If an individual needs to have a vision for his future career prospects and if corporate houses need to have vision for futuristic growth, it will be naïve to say that an entire country’s economic interests can be developed on global levels without a futuristic world vision. Question is whether we are seriously working towards making India a global economic power? For that matter, do we have one department in the country that is singularly occupied with planning and executing strategies to further India’s financial interests in the rest of the world? Matters cannot be left only in the hands of economic ministries, which are already over-burdened handling domestic affairs.
Life Watch talked exclusively to Ambassador Shashank, retired foreign secretary in the Government of India, to know his views. Present here is the first half of the conversation relating to our present foreign policy vis a vis China, in his own words, as he spoke to Life Watch.
Whether we like it or not, China and India are neighbours and share several similar assets. Large population, better technology and partnership with other countries are the areas which are common to both. Lately, China has tired to encroach into area of influence of India by getting into large number of institutional frameworks in South Asia. Till now, India had done this successfully both in South Asia and North East Asia.
China has also been successful in keeping India out of Shanghai Cooperation so far wherein India has been of the opinion that focus of Shanghai Cooperation should be on containing terrorism, particularly terrorism emanating from Af-Pak region, but China has not allowed this to happen, particularly because of its relations with Pakistan.
There are other major differences. Whereas India is a democratic country, China is not. They, instead, are a very nationalist country that pursues its policies very energetically. There lies the difference! Whereas we, in a democratic set-up take time to come to decisions, announce policy and then dwell on discussions, they discuss and then announce their policy. This does not work in a situation where companies are trying to displace the governments in controlling the international economic order. Due to this, we have lost out to China on more than one occasion.
China’s USP is cheaper production base. This has attracted multinationals to China. In fact, 60% of Chinese export is on behalf of these multinationals. China is reinvesting this money back in the international market. A lot of their money has been invested in the US itself, as they feel that without US support their dream of becoming global power won’t come true. A good portion of this money has been used to acquire strategic business interests in other African and Asian countries. They have a vision and are moving towards achieving that goal. We have to keep these things in mind. Unless we develop that futuristic world view and vision, we will be left out. This involves friendship with the United States, with addition to our friendship with traditional friends as well as neighbours like Pakistan. This involves friendship with China as well. These days it is not possible that we do not keep good relationship because of competition.
Whereas we know that India has to develop good relations with China, we will also have to move energetically and see that we keep our growth rate at par with China. We have upper-hand than China on many fronts. It will be in our benefit if we go for technology enhancement and create futuristic knowledge base institutions; these are areas where China cannot compete with us.
China has enhanced production but on the basis of outdated polluting technology. It is not possible for us to go back on these areas. We will have to develop our strengths differently.
Though friendship with the US is of paramount importance, we will have to take our own initiatives. We cannot look at other countries like US to help us. They will help us only till their interests are served. If they feel it is their interest to keep relationship with Pakistan, they will do so. If we plan our economic growth properly, there will be a situation where they will feel it is in their interest to maintain good relations with us.
We must build as many strategic partnerships and initiate strategic dialogues with other countries. Countries like Brazil, Argentina, South Africa and a few others are becoming bigger economic powers. Financial ties with such countries are important.
Though it is difficult to quantify, we have lost considerably because of lack of a proper foreign economic policy. Sudan was at one stage offering us a very good deal. It is a country where Shariah laws are applicable. Due to this we kept on dithering whether to do the deal with them. Meanwhile China went ahead and invested there.
In Angola too China moved fast to capture the business interests. Shell company was moving out and Angola was negotiating with ONGC-Videsh to hand over 600 million dollar equity share to India. Negotiations were more or less completed. China used its influence with the Angola government to get that equity stake.
Till sometime back, it was the European countries and the US who had stakes in mines, oil and gas fields, etc. across globe. They converted their billions into trillions through it. Now China has also got to do the same.
But everything has not been lost. Whatever resources we have we can think of spreading them out. We can invest in Western treasuries and can also take maximum stake in world economy.
But the Government will have to take decisions. Economic diplomacy strategy has to be worked out. We will have to invest on agricultural fields, mines, energy resources, etc. outside. We will have to decide how much money can be put in foreign lands. At times risks too will have to be taken. Initially there will be few risks but, in long-run, we are bound to get good dividends.
Economic diplomacy in India is left to economic ministries whose main job is within the country. One has to think of some kind of new mechanism. Whether it is under National Security Council Secretariat, whether it is under the Planning Commission or whether it is under some new organization that is set up, this should be part of a planned exercise. Till now, every time there is a reduction on non-planned expenditure, such expenditures are cut as it is felt that they are external expenditures. This should not happen. It should be thought on the basis of national security perspective and our future planning perspective.
Second most important thing is our own neighbourhood. We should build infrastructural connectivity. We need to build up our own people’s strength in border areas. Whereas China has connected the entire border with India with roads, only 4-5% of the money earmarked has been spent on border roads in India in the last 5 years. CAG has commented adversely on it. This reflects perfectly on our approach so far.
We will have to build a futurist world vision, if we are to remain in competition!
Life Watch talked exclusively to Ambassador Shashank, retired foreign secretary in the Government of India, to know his views. Present here is the first half of the conversation relating to our present foreign policy vis a vis China, in his own words, as he spoke to Life Watch.
Whether we like it or not, China and India are neighbours and share several similar assets. Large population, better technology and partnership with other countries are the areas which are common to both. Lately, China has tired to encroach into area of influence of India by getting into large number of institutional frameworks in South Asia. Till now, India had done this successfully both in South Asia and North East Asia.
China has also been successful in keeping India out of Shanghai Cooperation so far wherein India has been of the opinion that focus of Shanghai Cooperation should be on containing terrorism, particularly terrorism emanating from Af-Pak region, but China has not allowed this to happen, particularly because of its relations with Pakistan.
There are other major differences. Whereas India is a democratic country, China is not. They, instead, are a very nationalist country that pursues its policies very energetically. There lies the difference! Whereas we, in a democratic set-up take time to come to decisions, announce policy and then dwell on discussions, they discuss and then announce their policy. This does not work in a situation where companies are trying to displace the governments in controlling the international economic order. Due to this, we have lost out to China on more than one occasion.
China’s USP is cheaper production base. This has attracted multinationals to China. In fact, 60% of Chinese export is on behalf of these multinationals. China is reinvesting this money back in the international market. A lot of their money has been invested in the US itself, as they feel that without US support their dream of becoming global power won’t come true. A good portion of this money has been used to acquire strategic business interests in other African and Asian countries. They have a vision and are moving towards achieving that goal. We have to keep these things in mind. Unless we develop that futuristic world view and vision, we will be left out. This involves friendship with the United States, with addition to our friendship with traditional friends as well as neighbours like Pakistan. This involves friendship with China as well. These days it is not possible that we do not keep good relationship because of competition.
Whereas we know that India has to develop good relations with China, we will also have to move energetically and see that we keep our growth rate at par with China. We have upper-hand than China on many fronts. It will be in our benefit if we go for technology enhancement and create futuristic knowledge base institutions; these are areas where China cannot compete with us.
China has enhanced production but on the basis of outdated polluting technology. It is not possible for us to go back on these areas. We will have to develop our strengths differently.
Though friendship with the US is of paramount importance, we will have to take our own initiatives. We cannot look at other countries like US to help us. They will help us only till their interests are served. If they feel it is their interest to keep relationship with Pakistan, they will do so. If we plan our economic growth properly, there will be a situation where they will feel it is in their interest to maintain good relations with us.
We must build as many strategic partnerships and initiate strategic dialogues with other countries. Countries like Brazil, Argentina, South Africa and a few others are becoming bigger economic powers. Financial ties with such countries are important.
Though it is difficult to quantify, we have lost considerably because of lack of a proper foreign economic policy. Sudan was at one stage offering us a very good deal. It is a country where Shariah laws are applicable. Due to this we kept on dithering whether to do the deal with them. Meanwhile China went ahead and invested there.
In Angola too China moved fast to capture the business interests. Shell company was moving out and Angola was negotiating with ONGC-Videsh to hand over 600 million dollar equity share to India. Negotiations were more or less completed. China used its influence with the Angola government to get that equity stake.
Till sometime back, it was the European countries and the US who had stakes in mines, oil and gas fields, etc. across globe. They converted their billions into trillions through it. Now China has also got to do the same.
But everything has not been lost. Whatever resources we have we can think of spreading them out. We can invest in Western treasuries and can also take maximum stake in world economy.
But the Government will have to take decisions. Economic diplomacy strategy has to be worked out. We will have to invest on agricultural fields, mines, energy resources, etc. outside. We will have to decide how much money can be put in foreign lands. At times risks too will have to be taken. Initially there will be few risks but, in long-run, we are bound to get good dividends.
Economic diplomacy in India is left to economic ministries whose main job is within the country. One has to think of some kind of new mechanism. Whether it is under National Security Council Secretariat, whether it is under the Planning Commission or whether it is under some new organization that is set up, this should be part of a planned exercise. Till now, every time there is a reduction on non-planned expenditure, such expenditures are cut as it is felt that they are external expenditures. This should not happen. It should be thought on the basis of national security perspective and our future planning perspective.
Second most important thing is our own neighbourhood. We should build infrastructural connectivity. We need to build up our own people’s strength in border areas. Whereas China has connected the entire border with India with roads, only 4-5% of the money earmarked has been spent on border roads in India in the last 5 years. CAG has commented adversely on it. This reflects perfectly on our approach so far.
We will have to build a futurist world vision, if we are to remain in competition!
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