THE recent BRICS summit has left a significant impact on global politics, signaling a shift in the world power structure. With emerging powers like China, India, and Russia, and a coalition of nations in BRICS pushing for a multipolar world, the dynamics of international alliances and rivalries are undergoing transformation. Traditionally, power has been unipolar, largely managed by the United States and supported by Western allies. However, recent developments indicate that the world could be moving towards a more balanced power structure, in which economic and political influence is distributed more widely.
A key outcome of the BRICS summit was the announcement of plans for a new global payment transaction system. This alternative to SWIFT, the current international payments infrastructure, is designed to lessen dependency on the US dollar and counter Western economic control. The move was particularly motivated by Russia’s exclusion from SWIFT following its international sanctions, which restricted its ability to transact globally.
Alongside China, Russia has taken steps to ensure that future economic or political conflicts do not leave them vulnerable to financial isolation. A BRICS-led payment system could allow countries to trade in local currencies, reducing the influence of the US dollar in global trade—a development welcomed by many countries seeking independence from US-dominated financial systems.
While this shift benefits BRICS countries and others desiring a multipolar world, it also presents a challenge for the US, which has long controlled global affairs through the dollar’s supremacy and financial institutions under Western influence. The potential weakening of the dollar’s dominance could limit US leverage over other countries, leading to a redistribution of influence that could reshape international politics.
The summit also included dialogue between China and India, two regional rivals with a history of territorial and political conflicts. This dialogue session between the two nations was notable, as both countries expressed interest in resolving their issues through diplomacy rather than hostility. If these two nations succeed in establishing a more cooperative relationship, it could have far-reaching effects on regional politics, especially for Pakistan, which has longstanding alliances with China. As China and India move towards rapprochement, Pakistan may find itself in a challenging position, needing to navigate a regional landscape where old alignments are shifting.
India, for instance, has already secured a management agreement with Iran for the Chabahar Port, an initiative that can compete with Pakistan’s Gwadar Port in providing access to Central Asia. If China strengthens its relationship with India, Pakistan’s strategic position in regional trade and politics could be weakened.
Furthermore, Pakistan’s own internal instability and economic struggles could limit its ability to capitalize on new opportunities or retain strong alliances in the evolving geopolitical landscape. China, historically supportive of Pakistan, has expressed concerns over Pakistan’s internal issues and may increasingly prioritize its own broader regional interests.
As Pakistan aspires to join BRICS, these new dynamics suggest it must carefully reassess its position. Decision-makers in Pakistan should recognize the significance of China and India’s improving relations and the potential of a BRICS-led financial system to change global economics.
—The writer is President and CEO Educasa International, Islamabad.
