For over eighty years, the world has operated under a single, dominant economic and political framework. It's a system built on the bedrock of the U.S. dollar and led by Western institutions. But today, the ground beneath that framework is shifting. A new alliance, once dismissed as a mere acronym, is now a powerful force actively challenging the established order. This is the story of BRICS—Brazil, Russia, India, China, and South Africa—and why its rise has become Washington's greatest geopolitical fear.
BRICS is no longer just a loose collection of emerging economies. It is an organized bloc with a clear mission: to create a multipolar world. The reasons for Washington’s fear are not simple—they are intertwined with economics, history, and a fundamental shift in global power dynamics. To understand why BRICS is so threatening, we have to first understand the system it is trying to dismantle.
After World War II, the United States built the modern global order. The Bretton Woods agreements established the International Monetary Fund and the World Bank, and cemented the U.S. dollar as the world's primary reserve currency. For decades, this system has given Washington unparalleled power. It meant that a financial crisis in Moscow or a trade dispute in Beijing could be resolved through institutions and a currency controlled from Washington. The dollar’s supremacy gave the US incredible leverage: it could sanction rivals, fund its deficits, and influence global markets with a level of authority no other nation could match. This was the "unipolar moment," a period where America stood alone at the top.
But this era of unchallenged power is facing its biggest threat yet. The most direct challenge from BRICS is the de-dollarization movement. For years, this was just a fringe idea, but now it’s becoming a reality. The turning point? The weaponization of the dollar. When the U.S. and its allies froze Russia's foreign reserves and cut it off from the SWIFT financial system, it sent a clear message to the world: align with us, or risk being cut off from the global financial system.
This move backfired. Instead of isolating Russia, it pushed other nations—including key US partners—to seriously consider alternatives. They saw their own dollar-denominated assets as potential targets. And BRICS was ready to capitalize. India and Russia began trading oil in rupees. China has increased its use of the yuan in trade. Saudi Arabia, a long-time ally and the bedrock of the petrodollar system, is now openly discussing trading oil in other currencies, and has even joined BRICS.
For Washington, this isn't just a minor inconvenience. The dollar’s reserve status allows the US to borrow cheaply, maintain a massive trade deficit, and project power globally. If that status erodes, so does a core pillar of American economic strength. This is not about the dollar collapsing overnight; it’s about a slow, steady erosion of trust and dominance that could fundamentally alter the global financial landscape.
Beyond currency, BRICS is building an entire parallel system of global governance. For decades, the IMF and World Bank have been criticized for their Western-centric approach and for imposing strict conditions on loans to developing nations. BRICS saw this as an opportunity. In 2014, they established the New Development Bank, or NDB.
The NDB is the World Bank’s competitor. It funds infrastructure projects without the political strings attached. Crucially, it can also issue loans in the local currencies of member states, further bypassing the U.S. dollar. Alongside the NDB, BRICS created the Contingent Reserve Arrangement, a safety net designed to help members through financial crises without having to go to the IMF and accept its conditions.
This is a direct challenge to the architecture of the post-war world. It offers developing nations a genuine choice, a way to pursue their own interests without being beholden to Western financial institutions. By providing an alternative, BRICS is weakening the very tools Washington has used for decades to maintain influence and control.
The true scale of Washington’s fear became clear with the recent BRICS expansion. What was once a club of five has now opened its doors to new members, creating the “BRICS+” alliance. This is not just about adding new economies; it’s about adding strategic partners. The inclusion of Iran, the UAE, and Saudi Arabia brings immense power and influence over global energy markets, further accelerating de-dollarization in the critical oil trade.
This expansion sends a powerful signal: the BRICS project is gaining momentum. It’s seen as a viable alternative for countries in the Global South that are tired of being lectured by the West and want a voice in global affairs. From Latin America to Africa to the Middle East, nations are increasingly looking to BRICS as a counterweight to US dominance. This growing bloc represents a significant portion of the world's population, its economic output, and its natural resources.
So, how is Washington responding to this monumental shift? The approach has been multi-pronged. On one hand, the U.S. continues to use its traditional tools of power: sanctions, diplomatic pressure, and public warnings. But this has proven to be a double-edged sword, as we’ve seen.
On the other hand, Washington is shoring up its existing alliances. We've seen a renewed focus on partnerships like the G7, the QUAD in the Indo-Pacific, and AUKUS. The message is clear: strengthen the core and consolidate power among existing allies. However, this strategy risks isolating the US from the very countries it needs to work with to solve global problems. It creates a new divide: the West versus the "Rest."
The reality is that the era of a single superpower is over. The world is moving towards a multipolar order, and BRICS is leading the way. The question is not if the world is changing, but how we will navigate this change. Will it be a peaceful transition, characterized by cooperation on global challenges like climate change and pandemics? Or will it be a period of intense rivalry and confrontation?
Washington's fear of BRICS isn't about one nation or one currency. It's a fear of losing control, of losing its long-held position as the world's undisputed leader. The rise of BRICS is forcing the United States to confront its own vulnerabilities and re-evaluate its place in a world that is no longer content to simply follow its lead. This isn't just a political story; it's the unfolding narrative of a new global chapter.