Jim O'Neill, former chief economist at Goldman Sachs, told Xinhua that the idea of de-globalization is more of a "political narrative" and that a complete economic separation between major economies remains unlikely.
LONDON, Oct. 28 (Xinhua) -- Despite recent political tensions and discussions of decoupling, a complete economic separation between major economies remains unlikely, said Jim O'Neill, former chief economist at Goldman Sachs.
"The idea of de-globalization is more of a political narrative, but it is not something that can be sustained without severe global repercussions," said O'Neill, who coined the term BRIC in 2001.
The term BRIC initially referred to the emerging market economies of Brazil, Russia, India and China. In 2010, South Africa joined the bloc, officially forming the BRICS.
In his interview with Xinhua, O'Neill pointed out that the United States and China share a deeply intertwined economic relationship, driven by their complementary savings and consumption patterns.
"I've been in international finance long enough to remember when U.S. politicians blamed Japan for similar issues. In time, there will likely be another country in the same position," O'Neill said.
O'Neill highlighted China's past success in navigating economic challenges, citing its response to the 1997-98 Asian financial crisis, its ability to attract foreign direct investment, rapid urbanization, and effective fiscal policies.
He noted that China's current focus on innovation in areas like 5G and electric vehicles will be essential for future growth but acknowledged that geopolitical tensions, particularly with the United States, present challenges, especially in technology and trade.
O'Neill also emphasized the need to revive global cooperation through platforms like the G20, urging nations to address common challenges such as economic inequality and climate change.
Major countries should "come together and find common ground, rather than engaging in divisive politics," O'Neill said.■