During the meeting of the BRICS countries in South Africa last August, China advocated for the grouping to become a global rival to the Group of Seven Countries, which consists of the world’s advanced economies. The conditions for such a global rivalry are favorable, as there is no country that is a member of both groups. The G7 is led by Western countries, while the BRICS group includes Brazil, Russia, India, China, and South Africa. With the addition of six new countries through “BRICS Plus”, namely Iran, the UAE, Saudi Arabia, Argentina, Egypt, and Ethiopia, the BRICS group presents a more global and diverse outlook compared to the G7.
The diversity in membership of the BRICS group allows for a more global perspective, which aligns with the ambitions of China and Russia to challenge the current US-led global order and establish a new multipolar world order. However, the internal divisions within the BRICS group, such as India’s complex relationships with both Russia and the US, limit its ability to present a unified challenge to the West.
While the G7 has been able to take joint positions on major geopolitical issues and impose sanctions, the BRICS group lacks the means to punish its rivals in a similar manner. Economically, however, BRICS is becoming a key rival to the G7, with a significant population and GDP that could potentially rival the G7’s economic power.
Despite its economic potential, the BRICS group faces challenges in shaping geopolitics due to the diverse foreign policy outlooks of its members. However, the emphasis on “de-dollarization” and the potential for a BRICS currency could have a significant impact on the global financial system, challenging the dominance of the US dollar and creating an alternative financial center.
