/file/publisher-c1a3f893382d2b2f8a9aa22a654d9c97/2024/05/2b1d5a58c22bf6dc4cc25b4bd10be37a.jpg)
With US tariffs looming, economist urges Global South to unite
Khazanah Research Institute research adviser Jomo Kwame Sundaram said the southern nations must overcome their differences to become more effective and better equipped to navigate global challenges collectively...
The Global South should unite, even in small ways, to pursue shared goals, particularly after US president-elect Donald Trump threatened tariffs specifically for Brics nations.
Khazanah Research Institute research adviser Jomo Kwame Sundaram said the southern nations must overcome their differences to become more effective and better equipped to navigate global challenges collectively.
Trump had demanded that the bloc commits to using the greenback as its reserve currency, or he would impose a 100 percent tariff on any Brics country that attempts to move away from the US dollar in international trade.
Trump also pressured them to use the greenback as their reserve currency and refrain from creating a new Brics currency or backing alternatives.
Highlighting a critical point, Jomo stated that the region has consistently subsidised the US by adopting the US dollar as the common currency.
“So, what we find is that the de-dollarisation proposal is not as special (as) China is not a player,” Jomo said in his speech at the Common Action Forum (CAF) 2024 titled "Challenges of a Post-Growth Financial Architecture".
“I think it is important to recognise that recently China’s central bank, the People’s Bank of China, has decided to issue bonds, dollar-to-dollar bonds, which are going to be financed internally,” he noted.
Jomo said that Brazil, South Africa, and occasionally Russia are the primary supporters of the proposal but cited that progress has been slowed.
Therefore, he stated that, without the West's readiness, temporarily influenced by the pandemic, there is a genuine opportunity to explore and expand possibilities within the system provided there is a collective goal.
“However, this is not going to come about unless the south gets together at least minimally.”
Jomo also called on the southern countries to strengthen financial cooperation and develop alternative financial sources to reduce dependency on a Western-led system.
- Bernama
/file/publisher-c1a3f893382d2b2f8a9aa22a654d9c97/2024/10/32e703c07b0af8ae0db84ed51268b1f8.jpg)
/file/publisher-c1a3f893382d2b2f8a9aa22a654d9c97/2024/11/43b243337f2ab246697571a82f35d82d.jpg)
/file/publisher-c1a3f893382d2b2f8a9aa22a654d9c97/2023/12/25be2f5bbee913f6ec942d8ed6afcf09.jpg)
/file/publisher-c1a3f893382d2b2f8a9aa22a654d9c97/2022/06/b519f1106993eb527c7928e6a1cd296e.jpg)
Are you sure you want to delete this comment?
This action cannot be undone.