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Saturday, November 8, 2014

A Waltzing Matilda Moment



A Waltzing Matilda Moment


Prime Minister Narendra Modi’s visit to Myanmar for the ASEAN Summit and the East Asia Summits   starting November 11th will be over-shadowed by China as the dominant presence. This even as Modi  enjoys the newly minted charisma of a hugely successful politician that has entered the Forbes’  Most Powerful List at an impressive No. 15.

But then, President Obama, crisscrossing the region after attending the APEC meet in Beijing, before going on to Myanmar, and then  to Australia, cannot expect to be the main draw either. Particularly after losing control of both the Senate and the House of Representatives to the Republicans in recent mid-term Congressional polls; and heading into the lame-duck tunnel of his final two years on the job. 

As for the bilateral yield from Myanmar for India, it is best to calculate that it will take time to make a dent where China has been munificent. It is also entrenched as a bilateral partner for several years now. China, on its part, wants to marshal and emcee closer links between India and Myanmar too. Except that it needs it to be a three-way split of influence and benefit - with China having a controlling interest. The revival of the old WW II Stilwell Road and other trade routes linking Myanmar, Bangladesh and India with China, is seen by President Xi Jinping, rather poetically, as ‘the new silk route’.

In fora like ASEAN, APEC, East Asia, India is a late entrant and weak investment or grant prospect when compared to the bulging moneybags and military heft of China. So it can only expect small and incremental gains at first.

The most substantial results from Prime Minister Narendra Modi’s forthcoming November visits are definitely expected from Australia.

Both countries are eager to ramp up bilateral economic cooperation.  This even as Modi goes to Australia to attend the 9th Heads of Government Summit of G-20 on November 15th. There will, in addition, no doubt be multiple meetings with fellow leaders on the side lines of the multilateral summits in Myanmar and Brisbane. Plus other useful encounters with businessmen, scientists and thought-leaders as is Modi’s wont.

Nothing much happened when former Prime Minister Rajiv Gandhi visited Australia 28 years ago. That, it has taken so long for another Indian Prime Minister to visit, is telling of the vacuum in perceived common interests. But this time it is going to be very different. The axis of the whole world is in process of developing an economic tilt towards India, where major and unprecedented, across-the-board growth, is imminent.

Europe, an economically troubled America and Japan, and a slowing, greying, China, all recognise that the abundant new opportunity is in India. Australia, under Prime Minister Tony Abbot is clearly enthusiastic about it. And India, has much it can learn from the Australia, particularly in the area of modern and ‘green’ mining.

Modi has a red carpet ride in store. He will attend the G-20 Summit at Brisbane, followed by his address to the Australian Parliament in Canberra. He will also visit the legendary Melbourne Cricket Grounds in Prime Minister Abbot’s company, and grace another Madison Garden Style rally at  Sydney’s Olympic Park for the Indian-Australian diaspora.

Abbott came to India himself recently and unequivocally agreed to sell India the strategic resource of uranium on favoured-nation terms. This, after much prevarication by previous Australian regimes,  even while selling vast quantities of the nuclear raw material to China.

Obama may well want to check on the loyalty card held by Australia with regard to President Putin of Russia, an implied obligation under the ANZACS umbrella perhaps, but this is clearly not the main game in the casino for many of the participants from the Asia-Pacific region.   

On the way back, Narendra Modi will stop in Fiji, another island nation with many ethnic Indians, even as it functions practically as a protectorate of Australia. To forge stronger bilateral ties with Fiji also contributes towards anchoring India firmly in a multilateral cooperation with Japan, Australia and Vietnam.

This, even as India simultaneously partners China in another, parallel coalition, and quest to make the 21st century an undeniable Asian phenomenon.  

What then of the two Koreas, Malaysia, Indonesia, Thailand, Brunei, etc., even the Pitcairn Islands? Like SAARC, and those others close by, such as mineral-rich Afghanistan, and some others in West Asia like Saudi Arabia, Iran, Iraq, Oman, the UAE and Kuwait- a historic realignment of diplomatic and economic cooperation is very much in the offing.

With an economically weakened America and Western Europe, with no quick recovery possible, being part of the Western bloc is losing traction. Under the circumstances, it may even be high-time Pakistan changed tack, taking a cue from the mentoring Chinese; and before it loses all regional relevance, except, of course,  for its nuisance value.

(803 words)
November 6, 2014

Gautam Mukherjee

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