BRICS calls for IMF, World Bank Reforms at Mumbai meet

BRICS finance ministers and central bank governors have called for urgent reforms in the International Monetary Fund (IMF) and World Bank, seeking greater representation and voting power for emerging markets and developing economies.At their meeting in Mumbai, the economic policymakers of the 11-member BRICS bloc also raised serious concerns over unilateral tariffs, warning that such measures could distort global trade and undermine World Trade Organization (WTO) rules.“We reiterate support for an open, transparent, inclusive, non-discriminatory and rules-based multilateral trading system with the WTO at its core,” the BRICS finance ministers and central bank governors said in a joint statement.
The meeting was held ahead of the BRICS Summit scheduled for September 12-13 in New Delhi under India’s chairship. The bloc’s finance ministers and central bank governors had also met in Jaipur on August 12-13.
The policymakers said the governance structure of the Bretton Woods Institutions should reflect the major transformation in the global economy since their establishment. They called for the voice and representation of emerging markets and developing economies (EMDEs) to be aligned with their growing role in the global economy.The bloc also sought improved management procedures, including merit-based, inclusive and transparent selection processes for senior leadership positions at the IMF and World Bank. It said greater regional diversity and representation of EMDEs would strengthen the legitimacy and credibility of the institutions.
BRICS members further called for a larger role for the New Development Bank (NDB) in financing infrastructure and development projects across the Global South, reflecting the bloc’s focus on expanding alternative sources of development finance.Cross-border payments also figured prominently in the discussions. BRICS countries underlined the need to continue developing payment mechanisms that are fast, low-cost, accessible, efficient, transparent and secure.
However, the joint statement did not announce plans for a common BRICS currency or a unified payment system.The issue of payment connectivity gained further momentum at the BRICS Business Forum in New Delhi, where Commerce and Industry Minister Piyush Goyal called on BRICS member and partner countries to link their payment systems and increase trade in local currencies.Goyal also stressed the need to improve market access and reduce barriers to trade. Citing the impact of non-tariff measures on exporters, he called for simpler regulatory procedures and faster clearance of consignments to make trade among BRICS economies more efficient.

(Business Correspondent)