Lula underlines the social prejudice of the Banco dos BRICS

in possession of Dilma Rousseff as Chairman of New Development Bank (NDB) in Shanghai, China, Chairman Luiz Inácio Lula da Silva has not spared criticism of the traditional financing model of international financial institutions. The NDB, also known as Banco do Brics (an economic bloc comprising Brazil, Russia, India, China and South Africa), does not have the participation of the International Monetary Fund (IMF) or financial institutions from countries outside the group. Fact highlighted by Lula.

“For the first time, a global development bank is established without the participation of developed countries in its initial phase. Free, therefore, from the chains and conditions imposed by traditional institutions on emerging economies. And again, with the possibility of financing projects in local currency”.

Lula went on to praise the bank’s role as a tool to fight inequality. For him, the NDB should assist the people most affected by climate and economic problems, helping them to recover. “Climate change, the pandemic and armed conflicts have a negative impact on the most vulnerable populations. Many developing countries accumulate unpayable debts. It is in this context that the creation of the NDB is necessary”.

In a ceremony packed with Brazilian deputies and ministers, members of Lula’s entourage on this trip to China, the Brazilian president did not spare criticism from the IMF, which he accused of “asphyxiate” to Argentina. For him, banks should have “patience” and keep the word tolerance in mind when renewing loan agreements.

“No ruler can work with a knife to his throat because he has to”he said. “It is not up to a bank to suffocate the economies of countries as the International Monetary Fund is doing with Argentina”completed.

Finally, Lula made a nod to the international community. In a broader tone, you asked for more generosity from people. “We cannot have a society without Lula’s solidarity, without feeling. We must go back to being generous. We will have to learn again to reach out. We must defeat the individualism that is taking over humanity”.

dilm

In her inaugural speech, Dilma Rousseff also argued for the bank’s social prejudice and made the NDB’s commitment to environmental protection, social and digital infrastructure. Indicating in the course of her speech the support for the poorest communities and the need to help them guarantee housing and more dignified conditions, the former president of the Republic asked “common prosperity” to everyone.

“Taking over the presidency of the NBB is an opportunity to do more for the BRICS countries, but also for emerging and developing countries”he said. “I am confident that together we can achieve our development vision. We want prosperity to be common to all countries”He added.

Challenges

According to specialists consulted by Agência Brasil, the future president of Banco do Brics will have the possibility of expanding the international presence in the institution, but will have to face two major challenges: boosting projects related to the environment and circumventing the geopolitical impact of Western retaliation against Russia, a founding member.

Created in December 2014 to expand funding for infrastructure projects and sustainable development projects in the BRICS and other emerging economies, the NDB currently has approximately $32 billion in approved projects. Of this total, approximately $4 billion is invested in Brazil, mainly in highway and port projects. In 2021, the following countries joined the Bank of BRICS: Bangladesh, Egypt, the United Arab Emirates and Uruguay.