Can BRICS Create a Multipolar World?

Decolonize to Dedollarize!

I’m often asked whether BRICS is going to be the game-changer that will disrupt the current geopolitical hierarchy, dedollarize the system, and create a new multipolar word. My position has always been that we can’t dedollarize a system that hasn’t been structurally decolonized yet, and that no new multipolar world can be born without Africa and the rest of the Global South being repositioned away from the bottom of the global hierarchy and at the center of a New International Economic Order. I explained this on CGTN Africa recently when we discussed the outcomes of the 2024 BRICS Summit in Kazan, Russia (read the Kazan Declaration). The gist of my argument is in this 2-minute clip below, but you can watch the full interview here.

For the Global North, the biggest perceived threat to its dominant geopolitical position (sadly) is not terrorism, nuclear weapons, the misuse of AI, cyber crimes, inflation, climate change, pandemics, mass migration, genocides, or even BRICS at this point... but rather the real industrialization of a united Global South block positioned at the center of a multipolar world — and a New International Economic Order, because it will permanently undo the colonial hierarchy upon which the Global North thrives, and it will fully unleash the massive potential for development and prosperity that we have in the Global South. That is why, unfortunately, we continue to be denied the right to development, the right to structural transformation, the right to decolonize our economies, the right to enjoy the fruits of sustainable prosperity. And while we are now sitting at the table rather than being on the menu, we are now supposed to chose from a menu of the tranquilizing drugs of gradualism, incrementalism, false solutions, and dangerous distractions (to paraphrase the Rev. Dr. Martin Luther King Jr.). I discussed this last week in my COP29 reflection, which you can read here, and in this recent interview on News Central TV in Nigeria.

Does BRICS have what it takes?

The recent BRICS summit in Russia offered a symbolic counter-narrative to the isolation of Russia following Western sanctions. Instead of standing alone, Russia presented itself as part of a larger coalition seeking a new vision for a multipolar world. This gathering highlighted that Russia is not isolated but, in fact, integrated into a broader economic system that challenges traditional power dynamics — central to it, is the role of the Global South, or rather the Global Majority, in creating a new international economic order.

However, while the aspirations for a multipolar world were palpable, the clarity of vision regarding practical steps remains elusive. The necessary actions to reshape the global economy and shift away from dollar dependency are not yet fully articulated. Particularly from an African perspective, the continent's growing presence in BRICS does not yet translate into a concrete strategy for leveraging this new economic relationship to foster genuine transformation.

As BRICS commemorated its 16th summit, it was vital to evaluate the progress made over the years. While there is talk about developing an alternative currency to replace the dollar, Professor Kaboub contended that focusing solely on currency is misguided. Having a national currency does not equate to economic sovereignty or transformation. For instance, Kenya may have its own currency, but it does not guarantee substantial economic independence.

Historically, Africa has been relegated to a role defined by colonial legacies: a supplier of cheap raw materials, a consumer of industrialized goods from the Global North, and a destination for outdated technologies. Until BRICS and its member countries address these structural colonial traps, the continent will struggle to participate fully in the emerging multipolar world.

Decolonize to Dedollarize!

You can’t dedollarize a system that hasn’t been structurally and economically decolonized yet. Dedollarization cannot be declared into existence by a presidential decree or via a BRICS declaration. Dedollarization doesn’t require the creation of a new currency (certainly not a currency backed by gold or oil). Dedollarization is achieved via strategic investments aimed at enhancing economic and monetary sovereignty at the national level or at the regional level (a block of countries investing in collective self-reliance). Dedollarization is built on a three-legged stool of food sovereignty, energy sovereignty, and industrial/technological sovereignty. If BRICS is going to dedollarize, it must reconsider its mercantilist motivations and start focusing on strategic cooperation to structurally decolonize the economies of its member states rather than trying to reproduce the same economic and geopolitical hierarchies of the existing system within BRICS itself. Below is a 10-minute intervention I made last year when there was a lot of excitement about BRICS+ leading a dedollarization process. This conversation was hosted by my dear colleague Patrick Bond who also insisted that I must write this blog. I couldn’t say no. Take a listen.

I also had the pleasure recently to go on The LNN Show with Lynn Ngugi to discuss a variety of issues around economic and structural decolonization in Africa. You can watch the entire interview here. Here is the clip about why transforming BRICS requires African leadership to strike what I call the Bargain of the Century to reposition Africa and the rest of the Global South at the center of a new multipolar world of peace, justice, and sustainable prosperity, which I described in my blog last week. Take a listen.

More than just a payment system

Merely establishing an alternative payment system does not confer true economic sovereignty. To move beyond dependency on the global financial system, Africa needs strategic investments in key sectors, such as food and energy sovereignty, as well as technological independence. An alternative payment system must be complemented by alternative shipping, logistics, insurance, finance, and legal systems that form the core of a new global economic architecture designed by the Global Majority on terms that are just and equitable.

This alternative global economic architecture will not build itself, and it cannot be born from the existing colonial and post-colonial architecture. It needs to be designed and built intentionally. Therefore, key to building this new economic architecture are joint industrial policies. And Africa has the most promising industrialization potential, especially considering its vast resources, the complementarity of resources and capabilities among its countries, the economies of scale that it enjoys, and its young labor force. Yet, the realization of this potential requires a collaborative effort, particularly with BRICS nations, to share technology and foster joint industrial policies. Such a framework would enable African countries to produce essential goods within the continent, reducing reliance on external powers and enhancing regional economic autonomy.

A Call for Strategic Transformation

Looking to the future, the expansion of BRICS to include new emerging economies raises questions about the balance of power within the group. While the inclusion of new members may diversify perspectives, the existing agenda remains largely dominated by a few major players. Furthermore, the larger the BRICS block gets, the more difficult it becomes to make joint declarations with strategic impact for the entire block. At the end of the day, BRICS countries are still competing with each other while trying to cooperate on areas of mutual benefits. Unless BRICS succeeds in clearly defining an overarching cooperation strategy that produces a much larger win-win impact for all of its members, then BRICS will continue to operate as a mercantilist block of competitors who happen to have good aspirations for a multipolar world that cannot be born out of competition.

Therefore, Africa must take responsibility for defining its own path, rather than waiting for external entities like BRICS or G20 to deliver solutions. If Africa doesn’t have a vision for itself, it will continue to be part of a G20, BRICS, EU, US, and other major player’s vision. This was the point of departure that led to the publication of the Just Transition report.

The African Union and its member states need to convene serious discussions focused on structural transformation that aligns with the continent's aspirations. By proactively designing a long-term strategic vision, Africa can ensure that its voice and needs are not merely an afterthought in the conversations led by BRICS or the G20. African leaders must also acknowledge the fact that Agenda 2063 remains a document that cannot be activated without a political commitment in Africa and a geopolitical leverage vis-a-vis the rest of the world.

As discussions about a multipolar world continue, it is crucial for African nations to assert their agency and reimagine their roles within the global economic landscape. By fostering genuine partnerships based on shared goals and mutual benefits, Africa can navigate the complexities of a changing world and emerge as a key player in shaping its future.

Another World is Possible

A few months ago, I recorded a long interview in Nairobi for a documentary series called Another World is Possible. This is a brief 15-minute preview of the longer interview in which I explain what I call The Zero-Dollar Pan-African joint industrial policies. In short, it is the core of the dedollarization process. The series is the work of Zachary Marlow who is an independent filmmaker, activist, and renegade economist. This series has been shot entirely independently over five years, with a near zero budget, only made possible by crowdfunding and a lot of gumption. It is in production on the final act and seeking producers, funders and high level collaborators to bring home the story of how we came together to save the planet.

And they said the revolution won't be televised; I beg to differ. In the words of Gil Scott-Heron, the revolution will be live! Check it out 👇🏼

Zachary Marlow describes the series as follows:

ANOTHER WORLD IS POSSIBLE is an epic film series breaking down our global interconnected crisis to expose the economic SYSTEM at the root, and blow past it with a globetrotting exploration of new paradigms, radical voices and living alternatives creating a blueprint for planetary transformation. Shot on four continents and counting, chronicling protests to professors, bringing together science and indigenous wisdom, technology and nature based solutions, telling the history of how we got here, the history of money and creating a visionary blueprint to a regenerative future of abundance for all, with a practical roadmap to a viable bottom up cooperative transition system we can step into today.

You can contact Zachary Marlow to get involved at zacharycmarlow@gmail.com or donate directly here.

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Fadhel Kaboub is an associate professor of economics at Denison University (on leave), and the president of the Global Institute for Sustainable Prosperity. He is the author of Global South Perspectives on substack. He is also a member of the Independent Expert Group on Just Transition and Development, an expert group member with the Global Solidarity Levies Task Force, a member of the Earth4All 21st Century Transformational Economics Commission, a Steering Committee member with the Fossil Fuel Non-Proliferation Treaty Initiative, and a member of the Independent Expert Group on Just Transition Finance. He has recently served as Under-Secretary-General for Financing for Development at the Organisation of Southern Cooperation in Addis Ababa, Ethiopia. Dr. Kaboub is an expert on designing public policies to enhance monetary and economic sovereignty in the Global South, build resilience, and promote equitable and sustainable prosperity. His recent work focuses on Just Transition, Climate Finance, and transforming the global trade, finance, and investment architecture. His most recent co-authored publication is Just Transition: A Climate, Energy, and Development Vision for Africa (May 2023). He has held a number of research affiliations with the Levy Economics Institute (NY), the John F. Kennedy School of Government at Harvard University (MA), the Economic Research Forum (Cairo), Power Shift Africa (Nairobi), African Forum on Climate Change, Energy and Development (Abuja), and the Center for Strategic Studies on the Maghreb (Tunis). He is currently based in Nairobi, Kenya and is working on climate finance and development policies in Africa. You can follow him on LinkedIn, YouTube, X/Twitter, and Bluesky @FadhelKaboub.