Top academic considers BRICS bank fairer system than IMF
Date
10/17/2024 3:17:22 AM
(MENAFN) The BRICS New Development bank (NDB) is seen as a more flexible and supportive financial institution compared to the International Monetary Fund (IMF), according to Kudzai Dominic Chiwenga, an associate professor at the University of Zimbabwe. In an exclusive interview with RT, Chiwenga, who also chairs the NPC Zimbabwe-Russia Youth Foundation, asserted that the NDB was established to create a “fairer system” for its member countries and other developing nations.
Chiwenga pointed out that while the IMF was originally designed to assist developing countries, many of these nations, including Zimbabwe, have found themselves ensnared in cycles of debt characterized by high interest rates and unfavorable borrowing conditions. He believes the NDB can offer a more equitable form of financial support, serving as a “breath of fresh air” for countries seeking alternatives to traditional global financial frameworks. “It’s an open-door policy that is welcoming to other nations,” he noted.
Founded in 2015 by the BRICS nations—Brazil, Russia, India, China, and South Africa—the NDB aims to mobilize resources for infrastructure and sustainable development projects both within the bloc and in other emerging markets. The bank has expanded its membership to include Bangladesh, Egypt, the United Arab Emirates, and Uruguay in 2021, with Algeria also joining in September 2023.
Chiwenga emphasized the significance of Zimbabwe's evolving economic strategies, highlighting the introduction of a new currency, the Zimbabwe Gold (ZiG), which is pegged to the country’s abundant natural resources, particularly minerals. This initiative is part of a broader effort to stabilize Zimbabwe's economy by anchoring it to its rich natural resource base.
As the global economic landscape shifts, Chiwenga's insights suggest that the NDB could play a crucial role in reshaping financial relationships among developing nations, fostering greater cooperation and support within the BRICS framework.
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