Discuss the emergence of SCO and BRICS as a challenge to American politico-economic dominance in world politics. What measures can be taken by the US to counter them?

Introduction

Since the Cold War, the United States has dominated world politics through its military power, the dollar and Western-led institutions such as the IMF, World Bank and G7. The rise of the Shanghai Cooperation Organisation (SCO) and BRICS reflects a shift towards a multipolar order in which emerging powers seek a greater voice.

The SCO

The SCO grew out of the "Shanghai Five" (1996) and was founded in 2001 by China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan. India and Pakistan became full members in 2017, Iran in 2023 and Belarus in 2024. Originally focused on border security and the "three evils" of terrorism, separatism and extremism, it has expanded into economic and connectivity cooperation. Its members include much of Eurasia's population.

BRICS

The term "BRIC" was coined by Goldman Sachs economist Jim O'Neill in 2001. Brazil, Russia, India and China held their first summit in 2009, and South Africa joined in 2010. In 2024 the group expanded to include Egypt, Ethiopia, Iran and the UAE, and Indonesia joined in 2025, with a wider circle of partner countries. BRICS created the New Development Bank and the Contingent Reserve Arrangement (agreed in 2014).

How they challenge US dominance

Economic weight: expanded BRICS represents a large share of world population and, measured by purchasing power, a share of global GDP comparable to or greater than the G7. Alternative institutions offer development finance and crisis support outside Western conditions. De-dollarisation: members increasingly trade in national currencies, and sanctions on Russia accelerated interest in alternatives to the dollar-based payment system. Security cooperation through the SCO's counter-terrorism structure and joint exercises. Political voice: both groups call for reform of the UN, IMF and World Bank and present themselves as representatives of the Global South.

Limitations

Both groups are diverse and divided: India and China are rivals; India and Pakistan sit together in the SCO; members have very different political systems. The dollar remains dominant in reserves and trade finance, and the NDB is small compared with the World Bank. Many members, especially India, also maintain close ties with the US. They are better described as platforms for hedging than as anti-American alliances.

Measures the US can take

Rather than confrontation, the US can: (i) reform global institutions to give emerging economies a greater voice and quotas; (ii) offer competitive infrastructure and development finance (for example through the Partnership for Global Infrastructure and Investment and the US International Development Finance Corporation); (iii) deepen trade and technology partnerships with swing states such as India, Brazil, Indonesia and the Gulf states; (iv) maintain the attractiveness of the dollar through sound economic policy and cautious use of sanctions; (v) address Global South priorities — climate finance, debt relief and vaccines; and (vi) strengthen alliances and minilateral groupings such as the Quad and G7 partnerships.

Implications for Pakistan

Pakistan is an SCO member and applied for BRICS membership in 2023. These forums offer opportunities for connectivity, trade and diplomacy with China, Russia, Central Asia and the Gulf, but Pakistan must balance them with its economic dependence on Western markets and institutions.

Conclusion

The SCO and BRICS represent the desire of emerging powers for a more multipolar and representative world order. They challenge US dominance more in voice and alternatives than in direct power. The most effective American response is not containment but reform, partnership and offering better options to the Global South.