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Renewing a partnership

The real significance of the just-concluded India-Africa Forum Summit lies not in the specific initiatives announced by Prime Minister Manmohan Singh but in the fact that two rising regions of the world have consciously begun the process of rediscovering each other in the changed context of the 21st century. During the struggle against colonialism, racism, and foreign domination, India and Africa developed a political and emotional attachment which continued throughout the Cold War. But this relationship was primarily political and lacked economic ballast. In Africa, the unholy alliance of powerful MNCs, outside powers, and corrupt leaders effectively sabotaged whatever chance the continent had to use its abundant resources for the benefit of its own people. On its part, India lacked the financial and entrepreneurial clout to be of much practical assistance. Thanks to the rapid growth the Indian economy has enjoyed over the past decade, however, the possibility of a major redefinition of the relationship now exists.

So far, at least, New Delhi’s track record has been quite good. The Team-9 initiative with West Africa, for example, was built on the premise of enhancing the technological and human resource capacity of India’s African partners. In Senegal, the Tata group has helped revolutionise the public transport sector by assembling and making available buses at a fraction of the cost that European companies were offering them for. For a wide variety of sectors and applications, especially agriculture, Indian equipment, technology and products are not only economical but also relatively easy to service and maintain. The enhanced line of credit for Africa that the Prime Minister announced this week will open up new opportunities for Indian businesses. And the duty concessions for least developed countries — most of which are in Africa — will hopefully lead to India buying more from the continent. Africa is rich in oil and other resources but there is no reason for India to get into an unseemly race with other countries for exclusive concessions. Contracts which are unequal and which are based on an unfair price for the underlying resource are not sustainable in the long-run. Augmenting the capacity of African economies through partnerships and technology tie-ups is a far better strategy. The fact that the private sector is taking the lead in forging many promising new ventures is to be welcomed; but these cannot be a substitute for continuous political engagement at the highest level, something which has been lacking until now.

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