Seamless Connectivity: BRICS, Asia, and the Global South as Engines of Shared Growth
In Vladivostok, an Open Dialogue session at the National Centre “Russia” explored new financial and investment strategies for the World Majority. The discussion was moderated by Maxim Oreshkin, Deputy Head of the Administration of the President of the Russian Federation.
During the third discussion block, “New Financial and Investment Mechanisms for the World Majority,” speakers emphasized that in today’s shifting global economy, long-term sustainability depends on digital integration and the development of interoperable payment systems.
Ilya Ivaninskiy, Director of the Center for Business Education and Analytics at the Central University, underscored that genuine market connectivity is impossible without solid investment flows.
“Connectivity simply cannot function without capital,” he remarked, pointing out that developing countries are now the backbone of the global economy — accounting for more than 60% of global GDP and over 90% of the world’s population. He stressed that the future of economic growth lies within these regions.
However, Ivaninskiy noted that the international financial system still lags behind these realities:
“Payments, representation in institutions, reserves, and investments — none of these components align with the new conditions.”
The global investment gap, estimated at more than $4 trillion, is especially burdensome for countries in the Global South.
Ivaninskiy detailed the underlying issues. In emerging economies, most investments rely heavily on debt financing:
“Our debt-to-equity ratio is 2 to 1, whereas in advanced economies it is closer to 1 to 1.” He added that nearly 40% of these debts must be repaid by 2027, with borrowing costs pushed unfairly higher. “If risk is higher by just 1.5%, the cost of capital climbs by 6.6% — nearly four times the actual risk level.”
Another obstacle, according to the expert, is weak financial connectivity: the majority of foreign investments into developing nations originate from developed countries, while much of the Global South’s capital still flows back into developed markets.
“In the 21st century, when connectivity remains limited, the logical solution is building a new investment platform,” Ivaninskiy argued.
He proposed that such a platform should unite BRICS nations and the broader World Majority. Key features would include a transparent showcase of long-term infrastructure projects, clear quality assessment standards for investors, and practical tools for reducing risk.
“Governments can support this by purchasing junior tranches or issuing guarantees,” he suggested.
Ivaninskiy outlined a two-tier model for this platform: at the national level, countries would select projects and investors, while at the international level, cross-border investments and offsets would be coordinated.
He also pointed to technology as an enabler:
“Blockchain is already recognized as a solution for payments and settlements. Digital tools today make these operations efficient, transparent, and low-cost.”
At the center of such a system, he envisioned a digital investment asset — secure, inflation-resistant, and risk-free.
His economic projections were striking: annual investments of at least $10 billion could generate up to $100 billion in additional GDP every year.
“For economies whose combined GDP exceeds $60 trillion, this level of investment is modest, yet the potential effect is equal to a quarter of a percent of global GDP,” he explained.
“It’s encouraging that such initiatives are being debated on platforms like these. I truly hope these discussions will accelerate real-world implementation,” Ivaninskiy concluded.
