BY: Hana Saada
ALGIERS- The New Development BRICS Bank (NDB), a multilateral financial institution that has been positioning itself as a counterweight to the current international financial system, is pleased with Algeria’s expressed interest in becoming a full member. Dilma Rousseff, the president of NDB and former president of Brazil, has warmly welcomed Algeria’s application for membership to this institution with a massive registered capital of $100 billion.
During a meeting between Rousseff and Finance Minister Laâziz Faïd, held on the sidelines of the summit for a new global financial pact in Paris on June 22 and 23, Rousseff conveyed the NDB’s favorable stance toward Algeria’s membership application. The Ministry of Finance released an official statement confirming the NDB’s welcoming position.
The discussions during the meeting primarily revolved around the practical aspects of Algeria’s accession process, including the new global financial architecture and the anticipated role of multilateral financial institutions in supporting comprehensive development financing for countries, especially developing nations, in the face of multidimensional challenges.
By aligning itself with the promising path of the BRICS and their New Development Bank, which presents itself as a serious alternative to the Bretton Woods system and the dominant influence of the US dollar, Algeria aims to position itself closer to the “new center of gravity” around which an increasingly important part of the world is gravitating.
This new economic, financial, diplomatic, and geopolitical challenge is well-explained by Ahmed Attaf, the Algerian Minister of Foreign Affairs, in a recent interview with the Italian agency Nova. Attaf emphasizes that Algeria’ strategic vision involves recognizing a new center of gravity forming in Central Asia. To safeguard and protect the country’s interests, the President has directed Algerian diplomacy significantly toward this region of the world.
Furthermore, Attaf notes that Algeria eagerly awaits the upcoming BRICS summit scheduled to be held in South Africa in August. The summit is seen as an opportunity for Algeria to solidify its qualification for the inner circle of the BRICS. Algeria has already expressed its intention to contribute to the capital of the New Development BRICS Bank.
The NDB, with its vision for a new world economic and financial order that emphasizes multilateralism and moves away from the dominance of the US dollar and the often stringent conditions imposed by the IMF and World Bank, is attracting interest from emerging and developing countries. These countries see the NDB as an avenue to access its substantial funding portfolio dedicated to financing sustainable and equitable development projects.
Headquartered in the thriving Chinese economic hub of Shanghai, the NDB initially saw its capital subscribed by the BRICS nations—Brazil, Russia, India, China, and South Africa. Recently, the NDB welcomed four new members: Uruguay, Egypt, Bangladesh, and the United Arab Emirates.
With Algeria now looking to join the ranks of the BRICS and contribute to the NDB’s capital, it is clear that the country is embracing a new era of economic and financial cooperation. By aligning itself with the BRICS and their development bank, Algeria aims to play an active role in shaping a more equitable and inclusive global financial system.
