The India-Africa economic summit that has just ended in Delhi could be momentous for both sides. India wants access to Africa’s markets and its wealth of raw materials. From Africa’s point of view, India offers an invaluable third alternative to its two existing major business partners, the West and China, as well as a source of major investment, technology and aid. The doorway for both stands wide open — and already there are results. Even before the summit, India signaled its intention to be more focused on Africa, announcing a 60-percent rise in its aid to the continent in the new financial year.
It was particularly interesting at the end of the summit to hear Indian Prime Minister Manmohan Singh state that India is “not in a race with China or any other country in engaging Africa” — interesting because that is exactly how everyone else sees the summit. He has, in fact, been visibly interested in replicating China’s growing trade ties with Africa. Last autumn he went awooing with visits to Nigeria and South Africa, a tour that followed an earlier similar African charm offensive by Chinese President Hu Jintao. As for the summit itself, it was a carbon copy of the China-Africa summit in Beijing two years ago, except that the Chinese managed to entice over 40 African heads of state and ministers to the Chinese capital; the Delhi event involved heads of state and ministers from 14 African countries. Moreover, the figures show how far India lags behind: India-Africa trade last year was worth some $20 billion, compared to $55 billion for China-Africa trade.
It is encouraging that India does not see itself as a rival to China. Commercial competition, such as between US and EU is fine. It is good for the consumer, in this case Africa, and is prevented by ties of friendship from degenerating into something more serious. Nonetheless, it can happen. Many a war has been born in commercial conflict.
By coincidence, while the Indians were feting the African guests, Pakistani President Pervez Musharraf was heading for a six-day visit to China to boost economic and political ties with his neighbor. Against the background both of the continuing battle against Al-Qaeda and Pakistan’s recent political crisis, much has been said about Pakistan’s relationship with the US. Little is said about that with China, which is not only growing by leaps and bounds, it is likely to prove more enduring than that with the US. It suits both. China, which wants access to the Indian ocean, is redeveloping the Arabian Sea port of Gwadar, is building new roads across the joint boarder (which will make Pakistan a major entrepot center for Chinese exports), and there is a growing military cooperation: A joint jet fighter project is under way and the Chinese are meanwhile building four Pakistani naval frigates.
Economic rivalry between India and China and a strengthening alliance between Pakistan and China could in the wrong circumstances have disastrous consequences. It is in everyone’s interest that they do not.
