Business Daily from THE HINDU group of publications Friday, Apr 11, 2008 ePaper | Mobile/PDA Version |
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Opinion
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Editorial New ground in Africa The scope for economic co-operation is immense, considering that the African continent’s share in India’s global trade is just eight per cent. In the words of Dr Manmohan Singh, the India-Africa Forum summit is a first step towards creating “a new architecture” for the engagement of the two regions in the 21st Century, a period that is likely to see the evolution of a radically altered matrix in ties between nations and regions. The summit could not have been better timed, especially when China has already taken steps to forge strategic links with the African continent (it held a similar summit in Nov ember 2006, which was attended by 35 African countries against the 14 present at the Delhi meeting). The two concrete achievements at the summit were the release of a Delhi Declaration and an “India Africa Framework for Co-operation”, the latter chalking out the broad areas where co-operation between the two sides has some potential. There is little doubt that the scope for economic co-operation is immense, considering that the huge African continent’s share in India’s global trade is just eight per cent. But the figure (representing a total value of $25 billion) also implies that there are obstacles which will not be easily overcome in any effort to deepen and expand the relationship. The test of the summit, and the others that will follow (the second one is due to be held in 2011 in Africa), lies precisely in its ability to forge ahead given a terrain that is structurally unhelpful. This is why the focus in the “framework of co-operation” on areas such as setting up healthcare facilities, exploration and exploitation of natural resources (primarily, oil), and establishing joint ventures generally is important. Indeed, as far as economic co-operation with African nations is concerned, the plain fact is that the scope for Indian entrepreneurship and investment in Africa is far greater than are the prospects for African businessmen in India, which is why New Delhi should be complimented for announcing right at the beginning of the summit a policy on duty-free access for African exports to India. Similarly, the announcement on more credit for African countries and grants for projects worth more than $500 million in sectors such as railways, telecom, information technology and power has been well-timed, the clear objective being to impress on African leaders that India will do all it can to help weak economies today for a better collective tomorrow. To some people, however, the chief merit of closer collaboration with Africa lies in the greater political weight it will invariably carry at international forums, whether the issue is Doha Round negotiations, restructuring of the United Nations, or the campaign to control carbon emissions. The Delhi Declaration has spelt out its views on all these issues which, if nothing else, should go a long way in strengthening the hands of the developing world at the multilateral negotiating table. We wish to be partners in Africa’s resurgence: PM Preferential trade pact may boost exports to Africa Indo-Africa meet likely to boost bilateral ties More Stories on : Editorial | Foreign Trade
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