The BRICS alliance (Brazil, Russia, India, China, and South Africa) is increasingly challenging Western-dominated global power structures by promoting multipolarity, de-dollarization, and alternative economic and political alliances. Here’s how BRICS is breaking Western power centers:
1. Challenging the US Dollar Dominance (De-Dollarization)
- Local Currency Trade: BRICS nations are increasing trade in local currencies (e.g., China-Russia trade in yuan/ruble, India-UAE trade in rupees) to reduce reliance on the US dollar.
- BRICS Currency Proposal: Discussions about a common BRICS currency or a gold-backed trade system could weaken the dollar’s global reserve status.
- Diversifying Forex Reserves: Members like China and Russia are reducing dollar holdings in favor of gold and other currencies.
2. Expanding Economic Influence
- Larger GDP Than G7 (PPP Terms): BRICS already surpasses the G7 in GDP based on purchasing power parity (PPP).
- New Development Bank (NDB): An alternative to the IMF and World Bank, providing loans without Western political conditions.
- Contingent Reserve Arrangement (CRA): A financial safety net to avoid IMF dependency.
3. Geopolitical Realignment Against Western Hegemony
- Anti-Western Alliances: Russia and China use BRICS to counter US-led sanctions and NATO influence.
- Global South Leadership: BRICS positions itself as the voice of the Global South, offering an alternative to Western-dominated institutions.
- Expansion (BRICS+): New members (Egypt, Ethiopia, Iran, UAE, Saudi Arabia, Argentina*) strengthen the bloc’s reach into Africa, the Middle East, and Latin America.
4. Alternative Institutions & Digital Sovereignty
- Replacing SWIFT: Russia and China promote alternatives like CIPS (Cross-Border Interbank Payment System) and SPFS (Russia’s SWIFT alternative).
- Digital Currencies: China’s digital yuan and potential BRICS blockchain payment systems could bypass Western-controlled financial networks.
5. Energy & Resource Control
- Commodities Powerhouse: BRICS nations control key resources (oil, gas, minerals) and are forming independent trade networks (e.g., Russia-India oil deals in rupees, China’s Petro-yuan).
- OPEC+ Coordination: With Saudi Arabia, UAE, and Iran in BRICS+, the group can influence global oil markets independently of the US.
6. Military & Security Cooperation
- Joint Military Drills: China and Russia conduct exercises with BRICS partners.
- Arms Sales: Russia and China supply weapons to Global South nations, reducing dependence on NATO suppliers.
7. Undermining Western Diplomatic Influence
- Non-Aligned Stance: BRICS nations often refuse to follow US/EU foreign policy (e.g., neutrality on Ukraine, support for Palestine).
- UN & Multipolarity: Pushes for UNSC reforms to reduce US/EU dominance.
Challenges for BRICS
- Internal Divergence: India vs. China tensions, differing views on expansion.
- Economic Inequality: Some members (South Africa, Brazil) face instability.
- Western Counter-Moves: US/EU may strengthen alliances (G7, Quad, AUKUS) to counter BRICS.
Conclusion
BRICS is reshaping global power by eroding dollar dominance, creating parallel financial systems, and uniting the Global South against Western hegemony. While not yet a unified rival to the West, its expansion and economic clout make it a key player in the emerging multipolar world.
