BRICS: Aliansi Dagang yang Menyaingi Amerika dan Eropa

Summary

BRICS, an economic alliance of Brazil, Russia, India, China, and South Africa, is rapidly growing and gaining influence in global trade. With combined GDP accounting for a large portion of the world economy, BRICS aims to challenge the dominance of the U.S. dollar by potentially launching a shared currency. This move could reshape global economic dynamics, though challenges exist due to economic disparities among members, concerns over sovereignty, and the difficulty of backing a new currency with precious metals. Despite these hurdles, the alliance seeks to strengthen ties and reduce dependency on Western powers.

Takeaways

• 😀 The BRICS alliance consists of five major emerging economies: Brazil, Russia, India, China, and South Africa, and has significant potential to reshape global trade relations.
• 😀 BRICS countries make up 42% of the world's population, with a combined GDP that accounts for 31.5% of the global economy, surpassing the G7's combined GDP.
• 😀 By 2030, BRICS's GDP is expected to reach 50% of global GDP, and its trade network covers 18% of global trade and 25% of foreign investments.
• 😀 Several developing countries, including Algeria, Argentina, Iran, Saudi Arabia, and Indonesia, are being encouraged to join the BRICS alliance.
• 😀 Russia is reportedly courting Indonesia to join BRICS, evidenced by an invitation to the Indonesian Ministry of Foreign Affairs in 2022 and relaxed visa policies.
• 😀 The BRICS alliance is considering the creation of a new currency, which could rival the dominance of the US dollar in international trade.
• 😀 A new BRICS currency could serve as an international currency for trade between member countries, potentially challenging the USD's global dominance.
• 😀 The BRICS currency initiative coincides with the weakening of the US dollar, which is facing pressures due to economic instability in the US, including bank failures and inflation.
• 😀 Critics of the BRICS currency argue that it faces major challenges, such as economic disparities among member countries, which could hinder policy alignment.
• 😀 The creation of a shared currency could limit the economic independence of BRICS nations, potentially leading to conflicts over monetary policies, as seen in the Eurozone.
• 😀 There are concerns that backing the BRICS currency with precious metals (like gold) could limit the flexibility of monetary policies, especially in times of economic crises or rapid growth.

Q & A

What is the BRICS alliance and which countries are part of it?

BRICS is an economic alliance consisting of five countries: Brazil, Russia, India, China, and South Africa. These countries are known for their rapid economic growth and together they represent a significant portion of global trade and investment.

How much of the global population do the BRICS countries represent?

The combined population of the BRICS countries reaches 3.24 billion people, which accounts for about 42% of the world's total population.

What is the economic significance of the BRICS countries?

The BRICS countries collectively contribute to 31.5% of the global GDP, and this figure is expected to rise to 50% by 2030. They also account for 18% of global trade and 25% of foreign investment worldwide.

Why is Indonesia being considered for joining the BRICS alliance?

Indonesia has been in discussions with Russia about joining the BRICS alliance, partly due to growing trade relations, including arms supplies, and Russia's diplomatic efforts, such as offering easier visa policies for Indonesians.

What new development within BRICS is gaining attention?

BRICS is working on developing a new common currency, which is expected to be introduced at a meeting in South Africa in August 2023. This currency could potentially challenge the dominance of the US dollar in international trade.

What challenges are there in forming a BRICS common currency?

Forming a common currency for BRICS poses several challenges, such as the economic disparities among member countries, the potential loss of monetary sovereignty for each nation, and logistical issues related to backing the currency with precious metals.

What are the economic differences between BRICS member countries?

BRICS countries have significant economic differences. For example, China's economy has grown by 138% from 2008 to 2021, while Brazil and South Africa have had much slower growth. These disparities make it difficult to align economic policies, especially concerning inflation and interest rates.

How could the new BRICS currency impact the global use of the US dollar?

If successful, the BRICS currency could reduce the global reliance on the US dollar, which currently dominates international trade. Many countries are looking for alternatives due to the risks associated with relying on a single currency, especially after economic challenges in the US.

What is the potential impact of the BRICS currency on the US dollar?

The BRICS currency could potentially challenge the US dollar's position as the dominant global trade currency, especially as the US dollar's value is weakened by ongoing economic pressures and crises in the US banking sector.

What are the risks of backing the BRICS currency with precious metals?

Backing the BRICS currency with precious metals could limit the flexibility of monetary policy, especially during economic crises or rapid economic growth, as the supply of precious metals would restrict the ability to increase the money supply quickly.