Finance ministers from BRICS have presented a joint proposal for reforming the International Monetary Fund (IMF), which will be discussed at the upcoming meeting.
General Proposals for IMF Reform
The BRICS finance ministers have outlined a unified proposal for IMF reform. Key points include a new formula for distributing voting rights and ending the tradition of appointing European leadership. These proposals were discussed prior to the BRICS Leaders Summit in Brazil.
Increasing BRICS Influence
The BRICS group, now encompassing 23 countries, aims to represent developing nations. The finance ministers stress the need to increase quotas for developing countries to reflect their position in the global economy. They stated, "Quota realignment should reflect members’ relative positions in the global economy, while protecting the quota shares of the poorest members."
Establishment of NDB Guarantee Mechanism
BRICS also plans to create a new guarantee mechanism supported by the New Development Bank (NDB), intended to cut financing costs and boost investments in developing countries. The NDB was established to support public and private projects through loans and guarantees.
The proposed reforms illustrate the growing influence of BRICS and their aspiration to reshape international financial institutions to better meet current realities.
