Yakov and Partners experts together with the Central University have examined the prospects for the creation and further development of a new global financial architecture focused on the needs of BRICS and Global South countries. Specifically, launching a multinational investment platform will help attract up to USD 100 billion of annual investment, resulting in up to 0.25% of additional GDP growth in emerging economies. These are the findings of the report "Bridging the gap: rise of the alternative financial infrastructure" prepared by Yakov and Partners experts for the UnB BRICS Week in Brazil.
Over the past few years, BRICS nations have been enjoying impressive economic growth. Their share of the global GDP has already exceeded that of the G7, and all developing markets account for more than 59% of the global GDP. However, despite being rich in natural and human resources, many of these countries still fail to realize their economic potential.
Moreover, according to expert estimates, they are running an investment deficit exceeding USD 4 trillion, of which infrastructure investments alone account for USD 1.4 to 2.5 trillion. Unlike the advanced markets, where financial systems have been evolving in sync with their economies, the emerging countries are lagging in this area.
The existing financial mechanisms are no longer good. In this context, BRICS and Global South nations should not only ramp up investment but also set up their own channels for capital flows, which should be technologically advanced, independent, easy-to-use, and resistant to external pressures. Furthermore, transitioning fr om the outdated payment system may help developing countries save up to USD 30 billion annually.
Ilya Ivaninsky, Expert Partner at Yakov and Partners, Director of the Central University Business Education and Analytics Center
In this study, our experts have proposed two institutional solutions. The first one is to establish a decentralized depository and settlement infrastructure that would stimulate direct mutual investments between the BRICS countries, without the involvement of Western intermediaries. The experts believe that this could significantly lower down transaction costs, narrow bid-ask spreads, increase liquidity, and reduce the cost of capital.
Another solution is to create a multinational investment platform that would increase the attractiveness of long-term projects. The platform would include tools such as guarantees, redemption of part of the tranches, and other mechanisms to reduce the risks of market investors. The use of advanced technology would guarantee the platform's efficiency, and its management can be assigned to an international organization or development bank, which would rely on a network of agents in the countries wh ere they operate.
The model is based on the principles of blended finance and it depends on the amount of investment. If the platform operator invests USD 10 billion each year, this will mobilize up to USD 100 billion in investment in the regional economies thanks to the multiplier effect. We're talking about major infrastructure projects in areas such as transportation, energy, manufacturing, and environmental protection
Aleksandr Raksha, Engagement Manager at Yakov and Partners
The authors of the report emphasize that such mechanisms are particularly relevant in the context of geopolitical turbulence, with global financial institutions becoming increasingly biased and often used to exert political pressure. It is critical for the emerging markets to reduce their dependence on those institutions and simultaneously develop their own solutions to achieve sustainable growth.
It should be noted that BRICS leaders recognize the need to improve the international monetary and financial system and its investment component. For instance, they declared their intention to create a new investment platform in the Kazan Declaration in 2024. Also, the BRICS Finance Track is developing BRICS Clear, a settlement infrastructure that will serve as an alternative to the existing cross-border payment channels.
The new architecture will not merely remove the restrictions – it will give the Global South and BRICS nations a sovereign tool for development. We expect these initiatives to provide the basis for a long-term investment cycle, where the emerging economies will take the lead rather than play an auxiliary role
Ilya Ivaninsky, Expert Partner at Yakov and Partners, Director of the Central University Business Education and Analytics Center
The report prepared by Yakov and Partners and the Central University was presented at the workshop "BRICS: A Transformative Force," which was held on May 27–28 at the University of Brasilia (UnB) in connection with Brazil's BRICS presidency in 2025. Organized by the country's Ministry of Finance, the event was the centerpiece of the UnB BRICS Week. It brought together government officials and leading experts to discuss the future of the group's economic architecture.
