The BRICS alliance can take down the west

We live in a new world with new global alliances gaining power, and the BRICS alliance is one of them – the acronym stands for Brazil, Russia, India, China, and South Africa.

These five countries have formed an economic bloc that connects more than half of the world’s population and a vast portion of our planet’s economy too. Their combined strength could be enough to take on the West – if they play their cards right.

With this strong partnership arising through shared interests between these five nations comes a power shift that could potentially change global economics forever. 

Not only do the BRICS make up some of the world’s largest and fastest-growing economies, but they also hold a large portion of its natural resources. This puts them in an advantageous position to challenge the West’s economic dominance.

For example, Russia is home to some of the world’s largest oil reserves, fertilizers, and metal ores, while India and China have large populations that are quickly becoming more affluent.

The BRICS member countries are also actively investing in each other to create an even stronger bond between them. For example, Russia and China signed a $400 billion gas deal to cement their relationship.

Russia and India have a long history of friendly relations and are working together in the military sphere.

During the Russia – Ukraine conflict, India bought huge amounts of oil and gas from Russia. Even though Russia was under sanctions, it did not stop its economic partnership with India.

The BRICS are also working together to create more efficient trade links and regional agreements. For example, Brazil is part of the South American Common Market which allows for increased trade between its members.

Also, South Africa has been integral in the formation of the African Union, which aims to promote regional stability and economic prosperity.

BRICS plan to replace the US dollar as the world’s reserve currency

Arguably the biggest challenge the BRICS alliance poses to the West is its plan to replace the US dollar as the world’s reserve currency.

The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, has been increasingly vocal about its desire to replace the US dollar as the world’s reserve currency.

This group of emerging economies has been challenging the dominance of the US in global trade and finance and aims to establish a new world order where the dollar is no longer the default currency for international transactions – at least in theory.

With China leading the way, the BRICS countries are seeking to promote their currencies as alternatives to the dollar, which they view as volatile and subject to manipulation by the US government.

BRICS wants to replace the dollar with the Chinese yuan making it the new world’s reserve currency.

Also, recently Saudi Arabia has shown interest in trading oil with yuan. This could be a serious challenge to the dollar and its dominance. 

This is because Saudi is one of the leading oil exporters in the world and its decision to switch from dollars could have a ripple effect worldwide.

While the shift away from the dollar may take years or even decades, it is clear that the BRICS alliance is determined to challenge the current economic leadership.

Reasons why BRICS countries are challenging the West

It’s not easy to blame one reason for the increasing rivalry between the BRICS countries and the West. Here are a few reasons that can explain why there is an increasing rivalry between the two sides.

1. Random sanctions from the West and the US

One of the biggest reasons why BRICS countries are challenging the West is the random sanctions imposed by the West on these economies. These sanctions have caused huge financial losses to some of these nations and heavily affected their economic growth.

For example, during the Russia – Ukraine conflict, Western nations imposed harsh sanctions on Russia which caused a huge economic meltdown in the country.

Similarly, China has been facing continuous sanctions from the US since 2018 over trade disputes and geopolitical issues.

2. China rising as the new superpower

China is emerging as a new superpower and has been challenging the USA’s dominance on the geopolitical stage. China is actively investing in infrastructure and other sectors to become an economic powerhouse.

This rise of China has been a major challenge for the West which does not want to cede its position as the leader of the world.

3. Growing mistrust towards the West

The BRICS nations are also challenging the West due to growing mistrust in the Western economic model and political system. 

The BRICS countries believe that they have been taken advantage of by the West for their benefit, which has caused a lot of resentment among these countries. 

Moreover, the BRICS countries have also become increasingly aware of their potential and are looking to challenge the West’s hegemonic position.

4. They want to replace the US dollar as the world’s reserve currency

Probably the biggest reason why the BRICS countries are challenging the West is their aim to replace the US dollar as the world’s reserve currency.

The BRICS make up around 31.5% of the world GDP which is why they have the potential to challenge the US dollar. Now if we include Argentina and Iran – it adds up to 33% of the world’s GDP.

Which is enough to create their own BRICS currency and start trading for oil, minerals, and other commodities in the new currency. This could be a major blow to the US economy as it will weaken the influence of its currency worldwide.

The BRICS countries produce a lot of things. They make 26% of the world’s oil, 50% of iron ore used to make steel, 40% of corn, and 46% of wheat. If these countries traded using the same currency, it could be a major boost to their economic growth and an alternative to the US dollar.

And since the US dollar is already sagging, it might be the perfect time for the BRICS countries to step up and start the process of replacing it.

5. Population and market size

India currently holds the world’s largest population (1.4 billion) and the 5th largest economy. China is the world’s second-largest economy and the second-populated nation (1.3 billion).

Those two countries alone make up a huge market size and population. Now if we include Russia, South Africa and Brazil, the BRICS nations have a population of 3.5 billion and a market size of over 25 trillion dollars.

This huge market size and population make BRICS countries a major rival to the West and can be seen as one of the reasons why there is an increasing rivalry between the two sides.

What can the West do?

To counter the increasing rivalry between BRICS and the West, Western nations should focus on improving diplomatic relations with these countries.

They should also make it easier for foreign companies to operate in their economies.

Moreover, they should reduce sanctions on BRICS nations as much as possible and work towards creating cooperative agreements instead of rivalry.

The West should also focus on improving its economy and find ways to create jobs and spur economic growth, which would make it more competitive against the rising BRICS countries.

Finally, Western nations should also look for opportunities to collaborate with BRICS countries in areas such as technology, defense, energy, and infrastructure projects.

This could help ease tensions between the two sides and create a more cooperative international environment.

Conclusion

The rise of BRICS nations has been a major challenge for the West. Due to their population, market size, and economic growth, BRICS countries are becoming increasingly powerful in the global economy.

Therefore, the West needs to find ways to cooperate with BRICS countries and improve diplomatic relations between them. This could be a good step towards creating a more balanced international system where all sides benefit from cooperation instead of rivalry.