Collaboration: the global agenda
DOI link for Collaboration: the global agenda
Collaboration: the global agenda book
For more than five decades after the end of the Second World War, China and India remained largely mar ginal in influ en cing global eco nomic issues. With the Cold War becoming his tory from the late 1980s and the world affirming faith in marketbased eco nomic prin ciples as the most effect ive means for growth and prosperity, China and India faced ser ious dilemmas. Both had to figure out least-resistant ways of adapting to globalisation. They had to carefully manage do mestic eco nomic reforms for integrating efficiently into a world of global commerce that was rapidly shedding controls on cross-country movements of goods, ser vices, capital, labour and tech no logy. At the same time, they had to ensure that such integration did not accentuate do mestic vulnerabil it ies, which underde velopment and uneven de velopment had produced and per petu ated in both coun tries. China was the better prepared of the two for hand ling globalisation, as it had embarked on a select ive and calibrated pro cess of opening up its eco nomy from the early 1980s. The cessation of the Cold War and the deepening of globalisation made it imperative for China to pursue a more exhaustive and aggressive strat egy for embedding into global trade and fin an cial sys tems. India, on the other hand, was forced into precipitate action on reforming its eco nomy in an outward-oriented manner after a ser ious BOP crisis in the early 1990s. Unlike China, how ever, India had the ad vant age of being associated with global trade and investment nego ti ations more closely. Nonetheless, it had to respond to the far-reaching changes taking place in the world economy. The responses, needless to say, were often tent at ive owing to dif ficult ies in aligning do mestic institutions and eco nomic sys tems with their evolving global counterparts, and also owing to prob lems in making eco nomic reforms and globalisation polit ically accept able to do mestic constituencies. From the beginning of the new millennium, both coun tries have gradually been assuming more signi fic ant roles in global eco nomic issues. This is on account of their rapid eco nomic pro gress and increasing weight in the global eco nomic order. China in par ticu lar has been riding on a remark ably high growth trajectory that has been undisturbed by regional and global fin an cial crises. India, too, has shown strong and consistent eco nomic pro gress. Greater eco nomic clout has motiv ated both to voice specific concerns at global economic forums forcefully. Such articulation has often been collaborative thanks to the realisation that advanced eco nom ies are unlikely to yield ground on their
own agendas in mat ters like global trade and climate change, and that de veloping coun tries have to rally together. But from a position of prim arily resisting de veloped coun try opinions, the two coun tries now find themselves playing leading and constructive roles in global institutions and eco nomic governance fol low ing the fin an cial meltdown of 2008. It is also inter esting to note that their roles have been largely complementing and collaborative on issues where the concerns are similar. This chapter examines three crit ical segments of global eco nomic pol icies where China and India have worked together in recent years to defend common concerns. These are multi lateral trade talks at the WTO, climate change nego tiations under the aegis of the United Nations (UN) and the evolving global fin ancial regu latory sys tem and management of global fin an cial institutions fol low ing the fin an cial crisis. The chapter argues that convergence of inter ests and the unified posturing of the two coun tries on these inter ests stems from the desire to mould global eco nomic forums and institutions in a manner that is more sympathetic to their shared concerns and also accommodative of their enhanced weights in the global eco nomic order.