In an interview with Reuters, Jim O’Neill, the former Chief Economist at Goldman Sachs and the creator of the term “BRIC,” expressed skepticism about the idea of BRICS nations effectively challenging the U.S. dollar as long as China and India remain at odds and resist trade cooperation.
O’Neill pointed out that the notion of BRICS evolving into a meaningful global economic club is, in many ways, unrealistic, akin to the G7. “They view themselves as some kind of alternative global organization, which is quite concerning because it simply isn’t feasible,” he remarked.
He described the BRICS summit as “essentially a symbolic annual gathering,” where important emerging countries, particularly more vocal nations like Russia and China, come together to highlight the advantages of an alliance that excludes the U.S. and to stress the inadequacies of global governance.
While acknowledging that he will always be tagged as the “father of BRIC,” O’Neill noted that the achievements of the BRICS group over the past 15 years have been minimal. He emphasized that true global problem-solving is impossible without the involvement of the U.S. and Europe, just as issues cannot be resolved without the inclusion of China, India, Russia, and Brazil in the Western bloc.
Referring to the recent BRICS summit, O’Neill explained that Russia is pushing for the establishment of an alternative international payment platform free from Western sanctions. At 67, he recalled discussions about alternatives to the dollar that have persisted since he began his finance career, yet he noted that no nation with real potential to challenge the dollar has seriously pursued such alternatives. He added that any BRICS currency would be heavily dependent on China, with Russia and Brazil unlikely to play significant roles.
He questioned, “If BRICS wants to take economic matters seriously, why not sincerely pursue lowering tariffs on each other’s trade?” O’Neill stated, “I will only take BRICS seriously when I see real indications that the key players, China and India, are genuinely trying to reach consensus instead of continuing to confront each other.”
O’Neill identified the G20 as the cornerstone of global governance, particularly since the U.S. and China have tended towards isolation since 2015. In contrast, he saw the BRICS group as lacking clear objectives. He argued that it should address significant global issues, such as finding vaccines or treatments for infectious diseases, but warned that expanding membership could make achieving any goals even more challenging.
Back in 2001, when he was Chief Economist at Goldman Sachs, O’Neill introduced the concept of “BRIC” by combining the first letters of Brazil, Russia, India, and China, highlighting their immense growth potential and the need to reform global governance structures to include these nations.
Since then, formal summits have taken place among Russia, India, and China, eventually incorporating Brazil as well. The group has expanded to include South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates, with Saudi Arabia yet to officially join.
