Jim O’Neill, the economist who introduced the term BRIC, stated that BRICS will struggle to realistically challenge the US dollar unless China and India overcome their divisions and improve trade cooperation. He criticized the group’s effectiveness, describing it more as a symbolic gathering than a robust economic alliance, and emphasized that meaningful progress relies on collaborative efforts among its principal members.
In a recent statement, Jim O’Neill, the former Goldman Sachs economist who coined the acronym BRIC, expressed skepticism regarding the future of the BRICS group as a legitimate challenge to the US dollar. He noted that as long as China and India continue to exhibit discord and fail to enhance cooperation in trade matters, the notion of BRICS rising to significant economic stature remains unrealistic. O’Neill remarked that the group’s annual gathering appears more symbolic rather than an impactful economic powerhouse compatible with global governance systems that include Western nations. O’Neill emphasized that despite the declaration from Russian President Vladimir Putin, who seeks to capitalize on the BRICS summit to counter Western isolation due to the ongoing Ukraine conflict, the foundational issues within BRICS, particularly the rivalry between China and India, persist unresolved. With the group only achieving minimal progress in terms of collective action over the last 15 years, O’Neill remarked that any proposals for a new BRICS currency or trade agreements are undermined by the necessity of strong collaboration between its leading nations. He further argued that the BRICS collective, which has expanded to include nations like South Africa, Egypt, and Saudi Arabia, currently represents a significant portion of global demographics and economic strength. However, O’Neill posited that unless member states, particularly China and India, demonstrate a willingness to seek mutual understanding and cooperation, the potential for BRICS to challenge the dollar or contribute meaningfully to global governance will remain constrained.
The BRICS grouping, which includes Brazil, Russia, India, China, and South Africa, was established to represent emerging economies and promote cooperation among these nations. Formally termed BRICS, the group has seen an expanded membership that includes countries like Egypt, Ethiopia, Iran, and the United Arab Emirates. Despite accounting for a notable share of the world’s population and economic output, internal divisions among key members, particularly China and India, hinder its ability to evolve into a formidable international economic entity capable of rivaling the US dollar. Mr. Jim O’Neill’s comments reflect a growing concern about the actual effectiveness and influence of BRICS within the broader global economic landscape, especially in light of geopolitical tensions and trade disputes among its major players.
In conclusion, Jim O’Neill’s remarks highlight the challenges facing BRICS in establishing itself as a viable alternative to established global financial systems dominated by the US dollar. The lack of cohesion among its leading members, particularly China and India, poses significant barriers to achieving substantive economic collaboration. Without genuine efforts towards cooperation and a focus on addressing shared global challenges, BRICS’ aspirations to challenge existing economic structures and contribute effectively to global governance are likely to remain unfulfilled.
Original Source: www.ndtv.com
