Freedom Corridor: A Indo-Japanese Belt Road Initiative

Beijing’s BRI (Belt and Road Initiative) generated intense intellectual debates. While supporters of this massive infrastructure development initiative hailed it as “symbol of golden age of globalization”, absence of transparency raised serious doubts among skeptics. Similar set of diametrically opposite narratives dominated Indian diplomatic circles, questioning New Delhi’s decision of staying away from the BRF summit. Some dominant voices started stoking fears of regional and global isolation of India.

In a rather prudent assessment of China’s overreaching hegemonic ambitions, in November 2016, Prime Minister Modi and Prime Minister Shinzo Abe of Japan in a summit meet at Tokyo envisaged a joint project for connecting Asia-Pacific region with Africa. The vision was finalized and christened as Asia Africa Growth Corridor (AAGC) also touted as “Freedom Corridor”. Three think-tanks- Japan’s External Trade Organization (JETRO), Economic Research Institute for ASEAN (ERIA) of Singapore and India’s Research and information Systems for Developing Countries (RIS) were tasked to evolve a coherent plan. The vision document of AAGC was released at the 52^nd Annual Meeting of African Development Bank (AfDB) Group held at Gandhinagar between May 22^nd-26^th. Over 3000 delegates representing governments, think-tanks, banks, and civil society from 81 countries attended the meeting. All the finance ministers of 54 African Countries took an active part in the meet. AfDB Group which has three entities-  The African Development Bank, The African Development Fund and Nigeria Trust Fund was established in 1964 and India became a member in 1983. This is first time AfDB held general meeting in India.

NDA regime laid special emphasis on revitalizing ties with Africa which critically suffered due to India’s poor execution of projects in comparison to China. To ramp up Indo-African engagement, in 2015 Modi government conducted third India-Africa Forum Summit (IAFS) on a large-scale. It was attended by 41 heads of State and representatives from 54 African countries. IAFS was India’s one of the largest outreach program which generated intense momentum. Modi announced $10billion export credit, $600 million military grant, $100 million Africa- India Development Fund. Both sides have set a target of $100 billion trade by 2018. High level diplomatic visits revitalized Indo-African relations. Modi visited Mozambique, South Africa, Mauritius, Seychelles, Tanzania and Kenya. President Pranab Mukherjee travelled to Namibia, Ghana and Ivory Coast while Vice President Hamid Ansari went to Morocco, Tunisia, Nigeria, Mali, Algeria, Rwanda and Uganda. “There no single country that has not been visited by an Indian Minister in the last three years”. African engagement was accorded highest priority. Though unfortunate racist attacks in National Capital Region threatened to imperil Indo-African ties which were painstakingly built, India’s swift action averted breach of trust.

Africa in the recent decades has become a favored destination for investments. According to KPMG study, Africa has unexplored opportunity of $2.5 trillion. China took a great leap ahead in entering African markets and infrastructure development arena. Extensive Chinese penetration in Africa is now coming under international scanner for dubious reasons. Africa is also becoming suspicious of Chinese investments due to violent waves of domestic protests. On the other hand, Indian presence was more benign. Although African representatives actively participated in BRF, they are cautiously watching China’s OBOR and unfoldment of various developments in South China Sea (SCS).

AfDB meet in India came at a juncture, when New Delhi boycotted BRF openly citing its sovereignty concerns. Adding heft to Indian concerns, UN Economic and Social Commission for Asia and the Pacific Study (UNESCAP) warned of plausible financial risks in South and Central Asian Countries where China’s investments through BRI is high compared to relative size of economy of recipient country. This announcement coming close on heels after the first BRF summit will force nations to seriously reconsider their association with the much-hyped global connectivity project OBOR.

Inaugurating the AfDB meeting Modi said that, “Although Indian sportsman can’t compete with their African peers in the long distance running, the country will stand shoulder to shoulder with the continent in its race towards brighter future”. He reiterated, “India’s partnership with Africa is based in cooperation, which is responsive to needs of African Countries. It is demand driven and free of conditions”. India pledged $29 million towards Africa Development Replenishment Fund.

Later in the session on “India-Japan Cooperation for the development of Africa” amply represented by high-powered Japanese delegation, both countries jointly released a 30-page vision document, AAGC. The document which reflected the synergistic approach of India and Japan had four elements, uniquely distinct from the OBOR doctrine of China. The core objectives are- enhancing capacity and skills; building quality infrastructure and connecting institutions; development and cooperation projects in health, farming, manufacturing and disaster management and people to people partnership. AAGC unlike OBOR is aimed at sustainable, inclusive development for a mutually win-win situation in the trilateral partnership between India-Japan and Africa. It also includes human resource training, developing capacities to sustain infrastructure, green field projects, investment opportunities, renewable energy, power grids, agriculture, agro processing etc. Japan committed $200 billion. An announcement regarding the same will be made in September. It has already invested $32 billion. India is still working on its plans.

Uncertainty and unpredictability of US administration has created a power vacuum. Simultaneously, overt Dragon belligerence has prompted regional powers India and Japan to provide a balance of power. India and Japan are investing great energies to deepen partnership. Japan keen on joining India in Chahbahar port development is already in talks with New Delhi. Both countries are discussing the possibility of developing the British oil fields of World War-II in Trincomalee for storage of oil. Talks are on to jointly develop the Dawei port along the Thailand- Myanmar border. Indian companies are invited to actively participate in new economic zone built at Mombasa, Kenya with Japanese assistance.

India with $54 billion is the fifth largest investor in Africa compared to $75 billion of China. Bilateral trade stands at $72 billion higher than India’s trade with US but pales in comparison with whopping $194 billion of China. Exim Bank of India has extended 152 credit lines worth $ 8 billion to 44 African countries. 25 African countries are part of India’s flagship International Solar Alliance Initiative (ISA). Africa is largest destination of India’s exports. India is now making renewed efforts to cultivate stronger ties with Africa, a continent with which India had centuries old mercantile and maritime relations. India’s constructive engagement has so far generated good will. While India can’t match the deep pockets of China in Africa, instead of going alone, India is keen on collaborating with countries like Japan, Germany, France, UK, US to make a big impact on progressive development of Africa.

After India’s refusal to be part of OBOR, an undercurrent of intellectual chorus expressed concerns of collateral damage to India’s economic prospects. With Chinese double standards blatantly uncovered by OBOR and its flagship CPEC, India began its quest for alternative narratives. In the process, India in collaboration with Japan proposed Freedom Corridor or AAGC which is essentially transparent, inclusive and aims at comprehensive development. It pledges to develop quality infrastructure, complemented with digital connectivity. In the past seven decades, India carved unique niche in Africa through development cooperation which included capacity building, education and developing programs like Pan Africa e-network. India provided affordable and adoptable technology to Africa. Through Freedom Corridor, India in collaboration with Japan aims to transform Africa “enabling it to integrate and emerge as globally competitive economic bloc”. 

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