ABSTRACT

This chapter shows that the United States, for reasons that do not primarily turn upon its concern for or linkage to India as a nation, may find cause rather soon to radically increase the flow of economic assistance to that country. It analyses the rationale for such a move and speculates about its scale, considers whether it would be economically useful and examines the political constraints with which such a venture would have to contend. The chapter argues that calls for revamped development strategies that no longer rely on trickle-down but directly address the income and employment needs of the low-end poor within the poor countries has been in ascendency worldwide since the early seventies. The US side does not see a strong geopolitical case for a heavy commitment of resources to South Asia; the Indian side wishes to avoid American intrusions.