LECTURE-13
LATIN AMERICA AND AFRICA
Contents
1. India and Latin America 204
1.1. History and Geography 204
1.2. India and South America: Current Imperatives and Historical Dynamics 205
1.2.1. History of Relations 206
1.2.2. Trade and Investment 206
1.2.3. Some interesting Facts 207
1.2.4. Food and Energy Security 208
1.2.5. Defence 208
1.2.6. China Factor 208
1.2.7. What Can Drive Cooperation? 209
1.2.8. Regional Institutions 209
2. India and Africa 211
2.1. Background and Evolution 211
2.1.1. Understanding India-Africa Synergy 212
2.1.2. Recent Dynamic 213
2.2. Economy 213
2.2.1. Investments in Africa 214
2.3. Development Partnership 215
2.4. Security 216
2.5. Challenges and Opportunities 216
2.5.1. What Should India Do? 217
2.5.2. The Asia Africa Growth Corridor 217
1. India and Latin AmericaMap12.1Latin America♤ Latin America is generally understood to consist of the entire continent of South America in addition to Mexico, Central America, and the islands of the Caribbean whose inhabitants speak a Romance language.Map12.2 The Caribbean1.2. India and South America: Current Imperatives and Historical Dynamics♤ It is essential to raise India’s global profile and expand the country’s footprints with the♤ Absent strong ties in geography, what India and South America have instead is a shared post-colonial history.Indira Gandhi’s visits to eight countries in the region in 1968.♤ Political engagement, has been minimal both ways: only five visits have been made by Latin American leaders to India since 2014.♤ Mercosur, a sub-regional bloc consisting of Argentina, Brazil, Paraguay and Uruguay,♤ Negotiations over a PTA have started between India and Peru.1.2.3. Some interesting Facts11.2.4. Food and Energy Security1.2.5. Defence2. India and AfricaMap 12.3 AFRICA♤ The Advent of European Colonialism brought a shared experience for both.♤ 1960 is referred to as the Year of Africa because of a series of events that took place during the year—namely the independence of seventeen African nations—that highlighted the growing Pan-African sentiments in the continent.♤ The commonality in economic concerns and complementarities in resources and capacity provide India and Africa unique opportunity to cooperate for mutual benefit♤ In the last two decades it is argued that China has stolen a march over India in Africa.♤ 54 countries, Second largest and Second most populous continent in the world. Total GDP in 2015 2.8 trillion US$.♤ In recent years growth in India's trade and investment has been partially affected by global slowdown, yet the long term trajectory remains positive♤ Development Partnershi/Capacity building:2.1.2. Recent Dynamic♤ In October 2017, President Ram Nath Kovind’s first foreign was to the African nations of♤ 2015 summit in New Delhi, Invitation to all 54 heads of stateso At IAFS-2 India promised soft loans of worth 5 billion US$,♤ There is a surge in p2p contacts: Experts, students, patients and Entrepreneurs♤ In 2014-15♤ 34 African countries enjoy duty-free access to the Indian market.2.2.1. Investments in Africa♤ The 2017 African Economic Outlook, at the AfDB summit showed that China led greenfield investment in Africa for 2015-16 (USD 38.4 billion), while during the same year India invested USD 2.2 billion across 64 projects in Africa.♤ Chinese FDI has been accused of bringing in a lot of Chinese labour, which means that a large amount of earnings are repatriated, India’s relatively small presence does not show this pattern as yet.2.3. Development Partnership♤ During the IAFS- 3 in 2015, India offered Africa a concessional credit of $10 billion over five years and a grant assistance of $600 million.♤ India had committed $7.4 billion in concessional credit and $1.2 billion in grant since the first India-Africa Summit in 2008, and creating:♤ African countries and India are extraordinarily rich in bio-diversity, with species of rare flora and fauna which are threatened both by over-exploitation as well as by Climate Change.Figure 12.3 Pan-African e-network♤ Terrorism has affected a large swath of the continent.2.5. Challenges and Opportunities♤ India is not the only one with Africa Strategyo France uniquely suited for partnership in Francophone Africa♤ China has already established its first overseas military base in this Djibouti.♤ Improve last mile delivery chain.♤ Leverage two strong assets private sector and Diaspora♤ 2017 summit meeting between Japanese Prime Minister Shinzo Abe and Indian PM Narendra Modi in Gujarat renewed impetus for an Indo-Japanese cooperation in line with their calls for an Asia Africa Growth Corridor (AAGC) during their summit in November 2016.♤ Starting with India and Japan and then expanding to ASEAN and Africa, the AAGC is♤ A Vision Document was relaesed during the African Development Bank Meeting at Ahmedabad in May 2017o AAGC-led growth in Africa and Asia will be responsive to the collective commitment to Sustainable Development Goals (SDGs).♤ Thus given its scope and ambition, the AAGC would require active cooperation from, and joint work among international community for its success