BRICS Amid Global Instability: New Challenges and Prospects

Abstract

The current large-scale transformation of the global economy driven primarily by the rise of the leading developing countries facilitates the transition towards a multipolar world order with new centres of power - the BRICS countries (Brazil, Russia, India, China and South Africa). These countries are among the key players in the international markets for goods, services and capital thanks to the increased industrial and financial power, thus enabling them to exert a significant and sometimes decisive influence. However, it would be premature to conclude that the member states could balance power with the United States and the European Union in the international monetary and financial system in the coming years, overcoming their long-term global financial dominance. Such a balance is subject to the national BRICS currencies becoming major reserve assets reducing the roles of the US dollar and euro in the world economy, and to creating large international financial centres that could compete on equal terms with London or New York.