BRICS Bank chief talks about ‘new chapter of globalization’

BRICS Bank chief talks about 'new chapter of globalization'

The president of the New Development Bank (NDB), Marcos Trujjo, an entity created within the scope of the BRICS – a group formed by South Africa, Brazil, China, India and Russia – said today (16), during a Senate hearing, that the current moment represented “a chapter”. new to globalization” that would favor significantly emerging countries, especially Brazil, through financing agribusiness and infrastructure.

According to him, there are already economic elements and forecasts that show this trend. talking across Online, from Shanghai (China) to the Senate Committee on Foreign Affairs and National Defense, Trujillo began his speech by saying that the current generation is a “secular witness” to a “shift in the tectonic plates of the global economy,” which will create “unpublished windows of opportunity” for Brazil and for countries with peculiar characteristics. Our neighbors are in South America.

“I am sure that when future historians look at the moment we are living in now, they will find that 2020 and 2021 really represent the division of waters and the beginning of a new era; a new chapter of globalization,” he said.

“I say this because if we add the GDP measured by the purchasing power of the so-called Group of Seven, which are the seven most mature economies (the United States, Japan, Germany, France, the United Kingdom, Italy and Canada), then this total is equivalent to 42 trillion dollars. Now, if we add what I call E7, which is the GDP of the world’s seven largest emerging economies (China, India, Russia, Brazil, Indonesia, Mexico, and Turkey), we’ll see a combined $53 trillion GDP.In other words, today’s top seven emerging countries have a higher GDP, in terms of parity purchase, compared to the G7.”

new markets

This global geo-economic shift will have a series of effects that can already be seen from a business point of view, Trujillo added. “In the last 12 months, a country like Brazil has exported more to Singapore than Germany; more to Thailand than France; more to Malaysia than Italy; more to Hong Kong than England; more to Bangladesh than Australia, Austria, and Israel combined. In other words, it’s Truly an undeniable rise for the juniors. This is happening in a very powerful way,” he explained.

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According to him, this will generate possibilities that we have not seen for a long time for countries like those in South America. Much of this is linked to the exponential growth of countries with large territories and large populations, as in the BRICS partners and other highly populated emerging countries.

Another phenomenon associated with these “new centers of great global demand” cited by the President of the Bank, established by the BRICS group, is related to the reconfiguration of global value networks, a phenomenon that transcends supply networks and involves new trade and investment.

Requests

Trujillo cited banking studies that predicted that over the next 10 years, China would spend $25 trillion on imports. In this context, Brazil could benefit greatly, as it currently owns about 4% of everything that China buys from the world, which could represent nearly $100 billion in exports to Brazil each year.

In this sense, the agribusiness sector will gain a lot. “Since countries with large populations have a large increase in income, and since they start from reasonably low income levels, when income increases, it is natural that this income is allocated primarily to consumption of calories and food and investments in infrastructure,” is He said.

This means that we are witnessing a drastic shift in the demand curve around the world. It’s not just a matter of cycle goods or raw materials. It’s a structural thing that would be in the interest of South American countries, particularly Brazil.”

infrastructure

Trojjo added that “another feature of this unfolding world” is actually a “big irony” because it offers a kind of “de-scaling of the economy,” with greater presence of technologies, greater life expectancy, and “greater uncertainty in the air.”

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Thus, there is a stock of global liquidity and savings of great importance. There are a large number of resources available in the world, and on the other hand, we have a kind of small offering of big opportunities and big projects that can accommodate [esses recursos], especially from an infrastructure point of view. We need to build bridges and pipelines to connect projects that are bankable, profitable in the long run, and that transform society with these available resources.

He noted that the BRICS established the NDB only six years ago. “We were just a piece of paper and today we have a set of approved projects. There are about 80 projects with a value of 160 billion Rls. In this NDB, Brazil has the largest share of all the multilateral development banks. Brazil owns 20% of the National Development Bank, It already has R$17 billion approved and ready to invest in the country, as well as the potential for the bank to approve another R$6 billion in 2022 for infrastructure investments.”

new members

The President of the National Development Bank defended the entry of the neighboring countries of Brazil as members of the National Development Bank, in order to expand investments in the region. In this way, he said, South America will be better able to integrate infrastructure, as has been done for a long time among European countries.

“The most important aspect of integration is infrastructure integration, as has already happened in the European Union. This, in South America, still needs to be done. This is the case of the integration of the Atlantic with the Pacific, for example. This is important. In this On the one hand, this challenge of a synergy of interests between Brazil and its neighbors is fundamental,” he said.

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The hearing was attended by many foreign ambassadors, and they agreed on the need to connect the infrastructure in the region and demanded banking procedures for this integration. Along with the United Arab Emirates and Bangladesh, Uruguay is one of the countries that are already in the process of merging to become members of the bank as well.

Uruguay’s ambassador to Brazil, Guillermo Valles, said that his country has always worked to build multilateral systems, both in the financial and commercial fields.

“Uruguay also wants to participate in this merger. We are very interested in these historical changes [citadas por Troyjo]. Infrastructure is the cornerstone for changing the production matrix of countries, achieving productivity and jobs in the short to long term. The United Nations has already stated that lack of infrastructure is the main problem facing countries to achieve their sustainable development goals, and this new bank is coming to be listed there specifically. Congratulations on that,” he said.

historical debate

In his recent appearance at the hearing, the President of the National Development Bank said that today’s discussion with senators and diplomats was “historic” for the NDB’s relationship with Brazil: “It is the first time that we have made such a detailed and covered presentation… of many aspects of our operation, along with Together with the Brazilian Parliament.

“The fact that Brazil has its main capital in the bank is something that is likely to change the history of Brazil from now on. The National Development Bank is more than just a bank or an international organization, it is a symbol of the power of international cooperation, trying to bridge this huge gap that we have in countries,” he added. Emerging, namely, infrastructure and sustainable development.

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About the Author: Camelia Kirk

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