BRICS Finance Ministers Call for Comprehensive IMF Reform, Enhanced Representation of Developing Countries

– In a joint statement, the finance ministers of the BRICS countries called for fundamental reforms to the International Monetary Fund’s structure, including a redistribution of quotas and voting rights to reflect global economic realities, as well as ending the European countries’ monopoly over the presidency of the international institution.

The statement represents the first unified position adopted by the BRICS countries on IMF reforms, in preparation for the quota review meeting scheduled for next December, which will discuss reconsidering countries’ contributions and voting rights based on their economic weight.

The statement indicated that the quota restructuring should reflect the relative positions of member countries in the global economy, while preserving the quotas of low-income countries. It emphasized the need to enhance the quotas of developing countries within the framework of the new formula.

In this regard, a Brazilian official said that the finance ministers proposed a modified formula that takes into account gross domestic product and purchasing power parity, along with the relative value of currencies, to ensure more equitable representation of developing economies. These meetings precede the BRICS Leaders’ Summit, which will be held later in Rio de Janeiro. This follows BRICS’ expansion last year with the addition of six new countries: Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, and the UAE, strengthening its geopolitical influence as a unified voice for the Global South.

The ministers emphasized the need to strengthen multilateralism and regional representation in the leadership of international financial institutions, calling for an end to what they described as the “gentlemen’s agreement,” a legacy of World War II that no longer reflects the current international order.

The statement also noted ongoing discussions on establishing a new guarantee mechanism, supported by the BRICS National Development Bank, with the aim of reducing financing costs and promoting investment in emerging markets and developing countries.