Since the early 20th century, a new practical-oriented trend of thought began to emerge, emphasizing the need to strengthen international cooperation to address the challenges and crises facing humanity. This tendency became noticeably more pronounced during, between, and after the First and Second World Wars, as a necessary response to mitigate the severe repercussions of those conflicts, which manifested as complex crises with humanitarian, political, and economic dimensions.
As a result, pressing major issues emerged, such as establishing global peace, rebuilding from the massive destruction caused by wars, and promoting cooperation in humanitarian and economic frameworks to ensure preparedness against similar future crises. These challenges necessitated the mobilization of extensive international efforts, as it was deemed impossible for individual states to address them unilaterally.
These inclinations quickly developed into practical frameworks. Following the Paris Peace Conference (1919), the League of Nations emerged in 1920 as the first international solidarity institution, which later evolved into the United Nations after the Second World War in 1945. Today, the United Nations includes six official organs: the Security Council, the Economic and Social Council, the Trusteeship Council, the International Court of Justice, the General Assembly, and the Secretariat. These bodies oversee its functions, alongside nearly 20 affiliated organizations specializing in various areas, such as the Food and Agriculture Organization (FAO), the World Health Organization (WHO), the United Nations Industrial Development Organization (UNIDO), the International Monetary Fund (IMF), the World Bank (WB), and the World Trade Organization (WTO). Additionally, numerous regional and global subsidiary agencies, funds, and bodies assist the organization in its mission and objectives.
This massive institutional development did not gain significant effectiveness and value in isolation from the political-economic conferences of the time. These conferences laid the foundation for the UN’s overarching philosophy as it sought to provide solutions to economic problems of the era.
The Bretton Woods Conference (1944) introduced a new vision for managing global economic, monetary, and trade affairs, paving the way for critical decisions that shaped the global monetary system and trade regulations (e.g., the 1947 GATT Agreement). It also steered global economic movements by adopting a clearly capitalist-liberal economic philosophy based on free-market economies, global openness, and other key principles of capitalism. This became the central philosophy of global economics and trade.
Modern Tools of Domination
Initially, these directions faced strong opposition, particularly from the Global South (developing countries) and several emerging economies. They viewed these steps as an organized attempt to impose Western, particularly American, dominance over the global economy and trade. Charles de Gaulle (1890–1970), the founder of France's Fifth Republic, was one of the most prominent critics of these policies. He opposed making the US dollar the sole global trade currency, which gave it a preferential status over other national currencies and equated it with gold, the primary standard for determining the value of official currencies.
Over time, these criticisms were bolstered by numerous biased practices undertaken by the UN system, both politically and economically, through its decisions and policies that often directly served the interests of major powers founding and supporting the organization. This led to a significant loss of trust and support, with the system being classified as one of the tools of modern colonialism and dominance.
Additionally, several negative outcomes linked to the capitalist economic model and its monetary and financial policies have become increasingly evident. Reports, such as those from Oxfam, highlight that 1% of the world’s population owns two-thirds of global wealth. Inequality is not the only crisis; the liberal system has also exacerbated food shortages, rising poverty, unemployment, inflation rates, and recurrent severe financial crises affecting even major economies (e.g., the 2008 financial crisis, Greece's 2010 debt crisis, and the 2011 financial crisis).
Rise of the East
In response, there was a need to rethink and reconsider the global economic and trade landscape, exploring better ways to enhance international cooperation based on different principles than those of the previous system.
In this context, successful and rapidly growing economic models emerged from the East, demonstrating their ability to achieve above-average growth rates and maintain positive indicators even during the aforementioned financial crises.
By September 2006, China, Russia, India, and Brazil convened during the UN General Assembly to announce a joint cooperation initiative called "BRIC." The group held its first meeting in Russia in 2009, declaring the establishment of a bipolar global system. Later, the platform evolved into "BRICS" with the inclusion of South Africa in 2020.
Today, BRICS, which now includes six additional member states (Saudi Arabia, Egypt, Iran, the UAE, Argentina, and Ethiopia) under the "BRICS-Plus" framework, represents a population exceeding 3.5 billion (approximately 45% of the global population). Its geographical scope spans 30% of the Earth’s landmass, encompassing critical trade routes and chokepoints. Collectively, BRICS nations contribute over $28.5 trillion, accounting for about 28% of the global economy.
A New Economic System
Major powers within BRICS, particularly Russia and China, have consistently advocated for reshaping the global system based on new principles, prioritizing equality and fruitful cooperation among nations and peoples, free from political or social pressures.
The BRICS framework relies on two main financial institutions. The first is the New Development Bank (NDB), established in 2014 with a permanent headquarters in Shanghai and an initial capital of $100 billion. The second is the Contingent Reserve Arrangement (CRA), which provides protection against anticipated global liquidity pressures to ensure a stable economic environment in emerging markets. The NDB is often seen as a counterpart to the World Bank, while the CRA is considered an alternative to the IMF.
Additionally, the BRICS system has developed its own payment system as an alternative to the SWIFT system, primarily relying on the use of national currencies of the countries within the BRICS framework. This provides significant independence for these economies outside the reliance on the dollar in global trade. China, in fact, has developed a modern payment system called "Cross-Border Inter-bank Payment System" (CIPS) that aligns with this direction.
The BRICS system represents a considerable economic bloc in terms of influence and contribution to the global economy. Its economies and development models, along with its financial institutions, offer a viable alternative to challenge the global system and break the grip of Western dominance (both politically and economically). The system provides compelling options and alternatives that inspire confidence and steadfastness toward achieving a better future in this world.
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