BRICS is forming a new investment platform to boost Global South funding, reduce Western influence, and compete with traditional institutions
Russia and China have proposed the establishment of a new “investment platform” in anticipation of the 17th BRICS summit in July. This platform aims to stimulate member nations’ development and challenge the Western-led financial system.
On Friday, Vladimir Putin and Xi Jinping, the presidents of both countries, presented a proposal emphasizing the development of the Global South. The strategic alignment between China and Russia is a new initiative to divert from the US dollar and Western dominance.
The New BRICS ‘Investment Platform’: What Is It About? Expounded upon
The new BRICS investment platform is focused on fortifying connections in technology, education, trade, and finance.
The proposal is expected to be discussed at the forthcoming summit, during which other member nations will express their agreement or disagreement. The alliance must invest in the platform, and the funds will be allocated for development, as emphasized by Putin and Jinping.
“We must multiply the volume of capital investment,” said Putin on the new BRICS platform. He added, “Our countries need to step up cooperation in areas such as technology, education, trade, and finance.”
The two leaders communicated via telephone and are striving to realize the endeavor.
This will enable BRICS members to rely on the investment platform rather than funds from Western-led institutions. There is a high likelihood that numerous additional countries will begin utilizing the platform if another member approves the proposal.
The action will decrease reliance on the US dollar, the de facto currency originating from the IMF.
The BRICS investment platform has the potential to facilitate trade among emergent economies by issuing local currencies for its members and other nations.
It can serve as a financial alternative to Western-dominated institutions and is strongly aligned with the interests of developing and least-developed countries (LDCs). When the bloc’s members band together, they would wield substantial influence due to the bloc’s financial strength.
