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Why Cooperation Between India and China Could Reshape BRICS
Jim O’Neill created the name BRIC for Brazil, Russia, India and China in 2001.
He says India and China have grown even faster than he expected.
China and India now make up most of the group’s economic strength.
O’Neill thinks BRICS often makes important-sounding statements without taking enough practical action.
He believes its members could create a payment system to make trade between them cheaper.
This system would work alongside the dollar rather than completely replace it.
He says India and China should reduce trade barriers and cooperate on health, energy and climate problems.
He also warns that BRICS includes countries with disagreements, which can make joint decisions difficult.
In his view, closer India-China cooperation could make BRICS more influential around the world.
Jim O’Neill says India and China have exceeded his original growth projections, while Russia and Brazil underperformed.
He argues BRICS is economically dominated by China and India but has produced too much symbolism and too little collective action.
O’Neill says BRICS could create a joint payments mechanism to make cross-border trade cheaper, without replacing the dollar.
He identifies India-China trade, payment cooperation, disease management, energy and climate change as potential areas for collaboration.
O’Neill says BRICS expansion appears incoherent and that meaningful influence depends on concrete cooperation with both the West and G7.
- Who
- Economist Jim O’Neill, along with the BRICS member countries, particularly India and China.
- What
- O’Neill discussed BRICS’ economic future, de-dollarisation, a possible joint payments mechanism and closer India-China cooperation.
- Where
- The interview was published by Firstpost, and the summit is being hosted by India.
- When
- The discussion took place ahead of the BRICS summit hosted by India; the articles do not provide an exact date.
- Why
- O’Neill believes India-China cooperation and practical BRICS initiatives could increase the group’s global economic influence.
Arguments for BRICS’ growing influence
Concerns about BRICS’ effectiveness
Potential economic alternative
Arguments for BRICS’ growing influence
O’Neill says BRICS countries could use technology to establish cheaper cross-border payments and reduce dependence on the dollar.
Concerns about BRICS’ effectiveness
He says the system would not replace the dollar and would only work if all members had an agreed role rather than allowing Chinese domination.
India-China cooperation
Arguments for BRICS’ growing influence
Reducing trade barriers and cooperating on payments, health, energy and climate change could be transformational for BRICS and the wider world.
Concerns about BRICS’ effectiveness
O’Neill says BRICS has not yet shown enough collective action, and India-China cooperation remains necessary rather than guaranteed.
BRICS expansion
Arguments for BRICS’ growing influence
A larger BRICS could better represent the Global South and strengthen its bargaining position in global institutions.
Concerns about BRICS’ effectiveness
O’Neill calls the expansion potentially chaotic because members such as Iran and the United Arab Emirates, and Egypt and Ethiopia, have strained relationships.
Key facts
- BRICS origins
- Jim O’Neill coined the term “BRIC” in 2001.
- Economic performance
- O’Neill says India and China exceeded his original growth projections, while Russia and Brazil underperformed.
- China’s economic weight
- He says China is twice the size of all the other BRICS members put together.
- Possible payments system
- O’Neill considers a joint BRICS payments mechanism possible because of technological and digital-payments growth.
- Role of the dollar
- He describes the proposed mechanism as a complement to, rather than a replacement for, the dollar.
- Priority cooperation
- He highlights India-China trade, payments, infectious diseases, energy requirements and climate change.
- India’s outlook
- O’Neill says India could become larger than Japan and Germany and establish itself as the world’s third-largest economy within five years.
Quotes
Lord Jim O’Neill
Economist who coined the term “BRIC” in 2001
“I think greater cooperation between key BRICS members like China and India is absolutely critical for the West itself to start taking them more seriously.”
firstpost.com
“it cannot be a Chinese-dominated thing. It has to be done on some kind of agreed role involving all the countries.”
firstpost.com
Sources
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