Colombia joins BRICS-backed bank in shift toward new financial order
June 20 (UPI) -- Colombia's recent entry into the BRICS-backed New Development Bank marks a significant shift in its foreign and economic policy. With the move, President Gustavo Petro's administration aims to reduce the country's long-standing reliance on Western financing and attract new investment for strategic infrastructure projects.
"Colombia officially joins the BRICS New Development Bank. This membership opens new financing opportunities for strategic projects and is a key step toward diversifying alliances and strengthening the country's economy," the Colombian presidency announced Thursday in a post on X.
Colombia's membership involves an initial $512 million commitment and makes it the first South American nation to formally join the bank, which is backed by 11 BRICS full members, including China, Russia, India, South Africa and Brazil.
Foreign Minister Laura Sarabia welcomed the announcement, saying the move goes beyond financial strategy and reflects broader national goals. "We continue to pave the way for new opportunities for the country," she wrote on X.
Beyond access to loans with fewer conditions, the move carries significant symbolic weight. It reflects the Petro administration's interest in redefining Colombia's international role, shifting away from the traditional Washington-Bogotá axis to pursue a more independent path aligned with the Global South.
The announcement has sparked both enthusiasm and skepticism among Colombian analysts, who warn of financial risks, geopolitical consequences and the delicate balance Bogotá must maintain with the United States, its primary trading and military partner.
The Petro government has defended the move as a pragmatic step amid global economic volatility and the weakening of the traditional multilateral order.
Officials also see it as an opportunity to advance strategic projects such as the interoceanic railway -- an ambitious infrastructure initiative aimed at positioning Colombia as a commercial hub between Asia and the Caribbean.
Colombia's Foreign Ministry and Finance Ministry officials emphasized that joining the New Development Bank does not signal a break with the Inter-American Development Bank or the International Monetary Fund.
"This is about having more options, not replacing allies," Finance Minister Ricardo Bonilla said.
Still, reactions in Colombia remain divided. While lawmakers from the ruling coalition praised what they called the country's "financial emancipation," opposition groups and business associations raised concerns about the fiscal burden and reputational risks of aligning with a bloc that includes China and Russia.
"Do we want to depend on the yuan or the ruble? What guarantees does a bank dominated by authoritarian regimes offer?" conservative senator and former presidential candidate Enrique Gómez asked.
Colombia has long been one of the United States' closest allies in the fight against drug trafficking and in supporting the liberal economic model promoted by Washington. Against that backdrop, closer ties with China have raised tensions.
The U.S. State Department has said it will firmly oppose financing for Latin American projects tied to China's Belt and Road Initiative, a global investment strategy backed by Beijing that aims to expand its economic influence through critical infrastructure development around the world.
Founded in 2015, the New Development Bank aims to provide financing for infrastructure and sustainable development in emerging economies, with fewer political conditions than the International Monetary Fund or the World Bank.
To date, it has approved more than $40 billion in funding for 122 infrastructure projects in sectors such as transportation, clean energy and sanitation.
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