Tag Archive for: New Development Bank

On August 22-24, the 15th BRICS Summit took place in South Africa, where heads of state of the member countries (Brazil, Russia, India, China and South Africa, whose acronym is the acronym) met at a high-level forum to discuss key issues for the most prominent emerging economies.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

During the XV Summit, the Heads of State met with members of the business sector in dialogue with the New Development Bank to outline the main axes that will guide BRICS policy. This year’s agenda included the potential “de-dollarization” of global trade, with China and the yuan at the forefront of this ambition, as well as the possible effects of the Russian-Ukrainian war on cooperation between member countries. However, the emphasis was on the expansion of BRICS to include the countries that have submitted official applications for membership: Argentina, Iran, Saudi Arabia, Ethiopia, the United Arab Emirates and Egypt.

Finally, during the summit, Argentina, as well as the rest of the countries mentioned above, was formally invited to join the BRICS as from January 1, 2024. Since it is an international forum that does not imply a supranational integration process, the decision to join will be at the discretion of the Executive Power that takes office on December 10. Some of the presidential candidates, such as Javier Miliei (La Libertad Avanza) and Patricia Bullrich (Juntos por el Cambio) have expressed critical positions regarding the accession, alleging a strong difference with the international actions of the BRICS countries, especially in reference to their violations of international law, such as during the war in Ukraine.

In this sense, it is possible to identify some key elements regarding the implications of Argentina’s participation in the BRICS. Mainly, reference is made to the quantitative dimension of the BRICS group, which concentrates 40% of the world’s population and 25% of the world’s GDP, a percentage that, together, equals that of the United States (World Bank Data Center). In addition to these numbers, there are those that link Argentina specifically with the founding countries: the main recipients of Argentine exports include Brazil, China and India; while its main imports come from China and Brazil (OEC).

The role of the New Development Bank

The economic factor becomes more relevant if the possibilities of financing by the New Development Bank (NDB) are taken into account. The BRICS development bank was founded by the member nations of the bloc in 2014, during the sixth summit held in Fortaleza, Brazil. This international bank is positioned as an alternative to the IMF and the World Bank, with credits oriented mainly to infrastructure projects and which, according to the official website, prioritize “high-impact operations that are environmentally smart, resilient, technologically integrated and socially inclusive”.

Currently, the New Development Bank finances projects in only 6 countries (China, India, Brazil, Russia, South Africa and Bangladesh) for a total of US$ 32.8 billion. According to sources such as Ámbito Financiero, Argentina is already negotiating with Dilma Rousseff, who holds the presidency, a possible credit line that would help alleviate the pressure on the debts with the IMF. In order to join the NBD, Argentina must make a capital contribution of “US$250 million in sovereign bonds held by the Treasury, from the Guarantee and Sustainability Fund (FGS) of the National Social Security Administration (Anses) and other sources” (La Nación). A key element of participation in the NBD is that in their general strategy they commit to grant 30% of their loans in local currency of the recipient country, in order to mitigate the risk of foreign investment (NBD). In the case of Argentina, this could diversify the sources of financing and reduce dependence on the dollar and the IMF. However, there are still concerns about the bank’s transparency and the possibility of access to public consultations or information on the investment process (Diálogo Chino).

Since its creation, BRICS has positioned itself as an alternative multilateral cooperation forum for emerging economies, which emphasizes multipolarity and a “de-ideologized” positioning, prioritizing informal dialogue and trade exchange. In this sense, Argentina’s entry into the forum presents a space for rapprochement with the large economies of the world that are disputing an alternative model of financing for development.


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Lourdes Álvarez Romagnoli


Gonzalo Roza – gon.roza@fundeps.org


*Source of the image: El Cronista

After receiving the support of the Chinese and Indian foreign ministers, Argentina is getting closer to becoming a member of the BRICS group – made up of Brazil, Russia, India, China, and South Africa. For Argentina it could represent an opportunity taking into account the current situation in which our country finds itself in terms of external restrictions and financing deficit. However, it is also worth questioning what other implications this union could bring about.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

On July 8, Argentina took another step towards its rapprochement as a full member of the BRICS group; The event took place after Chinese Foreign Minister Wang Yi confirmed China’s support for Argentina to join the bloc. The meeting between the representatives of both countries took place in Bali, Indonesia, where the G20 Foreign Ministers meeting took place. In it, Foreign Minister Santiago Cafiero showed his interest in approaching the BRICS, highlighting the need to deepen multilateralism to accelerate the conclusion of agreements that are beneficial both for the region and for our country. Currently, the rotating presidency of the group is in charge of China, so its support and commitment to those countries that intend to join the bloc is essential. More recently, during his visit to Argentina, the Indian foreign minister, Subrahmanyam Jaishankar, ratified his support for Argentina’s advance towards the bloc. For Argentina, the incorporation into a group of such magnitudes represents a very tempting opportunity in view of the search for new commercial partners. But, what are the BRICS, and what would joining them mean for Argentina?

The term refers to the block made up of Brazil, Russia, India, China and South Africa. Headquartered in Brasilia, these countries have been advocating common development for eighteen years, consolidating themselves as a relevant multilateral and strategic space that represents approximately half of the planet’s population and almost a quarter of the global economy. With a prominent role on the world stage, they seek to promote a new financial, economic and commercial architecture through different instruments such as, for example, international investment banks, among which we can highlight the New Development Bank (BDN) and the Contingency Reserves Agreement (ARC).

As an alternative to the conditionalities imposed by the Bretton Woods institutions, the New Development Bank offers better financing conditions for key infrastructure projects based on the principles of non-interference. In this sense, the BRICS countries reflect the growing influence of emerging economies worldwide, proposing themselves as an increasingly influential and alternative space to Western forces. However, we cannot fail to point out that each alternative and form of financing has its own advantages and complications. While the traditional Western proposals have greater restrictions, they are also characterized by being relatively more transparent and having relatively more robust regulatory and accountability frameworks. On the contrary, new alternatives can represent good sources of financing with fewer restrictions but with a great lack of transparency and accountability. As a consequence, the options should not be conceived as mutually exclusive, but rather as complementary.

Argentina sees the possibility of joining the BRICS as an opportunity to promote development and well-being, in addition to functioning as a channel for growing multilateralism and the reconfiguration of the world order. As it is a South-South cooperation platform made up of emerging economies, it could mean for our country a more equitable space for cooperation with greater margins of autonomy.

It is also important to highlight the role played by Argentina’s main trading partners: China and Brazil. During the last twenty years, China has gained an economic presence in the region, showing increasing interest in establishing new strategic associations with countries such as Brazil, Peru or Venezuela. Although it is not the first time that our country has turned its gaze towards new alternatives, it is essential to consider the consequences that could be triggered by such an association. They could be of an economic nature, since a reprimarization of the Argentine economy would be encouraged, or else, of a geopolitical nature, by generating greater tensions with Western partners such as the United States. For its part, the bloc is willing to work to open a path towards an international community characterized by dialogue, for which systemic rupture would be kept away.

In terms of foreign trade, the BRICS bring together 30% of Argentine exports, and provide 45% of our imports, so if the incorporation materializes, it would mean the possibility of obtaining financing and assistance for key projects. On the other hand, the transfer of knowledge in technology and innovation could also be encouraged, which would guarantee a shared cooperation that guarantees inclusion and similar visions.

In this way, it can be argued that being parte of the BRICS could represent a great opportunity for Argentina to strengthen ties with one of the blocks that has been gaining relevance at the international level and that, in addition, brings together two of the greatest powers in the world and with whom it maintains a bond of strategic character. However, the possible implications of such an association should not be overlooked, as well as the consideration that Argentina’s accession process to the BRICS must have the approval of all its member states, for which it may give rise to a procedure slow and extensive. In short, will Argentina be able to consolidate its entry into one of the groups with the greatest economic and geopolitical weight? And in that case, what will be in store for the country to be part of said bloc?


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Camila Busso

Candela Jauregui


Gonzalo Roza, gon.roza@fundeps.org

In a special meeting, the Board of Governors of the New BRICS Development Bank elected Brazilian Marco Prado Troyjo as the new president of the multilateral institution.

“Below, we offer a google translate version of the original article in Spanish. This translation may not be accurate but serves as a general presentation of the article. For more accurate information, please switch to the Spanish version of the website. In addition, feel free to directly contact in English the person mentioned at the bottom of this article with regards to this topic”.

The Board of Governors of the New Development Bank -NDB- of the BRICS met in a special way through videoconference to elect the new president of the bank: the Brazilian Marcos Prado Troyjo, who will take office on July 7. Its vice president will be Anil Kishora from India and he will serve as the bank’s chief risk officer. The presidential term is 5 years and the presidents are elected on a rotating basis between the member countries of the BRICS, that is, between Brazil, Russia, India, China and South Africa.

Troyjo was vice-minister of economy in Brazil, served as special secretary for Foreign Trade and International Affairs, and represented the Brazilian Government on the boards of multilateral development institutions. In addition, he chaired the Brazilian External Financing Commission and the National Investment Committee. He was also co-founder and Director of BRICLab at Columbia University, United States, and is a member of the World Future Council on International Trade and Investment of the World Economic Forum (WEF).

Marcos Troyjo will replace the previous president of the KV Kamath Bank of India, who has held the presidency since 2015 and is responsible for the NDB’s response to the COVID-19 pandemic, through the launch of the Emergency Program Loan Product COVID-19. The new president of the NDB will have the challenge of facing the post-pandemic economic consequences, reactivating the infrastructure projects and with it the activity of the multilateral bank. It remains to be seen also what direction the New Development Bank will take, but also the same space of the BRICS after the pandemic, given the loss of influence that the forum has experienced in recent years and the criticism it received, including from from the president of Brazil himself, Jair Bolsonaro.

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Gonzalo Roza, gon.roza@fundeps.org

This working document addresses one of the new multilateral development banks: the New Development Bank (NDB) of the BRICS. It develops its beginnings, structure, policies and strategies, the projects it has underway and the role that China has in the Bank.

FUNDEPS will be part of the International Secretariat of the Coalition for Human Rights in Development. The objective is to support the efforts regarding the BRICS New Bank of Development, the Human Rights Due Diligence Project, as well as dissemination and advocacy activities in Latin America.

Desde la Fundacion para el Desarrollo de Políticas Sustentables tenemos el agrado de anunciarles el primer paso hacia la creación de un Secretariado Internacional. Siendo miembro de Coalition for Human Rights in Development formaremos parte del Secretariado, para apoyar los esfuerzos respecto al Nuevo Banco de Desarrollo de los BRICS, el Proyecto de Debida Diligencia en materia de Derechos Humanos, así como también en actividades de difusión e incidencia en América Latina.

Gonzalo Roza, Coordinador del Área de Gobernabilidad Global de FUNDEPS, liderará el trabajo como staff de la Secretaría de la Coalición. Gonzalo tiene mucha experiencia en investigación e incidencia en derechos humanos y ambiente, gobernabilidad global, instituciones financieras y mecanismos de rendición de cuenta.

El Secretariado Internacional incluirá staff de varias regiones, a los fines de permitir a la Coalición un mejor apoyo de sus miembros globales, además de estar más conectada con los impactos del financiamiento para el desarrollo y las luchas por los derechos humanos. Esperamos que se puedan añadir puestos en África y Asia durante el siguiente año.


Gonzalo Roza – Área de Gobernabilidad Global