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 52nd Annual Meeting
of African Development Bank (AfDB) Group held at Gandhinagar between May 22nd-26th.
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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