Wednesday, 25 May 2011

The New Great Game: The Battle for Africa




The 'Great Game' was a term used to describe the strategic rivalry and conflict between the British Empire and the Russian Empire for supremacy in Central Asia (mostly Afghanistan!) between 1813 and 1907. It was first commonly used by Rudyard Kipling in his novel 'Kim'.

There now seems there is a new Great Game; the battle for African Energy Resources.

India took a leap in Africa on Tuesday, with Prime Minister Singh pledging $5 billion for the Africa's development over the next three years. Spreading out the Indian presence from agriculture to information technology, and medicine to a virtual university, India now rivals China for top honours in the new Great Game in Africa!

India will offer $5 billion dollars for the next three years under lines of credit to help Africa achievesome of its development goals. (To put the figure in perspective, India's healthcare budget is around $ 5.9 billion). This credit would be apart from the $700 million pledged for new institutions in Africa.

India also announced a railway line between Ethiopia and Djibouti at a cost of $300 million. The initial plan by the Africa Union was for a line running across the breadth of Africa, but the task of coordinating land acquisition through so many sovereign states was a challenge they weren't willing to take on (just yet).

China has the biggest presence in Africa, constructing airport terminals and football stadiums at a breathtaking pace, in return for access to resources and minerals. Its bilateral trade with Africa in 2010 was $126.9 billion, as compared to just over $40 billion India-Africa trade. Earlier this week, India declared a target of $70 billion by 2015.

India has had a long-standing relationship with African countries, particularly on the eastern seaboard, but it took a backseat when China went into Africa with deep pockets and insatiable demand for energy and resources.

Since then, India has been playing catch-up, although India prides itself on doing things differently from China. It's 'Sort Power' approach sees itself as less extractive in its engagements and more inclined towards helping African countries improve their capacity. As a senior African diplomat observed, "China invests in our today, India in our tomorrow."

African nations are not unhappy at being the centre of attention and largesse by India and China. Although China is more efficient in the way it processes aid in Africa, India has been actively invited by African leaders themselves as they seek to balance the Chinese presence.

The Indian presence is also mainly in the private sector, unlike the state-driven presence of China. This makes the Indian engagement far less threatening in Africa. Having said that, Indian companies are increasingly getting into mining for coal, copper and more industrial-use metals in different African countries. Indian farmers are engaging in commercial farming in countries like Ethiopia, Kenya and Uganda. In a recent agreement, Andhra Pradesh will send 500 farmers to become farming entrepreneurs in these countries.

PM Singh declared that India would invite all African airlines to Indian cities over the next three years. That's because no Indian airline now flies to Africa even as Chinese airlines are increasing their flights to the continent. Yet..


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