BRICS is emerging as a potential alternative to the World Bank and International Monetary Fund (IMF), challenging the dominance of Western-led financial institutions, according to Cuba’s Permanent Representative to the United Nations. With major economies like China and Russia among its members, BRICS offers developing nations more favorable financial terms. Countries such as Cuba and Serbia are increasingly drawn to the group, seeing it as a more balanced and equitable partner for trade and development.
BRICS: A Rising Alternative to Global Financial Institutions
BRICS has the potential to serve as an alternative to existing international financial institutions, according to Ernesto Soberon Guzman, Cuba’s Permanent Representative to the United Nations.
In a conversation with Tass publication on Saturday, he highlighted how BRICS provides a crucial “balance regarding large powers that not always work in the interests of developing countries.” Soberon pointed out that BRICS nations share “common interests” and have significant opportunities for expanding foreign trade. He elaborated:
[BRICS may] become an alternative to international financial institutes, such as the World Bank or the International Monetary Fund, as some largest economies of the world are among its members.
Cuba’s interest in BRICS has also intensified, with the Cuban foreign ministry announcing in October that it had formally requested to join the group as a partner country. The request was directed to Russian President Vladimir Putin, signaling Cuba’s intent to engage more deeply with the alliance.
BRICS has grown considerably since its founding. The group, originally formed in 2006 by Brazil, Russia, India, and China, later included South Africa in 2011. The economic bloc has seen expanding influence globally, with Egypt, Iran, the UAE, Saudi Arabia, and Ethiopia joining as full members in January. Russia is currently chairing the organization, planning over 200 events, with the BRICS summit in Kazan as a key focus during its leadership term.
In July, Russia’s Executive Director to the World Bank predicted that BRICS nations would soon dominate the World Bank and IMF, citing macroeconomic and demographic shifts away from Western influence. He stressed the need for patience in this transition and urged resistance to provocations from defenders of the current global order. A Zimbabwean professor recently highlighted the BRICS New Development Bank (NDB) as a vital alternative to the IMF, offering better financial terms to developing nations, including Zimbabwe, and aiding in breaking debt cycles. Serbia’s Deputy Prime Minister Aleksandar Vulin praised BRICS as a more attractive option than the European Union, noting its lack of political conditions and emphasis on mutual respect and neutrality. His remarks suggest Serbia may be rethinking its global alliances as BRICS strengthens its influence, particularly in energy.
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