#reverse marshall plan

Brazilian President Luiz Inácio Lula da Silva Sunday criticized the role of the International Monetary Fund (IMF) and the World Bank (WB) because they represent “a reverse Marshall Plan, in which emerging and developing economies finance the more developed world.” He made those remarks during his speech at the second plenary session of the BRICS Summit at the Museum of Modern Art (MAM) in Rio de Janeiro, dedicated to strengthening multilateralism, economic and financial issues, and artificial intelligence (AI). The Marshall Plan was the financial aid provided by the United States for the reconstruction of Europe after World War II (1939-1945). For Lula, while the IMF and the World Bank focus on the developed world, “international aid flows have fallen, and the cost of debt for the poorest countries has increased.” The president took advantage of the BRICS leaders' meeting, led by Brazil, to call for more power for the countries of the Global South in the IMF, an institution whose missions include cooperating for the proper functioning of the global financial system and collaborating with countries during economic crises. “The distortions are undeniable,” Lula said. “To do justice to our economic weight, the voting power of BRICS members in the IMF should be at least 25%—not the 18% we currently hold,” he added. The Brazilian president criticized neoliberalism (the reduction of the state's role in the economy), which he said was responsible for deepening inequalities. “Three thousand billionaires have earned US$6.5 trillion since 2015,” he further noted. Lula also praised the New Development Bank (NDB), known as the BRICS Bank. “The New Development Bank teaches us a lesson in governance,” he said, citing the recent entry of Algeria and the accession process of Colombia, Uzbekistan, and Peru. For him, it is a testament to the NDB's ability to provide financing for a fair and sovereign transition. The development bank was created by BRICS in 2015. Since 2023, former Brazilian President Dilma Rousseff has been at the helm of the financial institution, which is headquartered in China. Countries outside BRICS can qualify to participate in the NDB.

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