India Eyes Latin America
The competition between China and India — the world’s largest dictatorship and the world’s largest democracy — will be a defining feature of 21st-century geopolitics. Because China opened its economy more than a decade before India did, the Middle Kingdom has a clear head start in the global battle for economic influence. Yet the South Asian giant is rapidly gaining ground on its northern neighbor, and over the long term its democratic system seems far more stable than the autocratic Chinese model. When assessing U.S. grand strategy in Asia, American policymakers view India as an important counterweight to China. Closer to home, India may also serve to balance Chinese economic clout in Latin America.
“China’s rise in bilateral trade with Latin America is the greatest of any region in the world — an astonishing 18-fold increase over the past decade,” Agence France-Presse reports. Chinese commodity demand has greatly boosted GDP growth in Argentina, Brazil, Chile, Peru, and other resource-rich countries, thereby lifting millions out of poverty. These economic benefits are worth celebrating. Yet Beijing’s burgeoning hemispheric footprint has prompted security concerns in Washington, since Chinese military and political ambitions remain so murky. Moreover, China is helping to prop up the Hugo Chávez regime in Venezuela, and it is also expanding cooperation with Chávez acolytes in Bolivia and Ecuador while strengthening ties with the Castro government.
Whereas Beijing’s newfound interest in the Western Hemisphere has understandably raised some eyebrows, India’s growing activity is unambiguously good for both Latin America and the United States. In a recent issue of Americas Quarterly, political scientist Jorge Heine and Indian diplomat R. Viswanathan observe that trade between India and the Latin America/Caribbean (LAC) region increased eightfold between 2000 and 2009, reaching about $20 billion. To be sure, that figure is dwarfed by overall Chinese trade with the LAC region, which totaled roughly $140 billion in 2008 (according to the Latin Business Chronicle).
But as The Economist noted a few years ago, Indian companies “have begun to make significant investments in software, pharmaceuticals, business software and natural resources.” (By contrast, Chinese investment in Latin America “has hitherto amounted to less than meets the eye.”) Since 2000, write Heine and Viswanathan, Indian companies have poured $12 billion worth of investment into six key LAC economic sectors: agrochemicals, energy, information technology (IT), manufacturing, mining, and pharmaceuticals. Indeed, many Indian firms have established a big presence in the region, including ONGC Videsh (an oil giant), Tata Consultancy Services (an IT powerhouse), and United Phosphorus (a massive agrochemical company).
Interesting, timely, well-written and PRESCIENT.
Thank you.
It is my personal belief that we should be cultivating strong ties with India. . . .She would be a strong military ally in a region that is definitely not US-friendly. She is also a good counterweight to China who , inspite of the “0″‘s assurances, is not our friend.
Don’t gamble on this being true.
“She is also a good counterweight to China” -Bull!!
Believe me, we are.
One big thing that may derail India is its growing muslim menace. Of course what continent or country isn’t being plagued by this cancer. That said, our ties with India should be made cultivated. India can be a big help in the long haul.
Sorry, I am not buying this. Indian wages are even lower than LatAm wages.
And, yes-many more skilled workers in India.
When LatinAmerican companies allow Indian basic items to replace locally made items- yarn for example- who wins. Not Latin America. Sorry, this
Indian economist is “selling India” and Latin America cannot afford to buy.
What I have seen mostly is large Indian companies being allowed into develop
natural resources- ie. mining in Bolivia, drilling for oil in Venezuela-because they have the expertise and cheaper rates than anyone else..but-then you look at their safety record, for example.
Latin Americans want to escape from the “evil empire of US” and find themselves with new masters and less income…this is the way things are going.
“Yet the South Asian giant is rapidly gaining ground on its northern neighbor, and over the long term its democratic system seems far more stable than the autocratic Chinese model. ”
How do you count to get this total? And, stable- ha?
Man, I reject your premise here and now- this is obviously propaganda.
China is buying land as much as it can wherever it goes. It has more than 20 mill acres in Africa in arable land (enough to fit France inside) and with the rampant corruption in South America who knows. Now they own 0.3% of Iceland already and most likely in the near future parts of Greece and Italy.
So what, they can’t move it to China and they can’t defend it. The only way it can benefit them is if they respect international law.
China and India share a border. China stomped them in a high altitude, mountain war back in the 60′s.
If Indian companies can supply IT and other tech services at a low cost, Latin America is their oyster. I can not see them supplanting China in manufactured products. China is too far ahead and knows what these markets quite well.
The US has destroyed its industrial base by outsourcing it, mostly to China, and we have destroyed our scientific, technical, engineering, and mathematical talent base by outsourcing it to India.
God forbid that Latin America is about to do the same.
Outsourcing is the enemy of accountability. It is also the enemy of national security … for any nation.
Not necessarily, India is educating many engineers, software techs, medical doctors and other high level professionals and thousands of them have come to the US to work and more are coming every day.
Do not forget the fact that China was not a major power until Nixon’s visit and the grand opening up. I remember in the 60s soon after the cultural revolution, people were so poor that relatives back in Hong Kong used to send food and clothing to the main land. America’s calculation about China was totally wrong. US actually made China a place for international investment and in no time China made sure that she will dismantle the US manufacturing and see what we get in America today. Just walk into the Wal Mart or any other store and see everything made in China. It was not the fault of American worker but the wrong policy of the Government. US needs a very strong ally in Asia and there is no one better than India. We know the people of India abide by the law and there is always a smooth trasition when democratically elected governments change power. US India collaboration will be in the interest of many Asian,European, Latin America and Arab countries. Ofcourse Africans have excellent relation with both.
“US India collaboration will be in the interest of many Asian,European, Latin America and Arab countries. Ofcourse Africans have excellent relation with both.” Just one big lovefest, right Warren. Are you being satirical -or-
What have you been smoking?
What “US India collaborations”? Who has excellent relations with US in Africa
AND excellent relations with US. ANd excellent relations with Moslem countries?
I guess I really do need glasses..