The global power dynamics that long favored the Western order are witnessing a seismic shift with the growing prominence of multilateral groupings like the Shanghai Cooperation Organization (SCO) and BRICS (Brazil, Russia, India, China, and South Africa). Undoubtedly, these coalitions are not just diplomatic clubs; they are evolving into platforms that question Western economic, security, and global governance hegemony. As emerging economies assert themselves, a multipolar world is no longer a distant dream but a visible transformation in motion. Therefore, BRICS and SCO act as pressure groups within the existing system.
Before comprehending the role of SCO and BRICS in challenging the US-led Western order, the nature and objectives of these two multilateral institutions is critical to know. In the post-World War II outlook, Western powers - particularly the United States and its allies - shaped the global order overwhelmingly. Institutions like the International Monetary Fund (IMF), the World Bank, and the United Nations were crafted under their influence, and NATO emerged as the military guarantor of this system. Moreover, the unipolar moment that followed the Cold War further solidified Western dominance in global governance, trade, technology, and finance.
However, the 21st century has brought forth an evident recalibration. The economic rise of China and India; the resource-rich potential of Russia and Brazil; and the strategic assertiveness of middle powers like Iran, Turkey, and South Africa have prompted questions about the sustainability and fairness of a Western-centric order. This is where SCO and BRICS come in, not as peripheral alliances but as purposeful collectives aiming to carve out alternative narratives in global affairs.
Moreover, the Shanghai Cooperation Organization, originally formed in 2001 with China, Russia, and Central Asian republics, began as a regional security bloc but has expanded to include India, Pakistan, and Iran. Meanwhile, BRICS - initiated as an economic concept in 2001 and institutionalized in 2009 - now represents over 40 per cent of the world's population and around a quarter of the global GDP. Both groupings are gaining momentum at a time when the liberal international order appears increasingly fragmented.
Coming to the main argument, SCO and BRICS challenge the Western order in the following ways.
The Economic Weight of BRICS is growing
One of the most tangible indicators of BRICS' rising influence is its growing share in the global economy. As of 2024, BRICS collectively contributes more to the global GDP (in PPP terms) than the G7 nations. China and India alone are among the world's top economies, with Brazil and Russia major players in commodities and energy. In addition, with the admission of new members - like Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE (as seen in BRICS+) - the bloc has significantly diversified both economically and geographically.
Besides, BRICS has launched institutions, such as the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), offering alternatives to the IMF and World Bank, especially for the Global South. Therefore, this indicates that the intentions of BRICS and SCO are to create a financial architecture that the West does not solely dictate.
Security and Geopolitical Coordination via SCO
Moreover, the Shanghai Cooperation Organization has steadily transformed from a regional counterterrorism forum to a geopolitical alliance that emphasizes non-Western security arrangements. With major powers like China, Russia, India, and now Iran at its table, the SCO is a rare diplomatic forum where regional rivals sit together and discuss cooperation.
Additionally, the group has actively opposed Western interventions and often speaks against unilateral sanctions and NATO's military footprint in Asia. Furthermore, joint military exercises under the SCO banner have increased in frequency and scale, thus symbolizing a growing intent to ensure regional security independent of Western powers.
Challenging Dollar Hegemony and Financial Sovereignty
Next, SCO and BRICS have made concerted efforts to reduce reliance on the US dollar. Indeed, the US dollar's dominance in global trade and reserves has long given Washington significant leverage over other countries through mechanisms like sanctions. However, recent moves by China, Russia, and Brazil to settle trade in local currencies and the discussions about a common BRICS currency signal a pushback against this system.
Further, the Russia-Ukraine war and ensuing Western sanctions accelerated this trend, which increased Russia's use of the Chinese Yuan in international trade. Likewise, India has also initiated rupee-based trade deals. If successful, this de-dollarization thus can impact global financial governance and reduce the influence of Western financial institutions.
Providing a Voice to the Global South
In addition, one of the most overlooked impacts of SCO and BRICS is their symbolic role in representing non-Western perspectives on development, governance, and sovereignty. These groupings have emerged as platforms for the Global South to articulate grievances against a world order that seems skewed in favour of the West.
Besides vaccine diplomacy during COVID-19 and advocating for climate justice and technology transfer, BRICS and SCO have voiced shared developmental concerns that often go unheard in Western-dominated platforms. Hence, they appeal to the promise of equitable growth, mutual respect, and sovereignty, not conditionalities tied to aid or loans.
Strategic Realignment and Institutional Expansion
Lastly, both organizations are rapidly expanding. Recently, SCO included Iran and is considering applications from countries like Belarus and Mongolia. Meanwhile, BRICS is transitioning into BRICS+, reflecting a conscious attempt to broaden its influence across continents. Moreover, including oil-rich nations like Saudi Arabia and the UAE into them brings financial heft and the possibility of reshaping energy markets currently aligned with Western interests. Indeed, such expansion efforts are not just symbolic; they show that more and more countries are looking for alternatives to Western institutions. Thus, this trend suggests a strategic realignment - especially among middle powers seeking non-aligned but influential platforms.
In a critical sense, while the rise of BRICS and SCO signifies a clear shift towards multi-polarity, their internal contradictions can limit their effectiveness. For instance, differences between India and China, authoritarian tendencies in several member states, and the lack of binding mechanisms hinder deeper integration. Despite the rhetoric, neither group has presented a clear roadmap for institutional renovation at the global level. Additionally, western institutions - though imperfect - still retain superior technological, military, and institutional capacities. Hence, while SCO and BRICS might challenge aspects of the Western order, replacing it entirely is unlikely without greater cohesion, shared values, and structural alternatives.
In conclusion, the emergence of SCO and BRICS reflects a world in transition, where rising powers and alternative coalitions increasingly contest Western dominance. Truly, through economic cooperation; security coordination; and a commitment to financial sovereignty, these organizations aim to reshape the rules of global governance. While challenges remain, particularly in internal unity and institutional maturity, the momentum is undeniable. Therefore, the rise of BRICS and SCO may not yet dethrone the Western-led order, but they are certainly redrawing its contours - making space for a more diverse and multipolar global future.
