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How BRICS is challenging the West and changing the rules of the global economy with Brazil in the spotlight

Written by Anna Alice
Published 24/01/2025 às 00:52
BRICS expands global influence, challenges the dollar and inserts Brazil as a key player in a new multipolar economic scenario. (Image: Reproduction/Canva/IA)
BRICS expands global influence, challenges the dollar and inserts Brazil as a key player in a new multipolar economic scenario. (Image: Reproduction/Canva/IA)

BRICS is changing the rules of the global economic game. With the inclusion of new members, the bloc challenges the hegemony of the dollar and promotes a multipolar financial order, putting Brazil in the spotlight.

The world is witnessing an unprecedented economic transformation. Behind the scenes of a new financial order, a bloc of emerging countries is gaining prominence and shaking up the structures of the global system.

One question lingers: is this the end of the dollar's hegemony? At the epicenter of this movement is the BRICS, a group formed by Brazil, Russia, India, China and South Africa, which has recently expanded its influence by incorporating new nations such as Saudi Arabia, the United Arab Emirates and Iran.

With ambitious proposals such as de-dollarization and strengthening local currencies, the bloc is shaping the future of international relations. But how far can BRICS go?

The new BRICS: historical expansion and challenges

BRICS, officially created in 2009, initially aimed to promote sustainable economic growth among its founding members: Brazil, Russia, India and China. In 2010, South Africa joined the group, consolidating the BRICS name.

Since January 2024, new members have expanded the bloc, including Saudi Arabia, the United Arab Emirates, Iran, Egypt, Ethiopia and Argentina (which later declined membership). This expansion has placed BRICS at the center of global discussions on economic governance.

Currently, BRICS members represent about 31,5% of global GDP and more than 40% of the world's population, according to CNN Brazil. This puts the group in a strategic position to challenge traditional institutions such as the IMF and the World Bank.

However, the diversity of interests among member countries still presents a major obstacle to the coordination of joint policies.

De-dollarization: BRICS’ boldest move

Among the most debated BRICS initiatives is de-dollarization, which seeks to reduce dependence on the US dollar in international trade.

Today, the dollar dominates about 88% of global transactions, according to the Bank for International Settlements (BIS).

This hegemony gives the United States disproportionate influence, allowing sanctions that deeply affect other nations.

In response, BRICS has encouraged the use of local currencies in bilateral transactions. For example, Brazil and China already use the yuan in a large part of their trade agreements, especially in the commodities sector.

Additionally, the New Development Bank (NDB), also known as the BRICS Bank, offers financing for infrastructure projects without relying exclusively on the dollar.

Dilma Rousseff, president of the NDB, declared during the Johannesburg summit in 2023: “We need a new global financial governance.

The use of the dollar as a weapon is unacceptable.” Despite this, studies such as the one by the Atlantic Council in June 2024 show that progress on de-dollarization is still limited.

Brazil at center stage

For Brazil, BRICS represents a chance to strengthen its global position and diversify its economic relations.

In 2023, China consolidated itself as Brazil's main trading partner, absorbing more than US$70 billion in exports. This relationship has been vital for agribusiness and other sectors of the economy.

However, Brazil faces the challenge of balancing its participation in BRICS with its relations with the West. Robson Gonçalves, an economist at FGV, warns: “Being in BRICS does not mean antagonizing the West. Brazil needs to position itself as a diplomatic mediator.”

The new members: strength or fragmentation?

The inclusion of countries such as Saudi Arabia and Iran has brought robust economies to the bloc, especially in the energy sector. However, the diversity of national agendas can make BRICS governance difficult.

According to Roberto Dumas, professor at Insper, the “success of the group will depend on the ability to align different interests”.

Geopolitics and the new global order

O BRICS also plays a crucial geopolitical role. Russia seeks to escape Western sanctions, while China uses the bloc to strengthen its Belt and Road Initiative. Brazil, for its part, tries to adopt a pacifist and multilateralist foreign policy, seeking advantageous bilateral agreements.

Future of BRICS: limitations and possibilities

The future of BRICS will depend on its ability to overcome internal challenges, such as economic inequalities and geopolitical tensions.

However, the opportunities are immense, including the development of an alternative system to SWIFT and investment in technology.

Will BRICS be able to consolidate a new global economic order or will it be held back by its own differences?

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Ariel
Ariel
24/01/2025 06:50

You will live in the USA, we are in Brazil. Brazil is ours

Joel Nunes
Joel Nunes
24/01/2025 07:12

We have to take the initiative. Brazil is a country that has the chance and capacity to escape American slavery. Not only Brazil, but all the nations that are part of the BRICS. Taxes and sanctions are the American weapon. Countries have to open their eyes. Americans do not work in the world, they live to enslave nations.

Marileida
Marileida
24/01/2025 07:13

Why do people like to spit in the plate they eat from? If not from our beloved Brazil? Shave your feet and get out, you won't be missed at all.

Anna Alice

Copywriter and content analyst. She has been writing for the website Click Petróleo e Gás (CPG) since 2024 and specializes in creating texts on diverse topics such as the economy, jobs and the military.

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