Since its inception, BRICS – an acronym for Brazil, Russia, India, China, and South Africa – has been on people’s radar, capturing the attention of economists, politicians, and policy-makers all around the world. There are many different questions that instantly pop up when discussing the BRICS alliance, particularly what it means for the world and for the countries aspiring to join in. With the speed in which BRICS is gaining popularity and momentum, this paper delves deeper into understanding the potential impact that BRICS could have on the global order and, more specifically, on Egypt. 

Like most multilateral alliances, BRICS’s aim is to encourage economic cooperation between its members and promote economic and political stability. Furthermore, it also aims to “enhance the representation and role of developing countries in international institutions,” (Putri and Santoso, 2023). Focusing on the latter, BRICS presents itself as a threat to the West, particularly the United States, challenging not only its hegemony, but also the domination of the US dollar. It does so by offering alternatives to Western-centric institutions such as the IMF and the World Bank (WB). “Rules and institutions of any given order rested on the political foundation of the creator and they also served the political, economic and strategic interests of the creator. In that sense, post-war world order became a US world order embedded in US values and driven by US interests,” (Nuruzzaman, 2020). Today, as exemplified by BRICS, this order is shifting, possibly to a new world order that is no longer driven by, or centered upon, US interests. By creating the New Development Bank and adopting the Contingent Reserve Agreement, the BRICS countries have challenged the status quo, presenting institutional substitutes that are not dictated by the West. Furthermore, there have been talks circulating regarding either a new shared currency, that would be backed by gold or some other commodity with intrinsic value, being used to conduct trade, or that each country would be allowed to use its national currency. In this manner, countries no longer have to struggle to find US dollars to sustain their economies.

It has to be noted that BRICS should still be considered as a ‘work in progress.’ For BRICS to actually ‘succeed’ at making a real impact, it first needs to tend to its internal affairs. BRICS faces many challenges on its path to leave its mark on the global stage, and how it chooses to deal with those challenges will either make it or break it. Starting with India and China’s tense relationship, these two powerful states have been caught in a deadlock over the issue of the Sino-Indian border. Also presenting as a limitation to BRICS’s growth and expansion is the Russian invasion of Ukraine, which has exposed the remaining BRICS countries to a great deal of scrutiny due to their inaction. Furthermore, other than being emerging markets and forces that challenge US hegemony, the BRICS countries are culturally, geographically, and ideologically heterogeneous. This makes it that much harder for the members of this alliance to find common ground on different issues such as membership expansion or security concerns for example. The BRICS bloc has the potential to bring about a completely different global order; however, whether it manages to live up to its full potential, only time could tell.

As glorious and catchy as BRICS sounds, it is important to question its ‘effectiveness.’ What impact, if any, could BRICS really have on the countries hoping to join in? Zooming in on the case of Egypt, the country is currently suffering from inflation and the depreciation of the Egyptian pound. Furthermore, the country is still reeling from the consequences that Russia’s invasion of Ukraine had on its economy. As a result, many Egyptians are struggling to make ends meet. For the Egyptian government, joining BRICS is a way to “relieve the state budget of the pressure of finding US dollars to meet the country's imports as members of the bank can use their national currencies in trade exchange,” (Gamal, 2023). By increasing trade with the BRICS bloc, developing relations with them, and attracting foreign investment, the Egyptian government hopes to alleviate the burdens of the current economic situation. However, for Egypt to really maximize the benefits of its BRICS membership it could take steps to make some positive changes. Promoting and growing the export economy, diversifying the country’s sources of income, and investing in different sectors could all benefit the Egyptian economy and even work in favor of boosting the country’s GDP.

Joining BRICS should not be regarded as a magical potion that is meant to miraculously cure a country’s economic ailments, but rather as an added bonus. When a country applies to become a member of BRICS, this country stands to gain a lot, as it would be dealing with some of the biggest markets in the world. However, this country has a responsibility to keep up with these markets by improving its own market and its own economy in order to be able to compete with them, and to make the most out of its membership.

*The writer is a researcher at BUC’s Center for Global Affairs. She graduated with a Master of Arts in Middle East Studies from the American University in Cairo. Her research interests include International Relations, Conflict and Security Studies, Foreign Policy, and Comparative Politics.