The Expansion of BRICS and its Implications for Western-led Economic System

Abstract

The rise of BRICS has more ramifications for the western economic system that has been dominated by the World Bank and IMF since WW2. BRICS is growing and introducing new partners from various parts of the world and transforming the world towards multipolarity. BRICS is functioning as an alternative to the western economic system, and it is a challenge to the hegemony of the US Dollar. The more the members of the club increase, the more the power distribution is tilted in the global economy. Its effective role is, however, undermined by very significant political, economic, and structural difficulties both internally and externally. The World System theory explains the developing countries represented in BRICS, were afforded little say in international political and economic matters. The research is based on qualitative analysis by using secondary data. The BRICS expansion through its growing population and the economic output makes it stronger to challenge the western economic system. However, it has significant internal and external challenges like lack of central authority and different levels of economic development of its member states, that reduces its effectiveness. The research signifies the role of BRICS to contest the hegemonic power of western institutions, but it does not completely deny or change the western economic system, but it is reshaping the system to be more inclusive.