It wasn’t so much that US president-elect Donald Trump was factually wrong about the Brics nations coming up with an alternative, reserve currency to the dollar as it was the boorishness with which he spewed the ignorance.
“The idea that the Brics countries are trying to move away from the dollar while we stand and watch is over,” he said on Truth Social.
“We require a commitment from these countries that they will neither create a new Brics currency, nor back any other currency to replace the mighty US dollar, or they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful US economy. They can go find another sucker…”
The indecency has come to be expected. But how do you get a commitment from these countries that they will not do what they have not said they will do?
Trump assumes there is a discussion on a new reserve currency for Brics countries. This is incorrect. No work has been done to this effect. Even if it were to be started, it might not be realised during Trump’s four-year reign. He further conflates a reserve currency with a common currency, which has been spoken about with a view to doing trade within Brics without a reliance on the dollar.
Two things here. The common currency is unlikely to succeed given the geographic spread of the countries and is also unlikely to be finalised in the next four years. A common currency is something the Sadc countries should explore. No hope for success in Brics, however.
To err though is normal. That’s why continuous improvement is key. But it’s the next-level, meta-layer of ignorance to be ignorant of your own ignorance which, in psychology, is termed the Dunning-Kruger effect. This is a condition where one makes a mistake out of ignorance and does not even know it and then, with bravado, continues to behave as though one is the best thing since sliced bread.
This overestimation of one’s knowledge and competencies in ways that cause more harm is the storm facing us today.
To bring it home, there’s a mayor in Madibeng, Douglas Maimane, who congratulates himself and his municipality for receiving a qualified audit. Yes, you did not misread. Not unqualified, not a clean audit — but damn qualified. There’s ignorance but there’s also the next level, Dunning-Kruger effect ignorance that leaves us speechless.
Trump has told Americans his planned tariffs are taxes that are “not going to be a cost to you, it’s a cost to another country”. Yet economists agree he’s either ignorant or is deliberately misleading US citizens about who bears the costs of the tariffs. Maybe he is a senile old man trying to come across as the greatest defender of the so-called mighty dollar, but the ignorance beggars belief. Leaders must first and foremost be readers.
Maybe he is a senile old man trying to come across as the greatest defender of the so-called mighty dollar, but the ignorance beggars belief
The layered ignorance aside, Trump’s bravado causes consternation across the world because of the arbitrariness of multilateral systems. There’s no fair process of deciding who has veto power and which country, based on an orderly system, is to be next to join. It’s just a big boys’ club. The rise of emerging economies is apparently unsettling.
We must celebrate South Africa being president of the G20 for the next year. Our celebrations though must swiftly make way for pragmatic programmes informed by what our leadership will tangibly help change.
There’s much being made of the need for transformation of the UN and its organs, especially the Security Council. If our G20 is going to help in this regard, the question is what will success look like this time next year? It’s obviously not enough to just call for change. In January 1997, six months after taking over as secretary-general of the UN, Kofi Annan called for a restructuring of the UN, including the Security Council. That change is still pending. It is unclear to me if there’s anything other than calling for change and lobbying that could be done. That’s how arbitrary the system is. We may call for change until we are red in the face. But then what?
The reason we worry about Trump, even if he is ignorant, is because we know global trade and imposition of tariffs are beset by protectionism by rich countries or, as Oxfam puts it, “rigged in favour of the rich”. Even if he struggles with reading for meaning, Trump could still unleash havoc. Power, in the hands of ignorant leaders, is even more potent.
In the end, we have no way of future-proofing the world from electing dangerously ignorant, uncouth or parochial boors into office. What we must fix are global systems, which must stand as bulwarks against Trump and his ilk.
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