Skepticism Surrounds BRICS Aspirations Amid Internal Divisions

Mr. Jim O’Neill, who coined the BRIC acronym, believes that the BRICS group’s potential to challenge the US dollar is unrealistic as long as China and India remain divided on trade. He characterized BRICS as primarily symbolic and noted its limited achievements in the past 15 years. O’Neill emphasized that effective cooperation among its members, particularly China and India, is crucial for the group’s credibility and influence in global economic discussions.

Mr. Jim O’Neill, the former Goldman Sachs chief economist who coined the acronym BRIC, has expressed skepticism regarding the BRICS group’s potential to challenge the dominance of the US dollar. According to O’Neill, as long as China and India continue to be divided on trade issues, any notion of BRICS becoming a legitimate contender in global economics remains unlikely. He referred to the idea as being akin to fairy tales, reinforcing the perception that the grouping is more symbolic than functional. The BRICS summit, convened by Russian President Vladimir Putin, aims to showcase Russia’s attempts to strengthen ties with emerging Asian nations amidst Western isolation due to the Ukraine conflict. O’Neill pointed out that while the group, which includes Brazil, Russia, India, China, and South Africa, has seen a growth in membership interest, it has achieved very little in the last fifteen years. O’Neill suggested that for BRICS to be viewed seriously, especially regarding trade, China and India must find common ground rather than functioning in opposition to one another. He noted the persistent dialogue about alternatives to the dollar since he began his financial career but stressed that no significant moves have come from countries capable of posing a serious challenge to it. Furthermore, he observed that any proposed BRICS currency would heavily depend on China’s economic strength, with other members like Russia and Brazil being less influential in this regard. He stated, “If they wanted to be really serious about economic matters, why don’t they genuinely pursue less tariff based trade between each other?” These comments come as India and China, despite their longstanding border disputes, have made pledges to enhance cooperation. In conclusion, while BRICS encompasses 45 percent of the global population and 35 percent of the economy based on purchasing power parity, O’Neill remains unconvinced about its effectiveness, urging the group to tackle significant global challenges rather than merely serving as an alternative to Western-led governance.

The BRICS group, which includes Brazil, Russia, India, China, and South Africa, emerged as a response to the growing economic influence of these nations in the 21st century. The term BRIC was first introduced by Jim O’Neill in 2001, highlighting the potential for these countries to reshape global economics and governance. However, the group’s internal conflicts, particularly between China and India, have hindered its ability to present a united front in international economic discussions. The BRICS countries collectively account for a substantial portion of the world’s population and economic output, yet their effectiveness in challenging existing global financial systems remains questionable.

Mr. Jim O’Neill’s critique of BRICS underscores the challenges the group faces in its quest for influence over the global economy. The lack of cooperation between major players like China and India, along with the group’s symbolic nature, casts doubt on its potential to challenge established financial powers. As BRICS seeks to expand its membership and relevance, it must address its internal divisions and focus on concrete initiatives that align with global issues to gain credibility.

Original Source: www.ndtv.com