BRIC pioneer Jim O’Neill warns UK must break dependence on US and diversify trade

Jim O’Neill, the economist who famously coined the term “BRIC” and now serves as an adviser to prime-minister-in-waiting Andy Burnham, has criticized the United Kingdom’s long-standing over-reliance on the United States.

O’Neill, who served as a Treasury minister in the Conservative government between 2015 and 2016, said London operates under “a philosophy of life that teaches you must always side with the US, no matter what.”

The former Goldman Sachs chief economist is “informally advising” Burnham, who is expected to become prime minister later this month. However, O’Neill told POLITICO that he has not been offered any formal role.

Twenty-five years ago, as a Goldman Sachs economist, O’Neill created the “BRIC” acronym to represent the fast-growing economies of Brazil, Russia, India, and China. He argued that the UK must now diversify its trade network after dealing with an “unstable” Donald Trump administration for two years:

“The first 18 months of Trump’s second term are finally giving them a bit of a shake-up. They are thinking, ‘Actually, we can’t rely on these guys like we used to.’ But they assume this is just a temporary phase, that the US will soon return to a more sensible stance, and that everything will go back to normal. This is a kind of wake-up call.”

The former minister, who currently sits as an independent crossbench peer in the House of Lords, suggested that Britain must remain open to expanding trade with countries such as China. “We must be clear and consistent about the values we actually defend,” O’Neill added.

Speaking ahead of the launch of a new think tank, the BRICS+ Thinking platform, O’Neill is expected to be one of the key voices shaping the pursuit of economic growth as Burnham seeks to revitalize the Labour Party.

However, the economist expressed doubt over whether he would accept a formal role even if one were offered.

Addressing reports that he had been offered a position at Downing Street, O’Neill said: “Whoever first leaked that story, it is complete nonsense. I am not sure if I would accept an offer. It depends. I have a lot of things I would have to give up.”

O’Neill remains hopeful that Burnham can counter critics who complain that his political and economic philosophy of “Manchesterism” is insufficiently defined:

“I think Andy’s first few weeks are going to be very exciting. Let’s see. As I often tell his team, once you put your hand up, you have to want to do it.”

O’Neill added that Burnham possesses “very good intuition,” noting: “He knows the streets very well. People in Whitehall and Westminster often live in their own little bubbles. Andy can handle the streets, and that in itself is really important.”

As the founder of the new BRICS+ Thinking platform—which aims to bring together expertise in economics and trade—O’Neill called for greater cooperation between the UK and emerging economies. He asserted that the UK “failed to listen to these countries during the decade in which the nation decided to leave the European Union.”

O’Neill also stated that he would support rejoined EU membership under the right conditions:

“Yes, I would support [rejoining], but I think it is crucial that some leaders in this country finally wake up and take serious action regarding the deeper issues affecting so many people who want to blame something for not receiving a share of prosperity over the last 30 to 40 years.”

However, O’Neill emphasized that “the conditions must be right” for any rapprochement with the EU.

While the Starmer government has made significant efforts to strengthen ties with the EU, O’Neill described his own stance as that of a “moderate Remainer,” arguing:

“Economically, I thought leaving was a crazy decision, but I also believed that the shock of such a decision could both wake us up to important domestic issues and allow the UK to take a truly bold path… by adopting a realistic stance.”