The maritime arms race in Asia has crossed another threshold with the publication of satellite pictures of a massive Chinese underground submarine and warship base giving it a significant tactical advantage in the strategically important South China Sea.The naval base has been constructed by tunnelling into the mountainous shoreline of China’s southern Hainan Island near a place called Sanya.
Its been a long march since Thomas Friedman declared the world to be flat. Now, it seems as economies grow larger and countries struggle to gain control of depleating natural resources national barriers are rising.
A story by the wall street journal says that the global economy appears to be entering an epoch in which governments are reasserting their role in the lives of individuals and businesses. Once again, barriers are rising. Call it the new nationalism.
The report goes on to say: Just a decade ago, Asia, Latin America and Russia were on financial life support from the International Monetary Fund and World Bank. The U.S. was planning yet another round of global trade negotiations. The European Union was writing a constitution to shift power to Brussels from member nations.
Now borrowers shun the IMF and World Bank. Trade talks are shelved. Barriers to foreign investment are rising around the world. State-owned companies are expanding, particularly in oil and gas. Public support of immigration restrictions is growing in countries from the U.S. to India.
Emerging countries India, China, Brazil, Mexico and South Africa - the outreach countries of the G8 met in Beijing yesterday ahead of the G8 summit to be held in Japan’s northern island of Hokkaido in July. The outreach countries, also permanent invitees to the G8 are meeting to discuss multilateral trade and climate change issues. The discussions will be centered around developing a coordinated approach before the annual summit of G-8 leaders in Japan in July.
India’s Foreign secretary and ex Ambassador to China, Shiv Shankar Menon is in Beijing on a three day visit and met Chinese Assistant Minister of Foreign Affairs He Yafei and Vice Minister of Foreign Affairs Wang Yi. Menon’s visit is a precursor to India’s External Affairs Minister Pranab Mukherjee’s visit to Beijing, likely in June, and comes on the heels of the successful relay of the Olympic torch in New Delhi.
During the meetings Menon pitched for the principle of equity in global climate change negotiations and reiterated India’s position of collective but differentiated responsibility between developed and developing countries in reducing greenhouse gas emissions - a point of view that found echo among officials of the four countries, official sources told Thaindian in New Delhi.
India’s Minister for Culture & Tourism opens first China office in Beijing
The Indian Minister for Culture & Tourism, Madame Ambika Soni opened the nations first national tourism office in Beijing last night at a star studded gala dinner at the Beijing hotel. This follows the Chinese establishment of a similar office in New Delhi last August.
The new office, sited on the 29th floor of the East Tower of Beijing’s prestigious Twin Towers - the same building as Dezan Shira & Associates regional office - is headed up by Mr. S.R. Meena and is the 14th overseas office of the Indian Tourism Department.
Kamal Nath, India’s Minister of Commerce provides his comments on how to maintain India’s growth and what lies ahead.
The full interview with Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates in Delhi
Kamal Nath is the third of the big three of Indian foreign politics – after Dr. Manmohan Singh, the Prime Minister, the Minister of Finance, Mr. Chidambaram, who we interviewed yesterday, and Kamal Nath, the charismatic and globe trotting Minister of Commerce. Together, these men represent the unified force of a resurgent India, united in views and passion for the country, and amongst the most recognizable Indian politicians around the world, these are globe trotting reformists, determined to battle the negativity of coalition politics and underpin India’s long awaited position at the high table of world trade. In this frank discussion, Mr. Nath touched on many issues, but especially the desire to get government out of the way and allow the private sector to flourish.
India’s Finance Minister lays down his reasoning India will escape a US recession, plus comments of Indian Government Corruption.
The full interview with Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates in Delhi
Meeting with India’s Finance Minister, Mr. P. Chidambaram, is always a lesson in elocution and delivery. One year ago, when we last met him in our annual series of meetings with Indian Ministers in Delhi, he was shy, somewhat reserved, yet bullish. India was doing well, with growth rates at a consistent level of between 7-9% looking sustainable, and the Prime Minister, Dr. Manmohan Singh, stating to us that as long as India could keep such growth rates, it could afford it’s massive redevelopment, infrastructure and rural expenditure needed to lift the country into a true democracy with all people able to share in it’s wealth. “As long as those rates are sustainable” both the PM and Mr. Chidambaram chorused, “India’s continued development is assumed”.
Just a year on, we are faced with a different set of issues that could impact upon the Indian, and quite possibly, other emerging market economies, especially that of China. The US sub-prime crisis has dried up liquidity and seen money vanish. The US dollar is approaching record lows. The price of gas has just exceeded USD100 a barrel, respected international financial institutions are going bankrupt, and the prices of commodities in foods and metals have doubled and tripled. A year on, it’s not just a matter of India bullishness. A large blot has appeared on the landscape.
Sitting down with Mr. Chidambaram we had just one question to ask in our hour long discussion: “Can India escape a potential US recession ?”
India’s State Secretary for Civil Aviation, Ashok Chawla provides his blue print for development and investment
Interview with Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates in Delhi
The number of India’s total domestic passengers has doubled in just five years, and is set to expand even more rapidly. With more airports per square mile than any other Asian nation, a legacy of the British, much however needs to be done to upgrade, improve, and rebuild Indian airport capacity as anyone who has arrived at Mumbai or Delhi international airports well knows. But beyond the surface veneer of construction in progress, shabby terminals and dodgy washrooms, a revolution is occurring.
Ashok Chawla:
India has over 450 airports nationally, of which about 90 are currently operational. In conjunction with the Ministry of Urban Development (see other interview) we are highlighting a number of domestic airports for development which have a key strategic development role to play. However, firstly let me explain that all airports were previously managed by the Airports Authority of India, and that this has now changed. The AAI is now involved in two main models for airport infrastructure development. These are:
The State Secretary for the Ministry of Urban Development Details His Roadmap
By Chris Devonshire-Ellis, Senior Partner, Dezan Shira & Associates, Delhi
Often the first thing that is mentioned about India today – especially when compared to China – is the shocking state of much of its infrastructure. The problem is estimated to cost India about 2% of its GDP growth, and to be serious enough to potentially derail the development of the entire economy. We met with State Secretary Shri M Ramachandran, of the Ministry of Urban Development, for his views on what needs to be done, and how it is going to be achieved.
Chris Devonshire-Ellis with Shri M Ramachandran State Secretary, Ministry of Urban Development
Ramachandran:
“Firstly, we have identified several areas of immediate concern to us in national redevelopment. These include:
Provision of drinking water
Waste management and drainage
Water management
Transportation
Housing
The third ministerial meeting of the South Asian Association for Regional Cooperation Free Trade Agreement (SAFTA) hosted by India commenced on March 3, 2008 in New Delhi. Although SAARC - The South Asian Association for Regional Co-operation, comprising India, Nepal, Bhutan, Bangladesh, Sri Lanka, Maldives, Afghanistan and Pakistan, hasn’t had the desired impact that NAFTA (North Atlantic Free Trade Agreement) has made, changes are clearly in the pipeline.
Business Line spoke to the Minister of State for Commerce, Jairam Ramesh, on a range of issues that have hobbled this grouping from achieving tangible gains. Ramesh had visited Bangladesh, Sri Lanka and Pakistan and is due to visit Nepal, Bhutan, Pakistan and Afghanistan before end-June 2008.
“India’s globalisation is incomplete without closer engagement in South Asia. India cannot do bypass surgery on South Asia-this notion in India that we can be a global player and couple our economy with the American economy bypassing our own neighbours - we can’t couple with America and decouple from South Asia - is not possible. We need to understand that the foundation of our globalisation rests on closer regional cooperation in goods, services and, most importantly, in investments,” Ramesh said.
If you were planning on climbing Mt Everest this summer, make alternative plans. In a bid to allow the Olympic torch to safely scale the summit of the world’s highest peak, both approach routes, to the Mt Everest peak - from the Nepal side and the Tibetian side will be off limits.
Nepal’s tourism minister, Prithvi Subba Gurung, told the New York Times in a telephone interview on Thursday that the Chinese government had appealed to his administration to help prevent disruptions to the Olympic torch ceremony. “Expedition teams will not be allowed to ascend Mount Everest from the base camp” on the Nepal side, he said.
Nepal’s decision underscores its vulnerability to pressure from its large and powerful neighbor to the north, even if it involves forsaking lucrative earnings from expedition permits. The tourism industry is among Nepal’s most important revenue streams, and the tourism ministry says permits to scale Everest put $4 million into government coffers last year, a significant amount for one of Asia’s poorest countries.
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