Lula participates in Dilma Rousseff's inauguration at BRICS Bank

At Dilma Rousseff's inauguration as head of the New Development Bank (NDB), in Shanghai, China, Brazil’s President Luiz Inácio Lula da Silva strongly criticized the traditional model used by international financial institutions. 

The New Development Bank was established in December 2014 as a joint initiative of the BRICS countries - Brazil, Russia, India, China, and South Africa - with the aim of increasing funding for infrastructure and sustainable development initiatives in member countries and other emerging economies.

"For the first time a development bank with a global scope has been established without the participation of developed countries in its initial phase. Therefore, it is free from the chains and conditionalities imposed by traditional institutions on emerging economies. Additionally, the NDB has the unique ability to finance projects using local currency,” Lula said.

In the opinion of the Brazilian president, the NDB has a crucial role to play in helping to address the impacts of climate change and economic challenges on the world's most vulnerable countries. "The effects of climate change, the ongoing pandemic, and armed conflicts have had an impact on those who are most vulnerable. Many developing countries are burdened with debts that they cannot repay. In this context, the establishment of the NDB is essential."

At the ceremony also attended by the members of Lula's delegation on his official trip to China, the president did not hesitate to criticize the IMF, accusing the organization of "strangling" Argentina. He emphasized that banks should exercise patience and keep the word "tolerance" in mind when renewing financing agreements. " No leader can effectively govern when they have a knife at the throat because the country has debts," he stated. 

Dilma Rousseff

During her inauguration speech, Dilma Rousseff highlighted the NDB's social mission and the bank's commitment to protecting the environment, promoting development, and ensuring the inclusion of the poorest communities.

“Assuming the presidency of the NDB is an opportunity to further promote the interests of both BRICS and other emerging and developing countries," Rousseff stated. "I am confident that, by working together, we can carry out our vision of development. Our goal is to ensure prosperity to all nations," she added.

Currently, the NDB has approved approximately $32 billion worth of projects, $4 billion of which are earmarked for investment in Brazil, with a primary focus on transportation infrastructure such as highways and ports.

In 2021, the BRICS Bank welcomed four new member countries: Bangladesh, Egypt, the United Arab Emirates, and Uruguay.