Back Indian Ocean Rim pact to promote the ‘Blue Economy’

India will do well by instituting a regular dialogue, at government and think tank levels, with the IORA troika composed of Australia, Indonesia and South Africa

Amidst our prolonged exposure to narratives on geopolitical competition and confrontation in the South China Sea and East China Sea, here comes some good news about the Indian Ocean nations’ resolve to strengthen cooperation in the region. At its historic, first-ever summit, held in Jakarta on March 7, the Indian Ocean Rim Association (IORA) decided to focus on deepening trade, economic and cultural cooperation and increasing maritime security. A positive development, its impact will be felt as signatories to the IORA Concord persevere in implementing their commitments.

The Indian Ocean, the only ocean named after a country, may not be India’s ocean, but it evokes special emotions in every Indian’s heart. What happens in the Indian Ocean region connecting three continents — Africa, Asia and Australia — influences India in diverse ways. In turn, India is viewed as “the heart of the Indian Ocean region”, representing “the junction between its eastern and western rim”. With a decisive finality, vicepresident Hamid Ansari, who represented India at the summit, remarked: “India’s relevance to the Indian Ocean does not need any commentary.”

The IORA, earlier known as IOR-ARC (Indian Ocean Rim Association for Regional Cooperation), emerged 20 years back from a strategic understanding between South Africa and India. In 1995, President Nelson Mandela’s vision of the Indian Ocean Rim as an area for socio-economic cooperation was readily embraced and advanced by New Delhi. Others joined in and the Association was created in 1997. The Jakarta Summit was designed to celebrate the twentieth anniversary of this multilateral grouping promoting open regionalism.

Today, IORA has 21 member-states from Africa such as Kenya and South Africa, from the Gulf such as UAE and Oman, from among the island countries such as Mauritius and Seychelles, from South Asia such as India and Bangladesh, from Asean such as Indonesia and Singapore and from the Oceania such as Australia.

Pakistan and Myanmar are not members. Besides, it has seven dialogue partners, including US, China and Japan. Together, they — the members and dialogue partners — account for half of the membership of influential G-20. The association progressed in a low key until 2011 when it began to show a strong impulse to re-invigorate itself under the chairmanship — first of India and subsequently Australia.

The credit for conceiving and convening the first summit, however, goes to Indonesia. The Jakarta Summit took place because the Indonesian government led by President Joko Widodo wanted it. They aptly perceived it as a tool to showcase their country’s position as the world’s “Maritime Fulcrum” between the Indian Ocean and the Pacific Ocean, and to assert Indonesia’s leadership of the region. At the same time, they developed creative synergy among key players — India, Indonesia, South Africa and Australia — for exploiting the full potential of IORA. As the chair for the past two years, Indonesia has handled its responsibilities in “an exceedingly pioneering manner”, said K.V. Bhagirath, secretary-general of IORA.

The summit has produced three important documents — a concord, an action plan and a declaration on preventing and countering terrorism and violent extremism. The first document, christened as the Jakarta Concord, embodies the 6+3 approach. It reflects the participants’ commitment to build a peaceful, stable and prosperous region through enhanced cooperation in six priority areas, namely maritime safety and security, trade and investment facilitation, fisheries management, disaster risk management, academic, science and technology cooperation and tourism and cultural exchanges. Three cross-cutting issues on which deeper cooperation will be forged are: blue economy, women’s empowerment, and promotion of democracy and good governance.

A significant agreement relates to the leaders’ shared objective to develop the potential of blue economy through broader cooperation. Sustainable development of oceanic resources and assets is what the blue economy is all about. Its full scope can be harnessed only through expansion of international cooperation that results in pooling together of technology and financial resources, sharing of best practices and a conscious policy of respecting international law. India is emerging as a leader in policy discourse on this cutting edge of multi-disciplinary knowledge. A premier business chamber, Ficci, is about to come out with an in-depth study on this subject. This study could contribute to concerted policy action by governments, business sectors and other stakeholders both in India and the region.

Business leaders of IORA countries held a “Business Summit” a day before the political summit. They lent strong support to develop partnerships for “a sustainable and equitable economic growth.” Economic dynamism of the private sector was stressed and a significant role has been assigned to the contribution by small and medium enterprises. The need for closer collaboration between businesses and governments was also highlighted in this context.

The IORA secretariat (which is based in Mauritius) has projected the Jakarta Summit as “a game changer”. This hope will need time to convert itself into a reality. Much will depend on the member states, particularly the major ones, and their capability to focus on producing tangible results. Their progress will also be moulded by the geopolitical environment in the Indo-Pacific region, especially the ongoing contestation between US and China.

South Africa assumes, in a few months, the mantle of chairmanship for the next two years (2017-2019) and can be counted upon to be proactive. India will do well by instituting a regular dialogue, at government and think tank levels, with the IORA Troika composed of Australia, Indonesia and South Africa.

Hasjim Djalal, an eminent Indonesian strategic thinker, aptly observed: “The Atlantic Ocean was the ocean of the past, the Pacific Ocean is the ocean of the present, and the Indian Ocean is the ocean of the future.” As India inevitably has a major role in shaping this future, it is hoped that the Modi government will pursue its declared policy of “security and growth for all in the region” (SAGAR), with greater vigour and determination.

The first step is to observe and decipher the unfolding strategic, political and economic dynamics in the Indian Ocean region.