BRICS New Development Bank is Alternative to Western Financial Mechanisms, Putin States
16:01 18.10.2024 (Updated: 16:43 18.10.2024)
© Sputnik . Sergey Bobylev
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The BRICS Business Forum is being conducted in Moscow on October 17-18 in anticipation of the upcoming BRICS summit. This summit is scheduled to be held in Kazan from October 22 to 24.
The BRICS New Development Bank is an alternative to Western financial mechanisms, Russian President Vladimir Putin said on Friday.
"A special role in strengthening financial cooperation belongs to the new development bank. It is a good, powerful, efficient structure. It has a solid capital base and a team of experienced experts. As a development institution, the bank is already an alternative to a significant number of Western financial mechanisms. And, of course, we will develop it without opposing anyone; it is just an independent structure; we will expand its capabilities," Putin said at the BRICS Business Forum in Moscow.
Russia will expand the capabilities of the New Development Bank, and it should become the main investor in BRICS and the Global South, Putin added.
Speaking of economics, the president underscored that BRICS plays a significant role in the global economy, and this role will only grow.
"BRICS already plays a significant role in the global economy not only today, but it is also quite obvious that this role will only increase in the future. The countries that are part of our association are the drivers of global economic growth. It is in BRICS that the main increase in global GDP will be generated in the foreseeable future," Putin said at the BRICS Business Forum.
The president also noted the importance of a close economic partnership between BRICS countries, saying that joint work brings tangible results.
"At the end of the current year, the average economic growth rate in BRICS is forecast at 4%, which is higher than the rates in the G7 countries, where it is only 1.7%, and the global rate. The global rate will be 3.2%, according to the forecast," Putin said.
At the same time, the combined GDP of BRICS countries confidently exceeds these indicators of the G7 countries and continues to grow, the president said, adding that economic growth of BRICS countries will depend less and less on external influence.
Furthermore, Putin stated that Russia is open to mutually beneficial business cooperation.
"Russia is fully open for mutually beneficial business cooperation. We create comfortable, global competitive conditions for business, both domestic and foreign, for attracting capital and technologies from abroad. First of all, of course, we cooperate with you," he said.
The realization of the BRICS potential will bring maximum benefit to the participants of the association, the president added.
Thus, Russia closely cooperates with the BRICS countries in the field of innovation and digital economy.
"We also closely cooperate with our BRICS partners in the field of innovation and digital economy ... We, of course, look to the future; we work on numbers. We jointly develop e-commerce, are engaged in the implementation of the Internet of Things and artificial intelligence technology, and the processing of big data," Putin said.
The president added that BRICS companies successfully cooperate with each other and implement joint projects.
"The composition of the participants of the BRICS business forum is quite solid — here are leading representatives of business from all the states of the association. Your companies have been successfully cooperating with each other for a long time, implementing large joint projects in a variety of industries: in industry, energy, transport and infrastructure, agriculture and the digital economy," he stated.
Moreover, Russia seeks to facilitate the integration of new participants into BRICS mechanisms, the Russian leader added.
At the same time, the work of the BRICS is not directed against anyone; it is aimed at the sustainable development and prosperity of the countries of the association, Russian President Vladimir Putin said on Friday.
"The work of the BRICS is not directed against anyone. It is aimed at only one common task — the sustainable development and prosperity of our countries and peoples," Putin said at the BRICS Business Forum in Moscow.
Covering cooperation, Putin said that is country is rapidly switching traffic flows to reliable foreign partners, among the flagship projects are the Northern Sea Route and the International North-South Transport Corridor.
"Russia is rapidly switching traffic flows to reliable foreign partners. Our flagship projects include the Northern Sea Route and the North-South corridor. These continental arteries are designed to provide short profitable trade routes, connect large industrial, agricultural and electric power hubs with consumer markets," Putin said at the BRICS Business Forum in Moscow.
At the forum, leaders from South Africa, Ethiopia, Iran, and Egypt also spoke via video. South African President Cyril Ramaphosa urged BRICS countries to create a unified environment for digital technology development.
"As the global economy undergoes profound technological changes, BRICS countries must foster a cooperative environment to advance digital technologies. E-commerce, in particular, has significant potential to widen market access and boost economic growth. We support the call for developing international rules and standards on cross-border taxation and data privacy," he said.
Ramaphosa highlighted the potential of BRICS to effect changes in the global economy.
"BRICS plays an important role in the world. The actions of BRICS countries have the potential to drive significant changes in the global economy and international relations. The historic expansion of BRICS geographies creates opportunities for sustainable trade and development cooperation," he said during his video address.
He noted that the expanded BRICS group covers 43% of the world's population, accounts for 27% of global GDP, and accounts for one-fifth of global exports, creating enormous opportunities for cooperation and economic progress. Therefore, it is the duty of governments to support business.
Ramaphosa also called on BRICS countries to implement joint infrastructure projects in Africa.
"The African continent is interested in cooperation that will unlock the dynamism and potential of its 1.3 billion people," he said. "We urge other BRICS countries to partner with us. We are ready to jointly develop roadways, ports for export and import, and energy and telecommunications networks that will industrialize Africa and enable trade with other countries."
Similarly, Ethiopian Prime Minister Abiy Ahmed Ali echoed Ramaphosa's sentiments, noting that the human and economic potential of BRICS countries can make a substantial contribution to global economic growth and sustainable development.
"To fully realize this potential, we must actively work towards making global governance structures more representative, inclusive, and responsive to the needs of developing and emerging market countries," said the Ethiopian Prime Minister in his video address.
He also added that his country advocates for reforming the global financial system because it "does not fully meet the aspirations of developing economies." According to him, BRICS should set an example as a model of economic cooperation with a new reformed global financial system that meets the interests of developing countries.
"The current international financial architecture does not adequately support the aspirations of developing economies nor the acceleration of sustainable development. Therefore, we advocate for a comprehensive reform of the global financial system to create a more equitable structure," he noted.
During his speech, Egyptian President Abdel Fattah El-Sisi expressed his deep appreciation to Putin for his efforts in promoting cooperation among BRICS member countries.
"I would like to express my deep gratitude to the President of the Russian Federation, Vladimir Putin, for his ongoing efforts during Russia’s presidency in BRICS this year and in promoting cooperation frameworks among BRICS countries," he said.
According to the Egyptian leader, the BRICS business forum is an important platform for exploring trade and investment opportunities among the member countries.
In his turn, Iranian President Masoud Pezeshkian noted that BRICS reflects the demands of the international community in moving towards multipolarity and balanced cooperation in today's world. He added that the association members are strategic partners of Iran, stating that BRICS is the voice of the global majority.
