BRICS+ : challenging the US-Led western global order and paving the way for a multipolar world
The expansion of BRICS into BRICS+ with new members like Iran and Ethiopia marks a turning point. The bloc aims to challenge Western hegemony and promote a multipolar world that is more equitable and inclusive.
By Fasil MBA*
BRICS+, an intergovernmental organization originally comprising Brazil, Russia, India, China, and South Africa, has recently expanded to include Iran, Egypt, Ethiopia, and the UAE. This expansion, finalized during the 16th BRICS Summit held in Kazan, Russia, from October 22 to 24, 2024, marks a historic moment in international relations and economics. BRICS+ now represents approximately 47% of the world’s population and accounts for 36% of global GDP. The bloc’s combined GDP is projected to reach US$65 trillion, significantly increasing its economic clout on the global stage. The bloc is positioning itself as a geopolitical rival to the G7, which represents around 29% of global GDP and a much smaller portion of the world’s population at roughly 10%. The emergence of BRICS+ signals the rise of new technological and financial alternatives, reshaping the global order. Over 40 countries, including Turkey and Indonesia, have expressed interest in joining, underscoring its appeal as an alternative to Western-dominated institutions.
BRICS History
BRICS originated as an economic concept coined by Goldman Sachs economist Jim O’Neill in 2001, referring to emerging markets with significant growth potential. In 2009, these nations formalized their cooperation with the aim of addressing global challenges and reforming international financial institutions. South Africa’s inclusion in 2010 expanded the group to BRICS, and the addition of new members in 2024 under BRICS+ reflects the bloc’s ambition to foster a more equitable and multipolar global order.
BRICS+: A Platform for Multipolarity
BRICS+ is not merely an economic bloc; it is a vehicle for geopolitical cooperation among emerging powers. By challenging Western-led institutions, BRICS+ seeks to establish a multipolar world order that recognizes the growing importance of the Global South. Initiatives such as the New Development Bank (NDB) and BRICS Pay provide member countries with alternatives to US-dominated financial systems, allowing for greater autonomy and reducing reliance on Western financial mechanisms. Historically, global politics and economics have been dominated by the US and its Western allies. However, the rise of BRICS+ signals a shift towards a multipolar world where no single power dictates the global agenda. The bloc’s emphasis on sovereignty, mutual respect, and non-interference challenges the colonial mentality that has characterized Western powers for centuries.
BRICS New Development Bank: A Strategic Alternative to the IMF and World Bank
The New Development Bank (NDB), established by BRICS in 2014, offers a compelling alternative to the Western-dominated IMF and World Bank. Primarily focused on infrastructure development and sustainability in emerging markets, the NDB provides financing options free from the political conditions often attached to loans from Western financial institutions.
The NDB’s initial authorized capital stands at $100 billion, divided into 1 million shares, each with a par value of $100,000. Of this, the initial subscribed capital is $50 billion, split into $10 billion of paid-in shares and $40 billion of callable shares. The subscribed capital was equally distributed among the five founding members—Brazil, Russia, India, China, and South Africa—ensuring balanced ownership and representation.
A distinctive feature of the NDB is its governance structure, which promotes equality among its members. Each member state is granted one vote, and, crucially, no member holds veto power. This governance model underscores the bank’s commitment to fostering a more inclusive and cooperative international financial system, where all members have an equal voice and decision-making power, contrasting with the unequal power dynamics often seen in traditional financial institutions like the IMF and World Bank.
BRICS Pay and DCMS: The Future of Financial Independence
BRICS Pay is a decentralized, cross-border payment system under development by BRICS nations, aimed at facilitating international transactions in local currencies and reducing dependence on the US dollar. It serves as an alternative to SWIFT (Society for Worldwide Interbank Financial Telecommunication).
SWIFT established in 1973, is a global financial messaging system that connects over 11,000 financial institutions in more than 200 countries, facilitating secure communication for international transactions. Each institution is assigned a unique SWIFT or BIC (Bank Identifier Code) to standardize and secure transaction messaging. Although SWIFT does not directly handle funds, it enables nearly half of all high-value cross-border payments worldwide.
Headquartered in Belgium, SWIFT operates under Belgian law and falls under some regulatory oversight from the European Union. However, since many SWIFT transactions are conducted in U.S. dollars, the U.S. exerts significant influence over SWIFT’s policies, particularly in matters of sanctions and financial controls. This influence enables the U.S. to use SWIFT as a tool for geopolitical strategy by pressuring the network to disconnect certain countries that conflict with its foreign policy, effectively isolating them financially. For instance, Iran was cut off from SWIFT in 2012 over its nuclear program, and several Russian banks faced disconnection in 2022 following the Ukraine conflict. The strategic use of SWIFT as a geopolitical instrument underscores the dominance of Western powers over the global financial system, with severe consequences for countries that are excluded, as they lose access to international markets and banking services.
BRICS Pay, introduced in 2018 by the BRICS Business Council, operates similarly to China’s Cross-Border Interbank Payment System (CIPS) and India’s Unified Payments Interface (UPI).
At the core of BRICS Pay is the Decentralized Cross-border Message System (DCMS), developed by Saint Petersburg State University. DCMS is designed to operate without a central hub, with participants managing their own nodes, making it resistant to external control or interference. The system allows for optional transaction fees, automated transaction routing, and robust encryption, ensuring secure, efficient communication even if direct links are unavailable. With the ability to handle up to 20,000 messages per second and minimal hardware requirements, DCMS is a powerful tool for enhancing international financial cooperation. DCMS is expected to be open-source after it passes its pilot phase, offering transparency and adaptability for future innovations.
End of US-Led Western Hegemony
The dominance of the West, particularly the US, has been sustained through control of global financial institutions, economic coercion, and military interventions. BRICS+ challenges this hegemony by advocating for institutional reforms and offering regional solutions that respect the sovereignty of member states. The bloc emphasizes cooperation, mutual respect, and development, empowering previously marginalized countries on the global stage.
The West has also used its financial and political dominance to impose unilateral sanctions on perceived adversaries. However, BRICS+ and its development of alternative financial systems, like BRICS Pay and the NDB, threaten to undermine these sanctions. BRICS+ countries can now trade and transact without relying on US-dominated financial infrastructure, bypassing sanctions tied to the dollar-based global economy.
Dedollarization and Its Impact on the US Empire
The dedollarization process being driven by BRICS+ will have profound economic consequences for the US. The demand for the US dollar has long allowed the US to run large deficits while maintaining low inflation. As more countries move away from the dollar, the US may face rising inflation, a weakening currency, and a loss of global economic dominance. The shift could contribute to the economic decline of the US empire, reshaping the global financial landscape.
Conclusion
BRICS+ is not just reshaping global governance; it is also revolutionizing technology, finance, and international cooperation. As the bloc continues to expand and strengthen its institutions, it presents a viable alternative to the Western-dominated global system. By promoting dedollarization, technological innovation, and financial autonomy, BRICS+ is laying the foundation for a more balanced and multipolar world where the Global South plays a more influential role.
*Fasil, an MBA from ARU Cambridge, is a versatile professional, co-founder of Digisuite Solutions LLC, and a management consultant at Pangeacons Ltd, as well as the author of « THE HANDBOOK FOR BUSINESS MANAGEMENT AND ADMINISTRATION. »
