1. The Contribution of India to the African Development Marcin Nowik marcin_nowik@interia.pl 14/06/2012, Pecs

2. Presentation outline 1.India as an emerging donor, what’s in it for Africa? (Instruments, figures and examples) 3.Motives & Rethoric 4.Added value 5.Critisism

3. Early India-Africa relations overview Pre-colonial trade across Indian ocean Cooperation within NAM, since Bandung Conference in 1955 Ghandi support for anti-apartheit movements Nehru support for African liberation movements Development assistance in form of technical cooperation, training, knowledge transfer Over 80s and 90s decline of mutual relations

4. How contemporary India contribute to African development? 1.Trade 2.Investment 3.Development cooperation

5. India as an emerging donor BrazilRSAIndiaChina assistance USD m 3564335473 136 assistance % GNI 0,030,180,050,09 9,2 bln inr in 2000 up to 29,1 bln inr in 2010, (excluding lines of credit) 22% average increase of Indian aid for Africa in the period of 1998-2008

6. Place of Africa in overall Indian assistance EXIM bank  Lines of credit  Export subsidies and guarantees Tied aid For Sub-saharan Africa: 44,15% in 2011 MoEA of India  Technical assistance ITEC SCAAP  In kind, projects, grants, GBS For Sub-saharian Africa: 4,85% in 2011-12 union budget

7. Active Lines of Credit as on March 31, 2011 (US$ million) Source: Exim Bank of India

8. Operative LOC examples:

9. India’s aid to African countries: grants and loans (Rupees million) Source: Union budget, 1998-2012

10. ITEC, SCAAP + ICCR The Indian Technical and Economic Cooperation Programme (since 1964, 2 bln USD), slots Components:  Training (civilian and defence) in India of nominees from ITEC partner countries;  Projects and project related activities;  Deputation of Indian experts abroad;  Study Tours;  Donation of equipment at the request of ITEC partner countries;  Aid for Disaster Relief.

11. TEAM- 9 Techno-Economic Approach for Africa- India Movement Burkina Faso, Chad, Equatorial Guinea, Ghana, Guinea- Bissau, Ivory Coast, Mali and Senegal + India 500 USD million Transfer of technologies and investment in: agriculture, small- scale industries, pharmaceuticals and healthcare, IT, rural electrification and transportation.

12. Pan-African e-Network Project (2007-2012)  Fiber-optic and wireless network  47-countries have already joined the project  Provide connectivity among the Heads of State of the African Union  Distance education and tele-medicine  Cost US$ 125 million

13. Consolidation effords  Bureaucracy  Corrupition  Misslocation  Lack of multiannual country/region strategy  India Development Initiative (2003)  Indian Agency for Partnership in Development (2011)

14. What motives stand behind Indian assistance for Africa? Taking into consideration…  India is home to roughly one-third of all poor people in the world. It also has a higher proportion of its population living on less than $2 per day than Sub- Saharan Africa.  Eight Indian states account for more poor people than in the 26 poorest African countries combined (2010)  The prevalence of underweight children in India is among the highest in the world, and is nearly double that of Sub-Saharan Africa (2000)

15. Two periods of Indian contribution I.Since country’s independence up to late 1980s -Ideological motives II. Since economic liberalisation of 1991 up to nowadays, intensified in the first decade of 21st century - Pragmatic motives: commercial and geopolitical

16. What are the major motives to engage in Africa? Energy security Third energy consumer up to 2030 0,4% global crude oil deposits Currently 24 - 30% Indian oil imports come from Africa Aid/infrastructure-for-oil strategy Investment in Sudan, Ivory Coast, Lybia, Nigeria, Gabon, Angola in oil extraction, processing and transportation Aid component: eg. ONGC, has invested US$10 million to build a railroad in Nigeria (2006)

17. Access to mineral resources Vedanta Resources, 750 m USD, Konkola, Zambia (copper) Arcelor-Mittal, 900 mln USD, Liberia (iron ore) Access to markets  7,7% of foreign trade of India is with Africa (3% in case of China, 2010)  Total value of commodities exchange: 42 bln usd, 2010- 11), 10 bln dificit  Dynamic increase (in 1991 it was less than 1 bln)  Indian diaspora in South-East Africa  Market smilarities (language, consumer preferences…)

18.  Kirloskar Brothers (agriculture and industrial devices)  Tata Group and Mahindra & Mahindra (automotive industry)  Ranbaxy Laboratories (pharmaceuticals)  RITES and IRCON (railways)  Bharati Airtel (telecomunication, Zain accisition, 10.7 bln USD, 42 m subscribers in 15 African countries)  Focus Africa Programme (2002)  Supply low-cost, appropriate for developing country

19. Political motives Diplomatic influence UN security council pernament seat Competition with China

20. Rethoric of Indian assistance Rooted deeply in Cold War period (NAM), Values: equality, true partnership, long-standing solidarity, mutual benefit and respect, more inclusive, people oriented strategy. Historical and cultural ties are underlined: pre-colonial trade, shared colonial history, Gandhi and Nehru support for Africa liberation.

21. Added value of Indian engagement in Africa -India’s own experience in democratic development and poverty alleviation; -Low cost and appropriate technology provided; -Comparative advantages in: pharmaceuticals, IT, education and training, vehicles, rural electrification, railways; -Competitive profit seeking operations of Indian MNCs. -Use of local components, workforce, materials in India’s FDI in Africa.

22. Critisim -Aid an instrument to foster own commercial and geopolitical interests -Indian policy towards Africa aims to develop India -Lack of equallity and true partnership -Indian investments harmful or exploitative -Indian exports competitive to local production -Inaccurate picture of long-lasting friendship

23. Thank you