The Rise
of BRICS+: Is the Era of Western Dominance Ending?
For decades, the United States has dominated global economic and political systems, leveraging its influence through international institutions like the IMF and World Bank. However, the rapid rise of emerging economies in the Global South is challenging this unipolar world order. At the heart of this transformation is BRICS+—a bloc comprising Brazil, Russia, India, China, and South Africa, recently expanded to include countries like Saudi Arabia, Iran, and the UAE. This article critically examines whether the U.S.-led global order is at risk, exploring the implications of a multipolar world and the growing role of BRICS+.
The Cold
War Legacy and the Rise of U.S. Dominance
During the
Cold War, the world was divided into two ideological blocs, led by the United
States and the Soviet Union. After the Soviet Union's collapse in 1991, the
U.S. emerged as the sole superpower, reinforcing its dominance through global
financial systems and military alliances. Institutions like the IMF and World
Bank, established in 1944 under the Bretton Woods Agreement, became tools to
sustain Western hegemony.
The U.S.
dollar replaced the British pound as the global reserve currency, providing
America unparalleled economic leverage. This dominance allowed Washington to
impose sanctions and control global trade flows, reinforcing its geopolitical
influence.
Economic
Shifts and the Rise of BRICS+
Today, the
world is undergoing a seismic shift in economic power. BRICS+ represents nearly
45% of the global population and contributes over 37.7% of global GDP
(PPP)—surpassing the G7's 30%. Key members like China and India have become
manufacturing and technology hubs, challenging Western economic dominance.
Key
Economic Figures: BRICS vs. G7
|
Group |
Population
(Billion) |
GDP
(PPP, Trillions USD) |
GDP
(Nominal, Trillions USD) |
Global
Trade Share (%) |
Foreign
Exchange Reserves (Trillions USD) |
Natural
Resources (Trillions USD) |
|
BRICS |
3.24 |
59.7 |
28.3 |
23 |
5.7 |
55.0 |
|
G7 |
0.78 |
54.3 |
43.4 |
30 |
1.8 |
21.0 |
The Role
of Petrocurrency
A major
pillar of U.S. economic dominance has been the 'Petrodollar' system—where oil
transactions are denominated in U.S. dollars. This system has allowed the U.S.
to maintain demand for its currency, supporting its global financial hegemony.
However, BRICS+ nations are now exploring alternatives, such as trading oil in
local currencies or creating a shared reserve currency.
For
instance:
- China and Russia already conduct
90% of their trade in their national currencies.
- Saudi Arabia and the UAE are
considering accepting payments in yuan and rubles instead of dollars.
- Iran and Russia have bypassed
the dollar for 60% of their bilateral trade, amounting to over $6 billion.
The move
toward 'Petrocurrency diversification' poses a direct challenge to the U.S.
dollar’s dominance and could reshape global trade patterns.
India’s
Strategic Dilemma: BRICS or the West?
India’s role
in this emerging order is particularly complex. As a member of BRICS, India
shares economic and political ties with China and Russia. However, its
strategic partnership with the U.S. through forums like QUAD (Quadrilateral
Security Dialogue) creates conflicting priorities.
- Economic Interests: India benefits from BRICS'
focus on de-dollarization and infrastructure funding but relies heavily on
Western markets for exports and investments.
- Security Concerns: India’s border tensions with
China make it wary of fully aligning with BRICS+, pushing it to balance
relations with both blocs.
Ultimately,
India may adopt a non-aligned stance, leveraging partnerships with both BRICS+
and Western powers to maximize its influence.
BRICS+
Initiatives: Toward a New Financial System
1.
De-dollarization Strategy
BRICS+ aims
to reduce dependence on the U.S. dollar by promoting trade in local currencies.
The New Development Bank (NDB), established with an initial capital of $50
billion (now $100 billion), provides an alternative to the IMF and World Bank,
offering loans on flexible terms.
2. BRICS
Pay and Digital Currencies
To bypass
Western financial networks, BRICS+ is developing a payment system called 'BRICS
Pay.' This initiative seeks to facilitate cross-border transactions without
relying on the SWIFT system, which is controlled by the West.
3.
Resource Advantage
With over
$55 trillion in natural resources, BRICS+ holds a strategic edge over G7
economies. This wealth includes oil, gas, rare earth minerals, and agricultural
products, positioning BRICS+ as a key supplier for global industries.
The
Emerging Multipolar World
The rapid
rise of BRICS+ signals a fundamental shift in global power dynamics. While the
U.S. and its allies continue to dominate in terms of nominal GDP and
technological innovation, the economic weight and resource dominance of BRICS+
are undeniable. The push toward de-dollarization, alternative financial
systems, and regional partnerships could redefine global governance.
However,
challenges remain. Coordination among BRICS+ members, geopolitical rivalries,
and structural reforms within the group will determine its long-term success.
As the world edges closer to a multipolar order, nations like India face
critical choices that could shape the future of global politics.
The question
remains—can BRICS+ translate its economic strength into sustained geopolitical
influence, or will internal divisions hinder its rise? Only time will tell, but
one thing is clear—the age of unchallenged Western dominance is coming to an
end.
References:
Concern in the West as Indonesia joins BRICS bloc as fullmember
Brazil's Lula urges BRICS to create alternative payment
methods
Finance leaders' big risks in 2025: Geopolitics, interest
rates and market volatility
Concern in the West as Indonesia joins BRICS bloc as full member
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