Monday, January 13, 2014

India Africa Relations

India Africa Relations
Africa - "cradle of human civilization" and India- "an ancient civilization", both are connected through the Indian Ocean and have in past shared a close relationship that hinged on the common struggle against colonialism, apartheid, poverty, disease, illiteracy and hunger.

The 21st century has seen a renewed initiative of India with the India-Africa Forum Summit (IAFS) in 2008. Some similar initiatives have been taken by other Asian countries (China) and few critics call it a new scramble for Africa by Asian countries to acquire African raw materials and energy resources.

Africa has half the membership of Non-Aligned Movement, one-third of the UN andoccupies a prominent role in South-South cooperation. Both regions have undergone similar kind of socio-political and economic transformations, including the liberalization of their economies. As members of the NAM, the Commonwealth, G-15 and the newly formed Indian Ocean Rim initiative, India and Africa share common views on most international issues.

Historical ties:

* Contacts between India and Africa can be traced back to ancient times when Indian merchants from its western seaboard traded along the eastern coasts of Africa.

* References in Vedic scriptures, as well as the travelogues and navigators diaries, also denote that strong relations existed between the two ancient cultures.

* A large number of Africans came to India during medieval times, formed a major section of Muslim armies and later settled here; calledsiddis. There is a significant population of people representing the Indian diaspora in Africa (especially east).

* Regular trade relations existed between India and Egypt in the eighth century BC.

* During AD 1503-08 cotton goods and silk products were exported from ports of Gujarat and Bengal to Berber and Ethiopia.

* During 1692-93 there was considerable increase in Ethiopias trade with India.

* In 1882, the Indian navy undertook submarine operations for the removal of obstructions in the Suez Canal.

* In April 1893, Mohandas Karamchand Gandhi reached South Africa to represent a client in commercial transaction but on being subjected to racial indignities, decided to stay back in order to defend the rights of his compatriots. His philosophy, which he successfully put into practice to achieve Indias independence, inspired a generation of African leaders in their own national liberation campaigns.

* In 1895, building of Kenya-Uganda Railway began which encouraged the immigration of Indians who fanned out as shopkeepers and construction workers.

* In 1914, theGandhi-Smuts agreementwas concluded.

* In 1926, the South African National Congress and the Indian National Congress held a round table conference. This conference resulted in theCape Town Agreement, which recognized Indians as potentially equal citizens.



After end of colonialism in Africa, Indo-African relations were expected to strengthen. However, on the whole, the flourishing of trade and economic exchanges did not happen. This happened because of lack of resources and the fact that many new countries were forced to look to former colonial rulers for assistance in meeting their developmental needs.

The Bandung conference of 1955, which paved the way for the Non-Aligned Movement (NAM), consolidated this Afro-Asian solidarity. Indias policy was aimed to end racial domination and discrimination in the African territories.

Ghana, India and Nigeria were leading members of the NAM, the Commonwealth and the Group of 77 and supported one another at international forums on various issues.

Thus, The Bandung Conference (1955) and the Afro-Asian Peoples Solidarity Conference of Cairo (1958), NAM, the United Nations, the Commonwealth, and Afro-Asian organizations were mainly on the lines of anti-colonialism and anti-racism. Indias moderate stand on issues like Mau Mau rebellion, the Algerian war of independence and the Congolese civil war did not appeal to Africans. On the other hand, the Chinese militancy and advocacy for armed struggle did appeal to Africans.

South-south engagement

In the aftermath of the Chinese attack in 1962, India stopped treating African countries as a bloc and becamemore selective in its friendship.

International situations andIndias achievements at home played an important role in Indias move to befriend African countries.

With newly acquired self-confidence, in terms of its achievements at home (like green revolution, increasing military and scientific capabilities), Indian policy became more proactive towards the African countries.

Major Achievements-

* India became a power to which Africa turned for help and assistance, and as a model for development.

* India utilized its diplomatic strength in international forums like the UN, NAM and Group of 77, to develop south-south co-operation. At the Lusaka Summit (1970), the Indian Prime Minister, Indira Gandhi, gave the call for south-south co-operation by pledging Indian technology and human resources for this.

* Both the African states and India underlined the need for economic co-operation among themselves.

* India accordeddiplomatic status to the African National Congress (ANC) in 1967 and the South-West African Peoples Organization (SWAPO) in 1985.

* India worked closely with the African countries in their fight against apartheid in South Africa and Namibia.

* The material assistance remained meagre due to Indias own limitation on giving more in those terms.



Economic ties:

Africa acknowledges Indias economic growth and finds the Indian model relevant. India provides Africa with opportunities in different areas, having launched a number of initiatives for closer co-operation with Africa, which include theFocus Africa Program (2002/03)to increase trade with the continent and theTechno-Economic Approach for Africa India Movement (TEAM-9) initiative in 2003 to enhance co-operation with western and central African countries.

* India has an annual trade of roughly $46 billion with Africa. Indias bilateral trade with Africa has grown exponentially. Africas share of Indias overall trade has also increased.

* The least developed African nations have got preferential access to the Indian markets.

* Human resources development and capacity building

* India also committed itself to establishing 19 centres of excellence and training institutions in different fields across Africa. One of the strong focuses of the current Indian partnership with Africa is the empowerment of people through capacity building and human resource development, specifically highlighted under the India-Africa Framework of Cooperation agreed at the 2008 IA Summit.



* India has supported theNew Partnership for Africas Development (NEPAD) initiative, information and communication technology (ICT), scholarships and training slots for African students under the Indian Technical and Economic Cooperation (ITEC) program. Africa is now the largest recipient of Indias ITEC programs.



* PSLV-C15 Indian rocket was used at Thumba Launch Station (KERALA), in July 2010,to launch an Algerian satellite.With this launch it could be said that India has started using space diplomacy as a foreign tool in Africa.

* The Cumulative Indian investment in Africa stood at $90 billion in 2010 and is likely to rise dramatically in the years ahead.

* Bhartis investment in Africa is seen as an example of how Indian companies are looking at long term partnerships in Africa.

* Indian corporate houses like Tata, Balaji, OVL, Essar, Sanmar, Ranbaxy and Reliance have a presence in Africa.

* Energy cooperation

In order to diversify its energy sources, India is investing in energy assets overseas. In this context Africas energy resources are very significant. Almost one quarter of Indias crude oil imports are sourced from Africa. The Oil and Natural Gas Corporation Videsh Limited(OVL) has large overseas investment in Sudan. It has also acquiredstakes in Senegal and other African countries like Cte dIvoire, Libya, Egypt, Nigeria and Gabon.



Military security co-operation:

India provides military training to officers of various African defence forces, one of the important component of Indias Africa policy as Africa lacks military training institutions.

* Since the 1960s India has providedmilitary trainingto a number of African countries, primarily from Anglophone Africa. The training covers fields such as security and strategic studies, defence management, artillery, electronics, mechanical, marine and aeronautical engineering, anti-marine warfare, logistics management and qualitative assurance services. At the request of the African Union Commission, initial discussions of defence cooperation and peace-keeping activities were emphasised in 2006.

* Maritime co-operation:The growing concern in the Indian Ocean owing to piracy, smuggling, drugs- and arms-trafficking, and terrorism all threaten the security of the Sea Lines of Communication (SLOCs). The Indian Navy regularly engages in naval exercises and naval diplomacy along the African littoral, and at the national level over the past few years India has deepened security and diplomatic co-operation with various AU members like South Africa, Mozambique, Madagascar, Mauritius and the Seychelles. Naval co-operation between India and South Africa was already apparent by 2000.



Indian diaspora in Africa:

* Within Africa, there are several scattered Indian communities.

* Bulk of diaspora is in South Africa, Kenya, Tanzania, and Nigeria.

* They are typically engaged in trade and professions like medicine and law.

* After independence of African nations, some prospered in particular countries while elsewhere they were regarded with suspicion. Thus, they were unable to be a useful bridge between Africa and India.



India-Africa Forum Summit:

* First held in 2008 at New Delhi.

* It was first such meeting between the heads of state/govt of India and 14 countries of Africa chosen by the African Union.

* Delhi Declaration was adopted.

* Second India-Africa Forum Summit held in 2011 at Addis Ababa.

* Addis Ababa Declaration was adopted.

* Theme: Enhancing Partnership: Shared Vision.

* It envisages economic and political cooperation, and also cooperation in a host of other areas including Sci&Tech, social and infrastructural development, tourism, culture and sports.

* Climate change cooperation.

* Urging major economies to work together and enhance macro-economic policy coordination.

* Other initiatives include- India-Africa Food-Processing Cluster, India-Africa Integrated Textiles Cluster, India-Africa Centre for Medium Range Weather Forecasting, India-Africa University for Life and Earth Sciences.

* India announced $5 bn credit line over the next 3 years.





Pan-Africa E-Network Project (2004):

* e-medicine and e-education project.

* to connect India with all 53 countries of African Union through a satellite and fibre-optic network for sharing Indias expertise in education and healthcare. The Network will be connected by a satellite/fibre optical network.

* to provide tele-medicine, tele-education and VVIP connectivity to these countries.

* 5 universities (IGNOU, Universities of Delhi and Madras, BITS at Pilani, and Amity University) have been linked into the Network.

* Being implemented in 47 African countries.



Initiatives taken by Government of India for Africa:

* India-Africa Forum Summit.

* 2nd India-Japan dialogue on Africa was held in New Delhi in 2011. It is an institutionalised event held biannually.

* IGNOU to establish Indo-Africa Virtual University.

* Team -9 (Techno-Economic Approach for Africa India Movement) framework to enhance commercial cooperation with West Africa (Burkina Faso, Chad, Cote d'Ivoire, Equatorial Guinea, Ghana, Guinea-Bissau, Mali, Senegal).

* Putting in place US$500 mn Lines of Credit (LOC) and identifying priority sectors in the 8 countries which would be financed out of the LOC.

* The Ministry of Commerce and Industry, GOI, Ministry of External Affairs, Export-Import Bank of India and Africa Development Bank initiated the India- Africa Project partnership Conclave, in New Delhi. The Conclave created platforms for decision maker from Africa countries to meet heads of India companies involved in engineering, consultancy, construction and supply of project goods, etc.

* The India-Brazil-South Africa (IBSA), Trilateral Commission of the foreign ministers of India, Brazil and South Africa (2004) would meet in regular intervals.

* In Uganda, Indian technologyled to nearly three times more electricity to be generated, from 300 MW to 1000 MW than had been planned at Karuma project.

* New Delhi is also planning to set up over 100 training institutes that seek to foster the rise of a middle class in Africa and provide the African youth opportunities for self-advancement.

* India is the third largest contributor UN Peace-Keeping Operations in Africa with more than 9300 peacekeepers deployed in various UNPKO in fragile and conflict ridden states in Africa.



China vs. India in Africa:

Chinas role in Africa: before becoming the economic power, China successfully implemented the massive Tanzam rail project between Tanzania and Zambia.

Forum on China-Africa Cooperation- started in 2000 with 5 summits being held till now.



* Chinas $200bn trade with Africa is way ahead of Indias $46 bn.

* Unlike Chinas venture in Africa, that has focussed on extractive resources, oil and infrastructural projects, India chose to focus on capacity building as the defining template of its engagement with Africa.

* Chinese companies are active across the continent with big infrastructure projects, including ports, railways and sports stadiums. By contrast, Indian initiatives are led by individual companies looking to expand in sectors such as telecom, agriculture, the automotive industry and education.

* Indias all-round cooperation with Africa through People2people, govt2govt, & business2business, is different from Chinas, largely, top-down Govt2Govt approach.

* Like China, India organises summits to engage Africa. Deals worth millions have been discussed, but implementation is poor.

* However, the Chinese companies go with their own people to do the work in Africa, leaving the locals in the lurch, unlike India, which employs locals.

* China excels in large infrastructural projects while the Indians have an edge in ICT, capacity building and training, and emerging areas like floriculture.

* The Indian ability to relate to Africans is also much greater, which is why non-Indian MNCs prefer to use Indians as managers for projects involving interactions with local officials and populations.

* Indias democratic culture and consultative approach make it an attractive partner for African nations looking to enhance their own skills.

Form Africas perspective, both India and china have core competencies which may complement each other. Thus, Africa is looking forward to do business with both the countries at the same time and there seems to be enough room for the two. But India should not become complacent as African economy will start to emerge in the world set-up, competition from the world will be stiff. India should also avoid the path of exploitation which other big powers have taken. Indias participative model will slowly but steadily build a strong bond between India and African nations on the foundation of mutual trust and benefit rather than the acquisitive approach of China.



Future path: what needs to be done.

* Ramp-up diplomatic presence in Africa.

* Maintaining embassies with competent diplomats rather than those who see duty in Africa as a punishment.

* Establishing special purpose vehicles to pursue strategic investments and business opportunities (like in mining, infrastructure, etc.) in Africa.

* Strict audit of money disburses through Line of Credit for Africa.

* Ensuring corporate social responsibility through all Indian FDI projects in Africa.

* Greater effort to build on the domain knowledge and cultural equity emanating from the Indian diaspora in Africa.

* Indias poor knowledge about Africa, often based on colonial stories and selective reports on famines, droughts and wars, have created distorted images. These need to be corrected through informed media and cultural exchange.

* By collectively revolutionising the African maritime sector, and by creating Indian stakes in Africa's maritime economy, India and Africa will have an opportunity to jointly forge a truly robust maritime partnership.

* Genuine person-to-person interaction could foster a deeper exchange between the two through civil society associations, information technology, travel and educational trips.

* India, as the largest democracy, can provide assistance in setting-up democratic structures in African countries facing political upheaval.

* India needs to strengthen relationships in 3 spheres- People2People, Govt2Govt and Business2Business.

* For India it is important to reduce dependence on Middle East for oil and for the African countries it was important to find more buyers to get the best price for their products. This growing dependence on Africa will be a key dynamic that will shape trade and investment with India.

* Western markets are turning protectionist by raising non-tariff barriers to trade and investment from developing countries. India and Africa can counter this with selling products and services to each other. There are several market similarities that can be built upon.

* India should negotiate FTAs with the African nations and groups of nations.

* Governments on both sides will have to invest in improved transport and logistics linkages.

* India wants to be a permanent member of UNSC and it will require support of member states of UN, & the support from 53 African nations needs to be harnessed for this.

* India and Africa can also cooperate on countering piracy of the coast of Somalia. To counter piracy, a working group has been set up to look into the economics of piracy and three ships of the Indian Navy patrol the Gulf, the Arabian Sea and the area near Seychelles at any given time.

Such moves could usher in Gandhian notions of the ties going beyond material interests and embracing a more humane non-exploitative relationship.

India is therefore, committed to the progress and development of Africa. Indias economic package of USD 5.7bn for the African countries is demonstrative of the time-tested ties and commitment between the two. The growing economic interdependence of India and African countries will add confidence to their dealings with the rest of the world.

Indian-African relations over the years have witnessed various changes, moving from a period of high political, emotional and moral solidarity, to a more material, concrete and developmental approach. This is an important feature of Indias new model of engagement with Africa. India and Africa have maintained magnanimous relations so far, and it is anticipated that the same will be true for the ages to come.

NAME: DAMINI Singh

References:

http://www.indoafrican.org/Indias%20Iniatied.pdf

http://www.bbc.co.uk/news/business-23225998

http://blogs.lse.ac.uk/ideas/2012/04/india-and-africa-towards-greater-cooperation-and-growth/

http://progressiveindians4change.blogspot.in/2012/04/rediscovering-dark-continent-indo.html?m=1

http://www.erewise.com/current-affairs/india-africa-relation_art52389f9bbc565.html#.UrwoC_QW1QE

http://blogs.lse.ac.uk/africaatlse/2013/07/03/india-and-africa-ties-challenges-and-opportunities/

http://www.dnaindia.com/analysis/column-india-africa-ties-energised-with-oil-and-other-products-1883659

http://meaindia.nic.in/staticfile/Pan-Project-March-12.pdf