Can BRICS Overtake World Bank and IMF? How Cuba Sees its Growing Ascendancy
BRICS, as per Cuba’s Permanent Representative to the United Nations, is positioned as a potential alternative to the World Bank and International Monetary Fund (IMF), challenging the hegemony of Western-dominated financial institutions. With key economies like China and Russia among its members, BRICS offers developing nations more favorable financial terms, making it an attractive choice for countries such as Cuba and Serbia who are increasingly seeking a more balanced and equitable partner for trade and development.
BRICS: Rising as an Alternative to Global Financial Institutions
Ernesto Soberon Guzman, Cuba’s Permanent Representative to the United Nations, acknowledges that BRICS has the potential to serve as an alternative to the existing global financial institutions. In an interview with Tass publication, he emphasized the importance of BRICS as a crucial “counterbalance to major powers that do not always operate in the best interests of developing countries.” Soberon also highlighted the shared interests and significant opportunities for foreign trade among BRICS nations, stating that it may be able to “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 growing interest in BRICS is evident, with the country formally requesting to join the group as a partner country. The request was directed to Russian President Vladimir Putin, signaling Cuba’s intention to deepen its engagement with the alliance.
BRICS, originally consisting of Brazil, Russia, India, and China when it was formed in 2006, expanded its membership to include South Africa in 2011. The economic bloc has since gained significant global influence, 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 major focus during its leadership term.
In July, Russia’s Executive Director to the World Bank predicted that BRICS nations would soon surpass the World Bank and IMF, citing macroeconomic and demographic shifts away from Western influence. He emphasized the need for patience in this transition and urged resistance to provocations from defenders of the current global order. A Zimbabwean professor also highlighted the BRICS New Development Bank (NDB) as a crucial alternative to the IMF, providing better financial terms to developing nations like Zimbabwe and aiding in breaking the cycle of debt. Serbia’s Deputy Prime Minister Aleksandar Vulin praised BRICS as a more appealing option compared to the European Union, highlighting its lack of political conditions and emphasis on mutual respect and neutrality. These remarks indicate that Serbia may be reconsidering its global alliances as BRICS strengthens its influence, particularly in the energy sector.