Over recent decades, the Western economic system has undergone a profound transformation, veering increasingly toward financialisation—a framework that privileges speculative gains and the accumulation of paper wealth over tangible economic output. This shift reflects a structural prioritisation of elite interests, as financial markets serve as mechanisms for wealth extraction rather than wealth creation for the broader population. The consequences are stark: staggering disparities in wealth distribution, stagnation in living standards, and neglect of critical infrastructure, all symptomatic of an economic model driven by concentrated power rather than broad-based development.
In parallel, the BRICS nations—Brazil, Russia, India, China, and South Africa—have pursued a markedly different trajectory. These nations have embraced strategies centred on real economic sectors such as manufacturing, infrastructure, and agriculture, creating sustainable economic growth that directly improves the quality of life for their populations. Unlike the Western economies that have pivoted to speculative financial models, the BRICS approach has prioritised tangible development and industrial resilience. This divergence underscores a broader geopolitical realignment, as nations in the Global South increasingly reject the prescriptions of Western-dominated financial institutions and their neoliberal dogmas, which have systematically undermined equitable development.
The consequences of Western financialisation are particularly visible in the United States and the United Kingdom. Decades of deindustrialisation, driven by the offshoring of manufacturing in pursuit of higher corporate profits, have hollowed out productive capacities. Cities once thriving with industrial activity have been transformed into symbols of economic decline. Simultaneously, public investment in health, education, and infrastructure has stagnated, leaving aging systems to crumble while social outcomes worsen. Life expectancy, once a reliable indicator of progress, has plateaued or even declined in these nations—a striking indictment of governance systems that prioritise profit over human welfare.
Educational outcomes, too, have suffered. Schools in disadvantaged areas struggle to provide basic resources, while higher education has become prohibitively expensive, creating barriers for upward mobility. Meanwhile, healthcare systems in these countries face chronic underfunding and privatisation, leaving millions without adequate access to care. These systemic failures are compounded by political systems that seem incapable of addressing growing public dissatisfaction. Trust in governance has reached record lows, reflecting widespread disillusionment with economic policies that appear designed to serve the interests of a narrow elite.
Despite these internal failures, Western powers retain outsized influence in global institutions such as the United Nations, World Bank, and International Monetary Fund. This hegemony, a legacy of the post-World War II order, allows them to shape international policies in ways that perpetuate their dominance, often at the expense of the Global South. These institutions have historically functioned as tools of economic coercion, imposing austerity measures and structural adjustments that erode sovereignty and deepen inequality. However, this global architecture is facing increasing resistance, as countries in the Global South demand a system that reflects their growing economic and demographic weight.
In response to these inequities, the BRICS bloc has emerged as a counterweight, advocating for a multipolar world order. Formed over 15 years ago, BRICS represents a strategic effort to redefine global economic cooperation. Unlike NATO, a military alliance tethered to Western strategic interests, BRICS is fundamentally an economic partnership aimed at fostering development and reducing dependency on Western financial systems. The bloc’s initiatives, such as the New Development Bank, illustrate this commitment by providing low-interest financing for infrastructure projects that prioritise sustainable development over the austerity-driven policies imposed by institutions like the IMF.
The economic performance of BRICS nations highlights the shifting balance of power. As of 2023, their share of global GDP (measured in purchasing power parity) exceeds that of the G7, a development unthinkable in previous decades. Beyond economic metrics, BRICS nations now account for over 40% of global oil production, with expansion set to increase this share significantly. Such shifts are emblematic of a broader trend: the diminishing ability of Western powers to dictate the terms of global economic engagement.
Key to the BRICS strategy is the creation of alternative financial mechanisms that reduce dependence on the U.S. dollar. By developing initiatives such as a gold-backed, blockchain-based payment system, the bloc seeks to dismantle the financial architecture that underpins U.S. global influence. The weaponisation of the dollar, as seen in sanctions regimes that defy international law, has accelerated this process, as nations seek to safeguard their sovereignty against coercive economic measures. Already, the use of the dollar in international trade has declined sharply, from over 70% five years ago to under 60% today. Experts predict that the dollar’s dominance could be entirely eroded by 2030 as more countries adopt alternative currencies for trade.
The geopolitical implications of this realignment are profound. BRICS articulates an alternative vision for global governance—one rooted in equity, respect for sovereignty, and genuine development. This stands in stark contrast to the Western model, which has consistently prioritised elite interests while marginalising the majority of humanity. By investing in infrastructure and development, BRICS nations aim to break the cycle of dependency that has been perpetuated by Western financial institutions. These efforts extend beyond the bloc’s immediate membership, offering support to other countries in the Global South through initiatives that prioritise mutual benefit over exploitation.
The bloc’s growing influence is also evident in its expanding membership. More than 60 countries have expressed interest in joining BRICS, with 16 having already formally applied and 5 admitted as new members. As of today, BRICS+ represents 3.5 billion people—nearly 50% of the global population—compared to the G7, which represents approximately 15%. With the addition of new members, BRICS is projected to account for well over 50% of the global population in the near future. This demographic and economic shift underscores the bloc’s growing role in shaping the future global order.
One of the most significant accelerators of BRICS’ influence has been the war in Ukraine. The conflict has exposed the vulnerabilities of the Western-led international system, particularly its reliance on sanctions as a tool of economic warfare. The freezing of international reserves and other punitive measures have highlighted the risks for countries that align too closely with the U.S.-dominated financial system. As a result, many nations in the Global South are seeking alternatives to mitigate these risks, further strengthening the appeal of BRICS.
At its core, the BRICS mission is to promote a global system based on equity, respect for international law, and inclusive development. This vision is not merely an economic proposition but a philosophical challenge to the prevailing order. The Western model, characterised by exploitation and systemic inequality, is increasingly at odds with a world that demands fairness and representation. BRICS offers a different paradigm, one that prioritises solidarity and shared prosperity over hegemonic control.
As the bloc continues to expand its membership and influence, it has the potential to redefine the rules of the global economy. Its emphasis on real economic development, infrastructure investment, and equitable international cooperation offers a stark contrast to the declining influence of Western-led institutions. By challenging the entrenched hierarchies of the current system, BRICS is not merely asserting its economic power but advancing a transformative vision for global relations. This vision, rooted in justice and sustainability, holds the promise of a more balanced and peaceful world order.
The rise of BRICS is not without challenges. Internal differences among member states, ranging from economic disparities to geopolitical rivalries, must be navigated carefully to maintain cohesion. However, these challenges are not insurmountable, particularly given the shared commitment to a multipolar world. The bloc’s success will depend on its ability to build inclusive institutions that reflect the diversity of its membership while advancing common goals.
Ultimately, BRICS represents a critical inflection point in the trajectory of global governance. As Western-led institutions grapple with declining legitimacy and influence, the emergence of BRICS offers an alternative path—one that seeks to rectify historical injustices and create a system that serves the interests of all humanity. Whether this vision can be fully realised remains to be seen, but its implications for the global order are undeniable. In a world characterised by increasing geopolitical instability, BRICS stands as a beacon of possibility, advocating for a future defined by equity, cooperation, and shared prosperity.
Les MacDonald
Les MacDonald is the CEO of NSW Meals on Wheels. Prior to this, he held executive positions in both the Commonwealth and NSW governments. He was previously Executive Director Uniting Care Ageing. Les has an extensive leadership history including board positions in public hospitals, health insurance, the maritime industry, public transport, cancer medicine and the Council for the Arts amongst others.
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