Javier Hernandez Dilma Rousseff, the president of the New Development Bank (NDB), commonly known as the BRICS bank, and former president of Brazil, has called for the establishment of a financial framework specifically designed to cater to the needs of the Global South. During her keynote speech at the 14th Lujiazui Forum, Rousseff emphasized the significance of this new structure in promoting sustainable growth.
Rousseff Urges Direct Liquidity Support for Global South Nations
In her opening keynote address titled “Global Financial Opening-up and Cooperation: New Drivers of Economic Recovery” at the 14th Lujiazui Forum in Shanghai, BRICS Bank President Dilma Rousseff outlined her vision for the institution. She highlighted the necessity of creating alternative financial systems tailored to the requirements of the Global South.
Rousseff stated:
“It is crucial that we urgently establish a new framework to efficiently channel available liquidity, enabling financing on the necessary scale and under conditions that meet the needs of Global South countries.”
The concept of the Global South, originally coined by American writer Carl Oglesby in 1939, encompasses underdeveloped countries beyond the traditional centers of power, including regions in Latin America, Africa, Asia, and Oceania.
Rousseff further emphasized that the creation of these new financial tools, preferably denominated in local currencies, was “essential” for facilitating long-term investments.
This is not the first instance in which Rousseff has stressed the importance of funding such initiatives using local currencies. During the keynote address at the eighth annual meeting of the BRICS bank, Rousseff declared:
“We will endeavor to finance a greater proportion of our projects using local currencies, with the dual objective of strengthening the domestic markets of member countries and safeguarding our borrowers from the risks associated with currency fluctuations.”
Advocating Multilateralism
Rousseff underscored the strategic significance of multilateralism, highlighting how initiatives like China’s “Belt and Road” contribute to creating a balanced multipolar world order. She emphasized that the BRICS bank would actively work towards building a more equitable and sustainable world.
In line with this approach, the bank has already welcomed three additional countries that are not part of the BRICS bloc: Bangladesh, Egypt, and the United Arab Emirates. Argentina, currently engaged in a loan agreement with the International Monetary Fund (IMF), has also applied to join the BRICS bank and receive financial support.
Honduras is the most recent country to formally apply for membership in the bank, with its application submitted during a recent visit by Honduran President Xiomara Castro to Shanghai.
What are your thoughts on the BRICS bank’s efforts to develop alternative financial structures specifically for the Global South? Share your opinions in the comments section below.
Table Of Contents
Frequently Asked Questions (FAQs) about Global South-focused financial system
What is the BRICS bank and who is its president?
The BRICS bank, officially known as the New Development Bank (NDB), is an international financial institution established by the BRICS countries (Brazil, Russia, India, China, and South Africa) to support infrastructure and sustainable development projects. Dilma Rousseff, the former president of Brazil, is the current president of the BRICS bank.
What is the purpose of establishing a financial architecture for the Global South?
The establishment of a financial architecture for the Global South aims to cater to the unique needs and challenges faced by underdeveloped countries outside the traditional centers of power. It seeks to channel liquidity and provide financing on a scale and under conditions suitable for the countries in the Global South, promoting sustainable growth and long-term investments.
Why is it important to fund projects in local currencies?
Funding projects in local currencies serves two important objectives. Firstly, it strengthens the domestic markets of member countries by promoting local currency usage and reducing dependence on foreign currencies. Secondly, it protects borrowers from the risks associated with currency fluctuations, ensuring stability and sustainability in project financing.
How does the BRICS bank support multilateralism?
The BRICS bank views multilateralism as strategically significant. It recognizes initiatives like China’s “Belt and Road” as drivers for a balanced multipolar world order. By including countries beyond the BRICS bloc, such as Bangladesh, Egypt, and the United Arab Emirates, and considering applications from countries like Argentina and Honduras, the BRICS bank actively promotes a more equitable and sustainable world through financial cooperation and support.
What are the advantages of constructing alternative financial structures for the Global South?
Constructing alternative financial structures for the Global South allows for tailored financial solutions that address the specific needs and challenges faced by these countries. It promotes inclusivity, empowers local economies, and facilitates sustainable development by providing accessible financing options and reducing dependence on traditional financial systems.
More about Global South-focused financial system
- New Development Bank (NDB) – Official Website
- BRICS Official Website
- Dilma Rousseff – Wikipedia
- Belt and Road Initiative – Official Website
- BRICS Bank Includes Bangladesh, Egypt, and UAE – Business Standard
- Argentina Applies to Join BRICS Bank – China Daily
- Honduras Formally Applies for BRICS Bank Membership – Reuters
5 comments
i luv how roussef emphasiz the use of local curriencies, it strenghtns our markets n protcts us from risks, go brics bank!
brazil, russia, india, china, south africa united 4 brics bank, roussef’s prezident, they makin a diffrnce in global south, awsm teamwork!
multilateralism iz soooo importnt, glad brics bank supports it, buildin a mor equitable n sustainble world, go global south!
brics bank iz such an imp. devlpment 4 global south, rousseff is doin a gr8 job leadin it, supportin long-term investmnts, we need mor finncial inclusivity!
constructin alternative finncial structres 4 global south is a game-changer, it helps address unique needs n boost local economies, thumbs up brics bank!