BRICS: Finance ministers call for reform of the IMF and World Bank

Finance ministers and central bank governors from the BRICS nations have urged for a swift reform of the International Monetary Fund (IMF) and the World Bank to enhance the representation of emerging economies, in a statement adopted in Mumbai ahead of the leaders’ summit scheduled for New Delhi.

The statement calls for more representative, transparent, and accountable international financial institutions. According to Reuters, officials from the bloc believe that the increasing share of emerging and developing economies in global production should be reflected in governance that better aligns with their economic weight.

The ministers and governors also called for continued efforts to develop more efficient cross-border payment mechanisms. They tasked the BRICS Payment Task Force with exploring solutions aimed at reducing costs and friction in transactions between member countries.

The financial meeting took place on September 10 in Mumbai. The Chinese Ministry of Finance confirmed the adoption of the joint statement, while the United Arab Emirates announced the launch of a BRICS-New Development Bank knowledge portal and the establishment of new financial cooperation priorities.

Reforming global financial governance

This institutional push comes as the BRICS seek to strengthen their influence over international financial rules. Several African economies, including South Africa, Egypt, and Ethiopia, are participating in the expanded format, giving the debate on representation at the IMF and World Bank direct relevance for the continent.

The New Development Bank has also approved its overall strategy for 2027-2031. Emirati representatives indicated that the document aims to enhance funding for digital transformation, technology projects, climate action, and women’s participation.

The financial discussions are part of a broader economic agenda for the summit, which will also address international payments, trade in local currencies, and coordination among emerging economies. However, the Associated Press notes that geopolitical and economic divergences among members complicate the search for common positions on several issues.

The 18th BRICS summit is set to take place on September 12 and 13 in New Delhi, with the announced participation of several heads of state and government, including Vladimir Putin, Xi Jinping, and Masoud Pezeshkian.