BRI sputters in South Asia
A decade after its launch, China’s Belt and Road Initiative has slowed down in South Asia, the result of poorly conceived projects, and irresponsible behavior from borrower and lender alike.
A decade after its launch, China’s Belt and Road Initiative has slowed down in South Asia, the result of poorly conceived projects, and irresponsible behavior from borrower and lender alike.
The 22nd India-Russia summit, held in Moscow on July 9 during Prime Minister Modi’s official visit, focused on expanding bilateral economic, energy, cultural and defense cooperation. It indicates the two nations’ commitment to adding substance and new momentum to their relationship. The long-delayed summit, which coincided with the NATO summit in Washington, should be viewed through the wider lens of a multipolar world.
Pakistan’s peripheral regions have long been treated as colonies to benefit the Punjabi core. This neglect is facing a vigorous pushback, in the form of peaceful protests and violent resistance. The economic crisis has exacerbated tensions in Baluchistan, Khyber Pakhtunkhwa and Gilgit-Baltistan, which remain poor despite abundant natural resources.
The long-delayed Iran-Pakistan pipeline has put Pakistan in yet another bind of its own making. Abandoning the project will expose it to Iranian penalties, while completing it will violate the sanctions imposed by the U.S., its financial benefactor, and its other patron Saudi Arabia which competes with Iran for West Asian leadership.
Tensions in West Asia have disrupted global shipping and revived interest in the Chennai-Vladivostok Eastern Maritime Corridor. Better freight and passenger connectivity between Southern India and Russia’s Far East will open new areas for bilateral cooperation such as the export of machinery, auto parts and engineering goods from India, and progressively integrate the economies of the two countries.
Two climate and environment conferences in December 2023, one with global attention in Dubai and the other with a hyper-local focus in the Eastern Himalayas, highlighted the need for a more nuanced conversation on climate and forced population displacement. They both point to a need for a multi-factored model in the analytical approach to forced migration.
Japan and the EU have a stable and long engagement with India. As India grows in economic and geopolitical significance, both partners must change the lens they view India with. Japan has done better, especially with investment, and because of a common interest and activity in the Indo-Pacific. The EU is driven by Brussels still and needs must overcome that limitation to better leverage India.
India and Sri Lanka recently signed six energy agreements, including plans for an oil pipeline from India to Sri Lanka, electricity grid connectivity, and cooperation in renewable energy. Sri Lanka can benefit from India's cost-effective oil sourcing and processing and pay for it in rupees, easing its balance of payments crisis. Its wider use of the Rupee fulfills a long term objective for Indian policymakers.
China-centric global supply chains are being disrupted by rising geopolitical tensions between the U.S. and China and multiple global shocks, forcing multinational companies to rethink are global sourcing strategies. India can leverage this moment to become a complementary manufacturing hub in Asia by reaping gains from technology transfers and creating value-adding jobs.
The 56th ASEAN Foreign Ministers Meeting in Jakarta reflected the grouping’s resilience amidst transformative geopolitical changes in the Indo-Pacific. Striving for unity and centrality, ASEAN tackled challenges posed by COVID-19, economic slowdown, climate change, and U.S.-China competition. However, internal differences on sensitive issues like Myanmar have tested its credibility.