BRICS: The Rise of a New Global Economic Power
The economic alliance called BRICS is gradually becoming a powerful and influential group today. It began in 2006 when five major emerging economies—Brazil, Russia, India, China, and South Africa—decided to come together. Initially, the main objective of this alliance was to increase mutual economic cooperation and investment. However, its strategic influence and activities have increased over time. Especially after the Ukraine war, when there were significant changes in international relations and the economy, the importance and role of BRICS also improved significantly. For three days, the 16th Annual BRICS Summit was held on October 22-24 in Kazan, Russia. More than thirty heads of state participated in this conference. In the new context of the current world, this conference has become an important stage of international politics and economics. Brazil, Russia, India, China, and South Africa, as well as new member countries such as Egypt, Ethiopia, Iran, and the United Arab Emirates, are participating for the first time in this conference. The meeting focused mainly on Western sanctions and efforts to reduce the dominance of the dollar in the global monetary system. The alliance, jointly led by Russia and China, is moving towards new economic models and partnerships, which could change the global power balance.
A significant reason behind the formation of BRICS was to provide emerging economies with an alternative platform outside the economic framework of the Western world. The large population and diverse economic influence of the BRICS member countries have ushered in a new type of global power. Through this, they are trying to change the global economic order, where the influence of Western countries is decreasing daily. This change will cause significant changes in the balance of power in the global economy. The war in Ukraine began in 2022 and created a considerable divide in world politics. Western countries, especially the United States and the European Union, imposed strict sanctions on Russia and tried to isolate Russia on the international stage. However, other BRICS members maintain diplomatic and economic ties with Russia against the sanctions. Countries such as China and India have not followed the sanctions policy of the Western alliance but instead deepened their commercial and strategic ties with Russia. As a result, BRICS members have become more integrated and are moving towards building a multilateral world system. This world order will be free from Western hegemony, where new economic and diplomatic policies will be developed, undoubtedly challenging the current global economic structure.
BRICS has become a powerful alternative for countries in the Global South today. Many developing countries, which for years were deprived of the benefits of Western economic policies and conditional financing from institutions like the International Monetary Fund (IMF), are now looking to the BRICS for new investment and financial opportunities. Instead of economic sanctions and trade policies imposed by the Western world, BRICS member countries are moving towards an alternative currency system, where the use of their currencies instead of the dollar is increasing. For example, China and Russia have started trading in their currencies, and BRICS member countries are reducing their dependence on the dollar. This will reduce US dominance in the global economic system and increase the influence of BRICS. The emergence of BRICS has become a significant challenge for the Western world. The United States, the European Union, and their allies are gradually falling behind emerging alliances such as the BRICS. The BRICS member countries' enormous economic power and natural resources put them in a strong position. Countries like China and Russia, in particular, are using their strategic position to strengthen the BRICS. Where Western countries are grappling with internal economic problems and political unrest, BRICS is opening new avenues for economic cooperation and investment, adding new dimensions to the global economic system.
Russian President Vladimir Putin and Chinese President Xi Jinping have been instrumental in the rise of this alliance. In the wake of Western sanctions, Putin is looking for new economic allies for Russia, and BRICS has become a key platform for those allies. After Western sanctions were imposed on Russia's oil and gas industry, Russia found new buyers of its natural resources among other BRICS members, including China and India. Under Putin's leadership, Russia is now trying to create an alternative international economic system through the BRICS, which will reduce dependence on the US dollar and bring new directions to the global economy. On the other hand, Chinese President Xi Jinping is using BRICS as a powerful platform to expand China's economic hegemony. Through China's Belt and Road Initiative (BRI), China has increased strategic economic ties with various world regions. China and other BRICS countries are building an alternative financial and strategic model far more cooperative and liberal than Western economies. Countries worldwide seek to join the BRICS, increasing the group's power and influence.
Over the next 40-50 years, the United States and the European Union will become increasingly weak, and there are several reasons behind this, which highlight significant flaws in their domestic and international policies. The main reasons for this decline include the influence of excessive democracy, the lack of foresight of politicians, and the adoption of wrong international policies. First, the unprecedented spread of democracy in the internal political systems of the United States and the European Union was once an essential element of their strength. However, this overly democratic society is gradually creating instability. Disagreements in various sections of society over excessive democratic freedoms and individual rights are becoming so intense that the political decision-making process is almost paralysed. Differences of opinion and ideological conflicts have, on the one hand, pushed personal freedom to extremes, while on the other hand, it has hampered social stability. This trend creates intolerance within society, where dissent becomes challenging to accept, and the space for political cooperation narrows. This reduces long-term government effectiveness and decision-making capacity, which is a significant obstacle to the overall development of society. Second, there is an evident lack of long-term planning among current and future Western politicians. Western politicians are usually more focused on short-term popularity and vote bank tactics. Because of this, they fail to implement policies that are effective enough to solve long-term country development, technological progress, or strategic problems. This lack of vision in political leadership will challenge future generations as emerging countries, especially alliances like BRICS, focus on their own strategic planning and long-term development. As a result, Western nations will begin to lag in technological innovation and economic growth.
Another critical factor is the failure of the international policies of the United States and the European Union. The Western world has adopted a hegemonic policy in the international arena over the past few decades, which has angered many other countries and encouraged countries in the global South to seek alternatives. These policies, such as unilateral military intervention, economic sanctions, and attempts to influence international organisations, have often proved wrong and have begun to alter the global balance of power. An example of this is the sanctions imposed by Western countries after the Ukraine war, which has increased cooperation with countries such as Russia and China. Internal social and economic challenges are another critical issue in the Western world. Many European Union and the United States countries face problems such as economic inequality, the migration crisis, and demographic change. Nationalist and anti-immigration politics are rising in various European countries, causing social unrest and division. In addition, ageing populations in Europe and the United States are reducing economic productivity, which could significantly impact the economies of these countries in the long run. A shortage of a working population will hamper economic growth and cause emerging economic powers such as the BRICS to overtake them. Political fragmentation and social conflict are also significant problems in the Western world. Political polarisation has intensified in the United States and many European countries. The ideological divide between Republicans and Democrats in the United States is now so deep that the process of governing the country often grinds to a halt. Such fragmentation has become a significant obstacle to implementing long-term development plans within the country. A similar divide is seen in Europe. The European Union is becoming politically weaker after Brexit. Such political instability will hurt the future strength and stability of Western countries.
Together, BRICS member countries control about 40 per cent of the world's total population and produce about 30 per cent of global GDP. In contrast, the G7 (the United States, Canada, Japan, the United Kingdom, Germany, France, and Italy) controls about 10% of the world's population and about 31–32% of global GDP. However, in terms of growth rate, BRICS countries are much ahead. For example, economic growth in China and India is much higher than in Western countries. According to 2023 data, China's GDP growth was around 5 per cent, India's was above 7 per cent, and US and European countries' growth was close to 2 per cent. If this growth rate continues, the BRICS countries will overtake the economic size of the G7 in the next 20-30 years. One of the main reasons for China's growing global influence is its massive export capacity and investment policy. In 2023, China's exports exceeded US$3 trillion, establishing China as the world's largest exporter. In addition, China's Belt and Road Initiative (BRI) is investing in massive infrastructure projects in many developing countries worldwide, further strengthening China's global influence. This initiative has helped expand China's economic presence and influence in more than 140 countries.
Russia, another BRICS member, has managed to maintain its economic and political influence despite Western sanctions. Following the 2022 Ukraine war, the United States and the European Union imposed tough sanctions against Russia. They hoped that these sanctions would weaken the Russian economy, but they did not. Instead, Russia has been able to maintain economic power by exporting oil and selling other natural resources. Russia's oil exports 2023 were about $350 billion, helping Russia maintain its financial viability despite sanctions. BRICS members, especially China and India, have continued to buy Russian oil, further stabilizing the Russian economy. Western sanctions are often ineffective for powerful alliances like the BRICS. After sanctions were imposed on Russia, Western countries thought Russia's economy would weaken, and its influence on the world stage would decrease. However, Russia has maintained its economic and strategic strength in practice, including finding alternative markets and allies. BRICS members have increased economic ties with each other, making Western economic sanctions almost meaningless.
India's economy is also growing and is projected to become a significant global power. India's economy is the fifth largest globally, with a growth rate above 7 per cent. India is rapidly gaining ground in the global market due to its IT industry, technological innovation, and large population. Not only is it getting stronger economically, but its military and strategic influence is also increasing. This rapid rise of India will further enhance the power of the BRICS and help offset the impact of the G7. Brazil and South Africa, the other two BRICS members, play important roles due to their natural resources and strategic location. Brazil is one of the world's largest agricultural producers and has vast natural resources. South Africa is located in the economic center of Africa, where many countries depend on for investment and trade. These countries are increasing their economic power through the BRICS alliance and will compete with the Western economic powers in the future.
The BRICS alliance is gradually emerging as a solid and influential force in the global economy. This alliance of Brazil, Russia, India, China and South Africa is establishing itself as an alternative to the Western economic framework. Changes in international relations, especially after the Ukraine war, have significantly increased the role and influence of the BRICS. The alliance is committed to building a new economic system that reduces dollar dependence. In the future, the BRICS could change the balance of global economic power and play an essential role in world politics as an alternative to Western hegemony.