17 hrs ago
BRICS Seeks IMF, World Bank Reform, Challenges Tariffs
BRICS finance officials want countries with growing economies to have more power in the IMF and World Bank.
They say these institutions should better match how the world economy has changed.
They asked for more voting power and more leadership positions for developing countries.
They also criticized tariffs and other trade restrictions.
They said these policies can hurt developing countries especially strongly.
The officials warned that conflict, trade problems, debt, inflation and uncertainty could weaken the global economy.
BRICS countries are studying ways to make payments between members faster and cheaper.
They may use local currencies and connect digital payment systems, but they have not agreed on one shared currency.
BRICS finance chiefs and central bank governors called for greater representation of emerging and developing economies in the IMF and World Bank.
They urged implementation of agreed IMF quota increases and development of a meaningful quota realignment under the next review.
The officials criticized unilateral tariffs and other trade measures, saying they distort commerce and disproportionately hurt developing economies.
They identified geopolitical tensions, trade fragmentation, policy uncertainty, debt and inflation as risks to global growth.
BRICS members agreed to pursue faster, cheaper cross-border payments using interoperable systems, local currencies and potentially digital currencies, but not a common currency.
- Who
- BRICS finance ministers and central bank governors.
- What
- They called for reform of the International Monetary Fund and World Bank, criticized tariffs and trade barriers, and discussed improving cross-border payments.
- Where
- The statements were issued by BRICS officials; the articles do not specify the meeting location. India was identified as the host of the BRICS Leaders’ Summit that weekend.
- When
- The statements were issued late Thursday and reiterated on Friday; the articles do not specify calendar dates.
- Why
- BRICS officials said global financial institutions should reflect the growing role of emerging and developing economies and that tariffs and other unilateral measures harm trade and developing countries.
Key facts
- Institutions targeted
- International Monetary Fund and World Bank
- Governance proposals
- Higher IMF quota and voting shares, greater leadership representation, and more transparent and inclusive selection processes
- IMF quota reviews
- BRICS urged implementation of increases agreed under the 16th General Review of Quotas and meaningful realignment under the 17th review
- Trade concerns
- Unilateral tariffs and non-tariff measures that BRICS said distort trade and conflict with World Trade Organization rules
- Economic risks
- Geopolitical tensions, trade fragmentation, policy uncertainty, debt and inflation pressures
- Payment discussions
- Faster, lower-cost and more interoperable cross-border payments among BRICS members
- Currency position
- The group did not announce a common BRICS currency or unified payment system; it is examining local and central bank-backed digital currencies
Quotes
Finance ministers and central bank governors of BRICS countries
Finance chiefs representing BRICS member countries
“We continue to have serious concerns with the unilateral imposition of trade and finance-related actions, including the raising of tariffs and non-tariff measures, which distort trade and are inconsistent with World Trade Organisation rules,”
telegraphindia.com
“We reiterate the urgent need to reform the Bretton Woods Institutions to make them more agile, effective, credible, inclusive, fit for purpose, unbiased, accountable, and representative.”
theprint.in
Sources
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