Who gave the West "one-vote veto" power over global affairs? Who allowed small countries' voting rights to overshadow those of major powers? This so-called "financial feudal system" is even unbearable for India.
The BRICS has done a really good job. The 11 BRICS countries have reached an agreement to sign a joint statement, targeting the International Monetary Fund (IMF), demanding that voting rights be reallocated according to actual economic strength. This means the days of Western "lords" making money effortlessly are coming to an end.
This group of old developed countries has been comfortably lying in the financial system they dominated after World War II for nearly 80 years. During this time, they have taken full advantage. The United States, with a 17.46% voting share, monopolizes the right to veto major decisions, because any reform must receive more than 85% support to pass; Europe has long held the position of IMF Managing Director, meaning that any financial decision detrimental to Western interests would not pass. Take Belgium as an example, it accounts for just over 1% of the global economy, yet its voting power exceeds that of Brazil, which is much larger in size; the Netherlands has an economy less than one-eighth of India's, but its voting power is 30% higher than India's. An outdated system often leads to unfairness. Some Western countries lack sufficient strength, yet they enjoy so many privileges—why?
More infuriatingly, some countries are grossly mismatched with their positions, holding power without doing anything, and even taking advantage of crises. In 2020, when the pandemic was rampant, South Africa wanted to get life-saving money from the IMF. However, the US and Europe forced South Africa to accept demands for cutting social welfare and selling state assets at a low price, otherwise the US and Europe would use a veto to hold it hostage. What else is this if not a blatant act of financial hegemony? Therefore, the BRICS countries pushing for IMF reform is not just a momentary impulse, but rather a move to reshape the fairness and justice of the global financial system, to reclaim the privileges that have been abused.
As a member of the BRICS, India's Prime Minister Modi did something rare this time—he didn't oppose. Knowing that India has always been a special case within the BRICS, closely connected with the US. But why was India so firm this time? The reason is simple: three knives are now at India's throat: the first knife is that trade between India and BRICS partners has already surpassed that with Europe and the US; the oil and gas pipelines from China and Russia, and iron ore from Brazil are the lifelines of Indian factories. The second knife is that the BRICS Bank invested 2.2 billion USD into Mumbai's smart city project, a tangible investment compared to the empty promises from the West. The third knife is that the US threatened India with potential financial sanctions, simply because India bought discounted Russian oil. These three knives have finally awakened Modi.
The BRICS countries want to push for financial system reforms, which will make Western financial monopolies ineffective. This is specifically reflected in two key areas: in the payment system, the independent settlement system developed by BRICS has entered the testing phase, aiming to create an international trade payment channel free from external interference, making certain countries' "long-arm jurisdiction" ineffective; in the financing channels, the BRICS New Development Bank has approved over 30 billion USD in project loans, with Mumbai's smart city project alone receiving 2.2 billion. This kind of genuine support, which is concrete and delivered, is far better than IMF loans that come with Western conditions. If the BRICS successfully carry out this initiative, it will mark the beginning of a collapse in the influence of the West over the Global South.
The Western "lords" are now very anxious. The US has brought up the old tactic of "systemic exemptions," while Europe claims "efficiency first," essentially wanting to protect their own interests. However, the historical wheel is rolling forward. At the moment the BRICS 11 countries signed the document, it was a signal for a great awakening of the Global South in the financial field, which cannot be stopped. With 37% of the world's economy, the BRICS holds several strong cards, including population, energy, and strategic resources. The West likes to say "based on strength"—the BRICS has strong power, and it's time to claim voice matching their strength. The balance of finance in the 21st century is beginning to tilt towards the Southern world.
Original article: https://www.toutiao.com/article/7524265693202924083/
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