Moscow: In May, the New Development Bank (NDB) convened its 11th annual Board of Governors meeting in Moscow, marking a pivotal moment for economic collaboration among the BRICS+ countries. The meeting unfolded amidst a global economic transformation, with nations striving to adapt to evolving trade and financial landscapes, and a burgeoning emphasis on digital technologies. For the countries of the Global South, the focus is now on identifying effective mechanisms to finance infrastructure projects and attract long-term investments, with particular attention on modernizing transport and energy infrastructure and developing the technological base essential for sustainable economic growth.
According to Ghana News Agency, the Moscow meeting underscored digital transformation as a strategic priority for BRICS+ states. With artificial intelligence, cloud platforms, data centers, and information storage systems gaining prominence, the Board of Governors set the course for the NDB's future development through a new strategy for 2027-2031. While the Bank's initial years focused on transport, energy, and utilities infrastructure, its role is now evolving to support technological transformation, viewing technology as a fundamental factor in long-term national competitiveness.
Russian Prime Minister Mikhail Mishustin, in a video address, highlighted the significance of technology access for adapting to global economic shifts and attracting capital. He noted that BRICS' share of global GDP has reached 40 percent and continues to grow, underscoring the importance of development institutions capable of financing large-scale projects and modernizing BRICS+ economies.
The NDB's new strategy presents digital infrastructure as a potential specialization, reflecting a broader understanding of infrastructure as the foundation for economic development. For the NDB, this opens opportunities to carve out a niche, financing projects with long payback periods based on the strategic needs of its member countries.
Key changes in the Bank's lending policy emerged from the Moscow meeting, with technology viewed as a standalone object of long-term financing. This shift means the Bank will prioritize parameters like computing power and integration into digital ecosystems over traditional metrics, necessitating a review of risk assessment approaches.
The expansion of BRICS and the commitment to financing in national currencies were also pivotal outcomes of the meeting. NDB President Dilma Rousseff confirmed that financing in local currencies remains a strategic priority, aiding borrowers in mitigating exchange rate risks. This approach reflects a desire to establish a diversified financial architecture within the organization, reducing dependence on reserve currencies and strengthening financial sovereignty.
As the NDB transitions towards more active financing of digital infrastructure, challenges arise, including varying levels of technological development among BRICS+ countries and the need for harmonized standards. The Bank will need to develop new approaches for assessing the risks and long-term economic impacts of digital projects.
The Moscow meeting's decisions extend beyond the NDB's loan portfolio, shaping a new financial architecture framework for BRICS+ countries. By financing digital infrastructure and expanding operations in national currencies, these nations gain the opportunity to build their own technological and financial foundations, diminishing reliance on external players. The extent of the Bank's commitment to this path will be revealed in the general strategy for 2027-2031.