A Departure From Our Usual Content
If you’re a regular reader, you’re probably used to seeing articles here focused on construction topics.
But today’s piece is a slight departure from our usual content.
We felt compelled to address a topic that doesn’t get nearly enough attention in public discourse: Australia’s place in a changing global economy and the possibility of joining BRICS. With the dust settling after the recent US elections, many of the headlines remain focused on housing and economic challenges here at home. Yet, quietly in the background, the global landscape is shifting, and it seems like no one is talking about it here in Oz.
This article is our attempt to shed some light on this important issue. What’s happening globally could have a profound impact on Australia’s future, and we believe it’s time for more open dialogue about it.
We’ve approached this topic from both sides—laying out the case for and against Australia joining BRICS. While this is outside our usual scope, the potential consequences for Australia’s economy, housing market, and broader prosperity make it a conversation worth having.
So, let’s dive in.
Introduction
The world is changing fast. Countries that used to dominate the global stage are now facing challenges from emerging powers, and the rules of the game are being rewritten. One of the key players in this shifting landscape is BRICS—a group of nations that includes Brazil, Russia, India, China, and South Africa. Together, they represent over 40% of the world’s population and a growing slice of the global economy.
This brings us to a big question for Australia: Should we join BRICS?
On one hand, BRICS offers some tempting opportunities—new trade markets, a chance to shape global financial systems, and a way to reduce reliance on traditional Western partners. But on the flip side, it’s not all smooth sailing. Aligning with countries like Russia and China, which face heavy criticism for human rights issues and political actions, could complicate things for us.
And what would it mean for our relationships with allies like the US and the UK?
It’s a complex issue with no easy answers, but one thing’s for sure: the decision would have a massive impact on our future.
Let’s look into the pros, cons, and everything in between to explore whether this is a move Australia should seriously consider.
What is BRICS?
To understand whether Australia should consider joining BRICS, let’s first break down what BRICS actually is.
BRICS is a group of five countries—Brazil, Russia, India, China, and South Africa—that came together in the early 2000s. The idea was simple: these emerging economies wanted to work together to push back against the dominance of traditional Western powers like the United States and Europe.
Each member brings something unique to the table. Brazil is a powerhouse in agriculture, Russia has vast natural resources, India boasts a rapidly growing population and tech sector, China is the second-largest economy in the world, and South Africa serves as a gateway to the African continent. Together, these countries account for over 40% of the global population and nearly a quarter of global GDP.
But BRICS isn’t just about economic clout. The group also focuses on reshaping global governance—basically, trying to have more influence over how the world is run. They’ve pushed for reforms in organisations like the United Nations, the International Monetary Fund (IMF), and the World Bank to better reflect the interests of non-Western nations.
One of BRICS’ standout achievements is the creation of the New Development Bank (NDB). Unlike the IMF or World Bank, which have been criticised for favouring Western agendas, the NDB funds infrastructure and development projects in member countries without the same political strings attached.
At its core, BRICS is about creating a counterbalance to Western influence, and it’s gaining momentum as more countries consider joining.
This raises the question: Could Australia fit into this picture?
China’s Role and Australia’s Place in a Post-USA Dominated World
Whatever your personal views on China, one thing is undeniable: they are a superpower whose influence directly affects Australia’s prosperity. With a population of over 1.4 billion and an economy that rivals the United States in size, China is a cornerstone of the global economy. For Australia, this means we cannot afford to ignore the opportunities—and challenges—that come with engaging with such a significant player.
China’s Economic Impact on Australia
China is Australia’s largest trading partner, accounting for around 30% of our total exports. From iron ore and coal to education and agriculture, the economic ties run deep. These exports don’t just benefit corporate Australia—they underpin jobs, fuel regional economies, and contribute to the nation’s overall prosperity.
But this relationship is a double-edged sword. While China’s demand has been a boon for Australia’s economy, its geopolitical assertiveness and domestic policies have sparked tensions. Tariffs on Australian goods (wine, lobster) during recent disputes serve as a reminder of how delicate and interdependent this relationship can be.
The Emerging Post-USA World Economy
The global economic balance of power is shifting. For decades, the United States has been the dominant force in shaping the international order, but that dominance is waning. Emerging economies, led by China, are carving out a larger share of global trade and financial influence.
BRICS is a clear example of this shift. China, as the leading member, plays a pivotal role in driving the group’s agenda to challenge US-led institutions like the IMF and World Bank. Australia, with its strong ties to the US, now finds itself in a position where it must navigate a new and more complex global landscape.
Why Open Dialogue Matters
In this changing world, one thing is clear: Australia needs to embrace open dialogue and discussion about its role. We must stop treating engagement with China or BRICS as a binary choice between loyalty to the US and collaboration with emerging powers. Instead, it’s about recognising the nuances and finding a balanced approach.
By engaging with China and other BRICS nations constructively, Australia can position itself as a mediator, bridge-builder, and proactive participant in shaping a multi-polar world.
This doesn’t mean compromising our values or abandoning our allies; it means adapting to the realities of a new global order.
The Case for Pragmatism
Critics might argue that aligning with China or BRICS compromises our democratic principles. While this concern is valid, it’s important to remember that economic engagement doesn’t equate to political endorsement.
Australia’s goal should be to foster relationships that secure our economic future while upholding the values we stand for.
Ignoring China’s superpower status or pretending we can thrive without engaging with them would be shortsighted. Instead, we need to lean into these conversations, openly discuss our role in the emerging global economy, and make decisions that prioritise Australia’s long-term prosperity.
Arguments For Australia Joining BRICS
Now let’s look at why joining BRICS might be a smart move for Australia.
1. Access to Massive Trade Opportunities
One of the most obvious benefits of joining BRICS is access to its massive market—over 3 billion people. That’s nearly half the world’s population! By becoming part of this bloc, Australia could strengthen trade ties with some of the fastest-growing economies on the planet.
2. A Counterbalance to Western Influence
Australia has traditionally relied on Western alliances, especially with the US, UK, and Europe. While these relationships are incredibly valuable, they also come with limitations.
Joining BRICS would give Australia a chance to balance its diplomatic relationships. We could strengthen ties with non-Western powers, reducing over-reliance on any one group of partners. It’s about having options—diversity in diplomacy could protect Australia’s interests in an increasingly multipolar world.
3. A Seat at the Table for Global Decisions
BRICS isn’t just about economics; it’s also about influence. As part of this group, Australia would have a stronger voice in shaping global policies on things like climate change, international trade rules, and sustainable development.
For example, BRICS countries have been vocal about reforming the way the IMF and World Bank operate. If Australia joined, we could be part of those conversations, ensuring that global governance works in our favour too.
4. Development Financing Through the New Development Bank
Infrastructure is expensive, and Australia has a lot of it to maintain and expand. The New Development Bank (NDB) could offer an alternative source of funding for large-scale projects.
Unlike traditional lenders, the NDB focuses on development without the political conditions that often come with loans from institutions like the IMF or World Bank. Access to this kind of financing could be a game-changer for Australia, especially as we look to invest in renewable energy, transportation, and other critical infrastructure.
5. Strengthened Resource and Energy Partnerships
BRICS nations have huge demands for natural resources, from coal and iron ore to rare earth minerals and energy exports. That aligns perfectly with Australia’s strengths.
6. Geographic and Economic Balance
Currently, BRICS represents South America, Asia, Africa, and Europe (through Russia). If Australia joined, Oceania would be added to the mix, giving the group more global representation.
For Australia, this would solidify our role as a bridge between the Western world and the Asia-Pacific region. It’s an opportunity to amplify our regional influence while contributing to a more balanced global economic system.
7. Access to Innovation and Collaboration
BRICS countries are making strides in technology and innovation. China is a leader in artificial intelligence, India has a booming tech industry, and Brazil is advancing in agricultural technology.
Australia could benefit from collaborations in these areas, sharing knowledge and leveraging the resources of other member nations. This could help us advance our own tech and R&D capabilities, boosting economic growth and competitiveness.
In short, joining BRICS offers Australia the potential to expand trade, reduce reliance on traditional allies, and play a bigger role on the global stage. But, as with any big decision, there’s another side to the story.
Arguments Against Australia Joining BRICS
While joining BRICS sounds appealing on the surface, there are several reasons why it might not be the best move for Australia. Let’s take a look at some of them.
1. Potential Strain on Western Alliances
Australia’s strongest allies are firmly rooted in the West—think the United States, the UK, and the European Union.
These relationships aren’t just about trade; they’re also about security, intelligence sharing (like the Five Eyes alliance), and shared democratic values.
Joining BRICS could send the wrong signal to these allies. It might make them question our commitment to existing partnerships, especially given the political tensions between some BRICS members and Western nations.
2. Misalignment of Economic Goals
BRICS countries are, for the most part, still developing economies. Their priorities—such as industrialisation, poverty reduction, and rapid infrastructure development—often differ from those of a developed nation like Australia.
There’s a risk that Australia’s economic goals may not align with BRICS initiatives. For instance, BRICS nations often push back against environmental regulations that Australia, as a proponent of climate action, might support. Navigating these differences could make collaboration challenging.
3. Political and Diplomatic Risks
Some BRICS members, like Russia and China, have been at the centre of global controversies. Russia’s invasion of Ukraine, for example, has drawn widespread condemnation and led to sanctions. Similarly, China’s human rights record and territorial disputes in the South China Sea have raised international concerns.
Aligning with BRICS could complicate Australia’s diplomatic position. It might be seen as condoning the actions of member nations, which could harm our reputation as a defender of democratic values and human rights.
4. Over-Reliance on Resource Exports
Australia’s economy is heavily reliant on natural resource exports, and joining BRICS might deepen this dependency. While it’s great to have more demand for our minerals and energy, over-reliance on resource trade could make our economy more vulnerable to fluctuations in global commodity markets.
This dependency might also slow down diversification into other sectors like advanced manufacturing, technology, or services—areas that are critical for long-term economic resilience.
5. Public and Political Opposition
Joining BRICS could face significant backlash at home. Australians might view it as aligning with nations that don’t share our democratic values, especially given the human rights controversies tied to some members.
Politically, such a move could become a flashpoint in domestic debates, with opposition parties potentially framing it as a betrayal of our Western heritage and alliances. The government would need to make a compelling case to win over sceptical voters.
6. Risk of Weakening Existing Trade Relationships
Australia has strong trade agreements with countries like the US, Japan, and South Korea. Joining BRICS might create the perception that we’re shifting our focus away from these partners.
This could risk existing trade deals or lead to retaliatory measures from nations feeling sidelined. For instance, the US might push for less favourable terms in future trade negotiations if they view our involvement in BRICS as a pivot away from the Western alliance.
7. Lack of Recourse for Disputes Within BRICS
Unlike Western-led organisations, which often have established mechanisms for resolving disputes, BRICS operates more informally. This could make it harder for Australia to navigate disagreements or protect its interests within the group.
If disputes arise, especially with major players like China or Russia, Australia might find itself at a disadvantage without robust conflict resolution frameworks.
In summary, while BRICS offers exciting opportunities, it also comes with risks that could strain alliances, complicate diplomacy, and undermine Australia’s economic diversification efforts.
Discussing the Elephant in the Room: Human Rights and Global Realpolitik
No discussion about Australia joining BRICS would be complete without addressing the uncomfortable truths. Some BRICS member nations, notably Russia and China, have been heavily criticised for human rights abuses, authoritarian governance, and geopolitical aggression. These issues are not just headlines—they reflect real concerns about aligning with countries that may not share Australia’s democratic values and principles.
But here’s the challenge: in a world that is increasingly multipolar, how much should moral considerations guide Australia’s foreign policy? Let’s discuss this.
Acknowledging Human Rights and War Atrocities
Russia’s invasion of Ukraine has resulted in devastating consequences, drawing condemnation and sanctions from much of the Western world. Similarly, China’s treatment of Uyghur Muslims, suppression of dissent in Hong Kong, and aggressive actions in the South China Sea have sparked widespread criticism.
These actions raise valid ethical concerns. Joining a bloc with such nations might be seen as tacit approval of their behaviour. It could also harm Australia’s reputation as a nation that champions human rights and the rule of law on the global stage.
Setting Aside Emotional Thinking
At the same time, emotions can complicate pragmatic decision-making. While it’s important to uphold our values, it’s also necessary to recognise that global alliances are often shaped by strategic interests rather than shared ideologies.
Consider this: many Western nations, including the US and EU countries, maintain strong economic ties with China despite their criticisms of its policies. These relationships are driven by the practical need to engage with a global superpower.
Realpolitik in a Changing World Order
Realpolitik—making decisions based on practical, rather than moral, considerations—is becoming increasingly important in today’s fragmented global order. The reality is that BRICS is growing in influence, and standing on the sidelines might limit Australia’s ability to shape outcomes.
By joining BRICS, Australia could gain a platform to promote reform and advocate for democratic values from within the bloc. This doesn’t mean agreeing with everything BRICS nations do—it means recognising that influence often requires engagement.
The Balancing Act
Ultimately, the decision to join BRICS would require careful navigation of ethical and strategic considerations. Could Australia strike a balance, working with BRICS on shared interests like trade and climate change while maintaining its stance on human rights? Or would membership come at too high a cost to its principles and reputation?
The Gold Standard, BRICS, and Financial Stability
To fully understand the implications of Australia joining BRICS, we need to look beyond trade and geopolitics and dive into the financial side of things. Specifically, let’s discuss the role of tangible currencies like gold, why the global economy moved away from the gold standard, and how this shift has led to some of the financial instability we face today.
What Was the Gold Standard?
The gold standard was a monetary system where a country’s currency was directly tied to its gold reserves. Essentially, the amount of money in circulation was backed by an equivalent value in gold, which provided stability and limited inflation.
This system was widely adopted in the 19th century and remained in effect until the mid-20th century. It worked well in many ways—it prevented countries from printing unlimited money and helped maintain trust in currencies.
How and Why It Changed
The system started to break down during the 20th century, particularly after World War II. The US dollar became the de facto global currency, pegged to gold, while other currencies were pegged to the dollar. This arrangement, known as the Bretton Woods system, gave the US enormous financial power.
In 1971, President Richard Nixon officially ended the gold standard, a move often called the “Nixon Shock.” Why? The US had spent heavily on the Vietnam War and domestic programs, leading to massive trade deficits and a dwindling gold reserve. By decoupling the dollar from gold, the US essentially gave itself the flexibility to print more money and avoid defaulting on its debts.
While this shift allowed for greater economic flexibility, it also opened the door to risks like inflation, currency devaluation, and speculative financial practices.
The Consequences of Fiat Currencies
Today, most global currencies are fiat currencies—money that isn’t backed by a physical commodity like gold but instead relies on trust in governments and central banks. While fiat systems allow for more flexibility in monetary policy, they’ve also contributed to some of the biggest financial crises in history.
Critics argue that fiat currencies and speculative markets concentrate wealth in the hands of a few while leaving regular consumers exposed to risks. Worse, there’s often no accountability for those responsible for these crises.
The Case for Tangible Currencies
This is where BRICS comes in. The bloc has expressed interest in creating a new currency backed by tangible assets like gold or other commodities. Such a system would aim to reduce reliance on the US dollar and provide more stability in global trade.
For Australia, joining BRICS could mean participating in the development of a more stable monetary system. A return to tangible currencies could protect economies from the kind of speculative shocks that have plagued fiat-based systems.
BRICS and Australia’s Financial Stability
The current global system, dominated by the US dollar, poses risks for countries like Australia. As US debt continues to climb, questions about the sustainability of dollar dominance grow louder. If the dollar were to face a significant crisis, countries heavily reliant on it could be left scrambling.
By aligning with BRICS, Australia could diversify its financial options and reduce its vulnerability to dollar-centric shocks. Additionally, participating in a new monetary system backed by tangible assets could position Australia as a forward-thinking player in global finance.
If Australia joined BRICS, it could play a significant role in shaping this new financial order. As a resource-rich country with substantial gold reserves, Australia could contribute to and benefit from a system based on tangible assets.
By aligning with BRICS, Australia might also reduce its vulnerability to economic shocks driven by fiat currency fluctuations and speculative markets. It’s an opportunity to hedge against the risks of a US-dominated financial system and explore a more sustainable path to prosperity.
What If Australia Joins or Stays Out of BRICS?
When considering Australia’s potential involvement with BRICS, it’s essential to explore the "what if" scenarios.
What might the future look like if we join the bloc, and what could happen if we decide to stay out?
What If Australia Joins BRICS?
1. Economic Opportunities and Influence
Joining BRICS would open doors to a vast market and new trade relationships. Australia could diversify its economic partnerships, reducing reliance on traditional Western markets while gaining access to the fast-growing economies within the bloc.
Participation in BRICS could also give Australia a voice in shaping global economic and financial policies. For example, Australia could advocate for transparency and equity in BRICS-led initiatives like the New Development Bank or discussions around a gold-backed currency.
2. Financial Stability in a Changing System
By aligning with BRICS, Australia might benefit from an alternative to the fiat-based financial system. If the bloc successfully launches a gold-backed currency, it could provide a hedge against the volatility of US dollar dominance and speculative markets.
3. Regional and Geopolitical Benefits
Australia’s inclusion could strengthen its role in the Asia-Pacific region, positioning the country as a bridge between Western powers and emerging economies. This could boost Australia’s diplomatic leverage in regional and global affairs.
4. Risks to Western Alliances
However, joining BRICS would come with risks. Western allies like the US and UK might perceive Australia’s involvement as a shift in loyalties, potentially straining longstanding security and trade relationships.
5. Ethical and Reputational Challenges
Australia would also face scrutiny for aligning with nations criticised for human rights abuses and geopolitical aggression. Balancing these ethical concerns with practical benefits would be a delicate task.
What If Australia Does Not Join BRICS?
1. Missed Opportunities in Emerging Markets
Staying out of BRICS could mean losing access to one of the largest and fastest-growing markets in the world. While Australia has strong trade ties with countries like China and India, being outside the bloc could limit its influence and opportunities for deeper collaboration.
2. Continued Vulnerability to Fiat-Based Shocks
Australia’s economy remains tied to the global financial system dominated by fiat currencies. Without alternatives like those being explored by BRICS, Australia could remain vulnerable to economic shocks similar to the 2008 financial crisis.
3. Preservation of Western Alliances
On the upside, staying out of BRICS would avoid potential fallout with Western allies. It would allow Australia to maintain strong defence and trade relationships with countries like the US, UK, and EU.
4. A More Stable Ethical Position
By not joining, Australia avoids the reputational risks of associating with controversial BRICS nations. This could preserve its standing as a champion of democratic values and human rights.
Weighing the Scenarios
The choice isn’t black and white. Joining BRICS could bring significant economic and geopolitical benefits, but it also comes with risks to alliances and principles. On the other hand, staying out maintains the status quo but leaves Australia potentially sidelined in a rapidly changing global order.
Ultimately, the decision would depend on what kind of future Australia envisions for itself: one where it diversifies its partnerships and influences a shifting system, or one where it strengthens its existing alliances and accepts the limitations of staying the course.
Conclusion
Australia’s potential decision to join BRICS is not a simple yes-or-no question. It’s a nuanced issue that requires balancing economic opportunities, ethical considerations, and geopolitical realities.
On the one hand, BRICS offers access to a massive market, the chance to diversify trade and alliances, and the opportunity to influence global financial systems. It aligns with Australia’s need to hedge against reliance on Western-dominated institutions and opens doors to collaborative innovation and resource security.
On the other hand, the move could strain relationships with longstanding Western allies, complicate Australia’s diplomatic stance, and raise ethical questions about aligning with nations criticised for human rights violations. Staying out of BRICS preserves these alliances and values but risks sidelining Australia as the world transitions toward a more multipolar order.
Ultimately, the choice comes down to priorities.
Should Australia take a pragmatic approach, recognising that influence often requires engagement—even with nations that don’t share all our values? Or should we hold firm to our traditional alliances and principles, focusing on strengthening what we already have?
The answer isn’t clear, and it likely lies somewhere in the middle. Whatever the way forward, we are at a critical moment for Australia to reassess its role in a rapidly changing world.
Questions for you to consider
- Is it better for Australia to engage with BRICS and attempt to influence it from within, or should we stay out to maintain our ethical and geopolitical standing?
- Can Australia balance its Western alliances while diversifying partnerships through BRICS, or is this a zero-sum game?
- How can Australia prepare for a world where BRICS grows in influence, regardless of whether we join?
Further Reading
Anthony Painter
