Jim O’Neill, known as the “bricks countries’ man” who coined the acronym BRIC, expressed that the achievements of the BRICS nations are minimal as long as China and India remain divided and refuse to cooperate in trade. Therefore, the idea of the BRICS nations challenging the dominance of the US dollar is nothing but a fantasy, according to O’Neill.
In a report by Reuters on Wednesday (October 23), the former Chief Economist of Goldman Sachs stated that global issues require the cooperation of the US, Europe, China, and India, highlighting that collaboration between China and India is crucial for the success of the BRICS nations.
In 2001, O’Neill introduced the term “BRIC” in a research paper, acknowledging that he will forever be associated with the concept. He emphasized the immense growth potential of Brazil, Russia, India, and China and the necessity of involving them in global reform and governance.
However, he expressed skepticism, stating that the notion of the BRICS becoming a true global economic club is as far-fetched as the Group of Seven (G7).
He opined that the achievements of the BRICS nations as a group over the past 15 years have been minimal. O’Neill asserted that without the US and Europe, true solutions to global issues are not achievable. Similarly, without China, India, Russia, and Brazil, the West cannot address global challenges effectively.
The BRICS group evolved from meetings between Russia, India, and China, later joined by Brazil, followed by South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates. Saudi Arabia has not yet formally joined the group.
In terms of purchasing power, the group currently represents 45% of the global population and 35% of the economy, with China accounting for over half of its economic output.
During the opening speech of the BRICS summit on Wednesday, Putin mentioned that over 30 countries have expressed interest in joining the group, emphasizing the importance of maintaining balance during any expansion process.
O’Neill pointed out that including more members in the BRICS group would make achieving consensus more challenging.
Russia is seeking to persuade the BRICS countries to establish an international payment alternative platform unaffected by Western sanctions.
O’Neill noted that discussions on alternatives to the US dollar have been ongoing since he began his financial career, but no country with the potential to challenge the dollar has taken substantial actions.
He questioned, “If they are serious about addressing economic issues, why not truly pursue reducing trade tariffs with each other?”
“It is only when I see real signs of the two most significant countries – China and India – genuinely striving to reach agreements on certain matters instead of constantly trying to oppose one another, that I will take the BRICS group seriously,” added O’Neill.
Since the border conflict erupted between China and India in 2020, India has been attempting to curb Chinese investments in the country. On Wednesday, during their first formal meeting in five years, China and India committed to enhancing cooperation.