The BRICS alliance is no longer just a buzzword in global economics, it’s becoming a real geopolitical force. With new members like Iran, Egypt, and the UAE added to its roster, the once symbolic coalition is challenging the dominance of Western institutions like the G7, IMF, and World Bank. Its leaders are openly calling for a new world order, one that puts the Global South at the centre.
This shift is not subtle. BRICS is pushing for trade in local currencies, investing in its own development bank, and offering political backing to nations sidelined by the West. With over 40% of the world’s population and a growing share of global trade, the bloc is sending a clear message: power is shifting, and it’s no longer Westward.
The Evolution of BRICS
BRICS leaders stand united for a more balanced global voice (Hindustan Times)
BRICS was born in the early 2000s as a loose acronym for five major emerging economies: Brazil, Russia, India, China, and South Africa. For years, it was dismissed as symbolic, a club of mismatched economies with little real coordination.
That has changed. In 2023, BRICS formally invited six more countries, Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE, to join the bloc. With these additions, BRICS now includes major oil exporters, regional powers, and political outliers, forming an alliance that spans continents and ideologies.
The group’s agenda has expanded, too. It now focuses on creating financial alternatives, reshaping global trade, and giving the Global South a stronger political voice.
Breaking the Dollar’s Grip
One of BRICS’ most direct challenges to the West is its push for de-dollarisation. Member states are increasingly trading in local currencies to reduce reliance on the U.S. dollar, a currency long used as both a financial standard and a tool of political leverage.
Russia and China already conduct much of their trade outside the dollar, especially after Western sanctions on Moscow. India has paid for Russian oil in rupees. Brazil is strengthening its yuan-based ties with China. And the bloc has revived talks of a shared BRICS currency, still theoretical, but symbolically powerful.
For many countries in the Global South, this shift is appealing. U.S. sanctions, interest rate hikes, and dollar volatility have made local economies vulnerable. BRICS offers an exit, or at least, a bargaining chip.
The BRICS Bank: A Parallel System
Redefining global finance: NDB backs the Global South’s rise (BRICS)
Another major project is the New Development Bank (NDB), launched in 2015 to fund infrastructure and development without the conditions imposed by Western lenders like the IMF.
The NDB is headquartered in Shanghai, led by former Brazilian president Dilma Rousseff, and has already financed over $30 billion in projects, from renewable energy in South Africa to roads in India.
Unlike the IMF or World Bank, the BRICS bank avoids enforcing austerity or structural adjustment reforms. Critics say this leads to a lack of oversight; supporters say it gives countries breathing room and dignity.
As more nations join BRICS or align themselves with it, the NDB could become the preferred lender for countries tired of Western economic prescriptions.
Why the West Should Be Paying Attention
Western governments have mostly dismissed BRICS as either disorganised or irrelevant. But the numbers say otherwise.
The expanded BRICS bloc now represents:
- Over 40% of the global population
- More than 25% of global GDP
- A large share of global oil, food, and rare earth exports
Its influence is growing in Africa, Latin America, and Southeast Asia, regions where U.S. and European engagement has often faltered. With development loans, energy deals, and summit diplomacy, BRICS is filling that gap.
For countries burned by colonial histories, debt traps, or geopolitical double standards, the appeal is emotional as well as economic.
The Bigger Picture: A Fragmented Future
Bloc of five summit is not about replacing the West, not yet. It’s about creating alternatives. And in doing so, it’s forcing the West to confront its fading influence and reassess its alliances.
We are entering a multipolar world where power is diffuse, messy, and contested. The question is no longer whether this geopolitical variants matter, it’s whether the old world order is ready for a new one.
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