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Introduction

BRICS began as a symbolic alliance of emerging economies but has transformed into a dynamic platform for rethinking global governance. With its 2024 expansion to include Egypt, Ethiopia, Iran, and the UAE, and potential future additions like Saudi Arabia and Argentina, BRICS now represents nearly 46% of the global population and 40% of world GDP (PPP). This reflects a collective push for a multipolar world order that addresses the perceived inequities of Western-dominated institutions.

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Positive Developments Brought Forth by BRICS in Recent Years

• Financial Alternatives to Bretton Woods Institutions: BRICS has established the National Development Bank ( NDB) and Contingency Reserve Arrangement (CRA) as alternatives to Western financial institutions, offering equal voting rights and low-conditionality lending.
  Eg: NDB has disbursed $32 billion across 96 projects; CRA holds a $100 billion liquidity pool.
• Launch of BRICS Pay and Digital Sovereignty:  A cross-border payment system, BRICS Pay, launched in 2025, aims to bypass geopolitical choke points like SWIFT and promote affordable digital transactions.
  Eg: India’s UPI processed 14.3 billion transactions in June 2024 and supports this network across the Global South.
• Food Security and Humanitarian Diplomacy: BRICS nations are using their strong agricultural output to stabilise global food markets and ensure fair distribution.
• Eg: Together, they produce over 52% of global rice and 42% of wheat, and in the 2025 Rio Summit, they opposed the weaponisation of food exports.
• Promotion of Digital Public Goods: BRICS supports open-access digital platforms to empower developing nations through technology sharing and scalable infrastructure.
  Eg: India’s UPI is interoperable with systems in Singapore, UAE, and Kenya, offering a replicable model.
• Geopolitical Bridging and Strategic Diversity: The addition of members like Egypt, UAE, and Iran has broadened BRICS’ diplomatic reach and focus on energy, sanctions, and trade.
  Eg: Iran aims to bypass sanctions, Egypt links Africa and the Arab world, and UAE seeks oil diplomacy leverage.
  

Internal Complexities Following Expansion

• India–China Rivalry: Geopolitical tensions over leadership and strategic direction, particularly in digital norms and institutional control, have intensified post-expansion.
  Eg: Xi Jinping skipped the 2025 Rio Summit while PM Modi promoted decentralised governance.
• Skewed Economic participation: China, contributing 70 per cent of BRICS’ nominal GDP, seeks to institutionalise its dominance, especially over NDB leadership, 
• Diverging National Agendas: New entrants pursue individual goals from development finance to sanctions circumvention leading to fragmentation in priorities.
  Eg: Iran focuses on escaping sanctions, Ethiopia seeks increased development funding.
• Geopolitical Conflicts Within the Bloc: Cross-regional tensions, such as between Middle Eastern powers or overlapping interests in Africa, create diplomatic hurdles within BRICS.
• Disputes Over Digital Governance: Competing models China’s centralised digital control vs India’s rule-based decentralised approach create governance friction.
• Institutional and Developmental Asymmetry: Varying levels of economic and institutional capacity among members create challenges for coordination and standard-setting.
  

Structural Challenges Following Expansion

• Dependence on Dollar-Denominated Systems: Key sectors like aviation, insurance, and semiconductors still rely heavily on Western financial systems and standards.
  Eg: Over 85% of global aircraft leases are US dollar-denominated and controlled by Western entities.
• Lack of Institutional Depth and Alternatives: BRICS lacks robust alternatives to key global institutions like Lloyd’s of London or semiconductor supply chains, limiting its independence.
• Risk of Centralised Power Structures: Without transparent governance norms, there’s a risk BRICS could evolve into a China-dominated bloc rather than a multipolar one.
• Weak Norm-Setting and Enforcement: Absence of binding rules and institutional checks limits BRICS’ capacity to ensure accountability across its initiatives.
• Delayed Standardisation in Tech and Finance: The lack of cohesive standards on digital finance, data governance, and emerging technologies hampers global credibility.
  Eg: BRICS has yet to establish common protocols for AI ethics, fintech regulations, or critical minerals governance.
  

Conclusion

BRICS has grown into a powerful experiment in reshaping global governance, finance, and digital cooperation. But without robust institutions, shared norms, and decentralised leadership, it risks becoming a mirror image of the very global inequities it seeks to reform. Going forward, its credibility will rest on its ability to ensure plural governance, promote inclusive growth, and build scalable, sovereign alternatives that serve the broader Global South.

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