Problems in the ‘so-called developed countries’ threaten the global economy, according to Dilma Rousseff New Development Bank Chair Dilma Rousseff at SPIEF 2024 © Sputnik / Kristina Kormilitsyna

The developed countries of the Global North are not in a position to effectively counter the challenges faced by the world economy, according to the head of the BRICS Bank, who sees a solution in the development of a multipolar order.

Dilma Rousseff, the chair of the New Development Bank and former president of Brazil, made the remarks on Thursday at the St. Petersburg International Economic Forum (SPIEF), which kicked off this week.

“The so-called developed countries or, as they are also called, the Global North, without a doubt, are not capable of providing solutions to persistent problems that the world faces at the moment,” Rousseff said.

“For this, we need a multipolar economy with new centers which could help withstand global shocks and crises. It is able to reduce the risk of global economic instability caused by problems in large economies,” the NDB president argued.

The NDB was established in 2014 by Brazil, Russia, India, China, and South Africa with the aim of providing funding for infrastructure and sustainable development projects. The bank formally opened for business in 2015, and was later joined by Bangladesh, the United Arab Emirates, Egypt, and Uruguay. Saudi Arabia is also in talks to become a member.

Last August, Rousseff said that the NDB was considering applications for membership from nearly 15 countries. The bank sees the diversification of its geographic representation as one of its top priorities, according to Rousseff. She also revealed at the time that the NDB was planning to start lending in the currencies of South Africa and Brazil in an attempt to further reduce reliance on the US dollar, as the lender actively promotes a more multipolar international financial system. (RT)