the bank seeks to build a more equitable and sustainable world.
Reflecting this inclusive approach, the BRICS bank has expanded its reach beyond the original bloc, welcoming Bangladesh, Egypt, and the United Arab Emirates into its fold.
Argentina, currently engaged with the International Monetary Fund (IMF), has also sought to join the bank and secure financial support.
The most recent application comes from Honduras, with President Xiomara Castro formally expressing the nation’s interest during her visit to Shanghai.
If successful, this addition will further extend the BRICS bank’s influence and solidify its role in shaping a financial framework that caters to the unique needs of the Global South.
In summation, BRICS bank, under Rousseff’s leadership, is not just advocating for a change in the financial system.
They are actively working towards creating a more equitable and balanced global financial structure, providing the Global South with the tools they need to foster sustainable growth.
This evolution, steered by nations who have often found themselves on the outskirts of financial power, marks a significant step towards a more inclusive and diverse global economy.