What will happen to global economy if BRICS announce launch of new currency - Bricso?
© Фото: Анна Форостенко / «Голос России»
Next is a hypothetical unfolding of events. A dynamic system, as the move described above, would engender the possibility of a myriad of different developments. Here is a possible scenario.
On the other hand, the BRICS and its two associate members, Iran and Venezuela, recovered rapidly from the first shock, as their new strong currency gave them a boost vis-à-vis the other half of the world economy which was still teetering on the dollar with some backing of the Euro.
The BRICS market grew almost exponentially, not only in production and consumption, but also in research, especially for alternative, renewable sources of energy – a policy promised by the BRICS Presidents at their Press Conference in Paris on New Year’s Eve 2014. Freedom from fossil fuels meant also political autonomy and a path towards real democracy and well-being. Food self-sufficiency for the BRICS and their allies will be achieved from day one. The West won’t be able to jack up the prices for food commodities (markets crashed, lack of speculative capital). This will reduce the price of food worldwide. At the same time, the people in the West won’t be able to consume as much as they did before 2014, making the food available to the whole non-western world at bargain prices.
Reality Check comment: This scenario creates the perfect environment for a “BRICS Renaissance” or “reverse brain-drain”. For decades, the West has bought off the smartest and the best educated from around the world. In this scenario, the process has been reversed. Within the first year scientists began flocking to the banners of BRICS research institutions.