In a plenary session of the BRICS leaders summit, the president defended reforms and requested more representativeness of the global southern countries in multilateral institutions
The president criticized this Sunday (6) the role of and from Institutions that, in his view, “support a Marshall plan to the reverse, in which emerging and developing economies finance the most developed world.” The statement was part of the president’s intervention at the second session of the Leaders’ Summit at the Museum of Modern Art (MAM) in Rio de Janeiro, dedicated to the strengthening of multilateralism, economic and financial affairs and Artificial Intelligence (AI).
Plan Marshall was the financial aid that the United States provided for the reconstruction of Europe after World War II (1939-1945). For Lula, while the IMF and the World Bank turn to the developed world, “international aid flows have fallen, and the cost of debt in the poorest countries has increased.” The president took advantage of the meeting of BRICS leaders, led by Brazil, to ask for more power from the Global Southern countries in the IMF, an institution that has among their missions cooperate for the proper functioning of the global financial system and collaborating with countries during economic crises, for example.
“Distortions are undeniable,” said Lula. “To live up to our economic weight, the voting power of the BRICS members in the IMF should correspond at least 25% – not the 18% we currently have,” he added. The Brazilian president made criticism of neoliberalism (decreased state in the economy), responsible, according to him, deepen inequalities. “Three thousand billionaires have earned $ 6.5 trillion since 2015,” he said.
Banco do Brics
In participation, the president praised the New Development Bank (New Development Bank, NDB), known as Banco do Brics. “The New Development Bank gives a governance lesson,” he said when he cited the newly admission of Algeria and the process of joining Colombia, Uzbekistan and Peru. For him, it is a certificate of NDB’s ability to offer financing for just and sovereign transition.
The development bank was created by BRICS in 2015. Since 2023, former President Dilma Rousseff has been in charge of the financial institution, which is headquartered in China. Countries outside the BRICS can qualify to participate in the NDB. Dilma spoke at this Sunday’s session.
Still addressing inequality in the world, Lula defended tax justice (rich paying more taxes) and fighting fiscal dropout., “Fundamental to consolidating inclusive and sustainable growth strategies, suitable for the 21st century”.
Trade and Protectionism
The president also criticized the World Trade Organization (WTO). “Their paralysis and the recruudation of protectionism create an unsustainable asymmetry situation for developing countries.” The statement happens in the year when US President Donald Trump launched a tariff war, applying tariffs to products entering the country – a way to protect the American industry from foreign competition.
Uncomfortable
The Brazilian president stressed that this 17th BRICS Leaders Meeting brings together, for the first time, parcege countries. “Cruses the historical expansion of BRICS,” he said. Country Country is a modality created at the Russian city summit of Kasan, in 2024. A main difference between member country and that partners have no voting power in discussions. “The guest countries bring with them perspectives of different regional contexts that enrich the articulation of their own view of the global south. Brics is an unavoidable actor in the struggle for a less asymmetrical and more peaceful multipolar world,” he said.
Understand BRICS
BRICS is made up of 11 member countries: South Africa, Saudi Arabia, Brazil, China, Egypt, United Arab Emirates, Ethiopia, Indonesia, India, Iran and Russia. These nations represent 39% of the world economy and 48.5% of the planet’s population. Countries that have partner status are Belarus, Bolivia, Kazakhstan, Cuba, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan and Vietnam.
BRICS identifies itself as Global South Nations and seeks more cooperation with each other and more equitable treatment in international organizations. Member countries alternate year by year in the presidency. Brazil will be succeeded by India in 2026.
*With information from Agência Brasil
