Emerging Economies Seek Greater Global Voice
Key Highlights
- BRICS called for reforms to the IMF and World Bank.
- Emerging and developing economies want greater voting power and representation.
- The grouping raised concerns over unilateral tariffs and trade barriers.
- BRICS backed a stronger role for the New Development Bank.
- Members also advanced work on the Contingent Reserve Arrangement.
- Cooperation is expanding across payments, infrastructure, taxation and financial stability.
BRICS finance ministers and central bank governors have stepped up calls for reforms to global financial institutions, seeking a greater voice for emerging and developing economies in the international economic system.
In a joint statement following meetings in Jaipur and Mumbai, the finance chiefs said the expanded BRICS membership has strengthened the grouping’s diversity and representativeness. They reaffirmed their commitment to closer economic and financial cooperation.
The ministers highlighted risks from geopolitical tensions, trade fragmentation, protectionism, policy uncertainty, fiscal pressures, inflation, rising debt and financial vulnerabilities. They also expressed concern over unilateral tariffs and non-tariff measures, saying such actions distort trade and are inconsistent with World Trade Organization rules.
A key focus was reform of the Bretton Woods institutions, particularly the IMF and World Bank. BRICS called for these institutions to become more representative, transparent, accountable and effective, with governance structures reflecting the changing global economy.
The grouping backed implementation of quota increases under the IMF’s 16th General Review of Quotas and called for meaningful quota realignment under the 17th review. It also highlighted the need for greater representation of emerging markets and developing economies in the leadership of the IMF and World Bank.
BRICS finance chiefs also supported a stronger role for the New Development Bank in financing infrastructure and development projects across the grouping and the wider Global South. They encouraged the bank to expand local-currency financing, diversify funding sources and mobilise more resources.
The statement also welcomed progress on a proposed BRICS Multilateral Guarantees initiative, which aims to attract private capital and reduce financing costs for development projects.
Central banks meanwhile advanced work on the BRICS Contingent Reserve Arrangement, a financial safety-net mechanism designed to provide liquidity support to members facing balance-of-payments pressures.
The finance track also covered insurance, pensions, settlement infrastructure, cybersecurity and emerging technologies, signalling a broader push towards greater financial cooperation among BRICS economies. (The Financial Express)
