The global economic landscape is changing and BRICS is at the centre of this change. With its recent expansion to include Egypt and Ethiopia, BRICS is not just a group of emerging markets.
A Bloc Beyond Borders
BRICS represents a counterbalance to Western financial institutions such as the IMF, World Bank, and G7. What started as an acronym for high-potential economies has evolved into an alternative economic ecosystem.
The inclusion of new members strengthens this dynamic. It signals that BRICS is not content with being a minor player in global affairs. China and Russia have made clear moves away from the Western financial system. The idea of a BRICS-backed currency, or Independent Financial Messaging System, challenges the US dollar’s dominance in global trade. And this is where tensions with Washington arise.
Trump Factor: Taxes as a Weapon
Donald Trump’s return to the political stage sparks fears of protectionism. His recent threat to impose 100% tariffs on the BRICS countries if they switch to a new currency comes as no surprise. The power of the US dollar is one of the final pillars of American hegemony. And Washington won’t let it go without a fight. However, history has shown that economic sanctions and tariffs do not necessarily deter countries. From achieving economic freedom, If anything, they are accelerating the push for self-reliance. Russia is already heavily sanctioned and is developing alternative trade agreements. China has been reducing its reliance on the dollar for several years.
The smaller BRICS also recognize that reducing their exposure to Western monetary policy is not just about economic growth. But it is also about sovereignty.
Also Read: The Doomscrolling Trap
Can the BRICS vision endure?
The main challenge for BRICS is unity. Although the idea of a multipolar world is attractive, the internal differences between the members cannot be ignored. There are geopolitical tensions between India and China. The Russian economy is under enormous pressure from the conflict in Ukraine. The newly united countries were even more eager to join, But they had different economic priorities. Despite these complexities, The momentum is undeniable. The expansion of BRICS shows that nations across the globe are looking for alternatives. Whether a BRICS currency will materialize or not remains to be seen. Talking about it shakes the foundations of the current financial system.
The Future, It’s a Change, Not a Revolution.
The expansion of BRICS was not an immediate revolution. Rather, it is a strategic shift in global power dynamics. Trump’s tariffs may slow down some initiatives but it won’t stop the larger trend of economic diversification. The world is watching the development of BRICS and one thing is clear, This group is more than just an acronym. It is a force that is reshaping the world system. And its influence is only increasing. As an observer of these unfolding events, I think we are witnessing a pivotal moment in history.
The question is no longer whether BRICS can challenge the West—it’s how soon they will do it!!
Also Read: Impact of the Goods and Services Tax (GST) Act on India’s Gross Domestic Product (GDP)
