28 April 2023 - 05:00The world is experiencing a period of transformation, marked by a gradual move from financial institutions dominated by Western countries towards newer and more just alternatives. This shift is exemplified by the recent selection of two vastly different presidents for the World Bank and the Brics bloc’s New Development Bank.
Banga’s approach to development finance, which prioritises financial engineering and private sector solutions, is emblematic of the broader philosophy of Western financial institutions such as the IMF and World Bank. These Western-controlled financial institutions have come under criticism for imposing neoliberal policies on developing countries in exchange for bailouts, including insistence on austerity and privatisation, regardless of the effects on the poor.