Building Bridges With Asia

ASIA has in recent years become the centrepiece of world attention. Previously closed countries are opening up to the world, the regional economy is booming and there is a large influx of foreign investment. With the exception of Afghanistan the Asian continent is largely free from war, civil unrest and major disturbances. In many global industries such as tobacco and aviation it is primarily Asian appetite for products and technology which is keeping western companies afloat. Singapore, an Asian country, now has the highest per capita income and productivity index in the world. The success story of the Asian tigers is taught at Harvard and Cambridge, and the Far East is now the first destination for Western businessmen and scholars.

Asia is clearly a hot brand right now. And this is indirectly helping even laggard sub-brands like India through association with Asian growth statistics, Asian investment conferences and Asian cultural values. While the Government is using this to market India to foreign investors, our links with the rest of Asia are still tenuous and fragile. India has had to lobby hard even for 'Dialogue Partner' status with ASEAN while Singapore has been admitted into the OECD in the smoothest possible fashion. The first is an honour of dubious value, the second an official entry into the world's super league. Apart from Singapore and Australia, no other country has supported our membership into any of the Asia-Pacific Rim groupings such as APEC or ARF. Even Vietnam rates better within Asia. Not only has it been admitted as a full ASEAN member, but it also receives about three times more Foreign Direct Investment as a proportion of GDP.

The history of India's relations with the rest of Asia, as a matter of fact, is marked with lofty ambitions, missed opportunities and not keeping in step with the rest. For most of this century we ignored Asia and looked either to the West or the former USSR for inspiration, comparison and cooperation. We fashioned ourselves as the leader of the developing world and spokesman for newly emerging nation-states. There were minimal economic, political and cultural links with the rest of the continent and, even now, our trade with Asia (if Japan were to be excluded) is roughly the same as that with just Germany. With the exception of China, with whom India shares both a disputed border and a desire for global influence, no far-East Asian country has ever aroused much interest within the local political and intellectual elite. Our main point of contact with Asian countries was through the Non-Aligned Movement (NAM), but even here the end result was dismal. A few years after Suharto and Nehru posed in Bandung like long lost brothers, Indonesia was secretly sending military aid, including a submarine, to help Pakistan in the 1965 war.

Of course all that has changed in the last two decades. International relations are now increasingly influenced by trade, investment and economic alliances, and not by fuzzy notions of South-South cooperation. International clout is now linked to per capita income and exports, and not to suave oratorial skills at the UN. The world never liked us to preach in the old days, and will most certainly not listen to us now that India is ranked 134th in the Human Development Index. While other Asian countries have transformed themselves into modern nation-states, India still continues to grapple with existential problems of caste, religion and region. India was ahead of Malaysia, Indonesia and Thailand till about 1970 in most socio-economic terms, but in one generation these countries have become healthier, better-educated and ten times richer. Our exports were at par with China till the early '70s, now they are four times less. Malaysia, Indonesia and Burma have long since forgotten the terrible years of Japanese conquest, and are eagerly wooing Japanese investment, while India still remains haunted by the East India Company.

The story of Singapore Airlines and Tatas reflects how things have come full circle. When the newly formed nation of Singapore wanted to start its own airline it sought the help of the Tata group, the largest industrial conglomerate in India and the then-owners of Air India. In a classic reversal of roles, Singapore Airlines is now helping the same Tata group to set up a local airline.

There is a lot of talk in the local media these days about India's ascendant role within Asia but much of this is wishful thinking. It is important to recognise that, given current rates of savings, investment and growth, India will economically be still struggling for the next half-century. Also, given our history with them, most Asian countries do not trust us completely, much like we ourselves are uncomfortable with an overt Asian identity. It is perhaps unfortunate, but nevertheless true, that India neither fits into the Middle-Eastern group of Asian countries nor the Oriental group. Unlike West Asia, where world views are largely influenced by years of religious rivalry with Christianity, India lacks any such historical point of reference vis-a-vis the West. And unlike Far East Asia, which has a common Oriental work ethic rather akin to Calvinism, Indian society is far too unwieldy and independent minded So while building bridges with Asia should be a high-priority task for the country, it will neither be easy nor quick. 

(The author is a consultant on international business strategy and political risk analysis.)