BRICS finance chiefs seek greater voice for emerging economies in global institutions

BRICS finance ministers and central bank governors have called for greater representation for emerging economies in global financial institutions as the expanded grouping looks to strengthen economic resilience amid trade fragmentation and geopolitical tensions.

In a joint statement issued following meetings in Jaipur in August and Mumbai on September 10, the ministers and central bank governors said the expanded BRICS membership had enhanced the group's diversity and representativeness. They also reaffirmed their commitment to closer economic and financial cooperation.

The statement was issued as BRICS, under India's 2026 chairship, seeks to turn its growing economic weight into more practical cooperation in areas including payments, development finance, infrastructure, taxation, customs and financial stability.

BRICS now has 11 members - Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the UAE and Indonesia, along with Saudi Arabia. According to official data, the grouping represents about 49.5 per cent of the world's population, 40 per cent of global GDP and 26 per cent of global trade.

The finance chiefs cautioned that the global economy continues to face heightened risks from geopolitical tensions, trade fragmentation, protectionism, policy uncertainty, fiscal and inflationary pressures, rising debt and financial vulnerabilities.

They voiced "serious concerns" over unilateral tariffs and non-tariff measures, saying these actions distort trade and are inconsistent with World Trade Organization rules.

Reforming global economic governance to better reflect the growing importance of emerging markets and developing economies remained a key focus of the statement.

The grouping called for reforms to the Bretton Woods institutions, principally the International Monetary Fund and World Bank, to make them more representative, transparent, accountable and effective.

"We reiterate the urgent need to reform the Bretton Woods Institutions (BWI) to make them more agile, effective, credible, inclusive, fit for purpose, unbiased, accountable, and representative, to enhance their legitimacy," the joint statement said. "BWI governance structure should be reformed to reflect the transformation of the global economy since their establishment."

The statement said the voice and representation of emerging markets and developing nations (EMDEs) in the BWI "must reflect their relative position in the global economy".

"We also reiterate our call for improved management procedures, including through a merit-based, inclusive and transparent selection process that would increase regional diversity and representation of EMDEs in the leadership of the IMF and the World Bank."

On the IMF, BRICS supported the implementation of quota increases agreed under the 16th General Review of Quotas and called for meaningful quota realignment under the 17th review. It said the changes should raise the quota and voting shares of emerging and developing economies while protecting the interests of the poorest countries.

The grouping also termed the 2025 World Bank Shareholding Review an important opportunity to increase the voice and representation of developing countries and address what it described as their historic underrepresentation.

The move reflects one of BRICS' key economic objectives: leveraging the collective strength of emerging economies to push for reforms in institutions established in the aftermath of World War-II, rather than building a parallel system to replace them.

The ministers supported a greater role for the New Development Bank, the multilateral lender established by the original BRICS members, as a source of development and infrastructure financing for BRICS and the wider Global South.

They encouraged the NDB to mobilise additional resources, increase local-currency financing, strengthen project preparation, diversify its funding sources and back high-impact projects focused on inclusive and sustainable growth. They also supported the continued expansion of the bank's membership under its existing procedures.

The statement welcomed progress on a BRICS Multilateral Guarantees initiative being prepared by the NDB. The proposed mechanism aims to mobilise private capital, improve the creditworthiness of development projects and lower financing costs, with pilot transactions expected to help shape the initiative's future expansion.

Central banks also made progress on the BRICS Contingent Reserve Arrangement, a financial safety-net mechanism intended to provide liquidity support to members facing balance-of-payments pressures.

According to the statement, amendments to the CRA treaty would make the arrangement more flexible and responsive during crises. Members will also continue work on a new test run and consider onboarding additional members.

The finance track also discussed insurance, pensions, settlement infrastructure, cybersecurity and emerging technologies, showing the widening scope of BRICS financial cooperation beyond traditional macroeconomic policy.

Members discussed creating a more self-reliant BRICS insurance ecosystem and considered India's proposal for a voluntary BRICS Risk Lab at Gujarat International Finance Tec-City, or GIFT City, to develop common risk models and strengthen reinsurance capabilities.  (with inputs from PTI)