BRICS and the End of Dollar Dominance: A new economic order or a global gamble?

1. Introduction

The power of a currency lies not just in its intrinsic value, but in the trust and systems that nations build around it. (David King Boison)

In the years following World War II, the United States emerged as a superpower in both military and economic terms, ushering in an era that would establish the US Dollar as the world’s reserve currency. This monumental shift didn’t happen overnight; it was the result of strategic moves and economic agreements that rooted the Dollar deeply into the global financial system.

The Bretton Woods Agreement of 1944 stands as the cornerstone of this dominance, marking a pivotal moment when the Dollar was pegged to gold and other major currencies were pegged to the Dollar. This arrangement positioned the US Dollar as a pillar of global stability, fostering a system that promised economic growth and financial security for participating countries. By backing the Dollar with gold, the United States created a currency that was both stable and widely trusted. Countries around the world held Dollar reserves as a hedge against currency fluctuations and to facilitate trade, creating a symbiotic relationship between the US and its allies. However, this also meant that the Dollar was now more than just a national currency—it was a global one. When the US abandoned the gold standard in 1971 under President Richard Nixon, the Dollar’s position did not diminish but rather adapted. The “petrodollar” system took shape as OPEC nations agreed to price oil exclusively in US Dollars.

This arrangement gave the Dollar an almost universal role in global trade and solidified its place as the primary reserve currency. Consequently, countries needed Dollar reserves to purchase oil, which created ongoing demand for the currency. This unique position has provided the United States with substantial benefits. It allowed the US to borrow and lend at more favourable rates and to exercise financial influence worldwide. Moreover, it strengthened America’s political leverage, as the Dollar’s centrality gave the US unprecedented control over global financial flows, sanctions, and the international monetary system. This “exorbitant privilege” also allowed the US to run substantial trade deficits without experiencing the same level of economic instability that other nations might face under similar conditions.
However, as BRICS nations and their allies emerge as economic forces, the long-standing Dollar hegemony is now under scrutiny. The BRICS bloc views the Dollar-dominated system as outdated, unfair, and detrimental to their economic sovereignty. BRICS aims to establish a multipolar world that reflects more equitable economic participation and less dependency on a single currency—particularly one that carries the political and economic weight of the United States. Shifts are already visible. China and Russia, for instance, have begun trading in their local currencies, circumventing the Dollar in bilateral trade agreements. This step is emblematic of the BRICS initiative to reduce Dollar reliance and build a financial system that more accurately represents their collective economic clout.

2. The Rise of BRICS as a Global Economic Force

BRICS, initially formed as a coalition of emerging economies seeking a voice outside Western-dominated institutions, has transformed into a critical player in the international economic landscape. Today, the bloc’s expansion to 24 members signals a shift toward establishing an alternative economic alliance with significant global influence. The bloc’s trajectory from an acronym representing four distinct economies to an expansive coalition encapsulates a shared dissatisfaction with the current global economic structure, specifically its inherent dependence on the US Dollar and Western financial systems. These new members bring diverse economic strengths and ambitions, each contributing unique perspectives and resources, which collectively amplify BRICS’ ability to address global economic disparities. At the heart of BRICS’ growth is its distinct model for development and cooperation, which diverges from the rigid frameworks of Western-led financial institutions like the IMF and World Bank. The New Development Bank (NDB), established by BRICS in 2015, aims to offer financial assistance without the austerity conditions traditionally attached to Western aid. This model has attracted countries like Egypt and Ethiopia, which now see BRICS as a partner for development that respects their sovereignty and economic policies. Furthermore, oil-rich nations like Saudi Arabia and Iran, newly admitted into the bloc, bring the potential for reshaping global energy markets, particularly if BRICS members shift towards trading energy in local currencies or digital currency alternatives. Such a move could disrupt the long-standing petrodollar system and reduce the Dollar’s influence in energy transactions.

BRICS members also share a vision for South-South cooperation, where emerging economies collaborate directly rather than through Western intermediaries. Countries in Africa, Latin America, and Southeast Asia view BRICS as a platform for equitable partnerships that bypass Western control, offering them a more significant stake in their development trajectories. Brazil, for example, has long championed South American inclusion within BRICS, aligning its regional ambitions with the bloc’s overarching goal of reducing dependency on Western economic models. Similarly, India’s promotion of economic inclusivity within the bloc reflects its pursuit of balanced partnerships across Asia and the Indian Ocean, underscoring BRICS’ appeal for countries seeking multipolar cooperation. However, the expansion also brings challenges. As BRICS grows more heterogeneous, its decision-making processes become more complex. While the bloc’s diversity provides strength in terms of resources and global reach, it also increases the likelihood of internal disagreements. For instance, China’s and India’s longstanding border disputes introduce geopolitical tensions that could hinder unified policies within BRICS. Moreover, as BRICS attempts to present itself as an alternative to the G7 and G20, it faces the challenge of maintaining cohesion among member states with divergent political systems and economic priorities. This issue became apparent during discussions around Saudi Arabia’s and Iran’s inclusion, as their ideological differences could create rifts within the bloc.

The recently concluded summit in Russia underscores BRICS’ commitment to evolving as a counterweight to the traditional Western-led order. Russian President Vladimir Putin emphasized the need for BRICS to build a “fairer global financial system,” while Chinese President Xi Jinping highlighted the importance of strengthening ties among developing nations. These leaders’ statements reflect a common BRICS objective to challenge the existing order by creating a parallel network of economic alliances, trade agreements, and financial institutions that bypass Western influence. However, the long-term effectiveness of this coalition will depend on its ability to reconcile internal differences and present a coherent strategy for global economic reform. In essence, BRICS has evolved from a mere economic bloc into a geopolitical alliance that advocates for a multipolar world order. With an expanded membership that includes major oil producers, critical emerging economies, and regional influencers, BRICS is better positioned than ever to push for systemic changes in the global financial landscape. Yet, this expanded influence comes with the responsibility of navigating complex political dynamics and balancing the interests of its diverse members. As BRICS embarks on this path, its impact on global economics will be determined by its capacity to act as a unified force amid the growing demands for a more equitable and inclusive international economic system.

3. Emerging Currencies and Financial Alternatives

One of BRICS’ most ambitious goals is to reduce global dependency on the US Dollar by exploring alternative currencies for international trade and transactions. This strategy, often referred to as “de-dollarization,” seeks to mitigate the vulnerabilities associated with Dollar reliance, particularly the risks of US sanctions and economic fluctuations tied to the Dollar’s global value. As BRICS expands, the coalition has taken concrete steps to promote financial autonomy by exploring alternative payment systems and currencies, with a growing emphasis on using local currencies in trade agreements and developing digital currency systems. For instance, China has led the charge in developing a viable alternative to Dollar-dominated transactions with its Digital Yuan, an innovation under the banner of Central Bank Digital Currencies (CBDCs). The Digital Yuan allows China to facilitate cross-border transactions outside of Dollar-based systems, enhancing transaction security and efficiency, especially with countries under Western sanctions. Other BRICS members, including India and Russia, are developing similar CBDCs to improve control over domestic monetary systems and secure their financial infrastructure from external pressures. As CBDCs gain traction, BRICS could establish a digital ecosystem that bypasses traditional banking systems, paving the way for a robust and independent financial network within the bloc.

In addition to CBDCs, the concept of using national currencies for trade within the bloc has also gained momentum. China and Russia have already taken steps to settle bilateral transactions in Rubles and Yuan, bypassing the need for Dollars in their trade agreements. Saudi Arabia, a recent BRICS inductee, is reportedly considering options for trading oil in non-dollar currencies, an action that could destabilize the petrodollar system if adopted on a larger scale. Such a shift would represent a major economic pivot, impacting global currency reserves and potentially weakening the Dollar’s position as the dominant currency in commodity markets. The New Development Bank (NDB), established by BRICS in 2015, is another financial alternative to Western institutions like the IMF and World Bank. Its mandate allows it to provide financial assistance without imposing the strict austerity measures often required by Western lenders, appealing to emerging economies that seek greater flexibility in managing their growth. With new members like Saudi Arabia and the UAE, both with significant financial resources, the NDB could potentially expand its lending capacity and provide a viable option for countries seeking infrastructure and development funding outside of traditional Western sources. By expanding its capital base, the NDB aims to support infrastructure projects, renewable energy initiatives, and sustainable development across the Global South, further reducing dependency on Western-dominated financial systems.

However, establishing a BRICS-backed global currency presents challenges. For one, significant infrastructure investment is required to create a seamless, interoperable financial system among countries with diverse economic structures and monetary policies. Moreover, while China’s Renminbi has been suggested as a potential BRICS-wide currency, concerns about China’s economic dominance and political influence have prevented full consensus. Many BRICS members, such as India, are wary of a system where China holds disproportionate control, advocating instead for a multi-currency framework that allows for balanced representation.

The introduction of digital currencies like the AKL Lumi, which is gaining traction within the African continent, represents another avenue for reducing Dollar reliance. Backed by the African Diaspora Central Bank, the AKL Lumi provides a regional currency option for African nations, promoting intra-African trade without the need for US Dollar conversions. By utilizing the AKL Lumi for trade within Africa, member countries can build more resilient, localized economies, which aligns with BRICS’ goal of creating a more decentralized global financial system. Despite the promise of financial alternatives, significant hurdles remain.

Cross-border digital currency transactions require stringent cybersecurity measures, particularly as BRICS members navigate sanctions, economic pressures, and political tensions from the West. Moreover, interoperability between CBDCs from different BRICS nations is essential to creating a seamless network for trade within the bloc. Without such coordination, individual digital currency initiatives risk becoming isolated, limiting their impact on global financial dynamics. The adoption of these financial alternatives reflects a shared determination among BRICS nations to assert economic independence and challenge the existing Dollar-centric financial order. While the Dollar remains deeply entrenched in global markets, BRICS’ initiatives in developing CBDCs, promoting the use of local currencies, and supporting the AKL Lumi reveal a deliberate, strategic approach to creating a financial ecosystem less vulnerable to external influence. This strategy not only advances BRICS’ economic goals but also offers a potential model for other emerging economies exploring paths toward financial sovereignty in a multipolar world.

4. The Role of New Strategic Partners

The latest expansion of BRICS has broadened its influence and reach by incorporating 13 new members from diverse regions, reflecting a global shift toward multipolarity and expanded collaboration. These new partners—Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam—bring valuable resources, strategic locations, and unique economic profiles to the bloc. Each member’s inclusion aligns with BRICS’ objective to strengthen economic ties among emerging economies while minimizing reliance on Western financial institutions and the US Dollar. This expanded BRICS+ membership significantly enhances the bloc’s position in global markets, particularly in sectors where Western economies have traditionally dominated, such as energy, raw materials, and manufacturing. Algeria, Nigeria, and Kazakhstan add substantial weight to BRICS’ influence in the global energy market. As major oil and gas producers, these countries offer BRICS additional leverage in determining oil and natural gas prices, potentially impacting the global energy landscape. If BRICS were to implement a policy where oil and gas transactions occur in local currencies or digital alternatives, it would challenge the petrodollar system directly, reducing global dependency on the US Dollar.

From a geographic standpoint, Indonesia, Malaysia, and Thailand enhance BRICS’ influence in Southeast Asia, a region that has increasingly become a hub for global manufacturing and trade. The inclusion of these countries fosters closer economic integration within Asia, providing alternatives to China’s dominance in regional trade while reinforcing BRICS’ goal of diversifying global supply chains. Furthermore, these Southeast Asian economies bring significant maritime trade routes and strategic access points to global markets, providing BRICS with a more extensive logistical network that can compete with existing Western and Chinese routes. Turkey’s and Uzbekistan’s membership adds strategic depth to BRICS’ influence in the Eurasian region, linking the bloc to both European and Asian markets. Turkey, a NATO member with close ties to both the West and East, represents a unique addition, as it could bridge Western and BRICS interests while advocating for a multipolar economic order. Turkey’s role in BRICS could provide the bloc with insights into Western policy dynamics and facilitate potential dialogues between BRICS and NATO members. Uzbekistan, located in Central Asia, bolsters BRICS’ access to the region’s growing resources and infrastructure projects, linking South Asia and Europe through initiatives like China’s Belt and Road. In Latin America, Bolivia and Cuba further strengthen BRICS’ presence. Bolivia’s substantial lithium reserves, essential for the global renewable energy transition, align well with BRICS’ push for sustainable development and energy independence. Cuba, though economically smaller, symbolizes BRICS’ ideological solidarity with nations seeking independence from US influence, highlighting the bloc’s appeal as an alternative for countries marginalized by Western policies. These Latin American additions also support BRICS’ mission to diversify its partnerships across the Americas, where it can facilitate South-South cooperation with countries facing economic challenges similar to those of other Global South nations.

African nations Nigeria and Uganda bring substantial growth potential and natural resources to BRICS. Nigeria, as Africa’s largest economy and a leading oil producer, plays a pivotal role in the African Union and offers a gateway to further influence on the continent. Uganda, known for its rich mineral deposits, adds value to BRICS’ focus on natural resources. These African members also align with the bloc’s mission to develop South-South partnerships, allowing African countries to pursue development goals without Western financial dependency. The AKL Lumi digital currency, increasingly adopted across African nations, complements BRICS’ objectives, providing an alternative medium of exchange that strengthens intra-continental trade and fosters African economic resilience.

Potential and Challenges for BRICS as a Multinational Bloc

While the strategic expansion of BRICS offers considerable advantages in terms of resources, influence, and alternative financial systems, the integration of new members presents logistical and ideological challenges. For instance, each member brings distinct economic models, political systems, and regional alliances, which may complicate consensus-building within the bloc. Turkey’s role as a NATO member, for example, could create friction if BRICS pursues policies at odds with Western security frameworks. Additionally, ideological differences among authoritarian, democratic, and hybrid governments within BRICS could strain unity, particularly on issues like human rights, governance, and military cooperation. The expansion also introduces practical difficulties in harmonizing financial policies and infrastructure across vastly different economies. Countries like Indonesia, Uzbekistan, and Thailand, each with varying degrees of dependence on Western trade, might approach BRICS policies cautiously, seeking to balance benefits within the bloc with their existing Western ties. Furthermore, the complexity of managing cross-border digital transactions, particularly with the implementation of national CBDCs, requires extensive coordination and robust cybersecurity measures.

Nevertheless, BRICS’ growth marks a significant departure from Western-centric globalization. By welcoming diverse partners with varied strengths, the bloc enhances its collective bargaining power in international trade, energy policy, and financial innovation. As BRICS continues to attract countries marginalized by Western-dominated institutions, it underscores an expanding desire for a more equitable global system where emerging economies have greater agency. If BRICS can effectively address its internal complexities, it could emerge as a resilient counterweight to Western economic power, setting the stage for a multipolar world where multiple alliances foster growth and security through diversified global cooperation.

5. Security Implications: The UN, NATO, and Global Stability

As BRICS expands, the bloc’s growing influence poses both opportunities and challenges for global security. While BRICS itself does not function as a military alliance, the coalition’s economic and political clout indirectly affects global security frameworks, particularly those led by the United Nations (UN) and the North Atlantic Treaty Organization (NATO). Countries within BRICS, like Russia and China, have historically positioned themselves as counterweights to Western influence, a stance that now resonates more strongly with the addition of new members from Africa, Asia, and Latin America. The rise of BRICS creates a scenario where countries outside traditional Western alliances may have greater freedom to pursue independent foreign policies. As BRICS expands to include nations like Turkey, Nigeria, and Algeria, its economic clout increases, making it easier for members to withstand Western pressures. Turkey’s inclusion is particularly significant, as it is a NATO member and shares strategic relations with both the West and BRICS nations. This membership crossover could potentially serve as a bridge between BRICS and NATO, offering a unique diplomatic channel. However, it could also strain NATO’s cohesion if Turkey faces conflicting loyalties, especially if BRICS moves toward more explicit opposition to Western policies.

UN Dynamics and Security Council Reform

The UN has long been a platform for advocating global peace and security, but its power dynamics reflect a post-World War II reality dominated by Western nations. The BRICS coalition has consistently advocated for reforms in the UN Security Council to include emerging economies, arguing that current structures no longer represent today’s geopolitical landscape. During the recent BRICS summit, UN Secretary-General Antonio Guterres attended and reiterated the need for reforms in institutions like the UN, IMF, and World Bank, aligning with BRICS’ vision for more inclusive global governance.

The expansion of BRICS strengthens the bloc’s influence within the UN, especially as new member countries like Nigeria and Algeria are prominent voices in the Global South. With these nations now part of BRICS, the bloc can exert more pressure for Security Council reform, advocating for a broader representation that reflects the interests of emerging economies. This push for reform is likely to be met with resistance from permanent members like the United States, who may view BRICS expansion as a direct challenge to their control over international institutions. Yet, the inclusion of countries like Turkey—already an influential member of the UN—suggests that BRICS could successfully build alliances to push for gradual reform rather than immediate upheaval.

The NATO-BRICS Relationship: Cooperation or Tension?

While BRICS does not have a formal military function, its economic and strategic alliances can impact NATO’s influence globally. NATO, primarily a defence alliance, is focused on collective security and is often at odds with BRICS members like Russia and China, which it perceives as potential threats to its interests in Europe and the Indo-Pacific. The expansion of BRICS to include nations with diverse alliances, such as Turkey and Indonesia, creates a complex interplay between the two blocs. Turkey’s dual association with NATO and BRICS could create diplomatic opportunities or risks, depending on how Ankara navigates its dual allegiances.

Furthermore, the expansion of BRICS indirectly influences the strategic security landscape by enhancing its members’ economic independence, making them less susceptible to NATO or US-led sanctions. For instance, countries like Iran and Russia, both under heavy sanctions, may find alternative markets within BRICS, diminishing the effectiveness of Western sanctions. This trend may lead NATO to reassess its economic leverage, as sanctions—one of its primary tools—become less effective against a bloc with substantial internal trade and financial alternatives. At the same time, the rivalry between BRICS and NATO could complicate cooperation on global security issues. For instance, countries with BRICS ties may be less inclined to participate in NATO-led security initiatives or peacekeeping efforts, especially if these are seen as aligned with Western interests. This division could reduce collective efforts to address issues such as nuclear proliferation, cyber threats, and terrorism, as the emerging multipolarity within BRICS and NATO creates separate security spheres.

Cybersecurity and Economic Sanctions

As BRICS develops its digital financial infrastructure, including Central Bank Digital Currencies (CBDCs), the security of cross-border digital transactions has become a priority. Countries like China and Russia have developed independent financial networks to protect against sanctions and reduce dependency on the US-controlled SWIFT system. A BRICS-backed financial network could become a vital security asset, enabling member nations to insulate themselves from Western economic pressures. However, with the increased adoption of digital currencies, BRICS must address cybersecurity threats, which pose significant risks to financial stability and national security.

Cybersecurity cooperation among BRICS members becomes essential to protect against potential cyberattacks that target these new financial systems. NATO, recognizing the importance of cyber defence, has invested in its cybersecurity capabilities, and BRICS may need to follow suit to maintain the integrity of its digital initiatives. This could lead to a new form of arms race, where NATO and BRICS both advance their cybersecurity frameworks to secure their respective financial ecosystems.

Geopolitical Fragmentation and Its Broader Implications

The expansion of BRICS adds a layer of complexity to an already fragmented global order. With the G20, BRICS, and NATO representing overlapping but distinct spheres of influence, global cooperation may become increasingly challenging. The risk of polarized blocs reminiscent of the Cold War is heightened if BRICS moves closer to an anti-Western stance, which would create competing economic and political structures.

This fragmentation could hinder cooperation on transnational challenges such as climate change, global health crises, and arms control, as each bloc pursues its interests within a fragmented international framework. Yet, BRICS has so far avoided positioning itself as a direct competitor to NATO or the G7, instead promoting itself as an alternative rather than an adversary. This approach leaves room for selective cooperation, particularly on issues where BRICS and NATO share interests, such as countering terrorism and combating pandemics. However, for these collaborations to succeed, BRICS and NATO will need to find common ground without compromising their foundational principles.

The Future of Global Stability

BRICS’ growth underscores a shift toward a multipolar world where countries seek alternatives to Western hegemony. This expansion will undoubtedly test the resilience of global institutions like the UN and NATO, as they must adapt to a new reality with multiple influential alliances. The future of global stability depends on how these institutions navigate the rise of BRICS. If BRICS can effectively promote a multipolar balance that avoids confrontation, it could contribute to a more stable global order. However, if the bloc moves toward confrontation with NATO and the West, it risks creating a world divided into competing spheres of influence, echoing the tensions of the Cold War era.

6. Challenges and Risks in the BRICS-Led Economic Model

The expansion and influence of BRICS signal an alternative vision for global governance, but the bloc faces formidable challenges and risks that could hinder its effectiveness. As BRICS evolves, it must address the complex dynamics among its diverse members, technological vulnerabilities, and external pressures from existing global financial powers. While BRICS promotes itself as a more equitable alternative to Western-led economic institutions, its diverse membership brings internal tensions that complicate decision-making and strategy.

Internal Disparities and Divergent Agendas

One of the most significant challenges facing BRICS is the disparity in economic and political structures among its members. BRICS now encompasses democracies, authoritarian regimes, and hybrid systems, each with varying degrees of economic development and governance priorities. For example, while China and Russia hold central influence within BRICS due to their large economies and geopolitical weight, countries like Uganda and Cuba, though rich in resources, do not have the same global economic leverage. This disparity can lead to imbalances in decision-making, where larger powers may dominate discussions, creating potential friction among members seeking equal representation. Moreover, members within BRICS often have conflicting geopolitical interests. China and India, for instance, have experienced significant border tensions, and their competitive stances in regional leadership complicate BRICS’ cohesion. Similarly, new members like Saudi Arabia and Iran have historically been at odds, and their inclusion could exacerbate internal divisions if political or ideological disputes arise. This diversity, while a strength in terms of global representation, can slow BRICS’ decision-making and hinder consensus on collective action, especially when addressing sensitive economic or political issues that touch on members’ sovereignty.

Technological and Cybersecurity Risks

BRICS’ ambition to establish an alternative financial system, with an emphasis on digital currencies and blockchain technologies, introduces specific cybersecurity risks. As more countries adopt digital currencies, cyber threats, including state-sponsored cyber-attacks, become a critical concern. For instance, digital transactions within the bloc require robust cybersecurity frameworks, as attacks targeting financial infrastructures could destabilize trade and trust within BRICS. The bloc’s members have varying levels of technological advancement and cybersecurity capacity, which creates vulnerabilities. China and Russia, the most technologically advanced members, have developed secure digital financial systems. In contrast, newer BRICS members like Ethiopia and Uganda may lack the infrastructure to safeguard digital financial transactions against sophisticated cyber threats. To mitigate these risks, BRICS would need to invest in a coordinated cybersecurity framework that supports secure cross-border digital transactions while ensuring financial sovereignty for all members. Without such a framework, the bloc’s digital initiatives could face credibility challenges and increase members’ exposure to cyber-attacks.

Economic Sovereignty vs. Dependency

While BRICS aims to establish financial independence from Western institutions, the creation of a unified economic framework brings challenges related to sovereignty. Some members fear that China, as the largest economy within BRICS, may wield excessive influence, potentially replicating a hierarchy similar to that seen in Western-led institutions. China’s significant role in global manufacturing and trade, combined with its economic support to countries like Ethiopia and Malaysia, positions it as a dominant figure in BRICS. For smaller economies within the bloc, this could create a dependency on China, effectively replacing Dollar dependency with reliance on the Renminbi or Chinese-backed financial infrastructure. Furthermore, BRICS’ attempts to reduce Dollar dependence by establishing its own currency or payment systems require considerable financial commitment and coordination. However, many BRICS nations, especially the smaller economies, may lack the resources to fully participate in such initiatives without substantial support from wealthier members. This financial asymmetry could limit the extent to which all BRICS members benefit equally from the bloc’s economic model, potentially creating a power imbalance that undercuts BRICS’ goal of equitable participation.

The Impact of Sanctions and Global Pressures

Several BRICS members, particularly Russia and Iran, are subject to Western sanctions, which complicates the bloc’s financial strategy. These sanctions isolate certain members from the global financial system, making it challenging for BRICS to establish integrated trade networks without facing external pressures. For example, as BRICS seeks to expand its financial autonomy, Western nations could impose additional restrictions on transactions involving sanctioned countries within the bloc. This could deter certain BRICS members from fully participating in trade with sanctioned countries, thereby limiting BRICS’ effectiveness as a unified economic bloc. The geopolitical landscape also places pressure on BRICS, as Western powers closely monitor the bloc’s activities and may respond with countermeasures to protect the existing Dollar-based system. Countries within BRICS that maintain significant trade relationships with the US or Europe, like India and Brazil, may face diplomatic and economic pressures if their involvement in BRICS conflicts with Western interests. To navigate these pressures, BRICS must develop a strategy that balances its goal of independence with the economic realities of a globalized world where Western financial influence remains substantial.

Currency Fragmentation and Financial Integration

One of BRICS’ primary ambitions is to facilitate trade in local currencies to reduce Dollar dependence. However, currency fragmentation within the bloc poses a practical challenge. The economies of BRICS members operate with different levels of currency stability and exchange rate volatility. For example, Brazil and South Africa face currency fluctuations that could complicate transactions within a BRICS-led financial system.

Additionally, while China’s Renminbi has the potential to become a central currency within BRICS, concerns about Chinese influence and control over financial mechanisms could deter other members from adopting the Renminbi as a standard for intra-BRICS trade. A potential solution to currency fragmentation would involve the establishment of a BRICS-wide digital currency, as some members have proposed. However, implementing a shared digital currency requires robust regulatory alignment, which is challenging among countries with differing monetary policies and economic priorities. Moreover, without strong central governance, a BRICS digital currency may struggle to gain acceptance as a reliable medium of exchange. Each member’s central bank would need to collaborate extensively to ensure stability and avoid speculative attacks on this currency, which could undermine its viability.

Addressing Environmental and Developmental Goals

BRICS also faces the challenge of integrating sustainable development goals into its economic framework, particularly as members have varying commitments to environmental policies. Countries like Brazil and Indonesia, rich in natural resources and biodiversity, face international scrutiny over their environmental practices, particularly regarding deforestation and carbon emissions. If BRICS aims to promote itself as a sustainable alternative to Western-led development models, it must incorporate environmental standards into its economic strategies. However, imposing strict environmental regulations may be met with resistance, especially from members reliant on natural resource extraction, such as Saudi Arabia and Iran. Balancing economic development with sustainability within BRICS requires a commitment to collective environmental policies, which may be difficult to achieve given each country’s unique developmental priorities.

The success of BRICS in this regard could influence its global reputation, as the bloc’s ability to uphold environmental standards could attract more partners from the Global South. The expanded BRICS coalition represents a formidable force with the potential to reshape global finance and economic governance. However, the bloc must address internal disparities, build a secure technological infrastructure, and navigate complex geopolitical dynamics to succeed as a cohesive alliance. The unique combination of strengths and challenges within BRICS will determine whether it can establish a viable economic model that genuinely empowers its members while maintaining balance and unity in a multipolar world.

7. A Roadmap for Countries Weighing BRICS Membership

With BRICS’ expansion, countries outside the bloc face a strategic choice: join this coalition to foster new economic alliances or maintain their traditional alliances, particularly with Western powers. As BRICS positions itself as a viable alternative to Western-led institutions, nations evaluating potential membership need a roadmap that balances economic, geopolitical, and security interests.

1. Gradual Economic Alignment with BRICS
   For many emerging economies, fully aligning with BRICS might involve risks associated with severing established trade and investment ties with the West. Instead, a gradual approach—such as joining BRICS as an observer or engaging in specific trade agreements within the bloc—allows nations to test the benefits of BRICS membership while minimizing risk. Engaging in trade deals settled in local currencies or through BRICS’ New Development Bank (NDB) provides a starting point. This approach is particularly beneficial for economies that wish to access BRICS-backed funding for infrastructure and development projects without complete detachment from Western financial systems. For example, nations in Latin America or Africa, like Argentina or Senegal, could initially engage with BRICS on projects aligned with their own developmental goals, such as renewable energy investments or digital infrastructure. By doing so, these countries can benefit from BRICS’ focus on South-South cooperation and establish a strong economic foundation within the bloc before considering full membership.
2. Investment in Cybersecurity and Digital Infrastructure

With BRICS’ emphasis on creating a resilient financial ecosystem independent of Western institutions, countries considering membership should prioritize cybersecurity and digital infrastructure. As BRICS moves toward digital currencies and payment networks, nations lacking robust digital frameworks may face heightened vulnerability to cyber threats. For instance, newer digital platforms that facilitate transactions outside the SWIFT system require advanced cybersecurity to avoid disruptions, which can have severe economic consequences. Countries like Ethiopia and Uganda, which have joined BRICS, would benefit from cybersecurity collaborations within the bloc to safeguard their digital economies. Additionally, as more members consider launching their own Central Bank Digital Currencies (CBDCs), collaboration on cybersecurity standards could become a focal point within BRICS. Investing in cyber-resilient digital payment systems enables member nations to participate fully in BRICS’ vision for a multipolar financial system while minimizing risks of cyber espionage and financial fraud.

3. Strengthening Regional Security Alliances

For nations in volatile regions, BRICS membership can be strategically complemented by strengthening regional security alliances. In Africa, the African Union’s African Standby Force could serve as a cooperative framework for BRICS members in the region, helping them build security capacity without over-reliance on Western-led security structures. Countries like Nigeria and Algeria, recent BRICS members, can leverage BRICS’ economic benefits while working within regional frameworks to address security issues, from anti-terrorism efforts to peacekeeping operations. In Asia, a similar approach applies to nations like Thailand and Indonesia. Engaging with BRICS on economic terms while coordinating regional security efforts with the Association of Southeast Asian Nations (ASEAN) enables these countries to maintain a balanced approach to global cooperation. By bolstering regional security, BRICS members can protect their economic interests while reducing dependency on NATO or other Western-led security structures.

4. Promoting Sustainable Development Initiatives

One of the key attractions of BRICS for developing countries is its emphasis on sustainable development projects. For example, the BRICS New Development Bank has prioritized renewable energy, clean water access, and infrastructure that aligns with the UN’s Sustainable Development Goals (SDGs). Nations considering membership can explore BRICS as a partner for achieving sustainability goals without the debt burdens often associated with Western loans. Countries rich in natural resources, like Bolivia with its lithium reserves or Nigeria with its oil reserves, can look to BRICS for sustainable, resource-focused projects. For instance, lithium extraction aligned with environmentally responsible practices could attract BRICS investment, enhancing global energy independence from traditional oil. Additionally, BRICS members can support each other in balancing natural resource extraction with environmental standards, creating a model that other emerging economies might follow.

5. Building Multilateral Cooperation through the UN

BRICS’ expanded coalition could become a powerful advocate for UN reforms, particularly concerning the Security Council. Countries considering BRICS membership may find that aligning with the bloc strengthens their diplomatic leverage within the UN, especially in pushing for a more representative Security Council. A larger BRICS presence in the UN can bolster calls for reforms that give emerging economies a stronger voice in global decision-making, making the UN more reflective of today’s multipolar world. Through the BRICS platform, countries in the Global South can amplify their calls for policy shifts within the UN, IMF, and World Bank. By promoting multilateral initiatives on trade, climate, and security through the UN, BRICS members can foster collaboration that extends beyond the bloc, influencing global governance in a way that incorporates the needs of both developed and developing nations.

8. Conclusion

The expansion of BRICS represents a growing demand for a multipolar world where economic and political power is more evenly distributed across diverse alliances. For countries weighing membership, BRICS offers an opportunity to foster economic resilience, enhance sovereignty, and gain representation in international affairs. However, membership also requires balancing interests with current alliances and investing in secure, sustainable frameworks that support BRICS’ ambitious goals. For the international community, the expanded BRICS signals a world order in flux. As BRICS members advocate for reform within traditional institutions like the UN and IMF, a new model of global collaboration is emerging.

Whether BRICS succeeds in reshaping global governance depends on its ability to maintain unity, effectively address internal disparities, and present a coherent alternative to Western-dominated systems. If BRICS can navigate these challenges, it may pave the way for a more inclusive global economic system, inspiring countries worldwide to explore paths that prioritize equity, sustainability, and independence within an interconnected, multipolar world. This emerging BRICS framework, if successful, could offer a sustainable alternative for nations seeking autonomy from Western financial systems and a shared platform for addressing the global challenges of the 21st century.