{"id":124211,"date":"2026-09-14T10:26:52","date_gmt":"2026-09-14T04:56:52","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=124211"},"modified":"2026-09-14T10:26:52","modified_gmt":"2026-09-14T04:56:52","slug":"brics-reform-of-imf-world-bank","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/brics-reform-of-imf-world-bank\/","title":{"rendered":"BRICS Reform of IMF &#038; World Bank, Key Demands, Proposals and Significance"},"content":{"rendered":"<p><b><span style=\"font-weight: 400;\">The <\/span>BRICS Reform of IMF &amp; World Bank<\/b><span style=\"font-weight: 400;\">\u00a0has gained renewed attention under <\/span><b>India\u2019s 2026 BRICS Presidency<\/b><span style=\"font-weight: 400;\">, with member countries calling for a more representative and inclusive global financial system. BRICS has urged reforms in the <\/span><b>Bretton Woods Institutions<\/b><span style=\"font-weight: 400;\"> to give emerging markets and developing economies greater voice, voting power and representation in their governance. The grouping also supports stronger development financing through institutions such as the <\/span><b>New Development Bank (NDB)<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<h2><b>BRICS Demand for IMF and World Bank Reforms<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">BRICS has called for reforms in the <\/span><b>IMF and World Bank<\/b><span style=\"font-weight: 400;\"> to make global financial governance more representative and responsive to today\u2019s economic realities.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reforming Bretton Woods Institutions:<\/b><span style=\"font-weight: 400;\"> BRICS has called for reforms in the <\/span><a href=\"https:\/\/vajiramandravi.com\/upsc-exam\/international-monetary-fund\/\" target=\"_blank\"><b>International Monetary Fund<\/b><\/a><b> (IMF) and <\/b><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/world-bank\/\" target=\"_blank\"><b>World Bank<\/b><\/a><span style=\"font-weight: 400;\"> to make them more <\/span><b>representative, transparent, accountable, inclusive and effective<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Greater Voice for Developing Economies:<\/b><span style=\"font-weight: 400;\"> BRICS wants <\/span><b>emerging markets and developing economies (EMDEs)<\/b><span style=\"font-weight: 400;\"> to have a stronger voice and greater representation in the decision-making processes of these institutions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Reflecting Changing Economic Realities:<\/b><span style=\"font-weight: 400;\"> The global economy has changed significantly since the creation of the Bretton Woods institutions after World War II. BRICS wants their governance structures to reflect the <\/span><b>current distribution of global economic power<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>IMF Quota and Voting Reform:<\/b><span style=\"font-weight: 400;\"> BRICS supports increasing the <\/span><b>quota and voting shares of emerging and developing economies<\/b><span style=\"font-weight: 400;\"> in the IMF, while also protecting the interests of the poorest countries.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Greater Representation in Leadership:<\/b><span style=\"font-weight: 400;\"> BRICS has called for a <\/span><b>merit-based, inclusive and transparent selection process<\/b><span style=\"font-weight: 400;\"> for the leadership of the IMF and World Bank, with greater regional diversity and representation of EMDEs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>World Bank Shareholding Reform:<\/b><span style=\"font-weight: 400;\"> BRICS considers the <\/span><b>World Bank Shareholding Review<\/b><span style=\"font-weight: 400;\"> an opportunity to increase the voice of developing countries and address their historical under-representation.<\/span><\/li>\n<\/ul>\n<h2><b>Why Does BRICS Seek Reform of IMF and World Bank?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The demand for reform reflects BRICS\u2019 broader objective of making the global financial system more balanced and inclusive.\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Changing Global Economic Weight:<\/b><span style=\"font-weight: 400;\"> Emerging economies now account for a much larger share of <\/span><b>global output, trade and investment<\/b><span style=\"font-weight: 400;\">, but their representation in global financial institutions has not increased at the same pace.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Historical Under-representation:<\/b><span style=\"font-weight: 400;\"> BRICS believes that many <\/span><b>developing and emerging economies remain under-represented<\/b><span style=\"font-weight: 400;\"> in the decision-making structures of the IMF and World Bank.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Fairer Decision-Making:<\/b><span style=\"font-weight: 400;\"> Greater voting power would give developing countries a stronger role in decisions related to <\/span><b>global finance, development, debt and financial stability<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Better Development Financing:<\/b><span style=\"font-weight: 400;\"> Reforms can help make international financial institutions more responsive to the financing needs of developing countries, particularly for <\/span><b>infrastructure and sustainable development<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Addressing Global Challenges:<\/b><span style=\"font-weight: 400;\"> Developing economies face challenges such as <\/span><b>rising debt, infrastructure gaps, climate financing needs and financial instability<\/b><span style=\"font-weight: 400;\">. BRICS wants global institutions to respond more effectively to these concerns.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>More Inclusive Global Governance:<\/b><span style=\"font-weight: 400;\"> IMF and World Bank reforms form part of BRICS\u2019 wider effort to promote a <\/span><b>more representative and inclusive global economic order<\/b><span style=\"font-weight: 400;\"> with a stronger role for the Global South.<\/span><\/li>\n<\/ul>\n<h2><b>BRICS Proposals for Reforming the Global Financial System<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Along with institutional reforms, BRICS supports strengthening alternative and complementary mechanisms for development finance and financial stability.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>IMF Quota Reform:<\/b><span style=\"font-weight: 400;\"> BRICS supports changes in IMF quotas to give <\/span><b>emerging markets and developing economies a larger share of quotas and voting rights<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Meaningful Quota Realignment:<\/b><span style=\"font-weight: 400;\"> BRICS has backed the implementation of quota increases under the <\/span><b>16th General Review of Quotas<\/b><span style=\"font-weight: 400;\"> and meaningful quota realignment under the <\/span><b>17th review<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>World Bank Shareholding Reform:<\/b><span style=\"font-weight: 400;\"> BRICS wants the World Bank\u2019s shareholding structure to provide <\/span><b>greater voice and representation to developing countries<\/b><span style=\"font-weight: 400;\">.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Leadership Reform:<\/b><span style=\"font-weight: 400;\"> The grouping supports <\/span><b>transparent, merit-based and inclusive selection processes<\/b><span style=\"font-weight: 400;\"> for senior positions in the IMF and World Bank.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strengthening the New Development Bank:<\/b><span style=\"font-weight: 400;\"> BRICS supports a stronger role for the <\/span><a href=\"https:\/\/vajiramandravi.com\/current-affairs\/new-development-bank-ndb\/\" target=\"_blank\"><b>New Development Bank<\/b><\/a><b> (NDB)<\/b><span style=\"font-weight: 400;\"> in financing infrastructure and development projects across BRICS and the wider Global South.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Multilateral Guarantees:<\/b><span style=\"font-weight: 400;\"> BRICS supports the NDB\u2019s <\/span><b>Multilateral Guarantees initiative<\/b><span style=\"font-weight: 400;\">, which aims to mobilise private capital, improve the creditworthiness of development projects and reduce financing costs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Strengthening the Contingent Reserve Arrangement:<\/b><span style=\"font-weight: 400;\"> BRICS is working to make the <\/span><b>Contingent Reserve Arrangement (CRA)<\/b><span style=\"font-weight: 400;\"> more flexible and responsive so that it can provide liquidity support to members facing balance-of-payments pressures.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Local-Currency Financing:<\/b><span style=\"font-weight: 400;\"> BRICS encourages greater use of <\/span><b>local currencies and efficient cross-border payment mechanisms<\/b><span style=\"font-weight: 400;\"> to reduce transaction costs and strengthen financial resilience.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Stronger Global South Role:<\/b><span style=\"font-weight: 400;\"> Overall, BRICS seeks to use the growing economic weight of its members to promote a <\/span><b>more balanced global financial architecture<\/b><span style=\"font-weight: 400;\"> in which developing countries have a greater role in shaping international economic decisions.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>BRICS Reform of IMF and World Bank seeks greater representation for developing economies, fairer voting power, transparent leadership and stronger Global South development finance.<\/p>\n","protected":false},"author":29,"featured_media":124137,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[786],"tags":[10229,8379],"class_list":["post-124211","post","type-post","status-publish","format-standard","has-post-thumbnail","category-general-studies","tag-brics-reform-of-imf-world-bank","tag-monthly-current-affairs-2026","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/124211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/29"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=124211"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/124211\/revisions"}],"predecessor-version":[{"id":124378,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/124211\/revisions\/124378"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/124137"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=124211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=124211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=124211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}