BRICS finance chiefs push for deeper financial cooperation; IMF, World Bank reforms

The "Bretton Woods Institutions" refers to the IMF and the World Bank Group, both established in 1944 at the Bretton Woods Conference to manage the post-WWII international monetary and development order. Emerging economies have long argued that voting shares and leadership selection at these institutions still reflect 1944-era economic weights rather than today's multipolar economy, in which developing countries account for a much larger share of global output and trade.

Key Details

• IMF and World Bank both established 1944 at Bretton Woods, New Hampshire, USA; began operations 1945-46
• By informal convention, the IMF Managing Director has always been European and the World Bank President always American — the "merit-based selection" demand targets this convention
• India is a founding member of both institutions

IMF quotas determine a member's financial contribution, voting power, and access to IMF resources; they are periodically revisited through "General Reviews." The 16th General Review (concluded December 2023) increased total IMF quotas by 50% (SDR 238.6 billion) but left the distribution of quotas among members essentially unchanged — an equiproportional increase rather than a realignment favouring emerging economies. The ongoing 17th General Review is where BRICS members are now pressing for an actual realignment.

Key Details

• 16th General Review: quota increase of 50% approved by IMF Board of Governors, December 2023 — no realignment of voting shares
• India's IMF quota share stands at roughly 2.76% (as of 2025), making it the 8th-largest quota holder
• Quota realignment requires an 85% majority of total voting power to pass, giving the USA (with over 16% voting share) an effective veto
• 17th General Review is expected to consider a new quota formula that better weights GDP, openness, and variability for developing economies

The World Bank periodically reviews shareholding (voting power) allocation among members through its Shareholding Review process, most recently due for completion around 2025. Analyses show China remains under-represented relative to its economic weight despite past gains, while India and Indonesia are also flagged as significantly under-represented economies relative to World Bank's own formula for calculating "fair" shareholding.

Key Details

• World Bank shareholding is reviewed periodically (roughly every 3-5 years) under its Dynamic Formula, which weighs GDP and IBRD/IDA contributions
• The 2025 review has faced disagreement among shareholders on whether and how much to realign voting shares
• The World Bank Group includes IBRD (International Bank for Reconstruction and Development) and IDA (International Development Association), among other arms

BRICS members have built parallel financial institutions partly as a hedge against slow reform at the IMF/World Bank. The New Development Bank (NDB) was established by treaty in July 2014 (at the Fortaleza Summit) and began operations in July 2015, headquartered in Shanghai, with equal voting rights and capital contribution among the five founding members (Brazil, Russia, India, China, South Africa) and no member holding veto power. The Contingent Reserve Arrangement (CRA), agreed the same year, is a currency-swap safety net members can draw on during balance-of-payments pressure, functioning as a BRICS analogue to the IMF's emergency lending role.