CFR 4/1 Global Affairs Expert Webinar: BRICS and Rising Power Alliances

Why It Matters

BRICS’s move toward concrete institutions and sectoral cooperation reshapes global finance and governance, forcing Western powers and businesses to adapt to a more multipolar, alternative‑driven international system.

Key Takeaways

• BRICS evolved from informal forum to hybrid institution with 10+ members
• New Development Bank controls $42.9 bn, offering alternative financing
• India’s presidency rebranded BRICS as “Building for Resilience, Innovation, Cooperation, Sustainability”
• Health cooperation focuses on social determinants, still at framework stage
• Mini‑lateral institutions challenge Bretton Woods yet rely on existing norms

Summary

The Council on Foreign Relations webinar featured MIT scholar Dr. Mihaela Papa discussing the evolution of BRICS from a loose negotiation platform in 2009 to a hybrid organization that now counts ten full members and a growing roster of partners. Under India’s rotating presidency the bloc was re‑branded as “Building for Resilience, Innovation, Cooperation, and Sustainability,” reflecting a broader agenda that spans finance, climate, health and security. Papa highlighted the concrete outputs that distinguish BRICS from other informal minilateral groups. The New Development Bank now commands $42.9 billion in approved financing and the proposed Contingent Reserve Arrangement mimics a mini‑IMF, while a parallel financial infrastructure aims to reduce reliance on SWIFT and the U.S. dollar. Health cooperation, launched through a 2025 ministers’ declaration, targets social and environmental determinants of disease, though implementation remains at the framework stage. Specific examples underscored the bloc’s growing clout: India’s presidency renamed the group, Brazil‑Russia‑China‑India‑South Africa cooperation has already influenced climate talks, and the BRICS Convergence Index tracks competitive advantages across 180 mechanisms. The discussion also contrasted U.S. administrations—Trump’s more confrontational stance versus Biden’s relative ambivalence—illustrating how American policy perception shapes the strategic calculus of rising powers. The implications are profound. By institutionalizing alternative financing and sector‑specific coordination, BRICS challenges the Bretton Woods order while still operating within its normative framework. For investors, policymakers and multinational firms, the bloc’s expanding reach signals a shift toward a more multipolar governance landscape, where engagement with BRICS‑led mechanisms will become increasingly essential to navigate global markets and regulatory environments.

Original Description

Mihaela Papa, director of the BRICS Lab and director of research and principal research scientist at Massachusetts Institute of Technology’s Center for International Studies, leads the conversation on BRICS and rising power alliances.

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