BRICS leaders urge global financial system reform, but does it avoid the Thucydides Trap?
With the push towards global financial reform and de-dollarisation, the question is: can China, BRICS and the Delhi Declaration avert an energy-driven Thucydides Trap?
On 12 September 2026, the 18th BRICS Summit convened in Delhi, with India serving as the current BRICS presidency. The summit focused on the theme "Building for Resilience, Innovation, Cooperation and Sustainability." The resulting Delhi Declaration, after extensive negotiations, addressed geopolitical conflicts and economic governance reforms.
While the declaration avoided naming specific conflicts, it emphasized the need to avert a "Thucydides Trap," a reference to the ancient Greek historian Thucydides' account of the Peloponnesian War. The declaration stressed the importance of reforming the global financial system and making international financial institutions more representative, transparent, and accountable.
Paragraph 17 of the declaration called for reforms in the Bretton Woods Institutions, specifically the International Monetary Fund (IMF) and World Bank, to better reflect the evolving global economy. This included a review of the World Bank's shareholder structure, implementation of the IMF's quota system, and restoration of the World Trade Organization, which had experienced disruptions due to tariffs.
The declaration also encouraged the BRICS Payment Task Force to continue discussions on facilitating cross-border payments using local currencies, aiming for faster, lower-cost, and safer transactions. The specific recommendations in the declaration reflect the concerns of emerging markets and developing economies, aiming to rectify historical imbalances in global economic governance.
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