Jeffrey Sachs shared insights on India’s global role, U.S. ties, and navigating multipolar geopolitics.
NEW DELHI: Jeffrey Sachs, a renowned economist and director of the Center for Sustainable Development at Columbia University, is a leading voice on global economic policy and multilateralism. His extensive work on sustainable development, poverty reduction, and critiques of U.S. foreign policy make him a critical commentator on India’s strategic choices in a multipolar world. He spoke to The Sunday Guardian and shared his insights on India’s global role, U.S. relations, partnerships with China and BRICS, and offered timely guidance for navigating today’s geopolitical challenges.
Q: You’ve warned India against being “played” by the United States, even as it relies heavily on U.S. partnerships for economic and geopolitical gains. Why do you believe this reliance will hurt India in the long run?
A: The US once used China as a tactical ally in its fight against Russia. Then, when China became too successful around 2010, the U.S. turned on China. Now, the U.S. wants to use India as a tactical ally in its fight against China. When India becomes too successful, the US will likely turn on India as well. India should be careful.
The US represents the final stage of centuries of Anglo-American hegemony. India knows what that means. I don’t suggest that India should become an enemy of the US, but I do believe India should not “side with the US” in its conflict with China and Russia. The US should not be in conflict with China and Russia in the first place.
Q: Do you think China, philosophically and historically, is a country that India should trust, given the great potential for mutual benefit?
A: China and India are two superpowers that are vital pillars of the 21st-century multipolar world. Both should champion a truly multilateral world, one that ends the hegemony of the West. Western hegemony has lasted for roughly 300 years, but it is ending now. For this reason, China and India should work together to reform global institutions. I strongly urge China to support India’s permanent seat in the UN Security Council, and I strongly urge India not to play the U.S. game of opposing China.
I also do not believe that China or India have reason to fear each other. Yes, they have a long-standing border dispute that has led to clashes, but neither country could conceivably defeat the other in war. It would be much better for the two countries to emphasise diplomacy, trade, investment, and shared efforts for multilateralism and world peace.
Q: You’ve noted that multiple countries are reducing assets held in Washington due to U.S. actions like asset freezes. Why are global countries increasingly fleeing their assets held in the US, and how should India respond to protect its economic sovereignty?
A: The US weaponised the dollar in two ways. First, it seized dollar assets from many countries, including Russia, Venezuela, Afghanistan, Cuba, Iran, North Korea, and Syria. Second, the US uses the dollar-based global banking system to enforce secondary sanctions more generally. The U.S. threatens other countries with cutting their banks out of the SWIFT clearing system if they fail to comply with secondary sanctions.
For these reasons, the BRICS countries should implement non-dollar settlement systems, such as using Rupees or Rubles in India-Russia trade, or Rupees or Renminbi in China-India trade.
Q: How does India’s diplomatic approach over the last decade—marked by stronger U.S. ties, BRICS leadership, and Global South engagement—position it as a global power, and what adjustments would you recommend to enhance its strategic independence?
A: I believe India should have strong and positive relations with all regions: Russia, China, the African Union, the European Union, the United States, ASEAN, and likewise. India should not join a U.S. bloc against China or any other region or country. India should work bilaterally with China to help secure India’s permanent seat on the UN Security Council. India should (with China and Russia) champion a strengthening of the UN system and a UN-centric global order.
Q: Under Prime Minister Narendra Modi’s leadership, India has pursued ambitious goals like ‘Make in India’ and a greater global presence. What are the key strengths of Modi’s approach to positioning India as a global leader to sustain this momentum?
A: The most important step is to raise the quality of Indian education so that India joins the very front ranks of nations in innovation and the adoption of advanced technologies. All students in India should finish at least upper-secondary education with a high-quality education, and a high proportion should continue to tertiary education.
Moreover, India should pursue a highly ambitious science-and-technology agenda, aiming for world excellence among its universities. In addition, India should build 21st-century green and digital infrastructure: green energy, electrified public transport, fast rail, 5G (soon 6G), autonomous vehicles, and other advances.
Q: U.S. sanctions, such as those on Russia and Iran, are often touted as powerful tools to enforce compliance. Do these sanctions achieve their long-term objectives as claimed, and how do you see the recent trade war unleashed by the Trump administration affecting their effectiveness?
A: These unilateral sanctions violate international law and the will of the UN General Assembly. They damage the international rule of law and solve no practical problems. The true objectives of peace and cooperation need to be achieved through mutually respectful diplomacy, not through war or sanctions.
Q: Reports indicate that Trump has threatened BRICS nations with severe consequences if they introduce a new currency to challenge the dollar. How credible are these threats, and what strategies can India and BRICS adopt to pursue financial alternatives without escalating tensions with the US?
A: Trump’s threats against the BRICS are a measure of U.S. fear, not U.S. strength. The US knows that it misuses the dollar-based system, and it wants to preserve the privilege to do so. There is no reason, technologically or geopolitically, why the U.S. dollar should play an outsized role in the world monetary system. The U.S. is now only around 15% of world output, measured at purchasing-power-parity prices. The world is moving towards a multi-currency system, in line with the multipolar economic reality. Digital central bank currencies will play a major role in the coming multi-currency system.
Q: What is the mood in the US in the wake of Trump’s tariff decision, and how are academics and experts viewing its economic and global implications?
A: The US is committing harm to itself, both economically and geopolitically. Trump’s tariffs are not the result of a deep strategy or a legally sound approach. They are the result of one-person rule by emergency decree, which is a very bad approach to policymaking. These misguided tariffs might well be struck down by U.S. courts if they are not ended by the Trump administration itself.