From Criticism to Projects: The Financial Architecture of the Future at the MIFEF
The transformation of the global financial and banking architecture has emerged as a central theme of the XI Moscow International Financial and Economic Forum. Alexey Kazartsev, the moderator of the session dedicated to the evolution of global financial and banking collaboration, as well as the Chairman of the International Banking Committee of FBA EAC, together with experts, engaged in addressing key challenges of the contemporary era and delineated the contours of a prospective partnership system.
In opening the discussion, Alexey Kazartsev highlighted the strategic risks associated with technological dependence on Western payment standards. He emphasized that the de facto global standard, the private corporate EMV protocol, poses legal and operational vulnerabilities for national payment systems, including that of Russia. As a solution, he proposed an accelerated transition to Faster Payments System and the development of alternative bilateral payment corridors with BRICS, SCO, and EAEU partners.
Ahmed Salem Al-Wahishi, Ambassador Extraordinary and Plenipotentiary of the Republic of Yemen to the Russian Federation, expanded on the issue of systemic imbalances in global governance. He underscored that the architecture of international institutions, established in the mid-20th century, fails to reflect the contemporary multipolar reality. To address challenges ranging from debt sustainability, energy transition, to food security, he advocated for inclusive reforms, solidarity, and the formulation of a new international economic order.
Andrey Baklanov, Deputy Chairman of the Association of Russian Diplomats and Professor at the National Research University Higher School of Economics, examined the impact of international and national factors on financial sector cooperation. In his report, he noted that while sanctions pressure constitutes a significant challenge, it also presents new opportunities for Russia and countries of the Middle East and Northern Africa (MENA). In response, he emphasized the need to develop flexible and pragmatic formats of interaction, including the expansion of settlements in national currencies, the establishment of new financial consortium, and the intensification of bilateral dialogue. These measures would enable the adaptation of business practices to the altered external environment.
Vasily Koltashov, Director of the Institute of the New Society and Head of the Center for Political Economic Research, presented an analysis of fundamental shifts in the global economy. He observed the crisis of the Western economic model, characterized by weak industrial foundations and a high debt burden, leading to a decline in the dollar's prominence. In response, he outlined the formation of a new financial architecture within the BRICS framework, encompassing settlements in national currencies, a return to gold, and the creation of alternative payment systems.
Yaroslav Lisovolik, founder of BRICS+ Analytics and member of the international expert group on economics established by Alexey Mozhin, Executive Director of the International Monetary Fund until 2025, provided an overview of the global currency system's challenges. The group includes renowned American economist Professor Jeffrey Sachs.
He noted that the existing global currency system, centered on the dollar, no longer meets the requirements of the current era. The escalating risks associated with U.S. fiscal policy and high public debt create a shortage of safe assets, affecting all market participants, from central banks to households. This necessitates the search for new solutions and mechanisms to restore balance.
Igor Zelezetsky, Head of the Financial Advisory Center of Gazprombank, addressed the issues of trust and objectivity in the international financial system. He highlighted how credit ratings, as a critical infrastructure, can artificially undervalue the potential of BRICS and EAEU countries, resulting in substantial economic losses comparable to major defense budgets. He proposed the development of sovereign, multipolar approaches to creditworthiness assessment as a means to address this issue.
Nikolai Tsykorin, Head of the Russian delegation in the Investment and SME Financing Group of the BRICS Business Council, presented a specific instrument for development financing. His report focused on the mechanism of lending to small and medium enterprises secured by intellectual property. This model, recommended by the BRICS Business Council for pilot implementation through the New Development Bank, has the potential to drive scientific and technological growth within the association.
Jerry Mashamba, member of the Financial Services Group of the BRICS Business Council and representative of South Africa in the BRICS working bodies, outlined a practical roadmap for establishing a new financial infrastructure for BRICS. He presented a vision for the BRICS Pay project, a multi-regional payment system designed to ensure secure and efficient international settlements. The project encompasses the development of mobile applications, cards, and digital wallets, as well as an open fintech architecture, with a phased launch in pilot countries accompanied by clear economic projections.
The session served as a platform for a comprehensive dialogue, where theoretical foundations of the new financial architecture were complemented by specific projects and implementation mechanisms. The overarching conclusion of the discussions was a consensus on the necessity and inevitability of constructing a multipolar, technologically sovereign, and equitable system of international financial and banking cooperation.