Jim O'Neill's Critique: The Global Economic Impact of BRICS
Former Goldman Sachs economist Jim O'Neill, known for coining the term BRIC, has expressed doubts about the BRICS group's ability to challenge the U.S. dollar and its effectiveness as a global economic club. O'Neill emphasized that the lack of trade cooperation between China and India is a significant barrier to the group's potential to become a true economic power bloc.
Initially comprising Brazil, Russia, India, and China, and later expanding to include South Africa and several other countries, the BRICS group now represents 45% of the world population and 35% of the global economy by purchasing power parity. Despite this, O'Neill noted that more than half of the group's economic strength is attributed solely to China.
At the BRICS summit held on Wednesday, Russian President Vladimir Putin stated that over 30 countries have shown interest in joining the group. However, O'Neill suggested that expanding membership could further complicate the group's ability to achieve concrete goals.
O'Neill's comments came as Russia sought support from BRICS countries to develop an international payments platform independent of Western sanctions. Still, O'Neill remains unconvinced about the viability of a BRICS currency, noting that such a currency would largely depend on China, with Russia and Brazil playing minor roles.
The economist called for serious economic cooperation among BRICS countries, particularly between China and India, which he sees as critical for the group's credibility. He noted that these two countries, which held their first official talks in five years, have been in dispute, leading India to restrict Chinese investments following a border clash in 2020.
O'Neill also criticized the G20 for failing to evolve into a truly global governance mechanism, attributing this to inward-focused policies by both the U.S. and China. He urged BRICS to address major global issues such as combating infectious diseases and climate change, to set clear goals, and to make meaningful contributions to global matters.