When Brazil’s President Luiz Inacio Lula da Silva scored his surprise election victory on Sunday, winning an unprecedented fourth term in office, his supporters were euphoric.
The joy they felt over Lula’s victory has echoed across large parts of the Global South – and could restore some hope to the grouping that has sought to give emerging countries a greater stake on the world stage, the BRICS alliance.
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At a time when United States President Donald Trump is seeking to reassert US power and has cast BRICS as a threat to US interests, Lula’s victory in Brazil offers the alliance a measure of political reassurance, experts say.
A win by his rival, Flavio Bolsonaro, could have threatened Brazil’s commitment to the bloc, given his links to Trump and calls to reconsider the country’s role in BRICS.
Instead, Lula’s return gives the grouping one fewer reason to fear a retreat from within – as it continues to help forge a more multipolar future for a world dominated by the US.
As Esmat Zaidan, professor of public policy at Qatar’s Hamad Bin Khalifa University, told Al Jazeera, “The victory of Lula is important to BRICS’ political continuation in the current climate as it seeks to increase the bloc’s role and make it stronger in global governance.”
A spared fracture
It was clear to analysts that Lula’s win would safeguard the continuation of the BRICS alliance, while under Bolsonaro, its future may have floundered.
Lula himself was one of the architects of the bloc when it was founded nearly two decades ago, and has sought to advance its role on the global stage.
According to Zaidan, Bolsonaro’s desire to reconsider Brazil’s participation in BRICS and instead pursue closer alignment with Washington would have weakened the bloc’s political cohesion and potentially slowed cooperation on trade and financial reform.
Bolsonaro had reportedly also promised the US Trade Representative that Brazil’s Pix instant payment system would stay out of non-Western payment schemes, as the US seeks to safeguard global dominance of the dollar, said Imran Khalid, a geostrategic analyst and senior fellow at Foreign Policy in Focus.
“BRICS makes decisions by consensus, so one unwilling founding member can slow everything down from the inside. That was the real risk, more than Brazil walking out,” Khalid told Al Jazeera.
Still, Zaidan cautioned that continuity of the alliance does not amount to total unity within.
“The member countries of BRICS have distinctly different economic interests and geopolitical goals,” he said. “Therefore, while Lula’s victory makes it easier for the BRICS bloc to continue working towards a common agenda, his election did not eliminate these distinct differences.”
Guy Burton, a geopolitical and policy analyst, agreed that the bloc’s differences will remain unchanged with Brazil’s election result.
“BRICS matters because it represents a large share of the world’s population, economy and trade. But it has never really acted as a political unit. Its members are too different,” he said.
“The bloc now includes Iran and the UAE, which sit on opposite sides of the current war. That tells you how limited its cohesion is,” Burton added.
More multipolarity, but not a counterweight to Washington
The apparent relief in the Global South to Lula’s win reflects a broader concern among many emerging economies about their exposure to decisions made in Washington, “particularly regarding trade, tariffs and international economic relations,” said Zaidan.
“For these countries, the issue is not necessarily opposition to the US. It is about having greater room to make independent decisions and avoiding excessive dependence on any single global power,” he said.
Khalid pointed to China and Russia’s support for Lula, with Xi Jinping backing him against outside interference, and the Kremlin praising his work for the BRICS alliance.
“Most of these countries do not want a fight with the United States; they want the freedom to say no to Washington without being punished for it,” he explained.
“A strong Brazil inside BRICS helps protect that freedom.”
Lula has long advocated for a more multipolar international system, in which emerging economies have a stronger voice when it comes to shaping international rules and institutions, added Zaidan.
Burton said even countries and regions beyond the Global South are looking to lessen their reliance on Washington, including Europe, which is building its own security against Russia and in support of Ukraine.
“So states, whether in the Western camp or not, have accepted that they must pursue their own interests. That means working with whoever they can. We are moving into a genuinely multipolar world,” he said.
Still, BRICS’ diversity and its member states’ varied interests have meant it has never been a coherent counterweight to the West, experts said.
Many in the alliance maintain strong economic and security relationships with the US, said Zaidan.
“I would see Lula’s victory as strengthening the case for strategic autonomy rather than confrontation with Washington,” said the professor.
“BRICS is potentially more effective when it expands the choices available to its members, rather than defining itself simply through opposition to the United States.”
Burton agreed, pointing to Brazil’s changing ties with Trump over the years.
“Russia and China are the obvious US rivals. But India under Modi long had a close relationship with Washington, and with Trump in particular, even if that has weakened recently,” he said.
“Brazil, too, was close to Trump under Jair Bolsonaro, Flavio Bolsonaro’s father, when he was in office.”
Challenging dollar dependence
Among the BRICS’ many ambitions is to promote trade in local currencies rather than the US dollar – and Lula’s victory could provide the political foundation to build on these efforts, said Zaidan, given that Brazil is one of the largest trading economies in the bloc.
Khalid said that after the alliance scrapped the idea of a common BRICS currency at its most recent summit in New Delhi in September, its ambition for trade in local currencies has become far more viable.
“If the [BRICS’ New Development Bank] moves towards its goal of 30 percent of lending in member currencies, and Brazil and China settle more trade in reais and yuan as they agreed in 2023, reliance on the dollar falls step by step, without an open confrontation,” he explained.
But Zaidan said that political will alone is not enough.
“Countries also need reliable payment infrastructure, sufficient currency liquidity, appropriate financial regulations, and businesses willing to use these arrangements,” he said.
For now the dollar reigns supreme in foreign exchange transactions, and there may be no tipping point for another decade or so, Burton said.
Ultimately, though, Lula’s victory could help BRICS move from political discussions towards more practical financial cooperation, while reducing dollar dependence will be “gradual, uneven and driven as much by economic feasibility as by geopolitical ambition”, said Zaidan.
How Washington reacts to this is another variable; Trump’s government sits at the contradiction of wanting to remain the world’s superpower, while also retreating to a more protectionist America-first role, said Burton.
“Developments such as Lula’s re-election will only sharpen the pressures already building in the Global North,” said the expert.
