{"id":54217,"date":"2019-12-09T15:01:00","date_gmt":"2019-12-09T09:31:00","guid":{"rendered":"https:\/\/blogadmin.forumias.com\/?p=54217"},"modified":"2020-02-26T15:03:56","modified_gmt":"2020-02-26T09:33:56","slug":"7-pm-an-asian-engine-driven-by-india-and-china-9th-december-2019","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/7-pm-an-asian-engine-driven-by-india-and-china-9th-december-2019\/","title":{"rendered":"7 PM | An Asian engine driven by India and China| 9th December 2019"},"content":{"rendered":"\n<p><strong>Context:\n<\/strong>Role\nof India and China in new world order.<\/p>\n\n\n\n<p><strong>Asia:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The Asian continent, home to sixty per\ncent of humanity, high economic growth rates and a burgeoning middle class and\nmarkets.<\/li><li>The Asian landmass straddles the\nIndo-Pacific. Asia is increasingly being defined in the broader geographical\ncontext of the Pacific and Indian Oceans through which pass the key Sea lanes\nof Communication (SLOCs) for energy, raw materials and trade.&nbsp;<\/li><li>With some of the highest military\nexpenditures in the world, Asia is in a state of flux. Territorial and maritime\ndisputes have the potential to cast a shadow on peace and stability.<\/li><\/ul>\n\n\n\n<p><strong>Asia\nPacific:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The \u2018Asia Pacific\u2019 relates to that part\nof Asia which lies in the Pacific Ocean. <\/li><li>It is an idea proposed and supported by\nAsia\u2019s Pacific powers who sought a term to describe their common region. <\/li><li>The Asia Pacific, therefore, has three\nmajor constituents: north-east Asia, south-east Asia and Oceania (South Western\nPacific). <\/li><li>Despite the nomenclature suggesting to\nthe contrary, India is not a part of the region. <\/li><li>The Asia-Pacific is more of an economic\nconception, rather than a security related notion. <\/li><li>Since the late 1980s, it has been\npopular as a zone of emerging markets that have been experiencing rapid\neconomic growth. <\/li><li>The only multilateral institution that\neffectively represents the Asia Pacific, therefore, is the Asia-Pacific\nEconomic Cooperation forum (APEC), which does not include India.<\/li><\/ul>\n\n\n\n<p><strong>Indo-Pacific:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The Indo-Pacific is an integrated\ntheatre that combines the Indian Ocean and the Pacific Ocean, and the land\nmasses that surround them. <\/li><li>Even though it is still an evolving\nconcept, most analysts see it as an idea that captures the shift in power and\ninfluence from the West to the East. <\/li><li>Its geographical expanse is still\nundefined but it is said to range from the coast of East Africa, across the\nIndian Ocean, to the Western Pacific, including countries like Japan and\nAustralia. <\/li><li>It is both a strategic as well as an\neconomic domain comprising important sea-lines of communication that connect\nthe littorals of the two oceans. Since it is primarily a maritime space, the\nIndo-Pacific is associated with maritime security and cooperation.<\/li><\/ul>\n\n\n\n<p><strong>New\nWorld Order:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The term first came into prominence after\nWorld War I, when US President Woodrow Wilson used its variant (\u201cnew order of\nthe world\u201d) while proposing the formation of the first global political\norganisation, the League of Nations, in order to \u201cend all wars\u201d and consolidate\nthe victories of his European allies in the name of collective security and\ndemocracy.<\/li><li>Post World War II, the term is used with\nreference to the birth of several international institutions in the mid-20th\ncentury such as the United Nations (UN), World Bank, International Monetary\nFund (IMF), General Agreement on Tariffs and Trade (GATT) which gave way to\nWorld Trade Organisation (WTO), International Court of Justice (ICJ), Nuclear\nNon-Proliferation Treaty (NPT), etc. <\/li><li>In recent decades, the term has been\nassociated with the US-led neoliberal order of free-trade globalisation which\nfollowed the collapse of the Soviet Union. In fact, the term was popularised by\nPresident George H. W. Bush, when on the eve of the First Gulf War (1990) he\nunabashedly declared&nbsp;\u201cthere is no substitute for American\nleadership\u201d&nbsp;after the Cold War and that this uni-polarity is about to\nherald a \u201cnew world order\u201d.<\/li><li>In recent decades, the term has been\nassociated with the US-led neoliberal order of free-trade globalisation which\nfollowed the collapse of the Soviet Union. In fact, the term was popularised by\nPresident George H. W. Bush, when on the eve of the First Gulf War (1990) he\nunabashedly declared&nbsp;\u201cthere is no substitute for American\nleadership\u201d&nbsp;after the Cold War and that this uni-polarity is about to\nherald a \u201cnew world order\u201d.<\/li><li>In fact, India\u2019s idea of a future world\norder has a polycentric construct, in which multiple actors with disparate\npolitical systems, cultural traditions and economic interests forge\ninterdependent relations, in the absence of hegemonic polarities. Thus, India\nhas pursued a policy of building multiple alignments \u2013 the G20, BRICS (Brazil,\nRussia, India, China and South Africa), Bay of Bengal Initiative for\nMulti-Sectoral Technical and Economic Cooperation (BIMSTEC), and the Shanghai\nCooperation Organisation (SCO), even as it seeks a permanent seat at the UN\nSecurity Council.<\/li><\/ul>\n\n\n\n<p><strong>Changing\nscenario in the world:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Traditional and non-traditional security\nthreats (economic and military competition, climate change, piracy, radical ideology,\ncyber threats, drug and human trafficking, and energy and food security) have\ngrown in magnitude.&nbsp;<\/li><li>Trade and technology are at the heart of\na new round of competition and contestation.&nbsp;<\/li><li>Nationalism and regionalism are on the\nrise. There is less multilateralism but greater multi-polarity. <\/li><li>Hedging and multi-alignment are the\norder of the day.<\/li><\/ul>\n\n\n\n<p><strong>Obstacles\nlying ahead:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Protectionism:<\/strong> <\/li><li>Protectionism\nrefers to government actions and policies that restrict or restrain\ninternational trade for the benefit of a single domestic economy. <\/li><li>Protectionist\npolicies are usually implemented with the goal to improve economic activity\nwithin a domestic economy but can also be implemented for safety or quality\nconcerns. <\/li><li>The\nliberal trading order has encountered protectionism in the form of tariff and\nnon-tariff barriers. <\/li><li>India\u2019s\nservice exports which touch $29.6 billion in the U.S. market, and pharma\nproducts, especially generic drugs, which account for 20% of global generic\nmedicines, have barely been able to scratch the surface in the Chinese market.<\/li><li>Geopolitical considerations are\nincreasingly driving trade and investment decisions; on the other hand,\ngeo-economic forces unleashed by China\u2019s economic rise are redefining the\ngeo-strategic landscape of the Indo-Pacific region.<\/li><li><strong>Mercantilism:\n<\/strong>Mercantilism\nwas an economic system of trade that spanned from the&nbsp;16th&nbsp;century\nto&nbsp;the 18th&nbsp;century. Mercantilism banked on the principle that the\nworld&#8217;s wealth was static, and consequently, many European nations attempted to\naccumulate the largest possible share of that wealth by maximizing&nbsp;their\nexports and by limiting&nbsp;their imports&nbsp;via&nbsp;tariffs. There is a\nlooming danger for developing countries on account of \u2018zero-sum\u2019 mercantilism<\/li><li><strong>Global\nEconomy:<\/strong>\nThe global economy is likely to grow at its slowest pace in a decade, at 3% in\n2019.<\/li><\/ul>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"\"><tbody><tr><td> <strong>21<sup>st<\/sup> century: Asian Century<\/strong> The Asian Century refers to the dominant role that Asia is expected to play in the 21st century due to its burgeoning\u00a0economy\u00a0and\u00a0demographic\u00a0trends. The concept of the Asian Century gained credence following the rapid\u00a0economic growth\u00a0of China and India since the 1980s, which propelled both of them to the ranks of the\u00a0world&#8217;s largest\u00a0economies.Asian economies are on track to become larger than the rest of the world combined in 2020, in purchasing power parity (PPP) terms.Growth is being powered by China and India, now two of the biggest global economies, as well as smaller nations, such as Indonesia, Vietnam, the Philippines, and Bangladesh. \u00a0 <\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>India\nand China: Engines of growth <\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Both India and China are expected to\ncontribute to the global economic growth in the future.<\/li><li>India is also transforming into a\nknowledge-based, skill-supported and technology-driven society. <\/li><li>A liberal FDI regime combined with a\nyouthful demographic profile makes India an attractive destination. <\/li><li>India attaches great importance to its\nrelations with China, a large trade partner in goods. <\/li><li>Since 2015, there has been a spurt in\nChinese FDI in India (at around $8 billion). <\/li><li>There is great scope for China to\nparticipate in flagship initiatives such as the \u2018Smart Cities Mission\u2019 and\n\u2018Skill India\u2019 programmes. <\/li><li>As the world\u2019s second-largest economy,\nChina can and must play a constructive role globally and within Asia to help\nthe world return to higher growth rates.&nbsp;<\/li><\/ul>\n\n\n\n<p><strong>Peace\nand Cooperation is the key to success:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>India faces a huge and rising trade\nimbalance. Bilateral trade today is approximately $95 billion.&nbsp;The\ndecision at the Mamallapuram Summit, in October, to set up a new mechanism to\ndiscuss the trade imbalance, is aimed at addressing this issue.<\/li><li>There are suggestions that the era of\nthe World Trade Organisation (WTO)-anchored, Most Favoured Nation (MFN)-based\nregime is drawing to a close and that the future lies in a web of free trade\nagreements. However, there is still scope for India and China to work together\nto strengthen the WTO.<\/li><li>The RCEP should have a wider ambit,\nincluding trade in services. Many countries (especially Japan which still\nboasts the world\u2019s second-largest developed economy) have openly favoured a\nmore accommodating position that addresses India\u2019s concerns and facilitates its\njoining the RCEP. China too should pro-actively work to ensure India\u2019s\nmembership.<\/li><li>Beyond jointly training Afghan diplomats\nunder the \u201cIndia-China&nbsp;Plus One\u201d framework, China and India could explore\nthe potential to work together on Asian infrastructure and connectivity\ndevelopment on the basis of equality and an open and transparent model under\nthe Asian Infrastructure Investment Bank (AIIB).<\/li><li>As China\u2019s presence in South Asia grows,\ngreater transparency in its actions and closer consultations with India are\nalso necessary to help allay concerns. China should also be mindful of its\nforays into the Exclusive Economic Zone of others.<\/li><li>As two of the world\u2019s biggest importers\nof oil and gas, the two nations should have a joint consultative mechanism to\nprotect the interests of consumers.<\/li><\/ul>\n\n\n\n<p><strong>Conclusion:<\/strong><\/p>\n\n\n\n<p>It is worth\nrecalling Prime Minister Narendra Modi statement at the Raisina Dialogue in\n2017 that \u201cthere is enough room for all Asian countries to prosper together,\nand that the Asia of rivalry will hold us all back.\u201d It is the Asia of\ncooperation that will shape this century.<\/p>\n\n\n\n<p><strong>Source:\n<\/strong><a href=\"https:\/\/www.thehindu.com\/opinion\/lead\/an-asian-engine-driven-by-india-and-china\/article30239199.ece\">https:\/\/www.thehindu.com\/opinion\/lead\/an-asian-engine-driven-by-india-and-china\/article30239199.ece<\/a><strong><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Context: Role of India and China in new world order. Asia: The Asian continent, home to sixty per cent of humanity, high economic growth rates and a burgeoning middle class and markets. The Asian landmass straddles the Indo-Pacific. Asia is increasingly being defined in the broader geographical context of the Pacific and Indian Oceans through&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/7-pm-an-asian-engine-driven-by-india-and-china-9th-december-2019\/\">Continue reading <span class=\"screen-reader-text\">7 PM | An Asian engine driven by India and China| 9th December 2019<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[130,955,9],"tags":[],"class_list":["post-54217","post","type-post","status-publish","format-standard","hentry","category-7-pm","category-7-pm-brief-infograph","category-public","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704765142},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/54217","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=54217"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/54217\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=54217"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=54217"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=54217"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}