The gradual collapse of dollar hegemony paves the way for a just international order

The dollar-centric global financial system, established by the US in the aftermath of World War II through the Bretton Woods Agreement, is steadily unraveling. This decline is an objective reality. Both the creators of this system and the developing countries, which have suffered its detrimental global effects, are becoming increasingly aware of the waning dominance of dollar hegemony. But what are the implications of the de-dollarization trend in the international sphere, and what will be the outcomes of the strategies adopted by both imperialist powerhouses and developing nations in response to this shift? This issue addresses these questions.

There is a clear parallel between the rise of multipolarity and the de-dollarization process. The world is transitioning towards multipolarity, both as a driver and a result of the diminishing dollar dominance. The efforts of Russia and China to establish alternative forms of financial cooperation, despite facing opposition from the US-led Atlantic alliance, are gaining substantial ground. More significantly, these initiatives are becoming emblematic of a broader movement within the developing world.

The weakening of dollar hegemony is offering the global community, long constrained by imperialist financial controls, a much-needed reprieve. This shift is marked by increased trade in national currencies among developing countries, the formulation of collaborative policies by central banks, the emergence of alternative payment systems to challenge the US-dominated SWIFT, and proactive measures within the BRICS+6 framework to hasten the dissolution of the dollar empire. Furthermore, institutions like the Asian Infrastructure Investment Bank and the New Development Bank are emerging as viable financial alternatives for the developing world, in contrast to the IMF and World Bank, which have traditionally perpetuated dollar hegemony. Additionally, the Belt and Road Initiative, underpinned by mutually beneficial funding, heralds a new era of multilateral international cooperation. Consequently, we are witnessing the formation of financial cooperation mechanisms that align with the vital needs of developing states, replacing the Atlantic-centric system that often functioned as a tool of international leverage and extortion. Ultimately, the decline of dollar hegemony is setting the stage for a more just international system.

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BRIQ Chairman Adnan Akfırat and Editorial Board Coordinator Efe Can Gürcan participated in two distinct international forums held in China this September. During the 16th Forum of the World Association for Political Economy (WAPE), which took place on Pingtan Island from September 25-27, 2023, Akfırat was elected Vice President of WAPE, while Gürcan was elected as a WAPE Council member. Additionally, Gürcan received the WAPE’s “2023 Distinguished Achievement Award in Political Economy.” The forum’s theme, “China’s Modernization and the Outlook of World Modernization,” facilitated discussions on China’s unique modernization approach, distinct from Western models, and explored various pathways for national and global modernization.

Akfırat and Gürcan also presented at the “4th International Academic Forum on Human Civilization and Cultural Development” held at the Northwest Polytechnic University (NPU), BRIQ’s publishing partner, in Xi’an on September 28–29, 2023. This significant academic event, commemorating the 85th anniversary of NPU, featured lively discussions with nearly 200 participants, including experts, academics, and students from the USA, UK, Russia, Greece, Canada, Mexico, Turkey, and several other countries.

For detailed information about both events, visit BRIQ Online Working Papers at https://arastirma. istinye.edu.tr/merkezler/kuycam/yayinlar under the title “Conference Reports”.