BRICS: a challenge to Western-led institutional architecture?

As the Western-led governance system experiences an incessant erosion of credibility over its own predatory and protectionist policies, leading to more international turbulence and slower global growth — Chinese Foreign Minister Wang Yi, at the BRICS summit in Rio de Janeiro, offered a framework of cooperation to protect interests of the Global South and develop a joint response to the new, cascading challenges, helping contending with America's actions to erect trade barriers and grow at the expense of development in developing nations.

President Donald Trump of the US has imposed indiscriminate tariffs on almost the entire world, not seen in more than a century. These "fake" taxes reveal that the US can no longer claim to be an anchor of the international economic system or guarantor of free trade and fears competition, which could drive up innovation in the country and have benefited America and Americans for decades.

This "rent-seeking" approach could weigh on the global economy and the US economy. According to the IMF, a burst of tariffs introduced by Trump on April 2 could lower US growth to 1.8% in 2025, a 0.9% decline from the Fund's January forecast. This could prompt the IMF to call for an urgent trade policy settlement among major players.

At this watershed moment when tariff-induced uncertainty is spiking off the charts, strengthening multilateralism is one of the key means to promote development across regions since it represents a majority of the nations and encourages them to work through joint consultation and shared understanding, raising a collective voice against unlawful tariffs and sanctions.

Due to its core principles, including consensus-based decision-making, fostering development and equality and modernising and reforming global multilateral and governance institutions, BRICS has witnessed an exponential expansion over recent years. Several emerging economies, such as Indonesia, Egypt, the United Arab Emirates, Ethiopia, Iran, and potentially Saudi Arabia, are now part of the organisation.

BRICS expansion will significantly elevate bloc's influence internationally, bring inclusivity to a fragmented world and contribute to stability and development especially in the Middle East and North Africa, which is grappled with enormous security and economic challenges over Trump's threats of taking over Gaza, military action on Tehran and tariff-driven recession in oil markets.

The organisation is accused of seeking to "avowedly" challenge the Western-led economic governance institutions and establish an alternate to the existing international order, but this argument lacks the necessary rigour. BRICS instead envisages amputating systemic bias against the Global South from the current global order and strengthening it by promoting multilateralism, reforming international institutions and stepping up efforts to build a more effective, inclusive and representative multilateral system.

Wang's proposals, indeed, are consistent with the UN whose Pact of the Future aims at transforming global governance and United Nations Secretary-General Antonio Guterres at last year BRICS summit emphasised the grouping's role in strengthening multilateralism for global development and security, warned of widening digital divide, admitted lack of Global South's representation in the Bretton Wood institutions and sought the alliance to help craft a more equitable global finance system, boost climate action, improve access to technology and work toward peace.

While the bloc's Contingent Reserve Arrangement contributes to the robustness of the global financial system and complements IMF support mechanisms, its New Development Bank seeks to leverage proven and emerging transformative technologies to deploy clean and renewable energy and build smart transport and logistics projects in partner states that decouple economic growth from environmental degradation and pollution.

BRICS expansion allows countries such as Ethiopia access to technology, bridging the digital gap; the organisation advocates resolution of disputes through diplomacy, inclusive dialogues, conflict-prevention efforts, tolerance and peaceful coexistence through an UN-centred, reinvigorated and reformed multilateral system. The bloc's increased alignment on cultural exchanges and humanitarian projects enhances its profile as a multifaceted organisation.

What the world witnesses today is a consequence of US nationalistic policies, seeking to undermine global peace and upend once-harmonious globalisation for self-centric geopolitical and economic gains. This arrogant and protectionist approach and failure of Western-dominated institutional architecture to address contemporary challenges such as the Ukraine and Middle East crises have triggered disillusionment in the Global South with the so-called liberal order.

In the form of BRICS, the Global South, particularly marginalised countries, has discovered a platform where they are treated with a spirit featuring mutual respect, openness, inclusiveness and solidarity. It is gaining traction here, where they could collectively raise their voice on global injustices and economic disparities, become part of international policymaking processes, actively participate in shaping a fair and equitable economic order, practise genuine multilateralism and bring back globalisation from the brink.

With BRICS countries representing about half of the world population, 36% of territory, 39% of world GDP (compared to G7's 28.4%) and 23% of international trade — the alliance can leverage its resources and economic and demographic heft to even out global imbalances and an overly West-leaning international order. Increasing trade and deepening economic integration while demonstrating unity, upholding multilateralism and improving global governance could offset Trump's assault on the monetary sovereignty of Global South, contribute to peace and stability and pursue shared development across the developing world.