The BRICS+ bloc, now boasting over $30 trillion in GDP and 3.3 billion people, is taking bold steps toward building an alternative to G7-led global governance. But without a legal framework or institutional clarity, can its ambitions hold?
New Delhi (ABC Live): The BRICS 2025 Summit started today in Rio de Janeiro, and a bigger question is gaining momentum across global capitals:
Can BRICS+, with its growing membership and ambitions, challenge the dominance of the G7 in the global economic order—or is it still a bloc of ambition without alignment?
For years, BRICS has flirted with the idea of transforming into more than a geopolitical talking shop. But Rio 2025 feels different. The expansion to BRICS+, including Saudi Arabia, the UAE, Iran, Egypt, and Ethiopia, marks a bold attempt to project scale—and possibly shape new rules for the 21st-century economy.
? A Tale of Two Blocs: Size vs. Structure
On paper, the economic muscle of BRICS+ is formidable. The bloc now accounts for:
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$30.8 trillion in combined nominal GDP
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Over 35% of global GDP by purchasing power parity (PPP)
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A population exceeding 3.3 billion people, nearly 42% of the world
By comparison, the G7 bloc—made up of the U.S., Canada, UK, Germany, France, Italy, and Japan—still commands:
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$45.9 trillion in nominal GDP
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About 30% of global PPP GDP
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A combined population of just 780 million
But the G7 has something BRICS+ lacks: institutional coherence. It operates through decades-old financial coordination, shared democratic norms, synchronized monetary policies, and well-defined legal frameworks that bind its economic actions.
? What BRICS+ Is Building
At the Rio Summit, BRICS+ leaders—including Indian Prime Minister Narendra Modi and Brazilian President Luiz Inácio Lula da Silva—pitched an upgraded vision of the bloc.
Their focus? Building parallel systems to challenge Western dominance:
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A shared currency settlement platform to reduce reliance on the U.S. dollar
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Expansion of the New Development Bank (NDB), which approved over $8.2 billion in loans last year—36% in local currencies
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The creation of a $40 billion BRICS Green Fund, to be led by Brazil and co-funded by China and India
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A proposed BRICS Digital Payments Network, building on India’s UPI success
“It’s not about replacing the West. It’s about having the right to choose,” said Lula during his summit speech.
?? Legal Framework: The Missing Pillar
One of the most pressing gaps in BRICS+’s evolution is the absence of a binding legal framework or charter that defines its governance, decision-making authority, or dispute resolution mechanisms.
Unlike the G7, which is underpinned by a long history of treaty-backed economic cooperation and a shared legal architecture, BRICS+ functions mostly through consensus declarations, communiqués, and annual chair rotations.
Without a treaty-based foundation:
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There is no clarity on voting rights, institutional hierarchy, or obligatory commitments
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New members have no standardized accession process or legal obligations
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Inter-bloc agreements remain non-binding, limiting enforcement or continuity
At Rio, Lula called for a formal BRICS Charter, and India echoed the sentiment—stressing the need for a permanent BRICS Secretariat with legal standing.
“If BRICS wants to move from ambition to institution, it needs rules—not just rhetoric,”
says Dinesh Singh Rawat, founder of DSLA and an analyst at ABC Research.
“Without a legal backbone, BRICS+ will struggle to operationalize even its most promising proposals.”
? Still, a Long Road Ahead
Beyond legal architecture, BRICS+ faces other structural barriers:
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Internal divisions: India-China tensions, Iran-Saudi dynamics, and differing governance models make joint action difficult.
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Currency credibility: While China’s yuan accounts for 3.2% of global SWIFT payments, the dollar still dominates at 58%
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Fragmented leadership: Absence of Xi and Putin at Rio 2025 opened space—but also exposed the bloc’s dependence on summit personalities
“The G7 can respond to crises in days,” Rawat notes.
“BRICS debates for months—sometimes years. But what it lacks in speed, it makes up for in long-term vision.”
? Trade Without the Dollar?
BRICS+ has made notable strides in de-dollarization—especially in bilateral deals:
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India–Russia trade in local currencies surged 42% in FY 2024–25
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China and Brazil crossed $160 billion in bilateral trade last year, with local currency settlement mechanisms in place
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Saudi Arabia has signed MoUs with BRICS on energy pricing alternatives, possibly accepting yuan or rupee for oil in select transactions
Still, analysts caution that these are exceptions, not the norm. Without a convertible reserve currency and uniform legal frameworks, BRICS will remain a challenger—not yet a replacement.
? What the Future Holds
While it may not dethrone the G7 anytime soon, BRICS+ is steadily carving out its own ecosystem:
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Lending without Western conditions
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Climate financing tailored for developing countries
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Digital public infrastructure scaled across the Global South
“The G7 shaped the 20th-century order. BRICS+ is trying to shape what comes next. Not by confrontation—but by creation,”
says Dinesh Singh Rawat, speaking to ABC Live.
? Related Reports
? Verdict
Can BRICS challenge the G7?
Yes—but not yet.
Without a formal legal framework, BRICS+ may remain a coalition of shared interests, not yet a unified force. But if it can turn political momentum into institutional structure, it won’t need to copy the G7—it may well create something entirely new.
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