India’s engagement in Africa: strategies, perspectives and dilemmas Dr Emma Mawdsley Cambridge University

Development Context: the changing geographies of economic and political power

India-Africa Africa’s share of India’s global trade increased from 5.8% in to 8% in (Vines 2008/9) trade value: $3.39 to $30 billion Association of Chambers of Commerce and Industry of India estimated $50 billion by 2012 India has pledged to double Lines of Credit to Africa to $5.4 billion by 2013

EXIM Bank operative Lines of Credit as of March 2008 (total value $2.963 billion) Percentage Sub-Saharan Africa42 North Africa18 Rest of Asia17 West Asia9 SE Asia, Far East, Pacific6 Latin America and Caribbean5 Europe and CIS3 Adapted from Chanana (2009)

Historical relations Pre-colonial trade ties Colonial ties –Indentured labourers, lower level colonial officials, traders Independence movements, Non-Aligned Movement, Nehruvian ‘idealism’ –E.g. 1967: India offered the ANC a base Post-1991: surging economy underpinning a growing global assertiveness and stature –Late 1990s onwards: re-engagement with the diaspora

Current relations Highly varied by sector and country (!) Geographical shift from Commonwealth/Anglophone Africa to West and Central Africa –2004: launch of TEAM-9 initiative –Additional ‘desk’ for Central Africa in the MEA Private firms and state contractors –Arcelor Mittal, Tata, Mahindra and Mahindra; also Railway Technical and Economic Services (RITES), Indian Railway Construction Company (IRCON), ONGC/OVL Full range of economic activities Sleep walking, slip-streaming and/or strategically emerging?

India’s history of development cooperation Decades of engagement and experience –Development assistance to Nepal from early 1950s; Indian Technical and Economic Cooperation Scheme established 1964 (competition with China) Dominated by Asian regional neighbours Modalities –Project-based and technical cooperation –Some infrastructure development (S. Asia) –Increasing financial instruments – Lines of Credit, concessional loans, debt relief Historically, dominated by NAM politics Historically, lead agent: Ministry of External Affairs

The geography of India’s dev coop Country/region o Bhutan Bangladesh Nepal Sri Lanka Myanmar Maldives Africa Afghanistan Central Asia Latin Americ Other LDCs Destination of India’s Aid Program (in US $) ¤ Excluding Lines of Credit. Source: Ministry of External Affairs, Annual Reports

Country/ Region Allocation (in Rs Billion) Revised Estimate Budget Estimate (Proposed) Bangladesh.6.16 Bhutan Nepal11.4 Sri Lanka Maldives Myanmar.2.56 Other developing countries ITEC.6.65 African countries.5.8 Central Asia.2.28 Afghanistan Total Aid Budget Table – 1 India’s Aid & Technical Assistance Outflows Source: Ministry of External Affairs, India-Outcome Budget

Current shifts and trends ECOSOC (2008) estimate net disbursement of Indian development cooperation in 2006: $504-$1000 million –China: $ ; Korea: $ ; Turkey: $714; Thailand: $74 India’s transition from recipient to donor Continued and growing focus on training and technical assistance –Est. 40,000 ITEC alumni globally; Africa gets c of c ITEC places (rising to 1600 out of 4000) Growing focus on ICTs –Pan Africa e-network

Current shifts and trends Growing focus on Lines of Credit: heavily tied Significant contribution to UN peace-keeping, World Food Programme Changes in the institutional structures of development cooperation –Increased role for Ministry of Commerce and the EXIM Bank –Discussions over an ‘India International Development Cooperation Agency –Closer ties to the private sector (e.g. CII)

Current Operating LOCs between India and East African countries Republic of Madagascar - rice productivity and fertilizer production (25 million USD) Republic of Tanzania – Agricultural Mechanization (tractor, pump and equipment/40 million USD) Republic of Djibouti - Cement plant project (10 million USD) Federal Democratic Republic of Ethiopia – Sugar processing industry (640 million USD) and energy transmission and distribution project (65 million USD) Central Bank of Djibouti - For financing goods and services from India (10 million USD) Eastern African Development Bank - For financing export of eligible goods and services to Uganda, Kenya and Tanzania (5 million USD) African Exim Bank - To facilitate purchase of capital and engineering goods, industrial manufactures, consumer durables and services and other items in any of the Afreximbank’s Member States (30 million USD) Eastern and Southern African Trade and Development Bank (PTA Bank) - For financing export of eligible goods and services to any PTA bank member countries viz., Burundi, Comoros, Djibouti, Egypt, Eritrea, Ethiopia, Kenya, Malawi, Mauritius, Rwanda, Seychelles, Somalia, Sudan, Tanzania, Uganda, Zambia and Zimbabwe (40 million USD) Zambia: $75 million LOC and $5 grant

Issues India is acutely aware of China’s presence and power Elite goodwill at the diplomatic and commercial level is not always matched by ordinary ethnic relations on the ground Push for stronger strategic leverage, but > institutional pluralisation LOCs better described as ‘economic diplomacy’ India’s development cooperation about promoting mutual economic growth, not poverty reduction per se Mostly cautious about declaring the advantages of/a model for democracy and development Cautious about development cooperation with DAC donors, triangular cooperation etc

Opportunities and challenges 1) What will be the impact of the NDDs on poverty reduction, development and well-being? 2) What will be the impact of the NDDs on the existing architecture of foreign aid – the dominant institutions, practices and ideologies of the DAC donors? 3) What part will NDD development assistance play in the wider economic and geopolitical changes that are emerging globally? 4) What challenges does the rise of the NDDs pose for contemporary theories of postcolonial politics, identity and development?