Vivekananda PattnayakBY VIVEK PATTANAYAK IN BHUBANESWAR, JUNE 3, 2017 : China recently organized a global congregation of heads of states, governments, ministers, political leaders, businessmen, corporate houses, economists, bankers, journalists and academicians to unfold its strategy on One Belt One Road (OBOR) Initiative called Silk Road of modern times. India was conspicuous by its absence in the event.

How successful this Belt and Road Forum (BARF) will be able to generate projects linking East Asia with West Europe going through the heart of the Central Asia and be able to connect South East Asia with the rest of Asia only time will tell. It is really difficult to effectively coordinate among several countries with different legal systems, political compulsions, local issues, bureaucracies and syndicating finance for countries having their own strength and weakness to obtain loan, subventions and grants etc.

Nevertheless, the OBOR initiative is laudable as an effort is being made to rekindle a somnolent world economy unable to take-off after the global financial crisis of 2008.Chinas-One-Road-One-Belt-OBOR-Initiative

Meanwhile, under the brilliant initiative of the government of India with the visible support of the local Gujarat government, the Annual General Meeting of the African Development Bank was arranged at Gandhinagar which was addressed by the Finance Minister, Arun Jaitley and more importantly by Prime Minister, Narendra Modi where emphasis was laid on traditional cooperation between India and Africa from the earlier times in particular during the post-colonial period, and future possibilities of greater economic ties with India free from heavy imposing conditions, and especially in an atmosphere of friendship, cordiality and mutual cooperation and also in an environment of give and take as an alternative method than the danger of colonial type of dominance by rising dragon as is apprehended under OBOR initiative.

This was timely from the point of India’s diplomatic and political interest in Africa since China has been wooing this continent for more than a decade using its financial muscle, of course, to exploit the continent’s valuable mineral resources to its own long term needs. In this gathering the idea of Africa and Asia connectivity by way of surface transport has been mooted.

INSTCMuch before the launch of China’s OBOR, India, Russia and Iran had signed an agreement to establish the INSTC in September 2000. It entered into force on May 16, 2002 following ratification by the three countries. Later, 11 other countries joined the project. They are: Armenia, Azerbaijan, Belarus, Bulgaria (observer status), Kazakhstan, Kyrgyzstan, Oman, Syria, Tajikistan, Turkey and Ukraine.

INSTC is a 7200-km-long proposed multi-modal (ship, rail and road) transportation system connecting Indian Ocean and Persian Gulf to the Caspian Sea via Iran to Russia and North Europe. When completed, the INSTC would allow faster movement of goods from India to these countries.

Indian Prime Minister Narendra Modi and Russian President Vladimir Putin on Friday spoke about “70 years of strong ties” between the two countries after which two countries adopted the St. Petersburg declaration reaffirming their commitment to build INSTC project.

“We appreciate the compelling logic of regional connectivity for peace, progress and prosperity. We believe that connectivity must be strengthened It should be based on dialogue and consent of all parties concerned with due respect to sovereignty. The Russian and Indian Sides being guided by the principles of transparency, sustainability and responsibility, reiterate their commitment to build effective infrastructure for the International North South Transport Corridor and implementation of the Green Corridor,” the Declaration reads.modi-putin

There is already on card about the construction of Freedom Road starting from the Indian sponsored port at Chabahar in Iran to Tokyo passing through central Asia specifically Mongolia which would be connected by sea route to India. Both Modi and Abe have supported this venture. Perhaps this project would also contribute to the connectivity of Africa to the Asian mainland. There was a recent reminder of the project idea mooted by Hillary Clinton when she was in Chennai as the Secretary of the State regarding Indo-Pacific trade corridor.

In January 2015 a conference of the States adjoining the Indian Ocean and Bay of Bengal had been arranged by the government of India at Bhubaneswar, and then called Blue Conference. This was addressed by Smt. Sushma Swaraj, Minister of External Affairs, Shri Naveen Patnaik, Chief Minister of Odisha, and Shri Dharmendra Pradhan, Minister of Petroleum. There was also a presentation made by a senior official from Prime Minister’s Office. All had focussed on close cultural, trade, tourism and commercial relationship between India and other nations around Bay of Bengal and the Indian Ocean.

There was also an impressive congregation of delegates from many adjoining neighbouring countries and nations on the rim of the Indian Ocean. What is needed now is a robust and organized follow-up action under the leadership of India to realize the hopes and expectations expressed during the deliberations.

brexit-euAll these concepts and ideas must be given support as long as the engine of global economy desperately needing a boost gets reignited particularly after the isolationist policy being promoted by USA under Trump and uncertainty in Europe after Brexit.

Fortunately, first in Netherland and now in France the majority of people have held to the ground that the philosophy of globalism whether in trade and commerce or finance or in movement of labour cannot be so easily given a goodbye because of rising Islamic terrorism and increase in immigration. Germany under magnificent Merkel continues to be popular. With aging population in Europe, the region needs working young population.

Secondly with exit of USA from the Obama piloted Trans Pacific trade arrangement, greater interest is now being shown by Japan in one hand and Australia and New Zealand on the other. At this turning point, India should promote the idea of Hillary on the Indo-Pacific Trade Route. There is palpable synergy between the two concepts. With the re-election of Rouhani as the President of Iran, the idea of freedom road should be pursued with vigour. Similarly, a pragmatic Putin would take keen interest to develop Moscow -Mumbai economic route through Bandar Abbas as Russia has military stake in the Middle East after its involvement in Syria.

India can take initiative to revive the project idea already discussed and also contemplated to connect Bangladesh, Myanmar, Malaysia, Thailand, Cambodia, Laos, and Vietnam.Whether the Asian Highway would materialize or not should not distract India from having close access to these countries through road and railways, where possible to augment maritime transport. India has the technological prowess and wherewithal to garner resources to pilot such an endeavour with or without China.

India’s relationship with Vietnam has been consistently good. After the exit of military rule in Myanmar, the government virtually led by Aung Suu Ki, who had her in initial education in Delhi has vastly improved.India and Thailand have been traditional friends going back to the times of King Bhumibol Adulyadej.

Similarly, India and Cambodia have maintained good relationship since the time Khmer Rouge regime was deposed. Laos has no apparent reason to be less friendly with India than other Asian giant, China. Malaysia’s Prime Minister Najib Razak had paid an official visit to India recently demonstrating his keen interest to have stronger business, trade and economic relationship. India and Singapore arranged a joint naval exercise close to the South China Sea.

For decades Singapore, where the majority of people are of the Chinese origin has maintained not only a friendly business, trade, commercial and economic relationship with India but has always steadfastly taken a politically neutral position vis-à-vis India and China rivalry. It is needless to repeat the importance of historical and cultural ties between India and Indonesia.

Biju_patnaik_the_unique-1-copyIn addition, the role played by India during the Indonesian national struggle against the Dutch is still remembered by many older leaders. Incidentally, the international Jakarta airport honours the legendary Biju Patnaik, the former chief minister and union steel minister by having installed his life- size portrait at one of the gates.

I also remember how Biju Patnaik, known as captain Patnaik, was fondly remembered by Arif Boediman, the Permanent Representative of Indonesia to the Council of International Civil Aviation Organization and Fakri Mhamud, the then Director of Technical Cooperation Bureau of the same body for his contributions to their national independence movement when I was also their colleague. Bali is a predominantly Hindu province. In Java a Hindu temple has got the status of world heritage centre from UNESCO.

Most of the Muslim Indonesians carry Hindu, Sanskrit and Puranic names. Indonesia in spite of persistent effort by Al Qaeda continues to be secular country notwithstanding its Muslim majority. People there recognize India as a secular country with the second largest Muslim country of the world. Taking advantage of these historical and cultural sentiments and geopolitical situation India’s initiative for connectivity with ASEAN countries is a distinct possibility.

This would be an answer to the much publicized OBOR championed by China in the background of lurking suspicion among the small ASEAN nations about the possible dominance of big brother China.

While promotion and final realization of these project ideas the government of India with the help of ministry of external affairs and other relevant ministries will play a significant role, an approach should have to be different from hitherto followed by our country. Since the time of India’s independence there have been multiple number of joint declarations with friendly countries for joint ventures by way of establishment of joint commissions which meet periodically although fruition of these excellent objectives have been far from being satisfactory. What is needed is a mission approach.

In respect of the projects like freedom road from Chabahar, Moscow -Mumbai corridor through Bandar Abbas, Indo-Pacific trade route, Asian and African Highway, Blue Conference and connectivity with ASEAN countries, the government of India should establish separate bodies possibly under a separate Jaitleydedicated ministry under the leadership of a dynamic and experienced minister like Arun Jaitley (who deserves all the credit for taking forward GST successfully taking the help of a Council of Finance Ministers of the States including those ruled by different political parties with great aplomb, finesse, diplomacy and professionalism with a missionary zeal).

The minister can be a part of PMO to receive constant attention and guidance of prime minister Modi who has undoubtedly demonstrated his decisiveness, clarity of thinking, hard work and excellent communication skill, all needed for such complex bilateral, cross-border, regional and international negotiations essential for fruition of these project ideas. In the interest of easy facilitation of execution of these projects there should be a consultative council with members of opposition, media and civil society, and also where needed eminent members of judiciary who have retired.

Each such body, necessarily to be headed by a dynamic, efficient, and capable young executive with proven ability and experience, should have representation of business, industry, financial institutions, and people having experience with international relations. It should have a juridical personality to give it flexibility and autonomy. It should promote and develop the project by preparing blue print, organizing international, regional or bilateral conferences and meetings and negotiating with different countries and their nodal agencies, assisting in raising the required fund.

Project should envisage construction of roads, railways, pipelines, gas lines, cables of fibre optic, internet and telecommunication lines etc., industrial parks and complexes, hotels, motels and shopping arcades and restaurants, maritime ports and also regional airports. Financing can be arranged apart from private BRICS 2promoters, national corporates and multinationals through World Bank, New Development Bank (promoted by BRICS), Asian Development Bank, Asian Infrastructure Bank (promoted by China), commercial banks of the beneficiary countries, sovereign funds, and capital market of different countries.All these will create demand for cement, steel, aluminum, engineering and mining activities and massive IT programme reviving economy under dormancy.

Trump or no Trump, Brexit or no Brexit, the European banks, companies and even the American corporates and investors will get attracted by this gigantic effort. China can (and perhaps will continue to pursue its pet OBOR initiative. There should not be any needless confrontation between the two Asian giants as this century belongs to Asia. There is place for both “Rising Elephant” as India is described by Ashutosh Seshabalaya and mythical dragon as China is known for centuries.

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