BRICS and the Transformation of Global Financial Governance: Challenging the Bretton Woods Institutions

This study critically examines the emergence of BRICS-led financial institutions, notably the New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA), as a challenge to the Bretton Woods institutions, which Western economic powers have long dominated. Anchored in a Critical International Political Economy (IPE) framework, the research explores how BRICS seeks to reshape global financial governance by promoting a more multipolar and equitable world order. This paper employs a qualitative research methodology, primarily relying on secondary data sources, including policy documents, academic literature, official declarations, and institutional reports. The study reveals that while BRICS institutions are still developing in terms of scale and operational capacity, they symbolise a paradigm shift in international financial architecture, emphasising sovereignty, inclusivity, and alternative development models. The findings suggest that the BRICS’ approach constitutes both a critique of and a complement to the Bretton Woods institutions, with long-term implications for the global economic power balance.