India and Its Neighbors

Posted: November 9th, 2010 | Author: | Filed under: Economics, Foreign Policy, South Asia | Tags: , , , , , , , | 35 Comments »

I’ve got a piece in today’s Christian Science Monitor on India, China and the battle for South Asia.

China is certainly flexing its muscle. Last month, it sought to restrict exports of rare earth minerals to Japan, made overtures to a secession movement in southern Sudan, and wrestled with the G20 over its currency and trade imbalance.

Nowhere has China been more assertive than in South Asia. In a strategy it calls the “string of pearls,” China is building ports and infrastructure in Bangladesh and Pakistan; digging up minerals in Pakistan and Afghanistan; and refining hydropower in Nepal and Afghanistan.

According to the International Monetary Fund, China’s trade with India’s neighbors totaled $16 billion in 2008, growing at 14 percent annually. India’s regional trade was barely holding steady at $11 billion.

Yet China’s success in the Subcontinent reflects India’s own foreign policy blunders.

The takeaway: if India doesn’t improve its own regional relationships, it will not only lose South Asia to China, but it will be prevented from exercising power elsewhere. Don’t believe me? Read the whole piece.