Challenges for Modi as world faces Biden era
The new year brought some cheer for a Covid- infested world with several vaccines — Pfizer, Oxford- AstraZeneca and Moderna — cleared to join battle to counter the pandemic, which cost the planet a year of social freedom, economic growth and mental peace. However, a second spike across Europe and the United States, a bitter American presidential election and clever repositioning by China have left international relations in an uncertain flux. Meanwhile, global stock markets have soared, reflecting more a sanguine assessment of the future than the troubled present. The lone black swan is Donald Trump and Iran settling scores in the dying moments of Mr Trump’s presidency, with unforeseen consequences.
Otherwise, three developments will condition global geopolitics hereafter. One, the swearingin of Joe Biden as the next US President on January 20. Two, China quickly spearheading two major agreements ; the Regional Comprehensive Economic Partnership ( RCEP), a trade agreement centred around the 10 Asean nations plus Japan, South Korea, Australia, New Zealand and China; and a Comprehensive Agreement on Investment ( CAI) between the European Union and China. Both were under negotiation for almost a decade. While the former was finalised in midNovember 2020, days after the US election, the latter followed a month later. India was part of the negotiating process of the former, but chose in 2019 to walk out, dissatisfied with the guarantees available in a playing field that appeared to be tilted towards the better positioned producers of goods in China, South Korea and Japan. Three, the success of the vaccination programme in pushing back the pandemic in developed Western countries, especially the US, and reviving jobs, demand and growth.
Normally, outgoing US Presidents lower their profile after their successor is elected and the two administrations create policy and implementation coordination through their transition teams. Mr Trump, who keeps repeating on the social media and whenever he’s in front of a microphone that his win has been stolen, has undermined that seamless process, which undermines trust in the United States. Mr Biden’s national security adviser ( designate) Jake Sullivan tweeted on December 21 that they would “welcome early consultations with our European partners on our common concerns on China’s practices”. Despite that, the EU under the half- yearly presidency of German Chancellor Angela Merkel, 10 days later signed the CAI with China. This reflected both European concern that Mr Trump may have lost but Trumpism survives and can return the loser having polled 74 million votes, as indeed the European dependence on the Chinese market. While Chinese investment in Europe is 120 billion euros, European return investment in China is 140 billion euros. All but Ireland already had investment agreements with China, but these were to protect investments, whereas the CAI assures market access in goods and services and provides one set of rules for all 27 EU members. China has also promised to enter the International Labour Organisation ( ILO) accords on labour protection and thus satisfy the common complaint about forced labour.
This undermines Presidentelect Biden’s hope for a united front of democracies and like- minded nations against China. All may not have been lost yet as the agreement will take time to be implemented. Similarly, by finessing the RCEP, China negated Mr Trump’s attempt to isolate and decouple trade and investment from it. If the CAI sends a signal to the Nato allies of the US abandoning it on economic and trade issues, the RCEP has showed that even in its immediate Asian neighbourhood, and despite its expansionist and aggressive conduct, China has managed to use the carrot to offset the stick.
After four years of being Trump bhakts, where does it leave the Indian government? The disruption caused by Mr Trump even in the Islamic world, by exacerbating the ShiaSunni and intra- Sunni divisions, has immediate implications for India on multiple counts, due to India having ridden the American wave rather than eke out an independent course. For instance, the excessive chumminess with the UAE and Saudi Arabia, built on existing excellent relations, begot increased counter- terror cooperation and their distancing from Pakistan. But the cost has been India damaging its bridges with Iran, Qatar and Turkey. Thus, like the rest of the world, India is now running to cover the exposed ground as the sun sets on the Trump administration. India’s external affairs minister S. Jaishankar surfaced in Doha, Qatar, on December 27- 28. This was not surprising as the last high- level visit was in 2016 when Prime Minister Narendra Modi went to Qatar. Since 2017, when Mr Trump began his foreign travel as President by his visit to Riyadh, and the Saudis and Emiratis aligned against Qatar, India just followed their lead and ignored Qatar.
Nearer home, without Iran, any independent Afghan policy becomes a non- starter as India lacks any land connectivity. That will start becoming more apparent as the Taliban, gradually consolidating their hold over more areas in Afghanistan, take their fightandtalk to the next level. They are waiting for the exit of US troops and financial aid and air cover to diminish before moving to finish the game.
Therefore, as the Indian government repositions to counter the new reality, it has some advantages and two major domestic drawbacks. The advantage is that the US also has less space remaining for manoeuvre, increasing India’s value as a quasi- ally. NSA designate Jake Sullivan had on Fareed Zakaria’s CNN programme articulated the Biden administration’s worldview, debunking notions of a US decline, as they have the capacity for correction, renewal and improvement. The notion of “foreign policy for the middle class” is hearkening to core values and obtaining positive results for the people and the world. Foreign and domestic policies are intertwined.
All this could also be valid advice for the Modi government, that is nearing its two- year mark in its second term. The drawbacks are mainly two. It must win the trust of farmers and stop minority baiting by its various state governments and using bigotry as ballast for its electoral machine. Otherwise, while the Chinese have redeployed geopolitically, keeping one foot on India’s neck in Ladakh, the US shall not show Trumpian indulgence for its majoritarianism. Meanwhile, more and more Indians are beginning to ask whether the Modi government is all theatre or really a defender of the people and national interests.
The disruption caused by Mr Trump, even in the Islamic world, has immediate implications for India on multiple counts, due to India having ridden the American wave rather than eke out an independent course