BRICS Ascendant: Capitalizing on the Shift from Liberal Globalization to Multipolar Markets

The era of liberal globalization, once fueled by Western-led institutions and dollar dominance, is giving way to a new economic order. The BRICS bloc—now expanded to 11 countries and 44 partner nations—has emerged as the vanguard of this shift, leveraging its economic dynamism, resource wealth, and geopolitical realignments to reshape global trade and investment. For investors, this is not a distant future; it is a present reality. Capital reallocation to BRICS+ partners across infrastructure, AI, and nuclear energy sectors promises outsized returns as the world transitions to a multipolar economy.

Infrastructure: The Bedrock of BRICS Growth

BRICS nations are investing heavily in infrastructure to modernize economies and diversify trade routes. The New Development Bank (NDB), established in 2014, has approved over $39 billion for 120 projects, focusing on smart cities, renewable energy grids, and transportation systems. China's Belt and Road Initiative (BRI) has already built ports, railways, and pipelines across Africa and Southeast Asia, while Brazil's São Luís port expansion and India's Dhamra deep-sea port are reducing reliance on Western-dominated maritime routes.

Investment Opportunity: Infrastructure funds tied to BRICS projects offer steady returns. The NDB Green Infrastructure Fund (targeting 8% annualized returns) or equity stakes in firms like China Railway Construction Corp (601186.SH), which manages BRI projects, provide exposure to this trend.

Technology: AI and Nuclear Energy as Growth Catalysts

The BRICS bloc is positioning itself as a tech superpower, driven by AI and green energy innovation. China leads with $150 billion in AI R&D funding, producing 47% of global AI patents. Its Tencent Miying platform (used in healthcare diagnostics) and Baidu's Apollo autonomous driving systems exemplify this progress. India's $1.2 billion IndiaAI mission is training 10 million workers in AI ethics and coding, while Brazil's Embrapa uses AI for precision agriculture.

In nuclear energy, Russia's Rosatom is building reactors in Egypt and Turkey, while China's CNNC is expanding uranium mining in Niger. These projects align with BRICS' $100 billion clean tech fund, targeting decarbonization without compromising energy security.

Investment Opportunity: Tech stocks in AI and nuclear energy sectors are poised for growth. Consider Baidu (BIDU) for AI leadership or Toshiba Energy Systems (6502.T), which collaborates with Rosatom on nuclear projects.

Trade Diversification: Beyond the Dollar

BRICS+ is reducing reliance on the U.S. dollar through local currency swaps and the mBridge digital currency platform, which facilitates cross-border payments in yuan, real, and ruble. Intra-BRICS trade, now exceeding $1 trillion annually, is bolstered by new supply chains. For instance, Brazil's BYD EV plant (producing 150,000 electric vehicles annually) and India's $12 billion Iran-Pakistan gas pipeline highlight the bloc's resource-driven trade resilience.

Investment Opportunity: Commodities linked to BRICS energy and tech sectors—such as lithium (for EVs), uranium, and rare earth minerals—are undervalued. ETFs like the Global X Lithium & Battery Tech ETF (LIT) or direct exposure to Brazil's Vale (VALE) (iron ore and nickel) offer leverage to this shift.

Risks and the Path Forward

Geopolitical tensions—such as India-China border disputes or U.S. sanctions on Russia—pose risks. However, BRICS' $5 billion Digital Sovereignty Fund and $271 billion FDI inflows signal structural momentum. Investors should prioritize sector-specific ETFs (e.g., MSCI BRICS ETF (BICS)) and partnerships with state-backed entities to mitigate volatility.

Conclusion

The decline of liberal globalization is not a crisis but a rebalancing. BRICS+ nations are no longer merely “emerging” markets; they are the architects of a new economic paradigm. By allocating capital to infrastructure, AI, and energy projects within the bloc, investors can profit from this seismic shift. The question is no longer whether to engage with BRICS—it's how to do so decisively before others catch up.